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Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 42.5GRADE C
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
8.3%
Sector: 8.5%
Dividend Analysis audit
INCOME
5.47%
Trailing Yield
$5.47
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
44%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, SECURITY NATIONAL FINANCIAL CORP (SNFCA) receives a "Hold" rating with a composite score of 40.1/100, ranked #1367 out of 4446 stocks. Key factor scores: Quality 43/100, Value 57/100, Momentum 38/100. This is quantitative analysis only — not investment advice.
SECURITY NATIONAL FINANCIAL CORP (SNFCA) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does SECURITY NATIONAL FINANCIAL CORP Do?
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. SECURITY NATIONAL FINANCIAL CORP (SNFCA) is classified as a micro-cap stock in the Financials sector, specifically within the Banking industry. The company is led by CEO Scott M. Quist and employs approximately 1,730 people, headquartered in SALT LAKE CITY, Utah. With a market capitalization of $246M, SNFCA is one of the notable companies in the Financials sector.
SECURITY NATIONAL FINANCIAL CORP (SNFCA) Stock Rating — Hold (April 2026)
As of April 2026, SECURITY NATIONAL FINANCIAL CORP receives a Hold rating with a composite score of 40.1/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.SNFCA ranks #1,367 out of 4,446 stocks in our coverage universe. Within the Financials sector, SECURITY NATIONAL FINANCIAL CORP ranks #412 of 891 stocks, placing it in the upper half of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
SNFCA Stock Price and 52-Week Range
SECURITY NATIONAL FINANCIAL CORP (SNFCA) currently trades at $9.55. The stock lost $0.15 (1.5%) in the most recent trading session. The 52-week high for SNFCA is $13.00, which means the stock is currently trading -26.5% from its annual peak. The 52-week low is $7.69, putting the stock 24.2% above its annual trough. Recent trading volume was 16K shares, suggesting relatively thin trading activity.
Is SNFCA Overvalued or Undervalued? — Valuation Analysis
SECURITY NATIONAL FINANCIAL CORP (SNFCA) carries a value factor score of 57/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 8.12x, compared to the Financials sector average of 14.88x — a discount of 45%. The price-to-book ratio stands at 0.68x, versus the sector average of 1.22x. The price-to-sales ratio is 0.71x, compared to 0.90x for the average Financials stock. On an enterprise value basis, SNFCA trades at 6.20x EV/EBITDA, versus 3.26x for the sector.
Overall, SNFCA's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
SECURITY NATIONAL FINANCIAL CORP Profitability — ROE, Margins, and Quality Score
SECURITY NATIONAL FINANCIAL CORP (SNFCA) earns a quality factor score of 43/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is 8.3%, compared to the Financials sector average of 8.5%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 1.9% versus the sector average of 1.2%.
On a margin basis, SECURITY NATIONAL FINANCIAL CORP reports gross margins of 98.7%. The operating margin is 9.1% (sector: 21.8%). Net profit margin stands at 8.7%, versus 17.7% for the average Financials stock. Revenue growth is running at 5.4% on a trailing basis, compared to 9.4% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
SNFCA Debt, Balance Sheet, and Financial Health
SECURITY NATIONAL FINANCIAL CORP has a debt-to-equity ratio of 328.0%, compared to the Financials sector average of 121.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.31x, suggesting adequate working capital coverage. Total debt on the balance sheet is $123M. Cash and equivalents stand at $100M.
SNFCA has a beta of 0.82, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for SECURITY NATIONAL FINANCIAL CORP is 60/100, reflecting average volatility within the normal range for its sector.
SECURITY NATIONAL FINANCIAL CORP Revenue and Earnings History — Quarterly Trend
In TTM 2026, SECURITY NATIONAL FINANCIAL CORP reported revenue of $349M and earnings per share (EPS) of $0.32. Net income for the quarter was $30M. Gross margin was 98.7%. Operating income came in at $112M.
In Q3 2025, SECURITY NATIONAL FINANCIAL CORP reported revenue of $89M and earnings per share (EPS) of $0.32. Net income for the quarter was $8M. Gross margin was 98.8%. Revenue grew 2.4% year-over-year compared to Q3 2024. Operating income came in at $10M.
In Q2 2025, SECURITY NATIONAL FINANCIAL CORP reported revenue of $90M and earnings per share (EPS) of $0.26. Net income for the quarter was $7M. Gross margin was 98.7%. Revenue grew 5.7% year-over-year compared to Q2 2024. Operating income came in at $8M.
In Q1 2025, SECURITY NATIONAL FINANCIAL CORP reported revenue of $83M and earnings per share (EPS) of $0.18. Net income for the quarter was $4M. Gross margin was 98.5%. Revenue grew 3.2% year-over-year compared to Q1 2024. Operating income came in at $6M.
