Security National Financial Corporation (SNFCA) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Security National Financial Corporation (SNFCA) Financial Services Profile

Security National Financial Corporation operates a diversified business across life insurance, cemetery and mortuary services, and mortgage lending. Headquartered in Salt Lake City, Utah, the company serves various markets, leveraging its multi-segment approach to address different financial and end-of-life needs for consumers and businesses.

What Is the Investment Thesis for SNFCA?

Security National Financial Corporation presents a distinctive investment profile characterized by its diversified operational model spanning life insurance, cemetery and mortuary services, and mortgage lending. With a market capitalization of $213M and a P/E ratio of 6.9, the company demonstrates a profitable operational structure, evidenced by a robust profit margin of 20.8% and a gross margin of 69.3%. This diversification potentially offers resilience against sector-specific downturns, as different segments may perform independently across various economic cycles. The company's Beta of 0.72 suggests lower volatility compared to the broader market. Key value drivers include potential expansion within its established mortgage markets in Florida, Nevada, Texas, and Utah, capitalizing on regional population growth and real estate demand. Furthermore, the stable demand for death care services provides a consistent revenue stream. Growth catalysts could involve strategic acquisitions to expand its geographic footprint in the cemetery and mortuary segment or the introduction of new insurance products. Risks include interest rate fluctuations impacting mortgage profitability and regulatory changes across its financial services and insurance operations.

Based on FMP financials and quantitative analysis

SNFCA Key Highlights

• Market Capitalization stands at $0.20 billion, indicating its position as a small-cap entity within the financial services sector.
• The company maintains a P/E ratio of 6.9, reflecting its earnings valuation relative to its share price.
• A strong Profit Margin of 20.8% demonstrates efficient management and profitability across its diversified business segments.
• Security National Financial Corporation achieves a Gross Margin of 69.3%, highlighting the effectiveness of its core operations in generating revenue above the cost of goods sold.
• With a Beta of 0.72, the stock exhibits lower volatility compared to the overall market, suggesting a relatively stable performance profile.
• The company employs 1186 individuals, supporting its operations across life insurance, cemetery and mortuary services, and mortgage lending.

Who Are SNFCA's Competitors?

SNFCA is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are SNFCA's Key Strengths?

• Diversified revenue streams across three distinct and often counter-cyclical business segments.
• Established regional presence with physical assets in the cemetery and mortuary segment across multiple states.
• Strong profitability metrics with a 20.8% profit margin and 69.3% gross margin.
• Lower market volatility indicated by a Beta of 0.72.

What Are SNFCA's Weaknesses?

• Relatively small market capitalization ($0.20B) compared to larger national competitors, potentially limiting capital access for large-scale expansion.
• Geographic concentration in specific states for its mortgage and death care operations, exposing it to regional economic fluctuations.
• No dividend yield, which might deter income-focused investors.

What Could Drive SNFCA Stock Higher?

• **Ongoing:** Continued population and economic growth in key mortgage markets (Florida, Nevada, Texas, Utah) driving demand for residential and commercial loans.
• **Upcoming:** Potential strategic acquisitions in the cemetery and mortuary segment to expand geographic reach and market share.
• **Ongoing:** Introduction of new, competitive life insurance and annuity products designed to meet evolving consumer financial planning needs.
• **Ongoing:** Enhanced cross-selling initiatives between the company's life insurance, death care, and mortgage segments, aiming to increase customer lifetime value.

What Are the Key Risks for SNFCA?

• Financial-distress signal — its Altman Z-Score of 0.71 sits in the distress zone (elevated bankruptcy risk).
• **Ongoing:** Sensitivity to interest rate fluctuations, which can impact profitability in the mortgage lending segment and affect investment returns for the life insurance segment.
• **Potential:** Increased competition from larger, well-capitalized financial institutions and specialized service providers across all three of SNFCA's business lines.
• **Ongoing:** Regulatory changes and compliance costs within the highly regulated financial services, insurance, and death care industries, potentially impacting operational expenses and business models.
• **Potential:** Economic downturns or regional housing market corrections in its primary operating states (Florida, Nevada, Texas, Utah) could reduce mortgage origination volumes and asset values.

What Are the Growth Opportunities for SNFCA?

