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    Q3 Earnings Setup Might Change The Case For Investing In Service Corporation International (SCI)

    Simply Wall St·10/27/2026 18:24:24
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    • Service Corporation International is set to report third quarter 2026 results, with analysts expecting around 4% to 5% revenue growth and double digit earnings expansion supported by funeral volume trends, cemetery preneed sales and cost control.
    • The focus on preneed cemetery contracts and funeral arrangements highlights how SCI’s advance sales and backlog management could influence future cash flow visibility and earnings quality.
    • The investment narrative for Service Corporation International will be evaluated relative to expectations for earnings growth associated with preneed cemetery momentum.

    Scan beyond Service Corporation International and compare its setup to a curated 29 high quality undervalued stocks that share a focus on earnings resilience and cash flow visibility around upcoming results.

    Service Corporation International Investment Narrative Recap

    To own Service Corporation International, you need to be comfortable with a funeral and cemetery operator that relies on preneed sales, pricing and cost discipline while managing softer case volumes and a gradual shift toward cremation. The latest expectations for mid single digit revenue growth and double digit earnings expansion put execution on those levers firmly in focus.

    The near term swing factor is whether preneed cemetery and funeral backlog can offset management’s guided decline in 2026 funeral case volumes. The key risk remains margin pressure if the mix tilts further toward lower margin cremation while debt stays elevated and free cash flow does not progress meaningfully.

    The most relevant datapoint tied to this setup is the guidance lift for 2026 operating cash flow to a midpoint of US$1.085b, supported by stronger installment receipts on prearranged cemetery contracts. That increase frames how investors can think about the coming quarter’s cash generation alongside the earnings release.

    SCI’s projection for roughly US$750m of adjusted free cash flow in 2026 and net debt to EBITDA held in a 3.5x to 4.0x range gives the group room to continue funding cemetery development, digital tools and acquisitions while maintaining dividends and buybacks. For you, the question is whether upcoming results reinforce that balance between growth projects, leverage and ongoing capital returns.

    Service Corporation International's current earnings sit at US$537.5 million, with analysts looking for US$691.0 million of profit on US$27.8b of revenue by 2029. That profile assumes revenue growth of 85.3% per year and an earnings increase of about US$153.5 million from today's level.

    Uncover how Service Corporation International's fair value indicates a 22% potential upside to its current price, which could narrow quickly if results meet expectations.

    NYSE:SCI 1-Year Stock Price Chart
    NYSE:SCI 1-Year Stock Price Chart

    Exploring Other Perspectives

    The three fair value estimates from the Simply Wall St Community cluster tightly between US$100.33 and US$105.11, with no outliers pointing to extreme mispricing. Those retail views were formed before the latest expectations for preneed momentum and cremation mix risks, so use them as one lens among many and compare several different takes on Service Corporation International’s outlook.

    Explore 2 other Service Corporation International fair value estimates, including one that suggests it could be worth just $100.33!

    Reach Your Own Conclusion

    Don't just follow the ticker. Dig into the data and build a conviction that's truly your own.

    Looking For More Ideas Beyond Service Corporation International?

    Once you have a view on Service Corporation International, it often helps to place that opinion in context by lining it up against other stocks with clear income, quality or value angles. The Simply Wall St Screener can help you quickly filter for the traits that matter most to you and then compare those results to SCI's setup.

    • If you care about stability first, start with companies that score well on resilience by reviewing a 30 resilient stocks with low risk scores that screens for lower risk profiles.
    • For investors who want income at the forefront, look at a curated 5 dividend fortresses built around higher yielding payouts that might complement SCI in a portfolio.
    • Readers hunting for underappreciated opportunities can check a targeted 21 high quality undiscovered gems that surfaces businesses with strong fundamentals that fewer people are watching.