Honestly, nobody likes talking about the business of dying. It’s awkward. It’s heavy. But if you’re looking at the service corp stock price, you’re looking at Service Corporation International (SCI), a behemoth that basically owns the "deathcare" market in North America. We’re talking about more than 1,500 funeral homes and 480 cemeteries.
Right now, as of mid-January 2026, the stock is hovering around $82.97. It’s been a bit of a tug-of-war lately. On one hand, you have the "death positivity" movement and a massive shift toward cremation, which usually brings in less money than a traditional casket burial. On the other hand, you have the inescapable reality of the "Silver Tsunami"—the aging Baby Boomer generation.
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What’s actually moving the needle for SCI?
The market is currently pricing SCI with a mix of respect and caution. Most analysts, like those at UBS and Bank of America, are still leaning toward a "Buy," with price targets sitting optimistically around $92 to $95. They see the 10% year-over-year earnings growth from late 2025 as a sign that the company can handle the cremation trend just fine.
But here is the thing people miss: SCI isn't just a funeral provider; they are a massive real estate and pre-sales engine.
In their Q3 2025 results, they beat expectations largely because of cemetery property sales. People are buying their plots and memorials years—sometimes decades—in advance. This "preneed" revenue is a huge cushion. It’s basically a massive pile of cash ($1.06 billion in quarterly revenue recently) that helps them stay stable even when the actual number of funerals fluctuates.
The Cremation Problem (and why it might not be a problem)
For years, the bear case against the service corp stock price was the rise of cremation. It’s cheaper. It feels less "corporate." If everyone stops buying $5,000 caskets, SCI loses, right?
Sorta. But not really.
SCI has been pivotally aggressive. They’ve pushed into "high-value cremation," which includes memorial services, catering, and expensive urns or niches in "scattering gardens." They’ve realized that while the box might be cheaper, the experience can still be premium. Their cremation rate hit 57.3% recently, yet their margins stayed surprisingly robust. They are essentially up-selling the afterlife.
The Financials: Dividends and Debt
If you're holding this stock, you’re likely here for the consistency. They just hiked the quarterly dividend to $0.34 per share. That’s 16 years of consecutive increases. It’s a classic "widows and orphans" stock in that regard—reliable, boring, and steady.
However, you've gotta look at the debt. SCI carries a lot of it. They use debt to buy up smaller, family-owned funeral homes to maintain their monopoly-like status. With a total debt load that some analysts find a bit "crunchy" in a high-interest-rate environment, the company has to keep that cash flow high to service the interest.
Current Snapshot:
- Price: ~$83.00
- 52-Week Range: $71.75 – $85.00
- P/E Ratio: Around 22x (a bit higher than the industry average of 17x)
- Dividend Yield: ~1.64%
Why the stock isn't "cheap" right now
Some folks look at a P/E of 22 and think it's overvalued for a funeral company. Why pay a premium for death? Well, because it's predictable. Unlike a tech company that might get "disrupted" by a new app, people aren't going to stop needing burial services.
The market is currently paying a premium for SCI's "moat." They own the best land in the best zip codes. You can't just build a new cemetery in the middle of a crowded city. That land is a finite resource, and SCI owns the lion's share of it.
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What to watch in 2026
The big date is February 11, 2026. That’s when the Q4 2025 earnings drop. Everyone will be looking to see if the funeral volumes have stabilized. We’ve had a couple of years of "flat" volume as the world moved past the COVID-19 mortality spikes. If volumes start ticking up again—which demographers say is inevitable—the stock could finally break out of that $85 ceiling.
Actionable Insights for Investors:
- Watch the Preneed Sales: This is the leading indicator. If people stop buying plots in advance, the future cash flow is at risk. Currently, these sales are growing at nearly 10%, which is a very healthy sign.
- Mind the Interest Rates: Because SCI is debt-heavy, any move by the Fed to keep rates high for longer will eat into their net income.
- Check the Cremation Mix: If the "average revenue per service" starts to drop because people are choosing basic cremations with no ceremony, the stock will take a hit.
- Income Play: Treat this as a dividend growth play rather than a "moon shot." It’s a slow-and-steady climber.
If you’re looking for a safe place to park cash during market volatility, SCI is basically the defensive player of the year. It's not flashy, but it's remarkably resilient.
To get the most out of an investment in SCI, you should monitor the quarterly "cemetery preneed sales production" figures. This metric tells you more about the stock's future than the current funeral count ever will. If that number stays above 8% growth, the upward trajectory of the stock price is likely to continue through the end of the year.