Service Corporation International SCI
Service Corporation International scores weak on business quality (4.5 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Service Corporation International does
Service Corporation International provides death care products and services, operating a massive network of funeral homes and cemeteries across North America. Families pay for pre-arranged and at-need services, anchoring a steady cash stream.
- What it does best
SCI dominates North American death care through unmatched physical footprint and cemetery scale, yielding a 22.4% operating margin that dwarfs peer LLYVA's 11.9%. Real estate density makes replicating its network nearly impossible.
- The main risk
Heavy debt loads threaten financial stability, with total debt reaching $5.2 billion against just $244 million in cash. Rising interest burdens leave little room for error if cash generation dips.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin sits at 22.4% and free cash flow margin is solid, driven by disciplined cost management across its massive network. Scale directly improves profitability here.
Regulatory hurdles and cemetery zoning laws lock out new rivals, supported by an operating margin sitting in the top quartile of its sector at the 81st percentile.
Revenue grew to $4.4 billion at a sluggish 2.9% rate, fading slightly compared to historical multi-year trends as top-line expansion slows down.
Debt-to-equity of 3.2x and interest coverage of 3.8x strain the balance sheet, though free cash flow reached $635 million. The financial foundation is softening under heavy leverage.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
3 sold $28.4M outside pre-planned sales.
Our sealed record on SCI
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Service Corporation International scores weak on the Cluenex quality check (4.5 of 10), measured against its own industry. Profitability is strong, moat fair, growth slow and financial health weak.
In the last 90 days of SEC Form 4 filings: 3 sold $28.4M outside pre-planned sales.
Nov 4, 2026, after the close.
See SCI today
- Today's verdict on SCI, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Service Corporation International (SCI)”, https://cluenex.com/stocks/sci/, data as of Oct 10, 2026.