Security National Financial (SNFCA) AI Stock Analysis

• Market Cap: $230.60M
• Dividend Yield: N/A
• Average Volume (3M): 41.36K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 1.26
• Revenue Growth: 3.25%
• EPS Growth: -37.79%
• Country: US
• Employees: 1,186
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Mortgages
• EPS (TTM): 0.31
• Shares Outstanding: 22,398,333
• 10 Day Avg. Volume: 27,264
• 30 Day Avg. Volume: 41,356
• PEG Ratio: 0.14
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.84
• P/FCF Ratio: 5.11
• Enterprise Value/Market Cap: 1.62
• Enterprise Value/Revenue: 4.17
• Enterprise Value/Gross Profit: 4.41
• Enterprise Value/Ebitda: 12.35
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: $9.50 ▲(10.47% Upside)

SNFCA scores moderately due to solid financial footing (strong revenue growth and low leverage) tempered by weaker operating efficiency signals and soft free-cash-flow growth. Technicals are mixed/neutral and do not provide a strong tailwind, while valuation (P/E ~12) is supportive.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market presence and effective sales strategies, supporting long-term business sustainability.

Shift Towards Cremation Services

The shift towards cremation services aligns with industry trends, potentially boosting profitability and market share in the long run.

Strategic Investments

Investments in technology and talent are likely to enhance operational efficiency and competitive positioning over time.

Negative Factors

Operational Inefficiencies

Low operational margins suggest inefficiencies that could hinder profitability and require strategic focus to improve.

Cash Flow Concerns

Declining cash flow growth may limit the company's ability to invest in growth opportunities and manage financial obligations.

Increased Personnel Costs

Rising personnel costs can pressure margins and profitability, necessitating careful management to maintain financial health.

Security National Financial Business Overview & Revenue Model

Company Description

Security 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 Money

SNFCA generates revenue through multiple key streams. Primarily, it earns money from the sale of life insurance products, which includes premiums collected from policyholders. The company also generates income through its cemetery and funeral services, where it charges for burial plots, cremation services, and related products. Additionally, SNFCA operates a mortgage segment that earns revenue through origination fees, interest income on loans, and servicing fees. Significant partnerships with other financial institutions and service providers enhance its offerings and customer reach, contributing to its overall financial performance.

Security National Financial Financial Statement Overview

Summary

Security National Financial demonstrates strong revenue growth and a healthy net profit margin, but faces challenges with operational efficiency and cash flow stability. The balance sheet is solid with low leverage, providing a stable foundation. Overall, the company is in a decent financial position but should focus on improving operational margins and cash flow generation.

Income Statement

The income statement shows a positive revenue growth rate of 15.9% in the TTM period, indicating strong top-line growth. However, the gross profit margin is extremely low, which could be a data anomaly. The net profit margin of 8.7% is healthy, suggesting effective cost management. EBIT and EBITDA margins are negligible, which may indicate operational inefficiencies or reporting issues.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.34 in the TTM period, indicating low leverage. Return on equity is 8.5%, which is moderate and shows decent profitability. The equity ratio is not provided, but the overall leverage appears manageable.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 3.5% in the TTM period, which is a concern. The operating cash flow to net income ratio is 0.85, indicating that cash generation is slightly below net income. The free cash flow to net income ratio is strong at 0.96, suggesting good cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	89.69M	8.19M	9.55M	9.67M	9.39M	0.00
Gross Profit	84.99M	3.94M	4.68M	1.84M	2.26M	-8.58M
EBITDA	30.31M	47.14M	30.39M	59.88M	79.32M	97.32M
Net Income	18.62M	26.54M	14.50M	25.69M	39.52M	55.60M
Balance Sheet
Total Assets	1.56B	1.49B	1.43B	1.46B	1.55B	1.55B
Cash, Cash Equivalents and Short-Term Investments	128.42M	212.14M	508.48M	466.78M	390.64M	400.88M
Total Debt	123.10M	106.74M	105.56M	161.71M	251.29M	297.82M
Total Liabilities	1.20B	1.15B	1.12B	1.17B	1.25B	1.28B
Stockholders Equity	365.38M	338.78M	312.90M	292.79M	299.77M	263.99M
Cash Flow
Free Cash Flow	46.49M	54.85M	52.77M	128.85M	139.42M	-131.26M
Operating Cash Flow	49.98M	57.32M	53.88M	130.45M	144.64M	-129.63M
Investing Cash Flow	-133.45M	-43.13M	14.61M	-37.16M	-63.61M	36.14M
Financing Cash Flow	9.18M	-4.01M	-62.04M	-101.22M	-55.08M	71.21M

Security National Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNFCA, the sentiment is Positive. The current price of 8.6 is below the 20-day moving average (MA) of 8.97, below the 50-day MA of 8.62, and below the 200-day MA of 8.91, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 52.21 is Neutral, neither overbought nor oversold. The STOCH value of 54.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SNFCA.

Security National Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PFSI	69 Neutral	$7.66B	15.87	12.55%	0.90%	25.42%	190.85%
VEL	69 Neutral	$747.27M	8.02	16.04%	―	36.73%	27.50%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SNFCA	64 Neutral	$230.60M	12.42	5.23%	―	3.25%	-37.79%
ECPG	58 Neutral	$1.23B	-30.16	-4.51%	―	10.85%	77.59%
LDI	47 Neutral	$873.08M	-7.11	-25.72%	―	3.91%	27.78%