SCI Stock Analysis — Service Corporation International
Sector: Consumer Services
AI Verdict
SCI trades at 18.5x next year's earnings for 8.2% growth, which is fair but not cheap, so you're paying up for the moat of local dominance and scale rather than rapid expansion.
Competitive Moat
SCI operates the largest network of funeral homes and cemeteries in North America, giving it scale advantages in procurement, marketing, and regulatory compliance. Its extensive real estate holdings and established local brands create high barriers to entry for new competitors.
Summary
SCI's scale in funeral services lets it command steady pricing power in a fragmented industry.
Where It Stands
SCI trades at 18.5x next year's earnings, just below the consumer staples median of 20x, with forward EPS growth expected at 8.2%.
Key Metrics
- Trailing P/E: 20.0x
- Forward P/E: 18.5x
- PEG Ratio: 2.43
- Earnings Growth: +0.1%
- Revenue Growth: +0.0%
- Dividend Yield: 0.02%
- 52-Week High: $88.67
- 52-Week Low: $74.31
Analyst Consensus
10 Buy · 1 Hold · 0 Sell (11 analysts)
Bull Case
With a forward P/E of 18.5x and 8.2% forecasted EPS growth, SCI offers a stable earnings profile at a reasonable multiple for its sector.
Bear Case
A PEG ratio of 2.43 means investors are paying a premium the earnings growth doesn't fully justify, so any P/E compression toward the sector median could cut 8–10% from the stock.
Catalyst to Watch
Watch for updates on acquisition activity or regulatory changes that could affect SCI's local market dominance.