Service Corporation International’s stock shows modest undervaluation based on dividend yield theory and steady cash flow.
Service Corporation International (SCI) shares traded at $71.29 on June 8, reflecting a 1.71% dividend yield. The company’s trailing and forward P/E ratios stand at 18.39 and 16.45, respectively.
SCI operates nearly 2,000 funeral, cremation, and cemetery locations across North America, benefiting from a resilient business model. The company has raised dividends for 15 consecutive years, with increases typically in the high single-digit range.
The current yield is slightly above its five-year average of 1.62%, suggesting a roughly 6% undervaluation based on dividend yield theory.