Over the past 8 quarters, SECURITY NATIONAL FINANCIAL CORP has demonstrated a growth trajectory, with revenue expanding from $80M to $349M. Investors analyzing SNFCA stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
SNFCA Dividend Yield and Income Analysis
SECURITY NATIONAL FINANCIAL CORP (SNFCA) currently pays a dividend yield of 5.5%. At this yield, a $10,000 investment in SNFCA stock would generate approximately $$547.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning SNFCA offers above-average income for its sector. The net margin of 8.7% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
SNFCA Momentum and Technical Analysis Profile
SECURITY NATIONAL FINANCIAL CORP (SNFCA) has a momentum factor score of 38/100, signaling weak relative price performance. Stocks with low momentum scores have historically tended to continue underperforming in the near term. The investment factor score is 31/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 4/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
SNFCA vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing SNFCA against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full SNFCA vs S&P 500 (SPY) comparison to assess how SECURITY NATIONAL FINANCIAL CORP stacks up against the broader market across all factor dimensions.
SNFCA Next Earnings Date
No upcoming earnings date has been announced for SECURITY NATIONAL FINANCIAL CORP (SNFCA) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy SNFCA? — Investment Thesis Summary
SECURITY NATIONAL FINANCIAL CORP presents a balanced picture with arguments on both sides. Momentum is weak at 38/100, a headwind for near-term performance. Low volatility (stability score 60/100) reduces downside risk.
In summary, SECURITY NATIONAL FINANCIAL CORP (SNFCA) earns a Hold rating with a composite score of 40.1/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on SNFCA stock.
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Institutional Research Dossier
SECURITY NATIONAL FINANCIAL CORP (SNFCA) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Security National Financial Corporation (SNFCA) receives a Hold rating, reflecting a balanced view of its diversified business model and current valuation. While the company exhibits strong gross margins and operates in relatively stable industries, its profitability metrics lag sector averages, and its free cash flow generation is inconsistent. The current valuation, particularly the P/E ratio, appears stretched compared to peers, suggesting limited near-term upside despite the company's potential for growth in its various segments.
The primary concern revolves around SNFCA's ability to translate revenue growth into consistent profitability and free cash flow. The company's high debt-to-equity ratio also warrants caution. While the business diversification provides some resilience, the current valuation doesn't offer a compelling risk-reward profile, justifying the Hold rating. Investors should monitor the company's ability to improve its operating margins and generate positive free cash flow to reassess its investment potential.
Business Strategy & Overview
Security National Financial Corporation operates across three primary segments: Life Insurance, Cemetery and Mortuary, and Mortgages. This diversification provides a degree of stability, as performance in one segment can potentially offset weakness in another. The Life Insurance segment focuses on selling and servicing life insurance, annuity products, and accident and health insurance. A key aspect of this segment is the management of reinsurance treaties, which allows SNFCA to manage risk and capital requirements. The Cemetery and Mortuary segment operates a network of mortuaries and cemeteries, providing a range of death care related products and services. This segment benefits from relatively stable demand, driven by demographic trends and cultural norms surrounding death and remembrance.
The Mortgages segment originates and underwrites residential and commercial loans, primarily in Florida, Nevada, Texas, and Utah. This segment is more cyclical and sensitive to interest rate fluctuations and economic conditions. SNFCA's strategy involves offering residential mortgage lending services to real estate brokers, builders, and directly to consumers. The company's geographic focus in relatively high-growth states provides opportunities for expansion, but also exposes it to regional economic risks. The interplay between these segments is crucial to SNFCA's overall performance. The Life Insurance and Cemetery/Mortuary segments provide a more stable revenue base, while the Mortgages segment offers potential for higher growth but also carries greater risk.
SNFCA's strategic positioning involves targeting specific niches within each of its segments. In Life Insurance, the focus on funeral plans and interest-sensitive life insurance caters to a particular demographic. In Cemetery and Mortuary, the company aims to provide comprehensive death care services, capturing a larger share of the customer's spending. In Mortgages, the focus on specific geographic markets allows for a more targeted approach to origination and underwriting. The company's ability to effectively manage the risks and opportunities within each segment is critical to its long-term success.
The company's growth strategy appears to be a combination of organic expansion within its existing markets and potential acquisitions to expand its geographic footprint or service offerings. The fragmented nature of the death care industry provides opportunities for consolidation, while the mortgage market offers potential for growth through increased market share. However, SNFCA faces competition from larger, more established players in each of its segments. The company's ability to differentiate itself through superior service, competitive pricing, or innovative products will be key to its success.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
5.4%
Sector: 9.4%
-42% VS SCTR
Economic Moat Analysis
Security National Financial Corporation's economic moat is likely Narrow. The company operates in industries with varying degrees of competitive intensity and barriers to entry. The Life Insurance segment faces intense competition from large, well-established insurers with significant brand recognition and distribution networks. While SNFCA has a niche focus on funeral plans and interest-sensitive life insurance, this is unlikely to create a significant competitive advantage. The Cemetery and Mortuary segment benefits from some degree of local market dominance, as consumers often prefer to use providers within their community. However, this advantage is limited by the relatively low switching costs and the availability of alternative providers.
