Corporate Webpages Service Corp International Inc.
Texas-based Service Corporation International (SCI) deals with mortuaries
and cemeteries. It is the largest such provider in the U.S. after a
merger with Stewart Enterprises which was the second largest
funeral services provider, a $1.4 billion acquisition. While
SCI continues to due heavy financing, selling bonds and
increasing outstanding stock shares, it is gobbling up and
consolidating the funeral industry.
Elements of the corporate name are shared with other
corporations, and in particular some confusion might result
especially in obtaining news items with Service International, a
foreign-based oil services industry stock.
This stock did not make the "cut" as a buy stock, as problems
with its fundamental stucture showed up in the Zenith Index
including havey intangibles, increasing heavy debt load, cash
flow problems, and unfavorable borrowing rates. Also earnings
are increasing faster than revenues on a percentage basis, a
trend that is not sustainable.
The stock pays a 1.5% dividend, has good management reporting,
but lacks a CEO Letter to Shareholders or glitzy annual report.
Nonetheless, we think while executives may be somewhat overpaid,
the company has reasonable governance. The stock looks fairly
"safe" and predictable, currently at the top of a recent trading
range and could make a good channeling (trading range) stock
which may be now a good short sale.
The funeral industry faces challenges including when people
decide to prepare for death, environmental concerns such as
where to get water to keep cemeteries green, and labor problems.
SCI has had problems with Teamsters union.
After a spate of acquisitions two or three years ago, news on
this corporation is fairly limited to quarterly reports and
occasional community involvement and capital expenditures. We
regard this as a low-risk stock with excellent predictability.
(WAIT FOR PAGE TO LOAD COMPLETELY BEFORE LINKS WORK.)
Company Profile
Company History
News
Comparison with Peers
Bond Issue
Zenith Index
Financial Statements
Avg. P/E to Current P/E
Financial Ratios
Intrinsic Value (Disc. CashFlow)
Fair Value Estimator
Projected Earnings
Research Reports
Analysts' Opinions
Insider Activity
Institutional Activity
Sentiment
Short Interest
Standard & Poor's
Management's Discussion
Channel Potential
MACD Histogram
Intraday Chart
Val Idea
Stock Consultant
Point & Figure Chart
Wall Street Analyzer
Marketspace Chart
Time Series Forecast
Neural Network Prediction
Stock Options
Ultimate Trading Systems
Recommendation
Company Profile |
Company History |
News |
Comparison |
Similar Companies Performance:
Bond Issue |
Zenith Index |
Under current market conditions, a Zenith Index Score of 1.20 or above is required for a positive rating on this factor. 1.21 -1.30 is considered acceptable, 1.30-1.40 is considered strong and
> 1.40 is considered exceptionally strong. Accounting statements in this section often contain mistakes, especially in earlier years' totals, but data is deemed sufficient for us to give a rating. More accurate financial statements follow in the next section.
Service Corporation International (SCI) Exchange: NYSE 1929 Allen Parkway Houston, TX 77019 Sector: Consumer Cyclical United States Industry: Personal Services Service Corporation International provides deathcare products and services in the United States and Canada. The company operates through Funeral and Cemetery segments. Its funeral service and cemetery operations comprise funeral service locations, cemeteries, funeral service/cemetery combination locations, crematoria, and other businesses. The company also provides professional services relating to funerals and cremations, including the use of funeral facilities and motor vehicles; arranging and directing services; and removal, preparation, embalming, cremation, memorialization, and