• **Expansion of Mortgage Lending in High-Growth States:** Security National Financial Corporation's Mortgages segment primarily operates in Florida, Nevada, Texas, and Utah. These states are experiencing significant population growth and robust real estate markets, driven by inward migration and economic development. By strategically increasing its market share within these existing geographies, SNFCA can capitalize on sustained demand for residential and commercial loans. This involves expanding its network of real estate brokers and builders, enhancing direct-to-consumer marketing efforts, and potentially introducing new loan products tailored to regional market needs. The timeline for this growth is ongoing, aligning with the sustained economic and demographic trends in these states.
• **Geographic Expansion of Cemetery and Mortuary Services:** The company currently operates eleven mortuaries and five cemeteries in Utah, one cemetery in California, and four mortuaries and one cemetery in New Mexico. There is an opportunity to expand this segment into adjacent or underserved markets within the Western and Southwestern United States. This could involve strategic acquisitions of smaller, independent funeral homes or cemeteries, or developing new facilities in areas with favorable demographic trends. The death care industry is generally stable, and expanding its footprint could provide long-term, predictable revenue streams, leveraging existing operational expertise and economies of scale.
• **Development and Diversification of Life Insurance and Annuity Products:** SNFCA's Life Insurance segment offers a range of products including funeral plans, interest-sensitive life insurance, and various annuities. A key growth opportunity lies in developing innovative new products that cater to evolving consumer needs, such as hybrid long-term care insurance products, specialized retirement income annuities, or digital-first insurance offerings. Expanding into niche markets or enhancing existing product features to better compete with larger insurers could attract new policyholders and increase premium income. This ongoing opportunity requires continuous market research and product development, with potential rollouts over the next 1-3 years.
• **Leveraging Cross-Selling Opportunities Across Segments:** With three distinct but complementary business segments—life insurance, death care, and mortgages—Security National Financial Corporation has a significant opportunity to enhance revenue through cross-selling. For instance, mortgage customers could be offered life insurance products to protect their families and assets, while individuals purchasing funeral plans might also be interested in annuity products for estate planning. Integrating customer databases and training sales teams to identify and pursue these synergies could lead to increased customer lifetime value and reduced customer acquisition costs across all segments. This is an ongoing operational efficiency and revenue enhancement strategy.
• **Technological Integration and Operational Efficiency:** Investing in advanced technology across all segments can drive significant growth and profitability. In the mortgage segment, this could mean implementing AI-driven underwriting or a more streamlined digital application process to reduce processing times and costs. For life insurance, enhanced digital platforms for policy management and customer service can improve client retention. In the cemetery and mortuary segment, digital record-keeping and online pre-planning tools can improve efficiency and customer experience. These technological advancements can lead to cost savings, improved customer satisfaction, and a competitive edge, with implementation phases typically spanning 1-2 years for significant impact.

What Opportunities Does SNFCA Have?

• Expansion of mortgage lending services in existing high-growth states like Florida, Nevada, and Texas.
• Strategic acquisitions to grow the cemetery and mortuary footprint in new or adjacent markets.
• Development of new, innovative life insurance and annuity products to capture evolving market demand.
• Leveraging cross-selling synergies between its life insurance, death care, and mortgage customer bases.

What Threats Does SNFCA Face?

• Fluctuations in interest rates, which can significantly impact the profitability of both mortgage lending and life insurance/annuity segments.
• Intense competition from larger, more established national and regional players in all three of its business segments.
• Potential for increased regulatory scrutiny and compliance costs across the financial services and death care industries.
• Economic downturns impacting housing markets and consumer discretionary spending on certain financial products.

What Are SNFCA's Competitive Advantages?

• **Diversified Business Model:** Operating across three distinct segments (life insurance, death care, mortgages) provides multiple revenue streams and potential resilience against downturns in any single market.
• **Established Regional Presence:** Long-standing operations and a significant footprint in specific states like Utah, California, New Mexico, Florida, Nevada, and Texas create brand recognition and local market expertise.
• **Integrated Service Offering:** The ability to offer complementary services, such as life insurance alongside funeral planning, can create customer loyalty and cross-selling opportunities.
• **Regulatory Compliance Expertise:** Navigating the complex regulatory environments of insurance, financial services, and death care across multiple states builds a barrier to entry for new competitors.

What Does SNFCA Do?

Security National Financial Corporation, founded in 1965 and headquartered in Salt Lake City, Utah, has evolved into a diversified financial services entity operating across three distinct segments: life insurance, cemetery and mortuary services, and mortgage lending. The company's Life Insurance segment is dedicated to the sale and servicing of various life insurance lines, including funeral plans and interest-sensitive life insurance, alongside traditional life, accident, and health insurance products. This segment also offers a range of annuity products, such as single and flexible premium deferred annuities, and immediate annuities, further extending its reach into wealth management and retirement planning. Additionally, it provides specialized diver's accident policies and manages risk through reinsurance treaties with unaffiliated reinsurers. The Cemetery and Mortuary segment provides comprehensive death care services, operating eleven mortuaries and five cemeteries primarily in Utah, with additional presence in California (one cemetery) and New Mexico (four mortuaries and one cemetery). This segment offers a full suite of products and services, including plots, interment vaults, mausoleum crypts, markers, caskets, and urns. Professional services encompass funeral directors' expertise, grave opening and closing, use of chapels and viewing rooms, and provision of automobiles and clothing, catering to the complete needs of grieving families. Security National Financial Corporation’s Mortgages segment is focused on originating and underwriting residential and commercial loans. Its primary operational areas include Florida, Nevada, Texas, and Utah, where it supports new construction, existing home purchases, and various real estate projects. This segment provides residential mortgage lending services directly to consumers, as well as through real estate brokers and builders, playing a crucial role in facilitating property ownership and development within its target markets. The multi-faceted business model allows SNFCA to serve a broad demographic, from individuals planning for future financial security to families navigating end-of-life arrangements and those seeking homeownership or commercial real estate financing.

