Shares of Service Corporation International (NYSE:SCI) recorded 0.25% gain during trading session on October 9th, 2018. The script traded as low as $43.8 and last traded at $44.21. 993253 shares changed exchanged hands during trading, an increase of 13.63% from the 30-day average session volume of 1.15M shares. The firm had previously closed at $44.10. The company has $178.13M outstanding shares, a price-to-earnings ratio of 16.41, price-to-earnings-growth ratio of 2.51 and a beta of 1.05. The company has a RSI of 67.49, ATR of 0.55 and a volatility of 1.19% this week. SCI has a 52 week low price of $33.16 and a 52 week high price of $44.53.
Investors have identified the tech company Service Corporation International as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around 7.88B, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Service Corporation International (SCI) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For SCI, the company has in raw cash 169.04 million on their books with 95.62 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 12.86 billion total, with 11.38 billion as their total liabilities. This figure have given the company a good sense of viability under numerous contexts.
SCI were able to record 32.74 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by -56.35 million. In cash movements, the company had a total of 103.92 million as operating cash flow.
Potential earnings growth for Service Corporation International (SCI)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Service Corporation International recorded a total of 796.09 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 0.03 coming in sequential stages and their sales for the third quarter reducing by 0.00.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 607.97 million trying to sell their products during the last quarter, with the result yielding a gross income of 188.13 million. This allows shareholders to hold on to 187.19 million with the revenue now reading 0.55 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.59 cents a share).
Is the stock of SCI attractive?
Having a look at the company’s valuation, the company is expected to record 2.00 total earnings per share during the next fiscal year. Taking a look at the median price to earnings ratio, this means their stock price will be in the region of 22.07 per share. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on SCI sounds very interesting.
In related news, Director WALTRIP W BLAIR sold 50,000 shares of the company’s stock in a transaction that recorded on August 27th, 2018. The sale was performed at an average price of 42.50, for a total value of 2,125,110. As the sale deal closes, the Sr.V.P. Sales & Marketing WALTRIP W BLAIR now sold 32,150 shares of the company’s stock, valued at 1,343,927. Also, Sr. VP, and CFO TANZBERGER ERIC D sold 110,000 shares of the company’s stock in a deal that was recorded on August 14th, 2018. The shares were sold at an average price of 41.18 per share, with a total market value of 56,817. Following this completion of acquisition, the Chairman,CEO now holds 90,000 shares of the company’s stock, valued at 3,708,000. In the last 6 months, insiders have changed their ownership in shares of company stock by 2.00%.
3 out of 4 analysts covering the stock have rated it a Buy, while 0 have maintained a Hold recommendation on Service Corporation International stock. 0 analysts has assigned a Sell rating on the SCI stock. The 12-month mean consensus price target for the company’s shares has been set at $47.25.