travel protection, as well as catering services. In addition, it offers funeral merchandise, including burial caskets and related accessories, urns and other cremation receptacles, outer burial containers, flowers, online and video tributes, stationery products, casket and cremation memorialization products, and other ancillary merchandise. Further, the company's cemeteries provide cemetery property interment rights, such as developed lots, lawn crypts, mausoleum spaces, niches, and other cremation memorialization and interment options; and sells cemetery merchandise and services, including memorial markers and bases, outer burial containers, flowers and floral placements, graveside services, merchandise installations, and interments, as well as offers preneed cemetery merchandise and services. Service Corporation International offers its products and services under the Dignity Memorial, Dignity Planning, National Cremation Society, Advantage Funeral and Cremation Services, Funeraria del Angel, Making Everlasting Memories, Neptune Society, and Trident Society brands. As of December 31, 2018, it owned and operated 1,481 funeral service locations; and 481 cemeteries, including 286 funeral service/cemetery combination locations covering 44 states, 8 Canadian provinces, the District of Columbia, and Puerto Rico. The company was founded in 1962 and is headquartered in Houston, Texas. Last Trade: 46.81 52-Week Range: 47.46 - 36.88 Employees: 24,000 Avg.Volume: 939,372 Shares Corporate Governance: Pillar scores are Audit: 2; Board: 4; Shareholder Rights: 5; Compensation: 2. (A lower number means less governance risk.) EPS: 2.39 Dividend Amount: $ 0.72 Yield: 1.56% Ex-Dividend Date: Jun 13, 2019 Payout Ratio: 28.87 Key Statistics: Trailing P/E: 19.49 Forward P/E (est.): 21.89 Target Price: 50.50 Qrtly Stock Price Growth (yoy): 25.13% Beta: 0.00 Qrtly S&P Index Growth (yoy): 0.00% Short Ratio: 13.58% Qrtly Revenue Growth (yoy): 6.48% Shares Out: 182240000 Qrtly Earnings Growth (yoy): 0.00% Book Value: 0.00 Debt/Equity: 0.00% Price/Book Value: 5.00 Operating Profit Margin: 0.00% Price/Sales: 2.66 Profit Margin: 0.00% Market Cap: 8,498,000,000 Return on Equity: 0.00% Enterprise Value: 11,910,000,000 Return on Assets: 0.00% Operating Cash Flow: 615,830 Free Cash Flow: -127,972 Annual Income Statement: (All numbers in thousands) Period Ending 12/31/2018 12/31/2017 12/31/2016 Total Revenue 3,190,174 3,095,031 3,031,137 Cost of Revenue 1,564,062 1,523,929 1,510,101 Gross Profit 1,626,112 1,571,102 1,521,036 Operating Expenses: Research & Development 0 0 0 Selling, General & Administrative 1,008,785 979,036 959,232 Non-Recurring Expenses 0 0 0 Other Operating Expenses 0 0 0 Total Operating Expenses 2,572,847 2,502,965 2,469,333 Operating Income or Loss 617,327 592,066 561,804 Income from Continuing Operations: Total Other Income/Expenses Net -175,595 -191,808 -235,146 Earnings Before Interest & Taxes 617,327 592,066 561,804 Interest Expense -181,556 -169,125 -162,093 Income Before Taxes 441,732 400,258 326,658 Income Tax Expense -5,826 -146,589 149,353 Minority Interest -88 47 2,534 Net Income from Continuing Op.s 447,558 546,847 177,305 Non-recurring Events: Discontinued Operations 0 0 0 Extraordinary Items 0 0 0 Effect of Accounting Changes 0 0 0 Other Items 0 0 0 Net Income 447,208 546,663 177,038 Preferred Stock & Other Adjustments 0 0 0 Net Income Avail to Common Shares 447,208 546,663 177,038 Annual Cash Flow Statement: (All numbers in thousands) Period Ending 12/31/2018 12/31/2017 12/31/2016 Net Income 447,558 546,847 177,305 Operating Activities: Depreciation 248,485 248,893 244,934 Adjustments to Net Income -25,569 -299,627 69,226 Changes in Accounts Recv'bls 8,052 -9,740 -14,198 Changes in Liabilities 11,306 112,945 82,663 Changes in Investories 0 0 0 Changes in other Oper'g Acts -79,711 -101,621 -76,454 Total Cash Flow f Operations 615,830 503,372 489,035 Investing Activities: Capital Exenditures -235,545 -214,501 -193,446 Investments 2,900 2,900 2,900 Other Cash Flows fr Investing -9,936 -4,768 -6,533 Total Cash Flows from Investing -414,621 -242,884 -221,025 Financing Activities: Dividends Paid -123,849 -108,750 -98,418 Sale of Purchase of Stock 0 0 0 Net Borrowings 47,762 155,868 93,738 Other Cash Flows fr Financing 0 -17,519 -6,533 Total Cash Flows from Financing -329,181 -136,427 -209,454 Effect of Exchange Rate Chg 0 0 0 Change in Cash & Cash Equiv. 