SCI - Service Corporation International: Crisis Resilient Business With A Premium To Fair Price

• Significant revenue growth was driven by the temporary impact of the coronavirus, and potential growth was limited by industry size.
• The industry in which the company operates is low-capacity, the growth rate is low, and the current market share of SCI is quite high.
• The company has a high level of debt burden, about 20% of EBIT goes to cover the interest expense.
• According to our valuation, the company is trading at a premium to the fair price today.
• We are neutral on SCI.

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