
Service Corp (SCI) Stock Forecast & Price Target
Service Corp (SCI) Analyst Ratings
Bulls say
Service Corporation International (SCI) reported a 1% year-over-year increase in total revenues, reaching $1,014 million, with better-than-expected performance particularly in its cemetery division, which saw a 10.7% growth in recognized pre-need revenue. The company is forecasting stable organic funeral volumes, an enhancement in funeral gross margins by 100-150 basis points, and anticipates a return to previously established earnings growth rates of 8% to 12% per share driven by a potential uptick in mergers and acquisitions and improvements in cemetery sales. Overall, these factors support a positive outlook for SCI as it continues to adapt to market dynamics while maintaining a strong growth trajectory.
Bears say
Service Corp International is facing significant challenges that contribute to a negative financial outlook, including an anticipated combined trust return of -3.7% due to a declining stock market and a reported 2.5% year-over-year decline in funeral volumes, mirroring broader industry weaknesses. Adjusted free cash flow projections for 2024 and 2025 have been revised downward, indicating worsening financial prospects, with 2024E expected to decrease to $598 million and 2025E to $531 million. Furthermore, external pressures such as increased competition, potential economic downturns, and consumer preferences shifting towards cremation services threaten to negatively affect revenue and margins, exacerbating the company's operational challenges.
This aggregate rating is based on analysts' research of Service Corp and is not a guaranteed prediction by Public.com or investment advice.
Service Corp (SCI) Analyst Forecast & Price Prediction
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