5,034 1,857 -10,025 Annual Balance Sheets: (All Numbers in Thousands) Period Ending 12/31/2018 12/31/2017 12/31/2016 Current Assets: Cash & Cash Equivalents 198,850 330,039 194,986 Short Term Investments 0 0 0 Net Receivables 82,158 98,880 102,064 Inventory 24,950 25,378 26,431 Other Current Assets 20,227 22,580 26,478 Total Current Assets 326,185 476,877 349,959 Long-Term Investments 0 0 0 Property, Plant & Equipt 1,977,364 1,873,044 1,827,587 Goodwill 1,863,842 1,805,981 1,799,081 Intangible Assets 433,830 374,099 368,065 Accumulated Amortization 0 0 0 Other Assets 8,086,975 8,330,083 7,689,020 Deferred LT Asset Charges 673 873 861 Total Assets 12,693,243 12,864,503 12,038,149 Current Liabilities: Accounts Payable 173,361 173,685 155,802 Current Portion LT Debt 69,896 337,337 89,974 Other Current Liabilities 5,936 2,470 7,960 Total Current Liabilities 555,600 828,979 537,870 Long Term Debt 3,532,182 3,135,316 3,196,616 Other Liabilities 6,963,646 7,490,771 7,208,416 Deferred LT Liab. Charges 282,283 0 0 Minority Interest -88 47 2,534 Negative Goodwill 0 0 0 Total Liabilities 11,051,428 11,455,066 10,942,902 Stockholder Equity: Misc. Options, Warrants 0 0 0 Redeemable Preferred Stock 0 0 0 Preferred Stock 0 0 0 Common Stock 184,721 191,936 195,403 Retained Earnings 474,327 210,364 -103,387 Treasury Stock 10,145 36,622 10,494 Capital Surplus 972,710 970,468 990,203 Other Stockhohlder Equity 13,395 41,943 16,492 Total Stockholder Equity 1,641,903 1,409,390 1,092,713 Net Tangible Assets -655,769 -770,690 -1,074,433 Service Corporation International (SCI) [Indices near +3.0, near zero, or < zero bear special attention.] P/E Ratio Tests: P/E Ratio < 28? 1.4366 P/E Ratio > 5? 1.0000 P/E Ratio Vs Growth Rate: 0.0000 Forward P/E Ratio < 28? 1.2791 Price/Sales Ratio < 2.3? 0.8647 Inventory/Sales < 5%? 3.0000 Sales < $1 Billion? 0.3135 Operating Margin < 7.5%? 0.0000 Balance Sheet Tests: Debt/Equity < 0.40? 1.0000 Long-Term Debt Service: 0.4648 LTD Being Reduced? -3.0000 Short-Term Debt Service: -3.0000 Current Ratio > 2? 0.2935 Working Capital >= 1.5? 2.5891 Leverage Ratio < 20%? 0.0185 Debt/Assets < 1? 3.0000 Quick Ratio > 1? 3.0000 Inventory Turnover > 1? 0.0097 Share Equity Increase: 2.4548 Market Cap.< 1.5 Billion? 0.1765 Intangibles < 3% Assets? 0.1657 Income Tests: Profit Margin < 7.5%? 0.0000 EPS Annual Growth > 10%? 0.1222 Dividend Yield > 2.0%? 1.2821 EPS 3-yr Growth > 15? 0.0594 Enterprise Value/Revenue 2.6648 EPS Growth Consistent? 0.0000 Enterprise Value/EBITDA: 3.0000 Collection < 45 days? 3.0000 EPS Qrtly Growth > 10%? 0.0000 Gross Pft/Cur. LTD > 1? 3.0000 Borrowing Int. Rate < 6%? -1.1673 Stock Performance Tests: Volatility > 25%? 0.8917 % Held by Insiders < 5%? 1.3514 Beta > 1.25? 0.0000 % Held by Institut. < 50? 0.5363 50 Da MA > 200 Da MA? 0.1820 % Held by Institut. > 30? 3.0000 52-Wk Change vs. S&P 500: 3.0000 Short Ratio > 5? 2.7160 Price/Book Value < 3? 3.0000 Short % of Float > 20? 0.3275 Return on Assets > 17%? 0.0000 Average Volume > 100,000? 3.0000 Cash Flow Tests: Oper. C.F. > Lever'd C.F: -3.0000 Positive Free Cash Flow? -1.0000 Positive Oper. Cash Flow? 3.0000 Price to C.F.Ratio < 14?: 2.2399 Cash Flow / Assets > 10%? 1.0711 SCI Service Corporation International Overall Zenith Index: 0.9662
Financial Statements |
