Service Corporation International ($SCI) Cautious Buy or Hold to $18 Confident Investor Rating: Fair
| Company name | Service Corporation International |
| Stock ticker | SCI |
| Live stock price | [stckqut]SCI[/stckqut] |
| P/E compared to competitors | Fair |
MANAGEMENT EXECUTION
| Employee productivity | Good |
| Sales growth | Poor |
| EPS growth | Good |
| P/E growth | Fair |
| EBIT growth | Fair |
ANALYSIS
| Confident Investor Rating | Fair |
| Target stock price (TWCA growth scenario) | $17.04 |
| Target stock price (averages with growth) | $20.94 |
| Target stock price (averages with no growth) | $18.62 |
| Target stock price (manual assumptions) | $18.09 |
The following company description is from Google Finance: http://www.google.com/finance?q=sci
Service International Corp., formerly Service Corporation International, is a provider of deathcare products and services, with a network of funeral service locations and cemeteries primarily operating in the United States and Canada. Its operations consist of funeral service locations, cemeteries, funeral service/cemetery combination locations, crematoria, and related businesses. The Company operates in two segments: funeral and cemetery operations. Its funeral service and cemetery operations consist of funeral service locations, cemeteries, funeral service/cemetery combination locations, crematoria, and related businesses. The Company sells cemetery property and funeral and cemetery products and services at the time of need and on a preneed basis. In December 2013, the Company announced that it completed its acquisition of Stewart Enterprises, Inc.
Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Service Corporation International as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
Stock price at the time of the calculation: $18.44
Growth: 0.1
Current EPS (TTM): $0.67
P/E: 27
Future EPS Calc: $1.07
Future Stock Price Calc: $29.13
Target stock price: $18.09
I hope that this makes you a better investor. [/s2If]