Service Corporation International
Key Drivers
- High profitability
- Elevated leverage
- Working-capital risk
AIAI Summary
Treat SCI as a cash‑return/capital‑allocation investment: upside depends on sustaining annual FCF and disciplined buybacks/dividends rather than revenue growth, so require consistent quarterly cash conversion and margin stability to justify current multiples. Key risks to monitor are elevated leverage, lumpy preneed receivable/deferred revenue timing (SCI Direct insurance transition) and rising cash taxes—if any of these derail cash conversion, the buyback‑driven EPS thesis breaks down.
Price Chart
Financial Metrics
Deep Analysis
Research tool. Not personalized advice.
Fundamental Analysis
Key Financial Insights:
- •High profitability
- •Elevated leverage
- •Working-capital risk
SCI delivers strong profitability and cash generation (FY EBITDA margin ~28%, ROE 34%, FCF $484m) but carries material short-term liquidity and solvency risk (current ratio 0.55, cash $244m vs $5.14bn debt, negative working capital) that elevates cash-conversion and leverage concerns.
Price Behavior
Key Price Behavior Insights:
- •Below last-month SMA
- •Extremely oversold
- •Resistance low-$80s
SCI is in a short-term downtrend—spot $75.43 sits well below the last month SMA (~$80.20) with RSI ≈11 (extreme oversold) suggesting a likely short relief bounce but strong resistance in the low-$80s (recent peak ≈$85.30).
RSI plunged to ~11 and price tested $75 on 2026-03-20 indicating extreme oversold conditions
Sentiment & News
Key News Insights:
- •Pre-need float
- •Aggressive buybacks
- •Institutional interest
SCI appears to be entering a new growth cycle driven by post‑COVID normalization, a large pre‑need float and aggressive buybacks, reinforced by Buy ratings, institutional purchases, and active management outreach.
The combination of operational normalization, buybacks and renewed investor engagement should support a higher valuation multiple and stronger EPS trajectory
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