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Service Corp International earnings quality score

How much of the reported profit is backed by cash, and how many markers of managed earnings the filings show

Score59 / 100 · grade C · rank 727 of 1027

Service Corp International (SCI) scores 59 of 100 for earnings quality, grade C: rank 727 of 1027 companies and 106 of 141 in consumer-disc. It loses the most points on accruals of -2.2% of assets, higher than 70% of companies (profit backed by cash), Montier C-score 4 of 5 checks failed, discretionary accruals of +3.6% of assets (modified Jones), larger than most. It earns full or near-full marks for adjusted earnings 1% below GAAP, Beneish M-score -2.53: clean (below −2.22).

What earned and lost points

ComponentWhat the filings showPointsOf
Accrualsaccruals of -2.2% of assets, higher than 70% of companies (profit backed by cash)621
Beneish M-scoreBeneish M-score -2.53: clean (below −2.22)1616
Dechow F-scoreDechow F-score 1.48 (above normal)1016
Montier C-scoreMontier C-score 4 of 5 checks failed316
Discretionary accrualsdiscretionary accruals of +3.6% of assets (modified Jones), larger than most510
Piotroski F-scorePiotroski F-score 7 of 9810
Non-GAAP gapadjusted earnings 1% below GAAP1010
SCI: share of the available points, by componentSCI: share of the available points, by componentAccruals29%Discretionary accruals45%Beneish M-score100%Dechow F-score66%Montier C-score20%Piotroski F-score78%Non-GAAP gap96%

How the score is built

Eight published measures, each scored against the whole universe or on its own scale and weighted: accruals 20, discretionary accruals 10, Beneish M 15, Dechow F 15, Montier C 15, Piotroski F 10, the non-GAAP gap 10, smoothness 5. A measure that cannot be computed (Beneish for a bank, say) drops out and the rest is rescaled, so every company is scored on what applies to it.

Every company ranked → The full quality workbench, live → Service Corp International: cash flow →

Computed from the companies’ own XBRL filings (latest fiscal year) by published formulas; a statistical screen, not an audit or an accusation. A low score means the reported profit shows more of the markers of managed or low-quality earnings than its peers. Not investment advice.