What changed
$SCI — BUY 📊
Service Corporation International provides deathcare products and services in the United States and Canada.
🎯 Q1 FY26 | Rev $1B | EPS $0.97 vs $1.00 🔴
💡 The market overreacted to a $0.03 miss, pricing in sustained weakness, but we expect death rates to revert to trend and pre-need backlog to convert, leading to full-year EPS near the midpoint of $4.20. Consensus likely underestimates cash flow conversion and buyback impact.
📉 Reward/Risk: 3.07:1
🏢 Business Quality: 7/10 - Stable, recession-resistant funeral services with high barriers to entry, recurring revenue from pre-need, and strong FCF generation, though growth is limited and mix shift to cremation pressures margins.
📊 Our read: BUY. Full analysis →
https://stockduty.xyz/s/SCI0618