Security National Financial (SNFCA) AI Stock Analysis

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Security National Financial

(NASDAQ:SNFCA)

Rating:54Neutral

Price Target:―

Security National Financial's overall score is influenced primarily by its mixed financial performance and neutral technical indicators. While there are signs of operational improvement and strategic investments in key segments, historical volatility and recent earnings declines present notable risks. The moderate valuation offers some support, but the lack of dividend yield is a downside for income investors.

Security National Financial (SNFCA) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$234.60M

Dividend YieldN/A

Average Volume (3M)35.33K

Price to Earnings (P/E)9.9

Beta (1Y)1.27

Revenue Growth4.96%

EPS Growth12.42%

CountryUS

Employees1,186

SectorFinancial

Sector Strength74

IndustryFinancial - Mortgages

Share Statistics

EPS (TTM)0.18

Shares Outstanding21,324,825

10 Day Avg. Volume43,413

30 Day Avg. Volume35,328

Financial Highlights & Ratios

PEG Ratio-0.18

Price to Book (P/B)0.50

Price to Sales (P/S)0.00

P/FCF Ratio1.13

Enterprise Value/Market Cap0.79

Enterprise Value/Revenue0.14

Enterprise Value/Gross Profit0.56

Enterprise Value/Ebitda2.00

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Security National Financial Business Overview & Revenue Model

Company DescriptionSecurity National Financial Corporation engages in the life insurance, cemetery and mortuary, and mortgage businesses. The company's Life Insurance segment is involved in selling and servicing lines of life insurance, annuity products, and accident and health insurance. It offers various life insurance products, including funeral plans and interest-sensitive life insurance, as well as other traditional life, accident, and health insurance products; annuity products comprising single and flexible premium deferred annuities, and immediate annuities; and diver's accident policies. This segment also cedes and assumes various risks with various authorized unaffiliated reinsurers pursuant to reinsurance treaties. Its Cemetery and Mortuary segment operates eleven mortuaries and five cemeteries in Utah; one cemetery in California; and four mortuaries and one cemetery in New Mexico. This segment also offers plots, interment vaults, mausoleum crypts, markers, caskets, urns, and other death care related products; and provides professional services of funeral directors, opening and closing of graves, use of chapels and viewing rooms, and use of automobiles and clothing. The company's Mortgages segment originates and underwrites residential and commercial loans for new construction, existing homes, and real estate projects primarily in Florida, Nevada, Texas, and Utah. It offers residential mortgage lending services to real estate brokers and builders, as well as directly with consumers. Security National Financial Corporation was founded in 1965 and is headquartered in Salt Lake City, Utah.

How the Company Makes MoneySecurity National Financial Corporation generates revenue through its diversified operations in life insurance, funeral services, and mortgage lending. In the life insurance segment, the company earns money by collecting premiums from policyholders. The cemetery and mortuary segment generates revenue through the sale of funeral services, cemetery plots, and related merchandise. Meanwhile, the mortgage segment derives income from originating mortgage loans, collecting interest and fees, and servicing loans. Additionally, significant partnerships with financial institutions and strategic investments in its operating segments contribute to the company's earnings.

Security National Financial Earnings Call Summary

Earnings Call Date:May 16, 2025

(Q1-2025)

% Change Since: -9.85%|

Next Earnings Date:Aug 18, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed performance with significant challenges such as decreased earnings and investment income declines due to economic and market factors. However, there were strong operational performances and strategic investments in the insurance, death care, and mortgage segments, indicating potential for future growth.

Q1-2025 Updates

Positive Updates

Insurance Segment Performance

The insurance segment had its second-best first quarter out of the last five years, with improved premium margins by several percentage points due to increased premium rates.

Death Care Segment Growth

The death care segment increased families served by 4%, despite a flat to declining mortality climate. Funeral home operations saw a 3.4% revenue growth driven by a 3% rise in total services performed.

Mortgage Segment Improvement

The mortgage segment increased volume by 11% from Q1 2024 to Q1 2025, outperforming the market significantly. The segment was both profitable and cash flow positive in March 2025.

Strategic Investments in Personnel

Personnel costs rose 11.7% due to strategic hiring to augment sales and fulfillment staffs, aiming for future growth.

Bond Portfolio Improvement

There was a $5 million improvement in unrealized losses on the bond portfolio, with its fair value compared to amortized cost being the closest since 2020.

Negative Updates

Significant Decrease in Earnings

After-tax earnings decreased by approximately 42%, or $3.1 million, from $7.475 million in 2024 to $4.338 million in 2025.

Investment Income Decline

A $3 million decrease in pre-tax income was attributed to declines in both realized and unrealized investment income, with $1.7 million due to decreased construction profits and lot sales.

CECL Accounting Impact

Adoption of the CECL accounting standard led to a $900,000 increase in bad debt reserve expense, contributing to the overall decrease in pre-tax income.

Stock Market Declines

A $1.25 million decline in investment income was due to stock market declines, reflecting recognized but unrealized losses.

Funeral Home and Cemetery Earnings Decline

Net earnings before tax from funeral homes and cemeteries declined 27% due to an $828,000 reduction in investment income gains and softer performance in select markets.

