Equity Analysis Of Service Corporation International

ASU Author/Contributor (non-ASU co-authors, if there are any, appear on document)
Andrew J. Hanley (Creator)
Institution
Appalachian State University (ASU )
Web Site: https://library.appstate.edu/
Advisor
Delbert Goff

Abstract: This paper is an equity analysis of Service Corporation International (SCI) conducting research through security analysis. Based off of the research and valuation of SCI, I have recommended a Buy recommendation. As the largest provider of death care services and products in North America they are well positioned to benefit the most from the aging population. The company has three strategies for capturing potential sales through pre-need cemetery sales, preneed funeral sales, and at-need sales. This allows the death care company to focus on a wider range of customers, age wise, allowing them to work with people who could have potentially decades left in their life span. Moving forward SCI will benefit from their company’s large size and backlog. Compared to industry competitors that are publicly traded are incredibly small when stacked up against SCI. Most of the competition facing SCI is due to positioning, SCI operates in a highly fragmented industry with many small locally owned private operations. Many consumers choose their death care provider based off familiarity and geographic positioning. When looking at the companies backlog they have $10.7 billion in unrecognized sales. These sales will be recognized when the time comes to perform the customers service.

Additional Information

Publication
Honors Project
Hanley, A. (2018). "Equity Analysis Of Service Corporation International." Unpublished Honors Thesis. Appalachian State University, Boone, NC.
Language: English
Date: 2018
Keywords
Service Corporation International, Equity Analysis, Funeral, Cemetery, Cremation

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