
NYSE:SCI
This summary was created by AI, based on 2 opinions in the last 12 months.
Service Corp International (SCI-N) stands out as a leading operator in the funeral home and cemetery industry across Canada and the U.S., commanding a notable 17% market share in a highly fragmented market. Although facing a few weak quarters post-COVID, the company is anticipated to return to its normal earnings growth rate of 8-10%. With a robust financial position and an impressive return on equity (ROE) of 30% and rising, SCI-N exhibits the potential for premium profitability. Furthermore, its innovative pre-need strategy and commitment to growing dividends underscore its long-term value proposition. The stock appears to be gaining momentum with analysts projecting a price target of $101.00, highlighting its prospect as a steady addition to a balanced portfolio.
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.