Service Corp Intl (SCI)
NYSEConsumer DiscretionaryPersonal Products & ServicesSnapshot 2026-09-04
$82.21-0.69%
Close 2026-09-04 · 1-day change
NYSEConsumer DiscretionaryPersonal Products & ServicesSnapshot 2026-09-04
Warn: Primary pillar under pressure — earnings per share growth within 8%-12% range: FY26 EPS guidance +9.1% vs 8% target.
Service Corporation International grows earnings about 8% yearly. It keeps strong cash flow near $1 billion in 2026. The company raises its quarterly dividend steadily, now $0.36 per share. These show solid profit and shareholder returns.
Earnings growth may slow below the 8% target. Cash flow could weaken, pressuring dividends. Recent earnings misses and guidance cuts raise concerns about execution.
The stock price is about 31% above our valuation level. Analysts expect roughly 4% revenue growth, slower than the company’s historical earnings growth. Our view is more cautious on growth and cash flow sustainability.
Breaks if: quarterly dividend falls below $0.34 per share
Raise and sustain quarterly cash dividends to shareholders as part of capital allocation.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on steady earnings growth and cash flow. The current thesis state is intact, supported by recent performance and management priorities.
The market appears to be pricing in a durable premium compared to peers, with an expectations gap indicating that some growth is anticipated. However, the valuation is considered unjustified given the current fundamentals.
Management is on track to deliver earnings growth within the 8%-12% framework, with recent adjusted EPS growth supporting this goal. Cash flow from operations has been mixed, which could impact future performance.
Key factors include the potential for guidance cuts in the next earnings call and the impact of inflation on consumer discretionary spending. Additionally, performance from sector bellwethers will be crucial for maintaining momentum.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports the growth objective. The company is still expected to deliver earnings growth within the 8%-12% framework. There are no new threats impacting the thesis at this time.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Stated as a priority in 3 of last 3 quarters. The Board increased the quarterly dividend from $0.34 to $0.36 per share in early 2026 and maintained it at $0.36 in Q2 2026. This reflects consistent delivery on the capital allocation priority to increase dividends.
“Board approved quarterly cash dividend of thirty-six cents per share of common stock.”
“Board approved an increase in quarterly cash dividend to thirty-six cents per share, a 6% increase from prior.”
“Board declared quarterly cash dividend of thirty-four cents per share of common stock.”
Breaks if: EPS growth falls below 8% YoY in FY26
Continue to achieve adjusted earnings per share growth within the long-term target range of 8% to 12%.
Stated as a priority in 3 of last 3 quarters. Adjusted EPS grew 8% in Q4 2025 to $1.14 and 9% for full year 2025 to $3.85. The 2026 EPS guidance midpoint is $4.20, consistent with the 8%-12% long-term growth framework. Management is delivering on this earnings growth priority.
“The $4.20 midpoint of our annual guidance range for 2026 detailed below is confirmed with a more narrow range expected for adjusted earnings per share of $4.10 to $4.30.”
“Our 2026 outlook for diluted earnings per share excluding special items is anticipated to be within our expected long-term growth framework of 8%-12%.”
“Adjusted earnings per share of $1.14 grew 8% over the fourth quarter of 2024 and adjusted earnings per share of $3.85 grew 9% for the full year over prior year.”
Breaks if: net cash from operations falls below $900 million in FY26
Sustain robust net cash provided by operating activities to support capital allocation and growth.
Stated as a priority in 3 of last 3 quarters. Quarterly cash from operations ranged from $212.9M in 2025-Q4 to $333.8M in 2026-Q1 and $238.6M in 2026-Q2. The 2026 guidance midpoint for net cash provided by operating activities excluding special items is $1,035M. Management is maintaining strong cash flow consistent with stated priorities.
“Cash from operating activities was $238.6 million in Q2 2026.”
“Cash from operating activities was $333.8 million in Q1 2026.”
“Net cash provided by operating activities was $212.9 million in Q4 2025.”
Overall, SCI's long-term thesis remains supported by its management execution and recent results, but it faces moderate risks from external factors. Not investment advice.