Service Corporation International (NYSE:SCI), the largest provider of funeral and cemetery services in the U.S., has reached an all-time high of $87.04, marking a significant milestone for the company. This peak reflects a remarkable 52-week performance, with the stock experiencing a substantial 51.62% increase over the past year. Investors have shown increased confidence in SCI's business model and growth strategy, which have been key drivers in the company's stock price appreciation. The achievement of this all-time high is a testament to SCI's strong market position and its ability to adapt to the evolving demands of the funeral services industry.
In other recent news, Service Corporation International (SCI) reported a slight increase in its adjusted earnings per share (EPS) for the third quarter of 2024 to $0.79, up from $0.78 in the prior year. The company made significant investments, completing $123 million in acquisitions and investing $31 million in real estate for future expansion. SCI's operating cash flow also saw an 18% year-over-year growth.
These recent developments also include a robust outlook for the coming year, with SCI expecting fourth-quarter adjusted EPS of $1 to $1.10 and an 8% to 12% annual EPS growth in 2025. Meanwhile, capital investments for the quarter totaled $320 million, and shareholders received nearly $65 million through dividends and share repurchases.
Despite a 1% decline in core funeral volume and minor financial headwinds due to hurricanes in Western Florida, the company remains optimistic about future volume trends and acquisition opportunities. SCI also anticipates increased cash tax payments in 2025 and projects stable capital expenditures for maintenance. The company has maintained a strong liquidity position, with $1.5 billion available, and issued an $800 million note at 5.75% to refinance debt.
InvestingPro Insights
Service Corporation International's recent all-time high is further supported by InvestingPro data and insights. The company's market capitalization stands at an impressive $12.56 billion, reflecting its dominant position in the funeral services industry. SCI's strong performance is evident in its robust financials, with a revenue of $4.15 billion over the last twelve months as of Q3 2023, and an operating income margin of 21.73% for the same period.
InvestingPro Tips highlight SCI's consistent dividend performance, having maintained dividend payments for 20 consecutive years and raised them for 11 consecutive years. This demonstrates the company's commitment to shareholder returns, which aligns with its strong market position mentioned in the article.
The stock's momentum is further emphasized by InvestingPro data showing a 17.13% price total return over the past month and a 50.26% return over the last year, corroborating the 51.62% increase mentioned in the article. Additionally, SCI is trading at 99.67% of its 52-week high, confirming the all-time high achievement discussed.
Investors should note that SCI's P/E ratio stands at 25.01, which may indicate a premium valuation. This is consistent with the InvestingPro Tip suggesting that the stock is trading at a high P/E ratio relative to near-term earnings growth.
For readers interested in a more comprehensive analysis, InvestingPro offers 13 additional tips for SCI, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.