Company Guidance

In the first quarter of 2025, Security National Financial Corporation experienced a significant decline in both after-tax and pre-tax earnings, with after-tax earnings decreasing by approximately 42% from $7.475 million in 2024 to $4.338 million in 2025. Pre-tax earnings decreased by 41%, from $9.6 million to $5.571 million. The primary contributors to this decline were a $3 million reduction in investment income, largely due to decreased construction profits and lower gains on residential lot sales, as well as a $1.25 million loss from stock market declines. Additionally, an increase in the bad debt reserve expense, following the adoption of the CECL accounting standard, accounted for $900,000 of the decrease in pre-tax income. Despite these financial challenges, the company achieved operational success, with the insurance segment having its second-best first quarter in five years and the death care segment experiencing a 4% increase in families served. Furthermore, the mortgage segment saw an 11% increase in volume compared to Q1 2024, and an improved product mix, marking a positive performance amidst a challenging economic landscape.

Security National Financial Financial Statement Overview

Summary

Security National Financial displays a mixed financial performance. Recent improvements in revenue and profit margins are notable, yet historical volatility in profitability and cash flow suggests caution. The balance sheet shows moderate leverage and reliance on liabilities, indicating potential risks despite some stability.

Income Statement

Positive

The company shows a fluctuating revenue trend with a significant increase in TTM figures. Gross profit margin remains at 100% due to revenue equating to gross profit, but the net profit margin is volatile, reflecting inconsistent profitability. The EBIT margin has recently improved after previous negative figures, indicating better operational efficiency.

Balance Sheet

Neutral

The balance sheet indicates moderate leverage with a debt-to-equity ratio that has been manageable historically. Stockholders' equity has grown over the years, suggesting some stability, but the equity ratio suggests reliance on liabilities. The return on equity has fluctuated, highlighting varying profitability against equity.

Cash Flow

Neutral

Cash flow from operations has been inconsistent, with periods of negative cash flow, though recent figures show improvement. The free cash flow has been volatile, impacting the company's ability to reinvest or return capital to shareholders. Ratios involving net income are skewed due to fluctuations in profitability.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
336.28M	334.52M	318.50M	389.65M	468.67M	481.46M
	Gross Profit
335.02M	334.52M	318.50M	389.65M	470.70M	481.46M
	EBIT
31.12M	34.10M	21.17M	34.38M	51.80M	79.13M
	EBITDA
18.13M	38.36M	25.53M	42.21M	58.93M	80.03M
	Net Income Common Stockholders
23.40M	26.54M	14.50M	25.69M	39.52M	55.60M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	212.14M	163.36M	466.78M	390.64M	400.88M
	Total Assets
0.00	1.48B	1.43B	1.46B	1.55B	1.55B
	Total Debt
0.00	106.74M	105.56M	161.71M	251.29M	297.82M
	Net Debt
0.00	-33.81M	-21.39M	40.79M	119.93M	191.60M
	Total Liabilities
1.18T	1.14B	1.12B	1.17B	1.25B	1.28B
	Stockholders Equity
346.49B	338.78M	312.90M	292.79M	299.77M	263.99M
Cash Flow		Free Cash Flow
9.17B	54.85M	52.77M	128.85M	139.42M	-131.26M
	Operating Cash Flow
9.62B	57.32M	53.88M	130.45M	144.64M	-129.63M
	Investing Cash Flow
-29.31B	-43.13M	14.61M	-37.16M	-63.61M	36.14M
	Financing Cash Flow
14.87B	-4.01M	-62.04M	-101.22M	-55.08M	71.21M

Security National Financial Technical Analysis

Technical Analysis Sentiment

Negative

Last Price9.52

Price Trends

50DMA

9.87

Negative

100DMA

11.24

Negative

200DMA

10.94

Negative

Market Momentum

MACD

-0.07

Negative

RSI

44.22

Neutral

STOCH

43.80

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNFCA, the sentiment is Negative. The current price of 9.52 is below the 20-day moving average (MA) of 9.96, below the 50-day MA of 9.87, and below the 200-day MA of 10.94, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 44.22 is Neutral, neither overbought nor oversold. The STOCH value of 43.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SNFCA.

Security National Financial Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GHI	75 Outperform	$278.43M	25.94	3.32%	12.44%	-15.60%	-75.87%
VEL	68 Neutral	$701.37M	10.04	13.62%	―	32.62%	16.91%
Sector *	64 Neutral	$12.87B	9.76	7.85%	78.04%	12.07%	-7.94%
IOR	64 Neutral	$76.75M	17.25	3.69%	―	―	-32.53%
GHLD	57 Neutral	$973.59M	22.54	3.71%	3.18%	42.92%	64.72%
SNFCA	54 Neutral	$234.60M	9.94	7.02%	―	4.96%	12.42%
LDI	48 Neutral	$442.08M	―	-29.48%	―	3.76%	16.19%

* Financial Sector Average

Performance Comparison

SNFCA

Security National Financial

9.52

2.37

33.15%

GHI

Greystone Housing Impact Investors

12.21

-1.04

-7.85%

LDI

loanDepot

1.41

-0.37

-20.79%

IOR

Income Opportunity Realty Investors

18.20

1.62

9.77%

VEL

Velocity Financial

18.98

0.34

1.82%

GHLD

Guild Holdings

15.70

1.34

9.33%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.