MeritValue

SERVICE CORP INTERNATIONAL

SCIdata completeness 100%18 fiscal years on file
The thesis, from the filings

SERVICE CORP INTERNATIONAL earns about 7% on invested capital, and has bought back 16% of its shares over 5 years. The applicable estimate puts fair value near $39.41 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$4.14B1$4.11B2$4.1B3$4.19B3$4.31B3
Net income$802.9M4$565.3M5$537.3M6$518.6M6$542.6M6
Operating cash flow$920.6M7$825.7M8$869M9$944.9M9$942.8M9
Capital expenditure$303.7M10$369.7M11$361.8M12$373.7M12$388.6M12
Free cash flow (derived)$616.9M7$456M8$507.3M9$571.3M9$554.2M9
Total debt$7.94B13$8.68B14$9.42B15$9.67B16$10.3B16
Cash & equivalents$268.6M17$191.9M18$221.6M19$218.8M20$243.6M20
Diluted shares170.1M160.1M152.4M146.8M142.7M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$114.81
your share of equity
Profit it earned you last year
$38.03
Free cash flow it threw off
$38.84
Debt you’d be carrying
$720.42

10 shares is a claim on $114.81 of net worth that earned you $38.03 and generated $38.84 of cash last year, against $720.42 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
7% avg · 5y
FY21 10%FY22 7%FY23 7%FY24 6%FY25 6%

It earned an average 7% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
−16% shares · 5y

Share count is down 16% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has risen 29% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
negative equity value — refusing to publish per-share figure
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth0.0%
  • fcfBase$554.2M
DCF · Growth Exit 5Y
not applicable
negative equity value — refusing to publish per-share figure
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth0.0%
  • fcfBase$554.2M
Earnings Power Value
$39.41
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$542.6M
  • growthAssumed0.0%
Graham Number
$31.33
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0000089089-24-000011 (Revenues)
  2. 10-K · period ending 2022-12-31 · accession 0000089089-25-000011 (Revenues)
  3. 10-K · period ending 2023-12-31 · accession 0001628280-26-007695 (Revenues)
  4. 10-K · period ending 2021-12-31 · accession 0000089089-24-000011 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0000089089-25-000011 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001628280-26-007695 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0000089089-24-000011 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0000089089-25-000011 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001628280-26-007695 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0000089089-24-000011 (PaymentsToAcquireProductiveAssets)
  11. 10-K · period ending 2022-12-31 · accession 0000089089-25-000011 (PaymentsToAcquireProductiveAssets)
  12. 10-K · period ending 2023-12-31 · accession 0001628280-26-007695 (PaymentsToAcquireProductiveAssets)
  13. 10-K · period ending 2021-12-31 · accession 0000089089-23-000008 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2022-12-31 · accession 0000089089-24-000011 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2023-12-31 · accession 0000089089-25-000011 (LongTermDebtNoncurrent)
  16. 10-K · period ending 2024-12-31 · accession 0001628280-26-007695 (LongTermDebtNoncurrent)
  17. 10-K · period ending 2021-12-31 · accession 0000089089-23-000008 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2022-12-31 · accession 0000089089-24-000011 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2023-12-31 · accession 0000089089-25-000011 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2024-12-31 · accession 0001628280-26-007695 (CashAndCashEquivalentsAtCarryingValue)