
NYSE:SCI
This summary was created by AI, based on 2 opinions in the last 12 months.
Service Corp International (SCI-N) is recognized as a leading operator in the fragmented funeral home and cemetery industry, boasting significant market dominance with a 17% market share across Canada and the United States. The company has demonstrated resilience despite facing a few weak quarters post-COVID, but it remains financially robust. Its competitive advantages, including a powerful scale that enables high profitability (30% ROE), coupled with an innovative pre-need strategy, poise it for a return to robust earnings growth, anticipated at 8-10%. Although not positioned as a high-growth stock, it serves as a stable and strategic addition to an investment portfolio, offering a current yield of 1.60% and a promising share price breakout. Analysts are optimistic, suggesting a target price of $101.00, indicating potential for appreciation.
Largest funeral home in North America. A sector where there has been a lot of consolidation. Likes the sector. Excellent management team that were very successfully at buying companies. You will see a lot of benefit over the next year or two from free cash flow.