Bitget on SCI: “. . a focus on compounding value through operational excellence and strategic acquisitions, not rapid volume growth.”

April 9, 2026/Finance/

Every so often I come across an investment article that not only gives an opinion on a certain company in Death Care but also mentions the Death Care business in general and intimates on what companies have to do to be profitable. I find those articles are important to read so that one can understand how Death Care business owners can profit, with their own firms, from the perceived dynamics of the business that an analyst might provide.

I’m of the opinion that when one reads an article such as this they not only learn about the company that is featured, but they learn about how some of that company’s features might be put to work for their own business.

I came across one of those articles that was published earlier this week by Bitget. . . with the subject being Service Corporation International (SCI). To access the entire article click here.

As I do with these type of article I will quote some of the comments without personal comment so, at least from me, the article is unbiased. Here are some quotes from the article:

“SCI’s dominance is rooted in its impressive scale. By early 2025, SCI controlled an estimated 15–16% share of the highly fragmented North American deathcare sector. This isn’t merely a matter of size—it’s a strategic moat.”

“With a network exceeding 1,900 locations, built through years of acquisitions, SCI benefits from major cost efficiencies in operations, procurement, and marketing. These advantages help the company maintain its market share, even as industry trends like the rise in cremations challenge smaller, local competitors.”

“One of SCI’s most powerful assets is its $15.4 billion preneed backlog—future revenue already secured. This backlog not only ensures a steady stream of cash flow but also raises the barrier for new entrants.”

“SCI’s latest financials reflect solid execution, but the underlying trends are more complex. . . . .SCI is running its core business with discipline, but isn’t seeing the volume growth typically associated with a robust economy. Earnings remain stable, but growth is being squeezed from higher prices and cost controls, while the cemetery division faces notable challenges.”

“SCI represents quality . . . . Its shares trade at a premium, and its capital allocation reflects a focus on compounding value through operational excellence and strategic acquisitions, not rapid volume growth.”

“The biggest risk is the ongoing shift toward cremation, which puts pressure on SCI’s traditional business model. Cremation services typically generate less revenue per transaction than traditional funerals, and this trend is the main reason for the declining gross margin in the cemetery segment. As cremation becomes more common, maintaining SCI’s historically high adjusted EBITDA margin near 30% will become increasingly difficult. This is a long-term demographic and cultural shift that could compress margins for years to come.”

“(SCI’s) growth depends on disciplined acquisitions, while its profitability faces pressure from changing consumer preferences.”