Service InternationalSCI +0.19%84 Operating Margin % is 22.12% as of Mar. 2026, which is 2% below its 10-year median of 22.47. GuruFocus rates SCI with a GF Score™ of 84/100 and a GF Value™ of $83.50 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 97 Personal Services companies, Service International ranks better than 95.88% on this metric.
Service International (NYSE:SCI) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Service International Operating Margin % Related Terms
Service International Operating Margin % Historical Data
* Premium members only.
The historical data trend for Service International's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
SCI vs HRB, FTDR, ANDG: Operating Margin % Comparison
For the Personal Services subindustry, Service International's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Service International Operating Margin % vs Personal Services Industry
For the Personal Services industry and Consumer Cyclical sector, Service International's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Service International's Operating Margin % falls into.
Service International Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Service International's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Service International (SCI) has a Operating Margin % of 22.12% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Service International and its competitors. This is near median its historical median of 22.47. Over the past decade, Service International's Operating Margin % has ranged from 17.82 to 28.13. According to the industry distribution chart, Service International ranks #4 out of 97 companies in the Personal Services industry, placing it in the top 4.1%.
Is Service International's Operating Margin % too high?
Service International's current Operating Margin % of 22.12% is near median its 10-year median of 22.47. Over the past 10 years, this metric has ranged from a low of 17.82 to a high of 28.13. The Personal Services industry median Operating Margin % is 6.55. Service International's value of 22.12% is 237.7% above this industry median. Based on the distribution chart, Service International ranks #4 out of 97 companies in the Personal Services industry, which is in the top quartile — a strong position relative to peers. Overall, Service International has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Service International's Operating Margin % compare to HRB and FTDR?
According to the Personal Services industry distribution chart, Service International ranks #4 out of 97 companies for Operating Margin %. This places Service International in the top 4% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.55. Service International's value of 22.12% is 237.7% above this benchmark. Historically, Service International's own Operating Margin % has ranged from 17.82 to 28.13 over the past decade. While the company's 10-year median is 22.47 vs. the industry median of 6.55, Service International has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Personal Services company?
The median Operating Margin % among Personal Services companies is 6.55, based on 97 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Service International's current Operating Margin % of 22.12% is 237.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Service International and its competitors. For the Personal Services industry, the median Operating Margin % is 6.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Service International's current Operating Margin % is 22.12%, which is near median its own 10-year median of 22.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Service International stock overvalued right now?
Based on GuruFocus' analysis, Service International (SCI) is currently considered Modestly Undervalued. The stock's GF Value™ is $83.50, compared to a current price of $74.04 — trading 11.3% below its estimated fair value. The current Operating Margin % is 22.12%, which is near median its 10-year median of 22.47 and 237.7% above the Personal Services industry median of 6.55. Service International's overall GF Score™ is 84/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Service International (SCI), the current Operating Margin % is 22.12% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Service International (SCI) Overvalued in 2026?
Based on GuruFocus' analysis, Service International stock appears to be undervalued.
The current stock price of $74.04 is trading 11.3% below its estimated GF Value™ of $83.50.
GuruFocus considers Service International to be Modestly Undervalued.
Key valuation signals for SCI:
Operating Margin %: 22.12% (near median its 10-year median of 22.47)
GF Value™: $83.50 vs. price of $74.04 (11.3% below fair value)
Industry Position: 237.7% above the Personal Services median (#4 of 97)
No single metric tells the full story. See the SCI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Service Corp International is a personal services company that provides funeral and cemetery services and products from its locations throughout the United States and Canada. The company segments its operations into funeral service and cemetery business functions. At its funeral service locations, it provides all professional services, facilities, vehicles, and merchandise related to funerals and cremations. Cemetery locations provide cemetery property, memorial markers, and graveyard services to customers. The company derives the majority of its revenue from its funeral services segment. Geographically, the company derives a majority of its revenue from the United States.
84GF Score
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