SERVICE CORP INTERNATIONAL (SCI) INCOME STATEMENT Fiscal year ends in December. USD in thousands 2014-12 2015-12 2016-12 2017-12 2018-12 TTM Revenue 2,994,012 2,986,380 3,031,137 3,095,031 3,190,174 3,193,904 Cost of revenue 2,318,199 2,314,435 2,354,703 2,372,842 2,429,852 2,437,510 Gross profit 675,813 671,945 676,434 722,189 760,322 756,394 Operating expenses Sales, General and administrative 184,877 128,188 137,730 154,423 145,499 153,245 Total operating expenses 184,877 128,188 137,730 154,423 145,499 153,245 Operating income 490,936 543,757 538,704 567,766 614,823 603,149 Interest Expense 177,571 172,897 162,093 169,125 181,556 185,370 Other income (expense) 89,235 -509 -49,953 1,617 8,465 13,892 Income before taxes 402,600 370,351 326,658 400,258 441,732 431,671 Provision for income taxes 225,980 135,027 149,353 -146,589 -5,826 -13,052 Net income from continuing operations 176,620 235,324 177,305 546,847 447,558 444,723 Net income from discontinuing ops 2,186 -390 0 0 0 0 Other -6,337 -1,162 -267 -184 -350 -180 Net income 172,469 233,772 177,038 546,663 447,208 444,543 Net income available to common shareholders 172,469 233,772 177,038 546,663 447,208 444,543 Earnings per share Basic 0.82 1.17 0.92 2.91 2.45 2.45 Diluted 0.81 1.14 0.90 2.84 2.39 2.39 Weighted average shares outstanding Basic 210,741 200,356 193,086 187,630 182,447 181,588 Diluted 214,200 204,450 196,042 192,246 186,972 185,820 ____________________________________________________________________________________________________________________________________________ SERVICE CORP INTERNATIONAL (SCI) BALANCE SHEET Fiscal year ends in December. USD in thousands 2014-12 2015-12 2016-12 2017-12 2018-12 Total cash 177,335 134,599 194,986 330,039 198,850 Receivables 76,148 65,769 64,682 61,092 54,986 Inventories 29,697 27,835 26,431 25,378 24,950 Deferred income taxes 1,128 0 0 0 0 Prepaid expenses 5,270 5,398 4,437 4,419 5,047 Other current assets 107,278 74,808 63,860 60,368 47,399 Total current assets 396,856 308,409 354,396 481,296 331,232 Non-current assets Property, plant and equipment Gross property, plant and equipment 3,143,044 3,228,910 3,292,839 3,448,003 3,647,332 Accumulated Depreciation -1,281,641 -1,382,188 -1,465,252 -1,574,959 -1,669,968 Net property, plant and equipment 1,861,403 1,846,722 1,827,587 1,873,044 1,977,364 Equity and other investments 4,496,904 4,297,039 4,512,211 5,009,202 4,851,507 Goodwill 1,810,853 1,796,340 1,799,081 1,805,981 1,863,842 Intangible assets 393,781 370,005 368,065 374,099 433,830 Deferred income taxes 18,778 0 861 873 673 Other long-term assets 2,945,069 3,100,373 3,175,948 3,320,008 3,234,795 Total non-current assets 11,526,788 11,410,479 11,683,753 12,383,207 12,362,011 Total assets 11,923,644 11,718,888 12,038,149 12,864,503 12,693,243 Liabilities and stockholders' equity Liabilities Current liabilities Short-term debt 118,729 116,989 110,901 364,580 86,117 Accounts payable 137,270 140,045 155,802 173,685 173,361 Taxes payable 22,381 12,967 20,843 13,011 24,448 Accrued liabilities 186,734 162,487 161,932 182,470 181,371 Other current liabilities 86,894 86,908 88,392 95,233 90,303 Total current liabilities 552,008 519,396 537,870 828,979 555,600 Non-current liabilities Long-term debt 2,963,794 3,071,738 3,196,616 3,135,316 3,532,182 Deferred taxes liabilities 688,089 704,760 690,263 394,765 406,500 Deferred revenues 4,832,009 4,743,483 4,940,226 5,385,988 4,917,443 Pensions and other benefits 35,614 28,582 26,630 25,416 21,532 Minority interest 8,652 4,709 2,534 47 -88 Other long-term liabilities 1,474,752 1,461,528 1,551,297 1,684,602 1,618,171 Total non-current liabilities 10,002,910 10,014,800 10,407,566 10,626,134 10,495,740 Total liabilities 10,554,918 10,534,196 10,945,436 11,455,113 11,051,340 Stockholders' equity Common stock 204,867 195,773 189,405 186,615 181,471 Additional paid-in capital 1,186,304 1,092,106 