What Products and Services Does SNFCA Offer?

• Sells and services various lines of life insurance, including funeral plans and interest-sensitive life insurance.
• Offers traditional life, accident, and health insurance products to individuals and families.
• Provides annuity products such as single and flexible premium deferred annuities, and immediate annuities.
• Operates eleven mortuaries and five cemeteries in Utah, one cemetery in California, and four mortuaries and one cemetery in New Mexico.
• Offers a full range of death care products, including plots, interment vaults, mausoleum crypts, markers, caskets, and urns.
• Provides professional funeral services, including funeral directors, grave services, chapel use, and transportation.
• Originates and underwrites residential and commercial loans for new construction and existing homes.
• Offers mortgage lending services to real estate brokers, builders, and directly to consumers in states like Florida, Nevada, Texas, and Utah.

How Does SNFCA Make Money?

• **Life Insurance Segment:** Generates revenue primarily from insurance premiums, investment income on policy reserves, and fees from annuity products.
• **Cemetery and Mortuary Segment:** Earns revenue from the sale of burial plots, interment vaults, mausoleum crypts, markers, caskets, urns, and professional services related to funerals and burials.
• **Mortgages Segment:** Derives revenue from loan origination fees, interest income from loans, and fees for underwriting residential and commercial real estate projects.

What Industry Does SNFCA Operate In?

Security National Financial Corporation operates within the broad Financial Services sector, specifically navigating the interconnected landscapes of life insurance, death care, and mortgage lending. The life insurance industry is characterized by long-term contracts and sensitivity to interest rates, while the death care industry, encompassing cemeteries and mortuaries, typically exhibits stable demand due to its non-discretionary nature. The mortgage industry, conversely, is highly cyclical, influenced by interest rates, housing market dynamics, and economic conditions. SNFCA's diversified model positions it uniquely, allowing it to potentially mitigate risks inherent in any single segment. For instance, the stable cash flows from death care services can provide a buffer during periods of mortgage market slowdowns or challenging insurance underwriting environments. The competitive landscape includes large national players in each segment, alongside regional and local specialists. SNFCA differentiates itself through its integrated approach, serving multiple critical financial and personal needs under one corporate umbrella, primarily focusing on specific regional markets in the Western and Southern U.S.

Who Are SNFCA's Key Customers?

• **Life Insurance Segment:** Individuals and families seeking financial protection, retirement planning, and estate planning solutions.
• **Cemetery and Mortuary Segment:** Families and individuals requiring end-of-life services, including funeral arrangements, burial plots, and related products.
• **Mortgages Segment:** Individual homebuyers, real estate brokers, home builders, and commercial real estate developers.

How Security National Financial Corporation Is Valued

Security National Financial Corporation carries a market capitalization of $213M, placing it in the micro-cap category. Relative to its peer group, SNFCA's quantitative score of 63/100 is above the peer average of 40/100.

Company Profile

Security National Financial Corporation operates in the Financial - Mortgages industry within the Financial Services sector. It is headquartered in Salt Lake City, US. The company is led by CEO Scott Milton Quist. SNFCA has traded publicly since 1987.

ROE 9%Key Financial Metrics

Return on equity for Security National Financial Corporation stands at 8.9%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 2.2%, showing how much profit it generates from its asset base. SNFCA trades at a trailing price-to-earnings ratio of 6.90, below the Financial Services sector average of ~18x. Its free cash flow yield is 31.1%, a gauge of the cash the business throws off relative to its market value. A current ratio of 7.19 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 14.5%, the inverse of the P/E and a quick read on earnings relative to price.

F-Score 6/9Financial Health

Security National Financial Corporation's Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 0.71 places it in the distress zone, a signal of elevated financial risk.

Net sellingInsider Activity

Over the past six months, Security National Financial Corporation insiders filed 12 SEC Form 4 transactions — 3 sales and 9 purchases. On net that is roughly 11K shares disposed (about $93K), a signal worth weighing alongside the fundamentals.

SNFCA Financials

SNFCA Latest News

SNFCA Analyst Consensus

SNFCA MoonshotScore

What Investors Ask About Security National Financial Corporation (SNFCA) — Financial Services

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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