Boasting A 33% Return On Equity, Is Service Corporation International (NYSE:SCI) A Top Quality Stock?

Simply Wall St.10-31

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. By way of learning...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2480093904?lang=en_US&edition=fundamental","thumbnail":"https://images.simplywall.st/asset/industry/3112800-choice1-main-header/1585186650715","is_english":true,"pubTime":"2024-10-31 23:39","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2480093904","market":"us","top_or_hot":-1,"title":"Boasting A 33% Return On Equity, Is Service Corporation International (NYSE:SCI) A Top Quality Stock?","media":"Simply Wall St.","content":"<div>\n<p>While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important.  By way of learning...</p>\n\n<a href=\"https://simplywall.st/stocks/us/consumer-services/nyse-sci/service-corporation-international/news/boasting-a-33-return-on-equity-is-service-corporation-intern\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Boasting A 33% Return On Equity, Is Service Corporation International (NYSE:SCI) A Top Quality Stock?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBoasting A 33% Return On Equity, Is Service Corporation International (NYSE:SCI) A Top Quality Stock?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-31 23:39 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/consumer-services/nyse-sci/service-corporation-international/news/boasting-a-33-return-on-equity-is-service-corporation-intern><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important.  By way of learning...</p>\n\n<a href=\"https://simplywall.st/stocks/us/consumer-services/nyse-sci/service-corporation-international/news/boasting-a-33-return-on-equity-is-service-corporation-intern\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"EQR","symbol_name":"资产住宅公司","start_time":0,"source_url":"https://simplywall.st/stocks/us/consumer-services/nyse-sci/service-corporation-international/news/boasting-a-33-return-on-equity-is-service-corporation-intern","article_id":"2480093904","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/3112800-choice1-main-header/1585186650715"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2480093904","pubTimestamp":1730389190,"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"While some investors are already well versed in financial metrics (hat tip), this article is for those who would like...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"EQR":"资产住宅公司","BK4192":"特殊消费者服务","ROE":"ASTORIA US QUALITY KINGS ETF","LU1892829315.USD":"FIDELITY FUNDS SUSTAINABLE WATER & WASTE \"A\" (USD) ACC","BK4215":"住宅房地产投资信托","LU0266013472.USD":"AXA WF - Framlington Longevity Economy A Cap USD","NYSE":"纽交所","BK4548":"巴美列捷福持仓","SCI":"Service Corp International","LU1291159041.SGD":"CPR Invest - Global Silver Age A2 Acc SGD-H","BK4585":"ETF&股票定投概念","LU1989771016.USD":"东方汇理环球老龄化投资基金 A2 Acc","BK4588":"碎股"},"translate_title":"Service Corporation International(NYSE：SCI)拥有33%的股本回报率，是一只优质股票吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"EQR":1,"NYSE":1,"ROE":1,"SCI":1},"content_text":"While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important.  By way of learning-by-doing, we'll look at ROE to gain a better understanding of Service Corporation International (NYSE:SCI).  Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital.  Put another way, it reveals the company's success at turning shareholder investments into profits.  Check out our latest analysis for Service Corporation International  How Do You Calculate Return On Equity?  ROE can be calculated by using the formula:  Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Service Corporation International is:33% = US$510m ÷ US$1.5b (Based on the trailing twelve months to June 2024). The 'return' is the profit over the last twelve months.  One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.33 in profit.   Does Service Corporation International Have A Good Return On Equity?  Arguably the easiest way to assess company's ROE is to compare it with the average in its industry.  The limitation of this approach is that some companies are quite different from others, even within the same industry classification.   As you can see in the graphic below, Service Corporation International has a higher ROE than the average (15%) in the Consumer Services industry. NYSE:SCI Return on Equity October 31st 2024 That's what we like to see.    However, bear in mind that a high ROE doesn’t necessarily indicate efficient profit generation.  Aside from changes in net income, a high ROE can also be the outcome of high debt relative to equity, which indicates risk.   To know the 2 risks we have identified for Service Corporation International visit our risks dashboard for free.  Why You Should Consider Debt When Looking At ROE  Most companies need money -- from somewhere -- to grow their profits.  The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing.  In the first and second cases, the ROE will reflect this use of cash for investment in the business.  In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity.  In this manner the use of debt will boost ROE, even though the core economics of the business stay the same.  Combining Service Corporation International's Debt And Its 33% Return On Equity  We think Service Corporation International uses a significant amount of debt to maximize its returns, as it has a significantly higher debt to equity ratio of 3.02.   While its ROE is no doubt quite impressive, it could give a false impression about the company's returns given that its huge debt could be boosting those returns.      Conclusion    Return on equity is one way we can compare its business quality of different companies.  In our books, the highest quality companies have high return on equity, despite low debt.  All else being equal, a higher ROE is better.  Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock.  The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too.   So you might want to check this FREE visualization of analyst forecasts for the company.  Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this  free list of interesting companies. New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2480093904"}