990,203 970,468 972,710 Retained earnings -81,859 -109,351 -103,387 210,364 474,327 Accumulated other comprehensive income 59,414 6,164 16,492 41,943 13,395 Total stockholders' equity 1,368,726 1,184,692 1,092,713 1,409,390 1,641,903 Total liabilities and stockholders' equity 11,923,644 11,718,888 12,038,149 12,864,503 12,693,243 ____________________________________________________________________________________________________________________________________________ SERVICE CORP INTERNATIONAL (SCI) Statement of CASH FLOW Fiscal year ends in December. USD in thousands 2014-12 2015-12 2016-12 2017-12 2018-12 TTM Cash Flows From Operating Activities Net income 176,620 235,324 177,305 546,847 447,558 444,723 Depreciation & amortization 237,081 235,322 244,934 248,893 248,485 249,491 Investments losses (gains) 0 0 0 0 -2,636 0 Stock based compensation 13,127 13,843 14,056 14,788 15,626 16,495 Change in working capital -111,855 -21,592 -12,905 552 -60,353 -82,229 Accounts receivable -32,251 -47,656 -87,592 -73,734 -47,555 -69,617 Accounts payable -12,038 20,567 47,888 81,763 -16,699 -7,640 Other working capital -67,566 5,497 26,799 -7,477 3,901 -4,972 Other non-cash items 2,382 9,289 40,205 -308,740 -32,850 -39,212 Net cash provided by operating activities 317,355 472,186 463,595 502,340 615,830 589,268 Cash Flows From Investing Activities Investments in property, plant, and equipmen -144,499 -150,986 -193,446 -214,501 -14,525 -255,402 Acquisitions, net 409,047 -24,486 -27,836 -21,559 -157,515 -141,509 Sales/Maturities of investments 0 0 0 0 2,900 0 Other investing activities -7,262 9,053 5,150 175 -245,481 -8,561 Net cash used for investing activities 257,286 -166,419 -216,132 -235,885 -414,621 -405,472 Cash Flows From Financing Activities Debt issued 755,000 446,250 1,060,000 1,787,500 396,349 226,349 Debt repayment -1,022,705 -386,198 -944,643 -1,637,591 -333,410 -211,827 Common stock repurchased -242,874 -345,261 -227,928 -199,637 -277,611 -173,356 Excess tax benefit from stock based compe 30,123 18,123 12,685 0 0 0 Dividend paid -71,517 -87,570 -98,418 -108,750 -123,849 -125,321 Other financing activities 14,006 16,178 9,374 22,051 9,340 35,793 Net cash provided by (used for) financing -537,967 -338,478 -188,930 -136,427 -329,181 -248,362 Effect of exchange rate changes -2,284 -10,025 1,854 5,025 -5,045 -2,360 Net change in cash 34,390 -42,736 60,387 135,053 -133,017 -66,926 Cash at beginning of period 141,584 177,335 134,599 194,986 340,601 227,320 Cash at end of period 175,974 134,599 194,986 330,039 207,584 160,394 Operating cash flow 317,355 472,186 463,595 502,340 615,830 589,268 Capital expenditure -144,499 -150,986 -193,446 -214,501 -250,070 -255,402 Free cash flow 172,856 321,200 270,149 287,839 365,760 333,866 ____________________________________________________________________________________________________________________________________________
Average to Current P/E Ratios |
(SCI) Service Corp. International 2014 2015 2016 2017 2018 Annual Earnings: 0.81 1.15 0.90 2.84 2.39 Average Price During Year: 19.98 27.23 26.14 32.50 39.58 P/E Ratio: 24.66 23.68 29.04 11.44 16.56 Average 5-Year P/E Ratio = 21.08 Current Price = 46.81 Previous 5 Quarter Earnings: 0.43 0.55 0.37 1.04 0.43 Current Annualized (Last Four Quarters) Earnings = 1.84 ________ Average PE / Current PE = 0.83 -------- ...a number above 1.00 is good 1.00 or below is bad
Financial Ratios |
. . . . . . . . . . . . Lowest to Highest, Compared to Industry
Intrinsic Value (DCF) |
Intrinsic Value by Discounted Cash Flow Method:
Fair Value Estimator |
Fair Value Estimate:
Projected Earnings |
Research Reports |
Analysts' Opinions |
Insider Activity |
Institutional Activity |
Institutional Orders to Buy or Sell:
Sentiment |
Zenith uses the "sentiment" score above or below 50 to award a positive or negative point in the Decision Matrix.
