DCF Tool

SCI

Service Corp. International – Funeral Homes and Funeral Services
Service Corporation International, headquartered in Houston, Texas, is North America'sleading provider of deathcare products and services. At June 30, 2020, the company owned and operated 1,472 funeral homes and 483 cemeteries (of which 296 are combination locations) in 44 states, eight Canadian provinces, the District of Columbia, and Puerto Rico. Throughitsbusinesses, it markets the Dignity Memorial® brand which offers assurance of quality, value, caring service, and exceptional customer satisfaction.
Analysis Results
Intrinsic Value $198.34
Latest Price $66.50
Relative Value 66% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 12.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 12.8%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 0.868 0.82
2023 0.978 0.874
2024 1.1 0.931
2025 1.24 0.992
2026 1.4 1.06
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 37.4 billion. This corresponds to a present value of 26.6 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 4.67 billion. Adding in the terminal value gives a total present value of 31.3 billion.

There are presently 158.0 million outstanding shares, so the intrinsic value per share is 198.34.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 441,060,000
Current Cash 268,626,000
Current Liabilities 728,261,000
Current Debt 104,059,000
Non-Cash Working Capital (NCWC) -451,768,000
Change in NCWC -41,833,000
EBIT 1,165,507,000
Tax Provision 242,248,000
Depreciation and Amortization 277,470,000
Capital Expenditure -303,660,000
Unlevered Free Cash Flow 827,429,729
Current Assets 376,152,000
Current Cash 230,857,000
Current Liabilities 815,934,000
Current Debt 260,704,000
Non-Cash Working Capital (NCWC) -409,935,000
Change in NCWC -127,008,000
EBIT 835,761,000
Tax Provision 145,923,000
Depreciation and Amortization 258,146,000
Capital Expenditure -222,211,000
Unlevered Free Cash Flow 560,479,994
Current Assets 373,553,000
Current Cash 186,276,000
Current Liabilities 556,719,000
Current Debt 86,515,000
Non-Cash Working Capital (NCWC) -282,927,000
Change in NCWC 54,174,000
EBIT 633,694,000
Tax Provision 94,661,000
Depreciation and Amortization 246,979,000
Capital Expenditure -239,957,000
Unlevered Free Cash Flow 565,729,847
Current Assets 331,232,000
Current Cash 198,850,000
Current Liabilities 555,600,000
Current Debt 86,117,000
Non-Cash Working Capital (NCWC) -337,101,000
Change in NCWC -23,959,000
EBIT 614,823,000
Tax Provision -5,826,000
Depreciation and Amortization 248,485,000
Capital Expenditure -235,545,000
Unlevered Free Cash Flow 603,804,000
Current Assets 481,296,000
Current Cash 330,039,000
Current Liabilities 828,979,000
Current Debt 364,580,000
Non-Cash Working Capital (NCWC) -313,142,000
Change in NCWC -45,583,000
EBIT 567,766,000
Tax Provision -146,589,000
Depreciation and Amortization 248,893,000
Capital Expenditure -214,501,000
Unlevered Free Cash Flow 556,575,000
Current Assets 354,396,000
Current Cash 194,986,000
Current Liabilities 537,870,000
Current Debt 110,901,000
Non-Cash Working Capital (NCWC) -267,559,000
Change in NCWC -38,962,000
EBIT 538,704,000
Tax Provision 149,353,000
Depreciation and Amortization 244,934,000
Capital Expenditure -193,446,000
Unlevered Free Cash Flow 304,926,347
Current Assets 308,409,000
Current Cash 134,599,000
Current Liabilities 519,396,000
Current Debt 116,989,000
Non-Cash Working Capital (NCWC) -228,597,000
Change in NCWC -14,839,000
EBIT 543,757,000
Tax Provision 135,027,000
Depreciation and Amortization 235,322,000
Capital Expenditure -150,986,000
Unlevered Free Cash Flow 415,004,565
Current Assets 396,856,000
Current Cash 177,335,000
Current Liabilities 552,008,000
Current Debt 118,729,000
Non-Cash Working Capital (NCWC) -213,758,000
Change in NCWC 9,694,000
EBIT 490,936,000
Tax Provision 225,980,000
Depreciation and Amortization 237,081,000
Capital Expenditure -144,499,000
Unlevered Free Cash Flow 317,648,867
Current Assets 393,747,000
Current Cash 144,873,000
Current Liabilities 642,584,000
Current Debt 170,258,000
Non-Cash Working Capital (NCWC) -223,452,000
Change in NCWC -58,508,000
EBIT 394,433,000
Tax Provision 96,615,000
Depreciation and Amortization 192,805,000
Capital Expenditure -113,084,000
Unlevered Free Cash Flow 260,557,690
Current Assets 286,199,000
Current Cash 92,708,000
Current Liabilities 412,104,000
Current Debt 53,669,000
Non-Cash Working Capital (NCWC) -164,944,000
Change in NCWC -17,723,000
EBIT 401,322,000
Tax Provision 91,548,000
Depreciation and Amortization 189,056,000
Capital Expenditure -115,628,000
Unlevered Free Cash Flow 307,483,781

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