Is Service Corporation International (SCI) Undervalued After Lowered Guidance And A Shareholder Investigation?

Simply Wall St · 2d ago

Service Corporation International (SCI) has moved into focus after third quarter earnings on 28 October 2026, paired with reduced full year guidance and a fresh shareholder investigation into the company’s disclosure practices.

The share price reaction has been sharp in the short term, with a 7 day share price return of down 8.33% and a 90 day share price return of down 11.13%. This comes even though Service Corporation International has delivered a 3 year total shareholder return of 35.81%, so recent momentum looks weak compared with its longer record.

Scan how other investors are reacting to similar pressure points by reviewing our hand picked 29 resilient stocks with low risk scores alongside Service Corporation International after this guidance reset and investigation news.

Service Corporation International now trades well below both analyst targets and one intrinsic value estimate. After this pullback, where does a fair valuation range genuinely cluster for the stock today?

Most Popular Narrative: 22% Undervalued

On the latest view, the most followed narrative places fair value for Service Corporation International at $97.33, compared with a last close of $76.37, so the recent guidance cut and investigation are being weighed against a still supportive long term model.

The strong and rising installment receipts and stable payment behavior for prearranged cemetery services are now reflected in higher 2026 operating cash flow guidance, which was raised by US$50 million to a midpoint of US$1.085b. This supports the potential for better cash conversion into future free cash flow and earnings.

See why 9 investors see Service Corporation International as 22% undervalued.

Result: Fair Value of $97.33 (UNDERVALUED)

Still, the narrative around Service Corporation International can unravel if funeral case volumes stay weak, or if rising cremation mix continues to pressure profitability and cash generation.

Find out about the key risks to this Service Corporation International narrative.

Next Steps

There are mixed signals on Service Corporation International so far. Consider acting promptly to review the numbers yourself, then weigh up the 4 key rewards and 2 important warning signs.

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