Short Interest Ratio |
As the short interest rises as a percentage of average daily share volume (Days to Cover), this is considered a measure of negative sentiment. Similarly, a decrease in that percentage is considered positive sentiment.
Standard & Poor's |
Management's Discussion of Results of Operations Excerpts |
Channeling Potential |
The summary below includes a value for `Degree,' which refers on a scale of 1 to 10 the range of a channel in the period under consi- deration compared to the total range of price movement. It also looks for the last closing price to be within the channel, otherwise zeroed. The `Index' is the `Degree' weighted for volatility. Generally, the the higher the index, the more suitable is the stock for trading as a `rolling stock' between channel high and low points. Results for SERVICE CORP. INTERNATIONAL: Symbol? SCI Total Months Available: 25 Months in Cycle? 4 Months Covered by Periods: 12 Period 1 Period 2 Period 3 H1 L1 H2 L2 H3 L3 44.53 36.24 47.09 37.52 47.46 38.92 RANGE = 47.46 TO 36.24 Close = 46.81 CHANNEL = 44.53 TO 38.92 Degree = 5 Volatility = 11.98% Index = 5
MACD Histogram Divergence |
The theory is that connecting the two most recent peaks or valleys of the MACD histogram will signal the direction of the next major move.
Intraday Chart |
2 Days:
Val Idea |
3 out of 8 favorable, (negative opinion.)
Stock Consultant |
Point & Figure Chart |
Wall Street Analyzer |
Marketspace Chart |
Time Series Forecast |
Neural Network Prediction |
"Neurostock" can only track long trades. Therefore its performance, as tracked by itself on stocks which are consistently falling, may not appear as good as it could if each "sell" signal were a "short sale."
Ultimate Trading Systems |
2 out of 3 of the ultimate systems favor an upmove.
System Below:
Short term outlook: Positive: Bright Green, Negative: Bright Red
Long term outlook: Postive: Dark Green, Negative: Dark Red.
Recommendation |
Factors | Weighted Points |
---|---|
News | + 1 |
Comparison | + 1 |
Industry | - 1 |
Bond Issue | + 1 |
Zenith Index | - 1 |
Non-GAAP vs. GAAP Earnings | - 1 |
Cash Flow | - 1 |
Average to Current P/E | - 1 |
Ratios | - 1 |
Intrinsic Value DCF | + 1 |
Fair Value Estimator | + 1 |
Projected Earnings | + 1 |
Research Reports | + 1 |
Analysts | + 1 |
Executive Perquisites | - 1 |
Insider Activity | - 1 |
Institutional Activity | - 1 |
Management Reporting | + 1 |
Short Interest | + 1 |
Sentiment | - 1 |
Standard & Poor's | - 1 |
MACD Histogram Divergence | - 1 |
Val Idea | - 1 |
Stock Consultant | - 1 |
Point & Figure | + 1 |
Wall Street Analyzer | + 1 |
Marketspace Chart | + 1 |
Time Series Chart | - 1 |
Neural Network | - 1 |
Stock Options | + 1 |
Ultimate Trading Systems | + 1 |
Total | - 1 |
Place 635 shares of Service Corporation International (SCI) on the Active List.