SCI - Service Corporation International: COVID-19 Pull-Forward Over
2024-02-25 03:07:56 ET
Summary
- Service Corporation International has seen a decline in funeral revenues due to the end of excess COVID-19 deaths.
- Despite the decline in funeral volumes, cemetery revenue has grown in part thanks to better returns on funds held in trust.
- For SCI, earnings growth should begin again incrementally, after hits from lower funeral volumes but mainly from higher rates.
- Funeral volumes are ahead of 2019 levels, and the data seems to indicate that the COVID-19 pull forward is over as of the Q4.
- SCI's business model is strong, but Japanese funeral stocks offer lower valuations and more favorable demographic situations.
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Service Corporation International: COVID-19 Pull-Forward Over