In this morning’s edition of Funeral Director Daily we linked two investment reports on Service Corporation International (SCI).  As we mentioned both reports gave “bullish” opinions on the company and the chance for investment gain over time.

Here’s how one of those reports summed up its conclusion for a positive investment outlook for SCI, “The stock currently trades at a moderate valuation discount to the broader market despite having better long-term growth prospects and a less cyclical earnings stream.”

In light of that positive outlook I wanted to take a look back on how SCI’s stock has performed compared to other companies, in and out of the Death Care world over the past decade.  The chart below illustrates stock prices of certain companies as of January 25, 2016, and almost exactly ten years later on January 23, 2026.  The prices come from information published on Seeking Alpha.

As you can see from this chart, Service Corporation International stock sold for $22.61 per share on January 25, 2016.  Almost exactly ten years later, SCI stock sold for $81.18 per share.  That $81.18 price is a multiple of 3.6 times the 2016 price of $22.61.  Finally, that means that a $10,000 investment in SCI on January 25, 2016, would be worth $36,000 today.

Every investor would have to make their own decision if that is a successful return on the investment in SCI over a decade.

The chart also lists the other “Death Care” public companies and their stock values and multiple value increase for those dates.  Those stocks include Carriage Services, Security National Financial Corporation (SNFC), and Matthews International.  Finally, I’ve compared SCI with stocks that I have in my investment portfolio in a sub-group that I title “Companies that will be worth more in 10 years than they are today”.  Essentially, these are companies I deem to be “Buy and Hold” stocks regardless of today’s economic situation.

Tom Anderson
Funeral Director Daily

Funeral Director Daily take:  In light of seeing that SCI has grown in value almost identical to Warren Buffet’s Berkshire Hathaway conglomerate over the past decade, here’s a question to ponder . . . . . Has SCI joined the “Buy and Hold” world of “Companies that will be worth more in 10 years than they are today”?

Disclaimer:  The author of this article for Funeral Director Daily holds positions in the following “Death Care” stocks:  Service Corporation International, Carriage Services, and Security National Financial Corporation.

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