A Look At Service Corporation International (SCI) Valuation After 2025 Results And 2026 Earnings Guidance

Service Corporation International (SCI) just released its fourth quarter and full year 2025 results, combining steady funeral and cemetery performance with updated 2026 guidance and fresh capital plans that give investors more detail on earnings drivers.

See our latest analysis for Service Corporation International.

The recent earnings release and cautious 2026 outlook have come with some volatility, with a 7 day share price return of 6.4% and a 30 day share price return of 4.0% against a current share price of US$79.66. At the same time, a 5 year total shareholder return of 75.42% points to momentum that has built over a longer stretch.

If this update on Service Corporation International has you thinking about where else steady compounding might come from, it could be a good time to check our screener of 23 top founder-led companies as potential next ideas.

With Service Corporation International trading at US$79.66 and management guiding to 2026 EPS of US$4.05 to US$4.35, the key question is whether recent execution leaves upside or if the market is already pricing in future growth.

Most Popular Narrative: 18.6% Undervalued

With Service Corporation International last closing at $79.66 against a widely followed fair value estimate of $97.83, investors are weighing whether relatively modest growth assumptions and a higher future earnings multiple can support that gap.

The analysts have a consensus price target of $91.8 for Service Corporation International based on their expectations of its future earnings growth, profit margins and other risk factors.

In order for you to agree with the analyst's consensus, you'd need to believe that by 2028, revenues will be $4.7 billion, earnings will come to $656.4 million, and it would be trading on a PE ratio of 22.2x, assuming you use a discount rate of 7.7%.

Read the complete narrative.

Curious what is driving that higher earnings multiple and fair value? The core of this narrative leans on steady revenue expansion, rising margins, and a premium earnings profile that assumes investors stay comfortable paying up for SCI's cash generation and capital returns.

Result: Fair Value of $97.83 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, that setup can crack if cremation continues to gain share faster than expected or if acquisition led growth stumbles and weighs on earnings quality.

Find out about the key risks to this Service Corporation International narrative.

Another Angle On Valuation

So far the narrative leans on fair value of $97.83, but the current P/E of 20.4x tells a slightly different story. It sits above the US Consumer Services industry at 17.7x and above peer average of 13.2x, while lining up closely with a fair ratio of 20.9x. Is the higher pricing a comfort or a warning sign for you?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Service Corporation International Narrative

If you look at these numbers and come to a different conclusion, or simply prefer your own work, you can build a personalized view in just a few minutes by starting with Do it your way.

A great starting point for your Service Corporation International research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

Looking for more investment ideas?

If Service Corporation International is on your radar, do not stop there. Using the Simply Wall St screener now could surface opportunities you will wish you had seen earlier.

• Target dependable income by reviewing 12 dividend fortresses that combine higher yields with business models focused on ongoing cash generation.
• Hunt for potential value by scanning 53 high quality undervalued stocks where solid fundamentals meet prices that may not fully reflect underlying strength.
• Prioritize resilience by checking 84 resilient stocks with low risk scores that score well on financial health and business stability.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com