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Security National Financial (SNFCA)
:SNFCA
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Security National Financial (SNFCA) AI Stock Analysis

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SNFCA

Security National Financial

(NASDAQ:SNFCA)

Rating:64Neutral
Price Target:
$9.50
▲(8.08% Upside)
The overall stock score reflects a stable financial position with effective cash management and reasonable valuation. However, declining revenue growth and technical indicators suggest caution. Strategic initiatives from the earnings call provide a mixed outlook, with both challenges and opportunities for future growth.

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

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 multiple streams. Its life insurance segment earns money primarily from premiums collected from policyholders, which are invested to generate investment income. Additionally, the company offers annuities, which provide a steady income stream and also contribute to revenue through premium payments. In the mortgage segment, SNFCA earns money by originating loans and collecting fees for mortgage services, as well as through the sale of these loans on the secondary market. The company may also benefit from partnerships with financial institutions and real estate companies that facilitate its mortgage operations. Overall, a combination of premium income, investment returns, and mortgage fees constitutes the core of SNFCA's revenue model.

Security National Financial Earnings Call Summary

Earnings Call Date:Aug 14, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 17, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted both challenges and strategic initiatives. While there were notable declines in earnings and revenue in certain segments, the company is actively making strategic investments and adjustments to improve future performance. The shift towards cremation services and the increase in funeral home revenue are positive signs, but the decrease in cemetery operations revenue and increased personnel costs are significant concerns.
Q2-2025 Updates
Positive Updates
Increase in Funeral Home Revenue
In the funeral home division, revenue rose by 1.2% to $3,260,000, driven by a 3.3% increase in funeral sales average.
Shift Towards Cremation Services
The cremation rate increased to 52.8% with a 6.1% rise in cremation families choosing to have services.
Strategic Investments in People and Technology
The company is making significant investments in people, technology, and customer service innovation to strengthen its competitive position.
High-Quality Builder Relationships
The company maintains relationships with high-quality builders in stable markets, with a focus on high-quality talent ensuring secure investments.
Negative Updates
Decrease in Net Earnings
Net earnings before tax in 2025 decreased by 14.2% to $1,790,000 from $2,090,000 in the second quarter of 2024.
Revenue Decline in Cemetery Operations
Cemetery division revenue declined by 10% from $4,810,000 to $4,330,000, partly due to a 16.4% drop in interment volumes.
Increased Personnel Costs
Personnel costs increased by $4,000,000 due to market rate compensation adjustments and strategic hires.
Challenges with Sales Leadership
Sales leadership issues contributed to challenges in life sales, although steps have been taken to address these issues.
Company Guidance
During the second quarter of 2025, Security National Funeral Homes and Cemeteries reported a decrease in net earnings before tax to $1,790,000, a 14.2% drop from the same period in 2024. Total revenue also declined by 1.7% to $8,140,000. The cemetery operations, in particular, saw earnings fall to $822,000 and a 10% reduction in revenue to $4,330,000, attributed to a 16.4% decrease in interment volumes and lagging preneed land sales. Conversely, the funeral home division experienced a slight rise in revenue by 1.2% to $3,260,000, driven by a 3.3% increase in funeral sales average, although earnings slightly decreased to $387,000. Cremations now constitute 52.8% of their sales, with a 6.1% increase in associated services. The company is focusing on talent development, technology, expense management, and sales culture to navigate current challenges and pursue long-term growth.

Security National Financial Financial Statement Overview

Summary
Security National Financial shows a mixed financial performance. Recent improvements in revenue and profit margins are positive, but historical volatility in profitability and cash flow suggests caution. The balance sheet is stable but highlights potential risks with leverage and reliance on liabilities.
Income Statement
65
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
58
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
52
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue252.85M334.52M318.50M389.65M468.67M481.46M
Gross Profit250.30M334.52M318.50M389.65M470.70M481.46M
EBITDA34.78M47.14M25.53M42.21M58.93M80.03M
Net Income22.63M26.54M14.50M25.69M39.52M55.60M
Balance Sheet
Total Assets1.54B1.48B1.43B1.46B1.55B1.55B
Cash, Cash Equivalents and Short-Term Investments116.11M212.14M163.36M466.78M390.64M400.88M
Total Debt122.93M106.74M105.56M161.71M251.29M297.82M
Total Liabilities1.19B1.14B1.12B1.17B1.25B1.28B
Stockholders Equity354.75M338.78M312.90M292.79M299.77M263.99M
Cash Flow
Free Cash Flow9.18B54.85M52.77M128.85M139.42M-131.26M
Operating Cash Flow9.63B57.32M53.88M130.45M144.64M-129.63M
Investing Cash Flow-29.37B-43.13M14.61M-37.16M-63.61M36.14M
Financing Cash Flow13.56M-4.01M-62.04M-101.22M-55.08M71.21M

Security National Financial Technical Analysis

Technical Analysis Sentiment
Negative
Last Price8.79
Price Trends
50DMA
8.98
Negative
100DMA
9.19
Negative
200DMA
10.47
Negative
Market Momentum
MACD
-0.09
Negative
RSI
47.78
Neutral
STOCH
47.30
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 8.79 is above the 20-day moving average (MA) of 8.73, below the 50-day MA of 8.98, and below the 200-day MA of 10.47, indicating a bearish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 47.78 is Neutral, neither overbought nor oversold. The STOCH value of 47.30 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 (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$17.84B12.0310.32%3.73%9.70%0.76%
68
Neutral
$733.41M8.7315.02%35.12%25.28%
64
Neutral
$74.94M17.243.52%-32.51%
64
Neutral
$225.14M10.016.65%5.49%4.30%
58
Neutral
$257.99M23.610.35%12.92%-7.67%-106.54%
58
Neutral
$1.24B51.212.12%2.49%34.62%-7.94%
57
Neutral
$671.78M-23.67%6.60%44.77%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SNFCA
Security National Financial
8.79
0.44
5.27%
GHI
Greystone Housing Impact Investors
10.91
-1.79
-14.09%
LDI
loanDepot
2.10
-0.53
-20.15%
IOR
Income Opportunity Realty Investors
18.20
0.78
4.48%
VEL
Velocity Financial
19.05
0.40
2.14%
GHLD
Guild Holdings
19.96
5.48
37.85%

Security National Financial Corporate Events

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Security National Financial Holds Annual Stockholders Meeting
Neutral
Jul 1, 2025

On June 27, 2025, Security National Financial Corporation held its Annual Meeting of Stockholders in Salt Lake City, Utah, where a quorum was achieved with 19,756,812 shares represented. During the meeting, stockholders approved the election of nine directors, the amendment of the 2022 Equity Incentive Plan to issue additional shares, and the appointment of Deloitte & Touche, LLP as the independent accountants for 2025. These decisions are expected to impact the company’s governance and financial strategies moving forward.

Dividends
Security National Financial Declares 5% Stock Dividend
Positive
Jun 30, 2025

Security National Financial Corporation, a company listed on NASDAQ under the ticker SNFCA, announced a 5% stock dividend for its Class A and Class C common stockholders. This dividend, declared on June 27, 2025, will be issued on July 18, 2025, to stockholders of record as of July 11, 2025. The company has consistently issued stock dividends for 37 years, with the exception of a 7.5% dividend in 2020, highlighting its commitment to providing value to its shareholders.

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.Date of analysis: Aug 26, 2025