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Service Corp International

SCIAbove value

Held by 1 superinvestor.

Price$77.20
Holders1
Total value$95.8M

SEC 10-K · fundamentals

Business quality

as of 2025-12-31
Revenue growth
+2.9%
Net margin
12.6%
ROE
33.1%
FCF margin
12.9%
Revenue $3.51B → $4.31B · 6y
What makes a business high quality

Valuation · value band

Above fair value

$22/ sh · growth-anchored intrinsic value
margin of safety
fair value
above fair value
$77
cheaperpricier

Zero-growth floor

$11

Central IV

$22

Optimistic top

$25

Service Corp International (SCI): Two methods value the business — a conservative owner-earnings DCF and a growth-credited Greenwald estimate, $11–$25 / sh. Today’s price sits above both (price $77 as of 2026-07-21).

The middle figure is the main read. The right end is the optimistic case under the same conservative caps — not an absolute ceiling.

  • Recent earnings are below the multi-year average, so the band uses the lower run-rate.

Revenue growth 0% (history declining, capped at zero) · moat 10 yr · discount 14.4% · Zero-growth downside $11

Price as of 2026-07-21 · yahoo · DGS10 4.6% @ 2026-07-20.

Method & numbers

A conservative intrinsic-value band (zero-growth floor to growth-capped DCF) plus a tangible asset floor — not investment advice, not a buy/sell signal, and not a price target.

Owner-earnings DCF $20.27 – $24.81 · Greenwald $25.00 – $25.00 (neutral $25.00) · zero-growth base $25.00 · reproduction $2.22

Moat Franchise (moat) · terminal value 26% of present value · owner-earnings yield 4% vs 10Y 4.6%.

Graham earnings-power value (normalized NOPAT)$11.38 – $21.53 / sh

Normalized NOPAT = average operating margin over the years shown × latest-year revenue × (1 − normalized tax); then + D&A − maintenance capex (write A). Unlevered (pre-interest, attributable to all capital). Capitalized at the 9–11% rate band (read as a WACC proxy). Enterprise → equity bridge applied: + cash − total debt.

Years: 2025, 2024, 2023, 2022, 2021

v1 simplifications: Maintenance capex (ok) deducted in full cash (write A): EPV = (NOPAT + D&A − maintenance capex) / WACC; no tax shield on the capex term. Share-based compensation is left as a real expense (not added back). Operating margin is below its multi-year average (cyclical/declining): normalized margin capped at the latest year — no peak-margin capitalization (audit #2).

Buffett owner-earnings value$21.63 – $25.00 / sh

Owner earnings = average net income + average D&A − maintenance capex (zero-growth floor; no ΔNWC). Levered (starts from net income, already after interest — an equity-holder stream). Capitalized at the 12.8–14.8% band (9–11% base + 3.8pp leverage premium). No enterprise→equity bridge: the capitalized result is already equity value (subtracting debt would double-count interest).

Years: 2025, 2024, 2023, 2022, 2021

v1 simplifications: Net income is below its multi-year average (cyclical/declining): normalized owner earnings anchored to the latest year — no peak-earnings capitalization (audit #2). Owner earnings = net income + D&A − maintenance capex (ok); the working-capital change is excluded (maintenance ΔNWC ≈ 0; growth ΔNWC is carried in growth value, not double-counted). One-time items are not separately normalized (multi-year averaging smooths them partially). Share-based compensation is left as a real expense (not added back); see the SBC/OE disclosure. Capitalized at the 9–11% base band plus a 3.8pp leverage premium (cost of equity rises with leverage — MM Proposition II). Net debt is about 10.7 years of owner earnings, adding 3.8pp of cost-of-equity risk premium.

Asset floor: Reproduction value = tangible net assets + acquired-intangible reset proxy, ÷ diluted shares; tangible net assets alone are negative for this asset-light franchise (no R&D history to capitalize).

Moat reading: Franchise test compares earnings power (EPV) against reproduction value (tangible net assets + capitalized R&D). EPV well above reproduction value signals a moat; near it, a commodity; below it, value destruction. A directional reading, not a verdict.

Assumes a narrow moat · competitive-advantage period ≈ 10 years.

Growth value: if the moat holds for 10 yr at ROIIC ≈ -42%, $0.00–$0.00 / sh (neutral $0.00). Conservative, not a forecast.

Window FY 2025, 2024, 2023, 2022, 2021 · discount band 9%–11% · normalized tax 21% (Average effective tax rate over 5 year(s), capped at the statutory 21%.) · diluted shares.

Baseline 9%–11%, net debt ≈ 10.7 years of owner earnings → +3.8pp cost-of-equity premium → effective 12.8%–14.8%.

Owner-earnings DCF: growth g₁ 0% (history declining → capped at 0) · OE FY 2025, 2024, 2023, 2022, 2021 · Discount band: 12.94%–15.84% (DGS10 +4.5% to a 12% strict end, each +3.84pp for leverage premium, as of 2026-07-20). No enterprise→equity bridge: owner earnings already flow to shareholders (post-interest), so no net cash is added and no debt subtracted — matching the engine owner-earnings lamp. Two-method midpoint gap 11%.

What the price is betting

Today's price pencils in about 26.0% a year in owner-earnings for the next few years. Revenue actually grew 3.1% a year.

The market wants it well ahead of its own track record.

Even when the value band is low-confidence: use this to see what the price assumes — not as a cheapness confirmation.

How to read intrinsic value

SEC 13F · holders

Superinvestors Holding This Security

1 holder · $95.8M combined · this quarter +0 opened / -0 exited

This quarter1 added
Holders 2 → 1 · last 8q

SEC 13F · notes

Written summary

Service Corp International (SCI) is held by 1 of the superinvestors tracked on Compounder, with a combined $95.8M in reported 13F value. The largest position belongs to Andrew Brenton, where it makes up 2.4% of the portfolio.

Over the latest quarter, 0 of the tracked filers opened a new position in SCI, 1 added to existing ones, 0 trimmed, and 0 sold out entirely.

Holder counts and values reflect the most recent SEC Form 13F filings, through the quarter ended 2026-03-31. Source: SEC EDGAR. A 13F shows only long US-listed positions and can lag the real portfolio by up to 45 days, so this is disclosed long ownership, not a complete picture.

How to read a 13F

SEC 13F · co-ownership

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Also on

Sources· SEC EDGAR 13F as of 2026-03-31 · filed 2026-05-15

Educational data only — not investment advice. 13F positions are self-reported and can lag up to 45 days.

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