Service Corporation International [NYSE:SCI]: Analyst Rating and Earnings
Equities traders often pay a significant amount of attention to what top market analysts have to say about a potential stock investment. In regards to Service Corporation International [SCI], the most recent average analyst recommendation we can read comes from the fiscal quarter ending in December. On average, stock market experts give SCI an Buy rating. The average 12-month price forecast for this stock is $49.00, with the high estimate being $52.00, the low estimate being $47.00 and the median estimate amounting to $48.50. This is compared to its latest closing price of $41.55.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Service Corporation International [SCI] is sitting at 1.25. This is compared to 1 month ago, when its average rating was 1.25.
For the quarter ending in Sep-18 Service Corporation International [SCI] generated $0.78 billion in sales. That’s 2.12% higher than the average estimate of $0.76 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep your eyes on this company’s next financial results, which are scheduled to be made public on Tue 12 Feb (In 33 Days).
Fundamental Analysis of Service Corporation International [SCI]
Now let’s turn to look at profitability: with a current Operating Margin for Service Corporation International [SCI] sitting at +19.13 and its Gross Margin at +23.33, this company’s Net Margin is now 15.80%. These measurements indicate that Service Corporation International [SCI] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 12.72, and its Return on Invested Capital has reached 14.70%. Its Return on Equity is 43.70, and its Return on Assets is 4.39. These metrics show a mixed bag, which means that this investment’s attractiveness can be quickly increased or decreased in the short term, depending on future updates SCI financial performance.
Turning to investigate this organization’s capital structure, Service Corporation International [SCI] has generated a Total Debt to Total Equity ratio of 248.33. Similarly, its Total Debt to Total Capital is 71.29, while its Total Debt to Total Assets stands at 27.21. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 222.46, and its Long-Term Debt to Total Capital is 63.87. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 12.42 and its Total Debt to EBITDA Value is 4.16. The Enterprise Value to Sales for this firm is now 3.28, and its Total Debt to Enterprise Value stands at 0.34. Service Corporation International [SCI] has a Price to Book Ratio of 4.94, a Price to Cash Flow Ratio of 14.28 and P/E Ratio of 15.68. These metrics all suggest that Service Corporation International is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, Service Corporation International [SCI] earns $132,108 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 30.80 and its Total Asset Turnover is 0.25. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.55 and its Current Ratio is 0.58. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
Let’s now turn our attention to trading performance: Service Corporation International [SCI] has 180.37M shares outstanding, amounting to a total market cap of $7.47B. Its stock price has been found in the range of 35.19 to 47.09. At its current price, it has moved by -12.08% from its 52-week high, and it has moved 17.65% from its 52-week low.
This stock’s Beta value is currently 1.15, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 48.15. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Service Corporation International [SCI] a Reliable Buy?
Shares of Service Corporation International [SCI], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.