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what it is
It sells funerals, cremations, burials, and cemetery services across 44 states, 8 Canadian provinces, and Puerto Rico.
how it gets paid
Last year Sci made $4.3B in revenue. At-need funeral services was the main engine at $1.56B, or 36% of sales.
why it's growing
Revenue grew 2.9% last year. The key number was the 25.9% gross margin.
what just happened
SCI missed by a penny, with EPS at $1.13 versus the $1.14 estimate.
At a glance
B+ balance sheet — decent shape, but not bulletproof
70/100 earnings predictability — reasonably predictable
20.9x trailing p/e — priced about right
1.8% dividend yield — cash in your pocket every quarter
13.0% return on capital — nothing to write home about
xvary composite: 59/100 — below average
What they do
It sells funerals, cremations, burials, and cemetery services across 44 states, 8 Canadian provinces, and Puerto Rico.
Scale is the moat. SCI has 1,487 funeral locations and 499 cemeteries, so your local operator is usually competing with a company that buys better, advertises wider, and spreads costs across 1,986 sites. That shows up in a 30.0% operating margin and 85/100 price stability, which is finance-speak for steadier profits and a stock that usually acts less dramatic than the market.
How they make money
$4.3B
annual revenue · their business grew +2.9% last year
At-need funeral services
$1.56B
+1.0%
Preneed funeral sales
$0.75B
+3.0%
Cemetery property sales
$0.82B
+4.0%
Cemetery merchandise & services
$0.98B
+3.0%
Ancillary services
$0.19B
+2.0%
The products that matter
funeral homes and cemetery services
Funeral Services & Cemeteries
$4.3B revenue · entire business
it's the full $4.3B company. revenue grew 2.9% last year, and average revenue per service reached $5,852 in the latest update. demand is steady over time, but quarter to quarter the mix between volume and price still decides the tone.
100% of revenue
Key numbers
30.0%
operating margin
Operating margin → profit after running the business → so what: SCI keeps $0.30 from each revenue dollar before interest and taxes.
$5.0B
long-term debt
That is 31% of capital, which means buybacks and dividends work best if cash flow stays steady.
13.0%
return on capital
Return on capital → profit from money invested → so what: SCI earns decent returns, but this is not a wildly high-return machine.
1.8%
dividend yield
You are not buying SCI for huge income. You are buying a steady operator that also pays you a little while it repurchases stock.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 85 / 100
- long-term debt $5.0B (31% of capital)
- net profit margin 15.9% — keeps 16 cents of every dollar in revenue
- return on equity 34% — $0.34 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in SCI 3 years ago → it's now worth $11,540.
The index would have given you $13,880.
source: institutional data · total return
What just happened
missed estimates
SCI missed by a penny, with EPS at $1.13 versus the $1.14 estimate.
The miss was tiny, but the underlying business still showed growth. Latest-quarter revenue was $3.2B, up 202% vs. prior year, while EPS rose 223% to $2.68 and gross margin was 25.9%.
$3.2B
revenue
$2.68
eps
25.9%
gross margin
the number that mattered
The key number was the 25.9% gross margin, because margin holds tell you SCI still has pricing power even when volume gets soft.
-
service corp.international was scheduled to release fourth-quarter and full-year financial results after this issue went to press.
-
the largest provider of north american deathcare services likely saw modest top-line growth.
-
recall, funeral service volume was weak in the september quarter.but an increase in average revenue per service ($5,852; from $5,678 in the same period a year ago) showcased efficient pricing power. overall, we think relatively weak death rates contributed to flattish top-line comparisons for the final stanza.
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elsewhere, shareholders may continue to benefit from lower corporate overhead and aggressive share buyback strategies.
-
confidence in the company’s services is strong, and growing.
source: company earnings report, 2026
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What could go wrong
the #1 risk is pricing no longer offsetting weak funeral service volume.
high
volume stays soft while pricing cools
the latest read already showed weak funeral service volume. SCI got away with it because average revenue per service rose to $5,852 from $5,678.
If that pricing lift fades, the 14.1% net margin gets harder to defend.
med
$5.0B of debt limits your room for error
long-term debt is $5.0B, or 31% of capital. That is manageable in a steady business. It is less comfortable if volume and margins soften at the same time.
This is not distress math today. It is flexibility math if results slip.
med
the stock already gets paid for being stable
SCI trades at 20.9x trailing earnings with a 1.8% dividend yield, and it still trailed the index by $2,340 on a $10,000 investment over 3 years.
If investors stop treating it like a defensive compounder, the multiple does some of the damage before the dividend helps.
If price per service stops rising while volume stays soft, SCI loses the buffer protecting both its 14.1% net margin and its 20.9x earnings multiple.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
average revenue per service
$5,852 versus $5,678 was the recent save. If that spread stops widening, the earnings cushion thins fast.
trend
funeral service volume
price did the work last quarter. You want to see whether volume stabilizes instead of leaving price to do everything.
risk
debt versus margin
$5.0B of long-term debt looks fine while margins hold. It gets more interesting if that 12.6% quarterly margin drifts lower.
calendar
next earnings for volume confirmation
the next report needs to answer one simple question: did pricing keep offsetting soft volume, or is that trade losing power.
Analyst rankings
short-term outlook
average
momentum score 3 — in human-speak, analysts do not see a near-term breakout.
risk profile
average
stability score 3 — safer than some consumer names, nowhere close to a bunker stock.
chart momentum
average
technical score 3 — the chart is moving like the market, not leading it.
earnings predictability
70 / 100
better than many stocks, but volume swings still create noise. You should expect some quarters to look messier than the business is.
source: institutional data
Institutional activity
240 buyers vs. 255 sellers in 3q2025. total institutional holdings: 0.1B shares.
source: institutional data
Price targets
3-5 year target range
$70
$116
$81
current price
$93
target midpoint · +15% from current · 3-5yr high: $145 (+80% · 17% ann'l return)
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