Service Corporation International
Find Ratings ReportsSERVICE CORP INTERNATIONAL's gross profit margin for the fourth quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the subsector average, its revenue growth has not. SERVICE CORP INTERNATIONAL has weak liquidity. Currently, the Quick Ratio is 0.59 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has decreased by 7.88% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q4 FY23 | Q4 FY22 |
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Net Sales ($mil) | 1055.8 | 1027.68 |
EBITDA ($mil) | 297.11 | 286.15 |
EBIT ($mil) | 242.49 | 236.98 |
Net Income ($mil) | 138.4 | 92.31 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 221.93 | 202.32 |
Total Assets ($mil) | 16355.4 | 15066.04 |
Total Debt ($mil) | 4802.89 | 4433.84 |
Equity ($mil) | 1541.26 | 1673.19 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 32.41 | 32.04 |
EBITDA Margin | 28.14 | 27.84 |
Operating Margin | 22.97 | 23.06 |
Sales Turnover | 0.25 | 0.27 |
Return on Assets | 3.28 | 3.75 |
Return on Equity | 34.86 | 33.79 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 0.67 | 0.45 |
Debt/Capital | 0.76 | 0.73 |
Interest Expense | 64.54 | 49.0 |
Interest Coverage | 3.76 | 4.84 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 146.32 | 153.94 |
Div / share | 0.29 | 0.27 |
EPS | 0.93 | 0.59 |
Book value / share | 10.53 | 10.87 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 850036.0 | 1044795.0 |
BUY. The current P/E ratio indicates a significant discount compared to an average of 41.61 for the Personal and Laundry Services subsector and a discount compared to the S&P 500 average of 27.95. To use another comparison, its price-to-book ratio of 6.90 indicates a significant premium versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 14.09. The price-to-sales ratio is below the S&P 500 average and is well below the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, SERVICE CORP INTERNATIONAL proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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SCI 20.66 | Peers 41.61 | SCI 12.24 | Peers 33.73 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. SCI is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. SCI is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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SCI 18.09 | Peers 34.46 | SCI 6.09 | Peers 4.01 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. SCI is trading at a significant discount to its peers. |
Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. SCI trades at a significant premium to its peers. |
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Price/Book |
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Earnings Growth |
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SCI 6.90 | Peers 14.09 | SCI 0.28 | Peers 7.43 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. SCI is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, SCI is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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SCI 2.60 | Peers 5.96 | SCI -0.22 | Peers 8.98 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. SCI is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. SCI significantly trails its peers on the basis of sales growth. |
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