The Mortgages segment is highly competitive, with numerous lenders vying for market share. SNFCA's focus on specific geographic markets provides some degree of specialization, but it still faces competition from larger national lenders with greater resources and economies of scale. The company's ability to offer competitive rates and efficient service is crucial to its success in this segment. The primary source of SNFCA's narrow moat stems from its established presence and reputation in its local markets, particularly in the Cemetery and Mortuary segment. This provides some degree of customer loyalty and repeat business.
However, the company's moat is not wide enough to provide significant protection from competition. The lack of strong brand recognition, proprietary technology, or significant cost advantages limits its ability to generate consistently high returns on capital. The company's reliance on reinsurance treaties in the Life Insurance segment also exposes it to counterparty risk. The fragmented nature of the death care industry and the commoditized nature of the mortgage market further limit its ability to establish a durable competitive advantage.
The moat's trajectory is uncertain. While the company's established presence in its local markets provides some stability, its ability to expand its moat will depend on its ability to differentiate itself from competitors and build stronger brand recognition. Investments in technology and customer service could potentially enhance its competitive advantage, but this will require significant capital and execution. The increasing consolidation in the death care industry could also pose a threat to SNFCA's market share. Overall, the company's narrow moat provides some degree of protection, but it is not a significant source of long-term competitive advantage.
Financial Health & Profitability
Security National Financial Corporation's financial health presents a mixed picture. Revenue growth has been inconsistent, with a 5.4% increase in the latest TTM period compared to a 9.3% sector average. The quarterly revenue history shows fluctuations, with Q3 FY2025 revenue at $89.33M, similar to Q2 FY2025 ($89.54M) but higher than Q1 FY2025 ($82.74M). The company's gross margin is exceptionally high at 98.7%, significantly above the sector average of 0.0%. However, this figure should be scrutinized for its sustainability and potential accounting anomalies. Operating and net margins, at 9.1% and 8.7% respectively, are significantly below the sector averages of 22.0% and 17.8%, indicating lower profitability relative to its peers.
The company's ROE of 8.4% is roughly in line with the sector average of 8.5%. However, given the company's higher leverage, a higher ROE would be expected to compensate for the increased risk. Free cash flow generation has been volatile, with a negative $27.35M TTM and significant fluctuations in the quarterly history. The company generated substantial free cash flow in FY2022 and FY2023, but recent quarters show a decline. This inconsistency raises concerns about the company's ability to consistently generate cash from its operations.
SNFCA's balance sheet shows a relatively strong cash position of $100.40M, but also a significant debt burden of $123.10M. The current ratio of 1.31 indicates adequate liquidity. However, the debt-to-equity ratio of 328.00 is substantially higher than the sector average of 115.00, indicating a higher degree of financial leverage. This high leverage increases the company's financial risk and sensitivity to interest rate fluctuations. The company's ability to manage its debt burden and generate consistent free cash flow will be crucial to its long-term financial health.
The trend in operating margins is concerning. While gross margins remain high, operating margins have fluctuated and generally declined over the past few quarters. This suggests that the company is struggling to control its operating expenses and translate revenue into profits. The volatility in free cash flow is also a cause for concern. The company's ability to improve its operating efficiency and generate consistent free cash flow will be critical to its future success. The high debt-to-equity ratio warrants close monitoring, as it increases the company's vulnerability to economic downturns and interest rate increases.
Valuation Assessment
Security National Financial Corporation's valuation appears stretched based on several key metrics. The company's P/E ratio of 29.6x is significantly higher than the sector average of 15.5x, suggesting that the stock is overvalued relative to its earnings. While a higher P/E ratio can be justified by higher growth prospects, SNFCA's revenue growth of 5.4% is below the sector average of 9.3%, making the high P/E ratio less justifiable. The EV/EBITDA multiple of 6.1x is also higher than the sector average of 3.5x, further indicating that the stock is relatively expensive.
The company's negative free cash flow further complicates the valuation assessment. A negative free cash flow yield makes it difficult to assess the company's intrinsic value based on its ability to generate cash. While the company has generated positive free cash flow in the past, the recent trend is concerning. A discounted cash flow analysis would be challenging given the volatility in free cash flow and the uncertainty surrounding future growth rates.
Compared to its historical valuation, SNFCA's current valuation appears to be at the higher end of its range. The company's P/E ratio has fluctuated over time, but the current level is significantly above its historical average. This suggests that the stock may be trading at a premium to its historical performance. The company's high debt-to-equity ratio also warrants caution, as it increases the company's financial risk and sensitivity to interest rate fluctuations.
Overall, SNFCA's valuation appears to be expensive relative to its growth, its sector, and its historical performance. The high P/E ratio, elevated EV/EBITDA multiple, and negative free cash flow suggest that the stock is overvalued. Investors should exercise caution and carefully consider the company's growth prospects and financial risks before investing in SNFCA. A more attractive entry point may be warranted if the company can improve its profitability and generate consistent free cash flow.
Risk & Uncertainty
Security National Financial Corporation faces several specific risks that could impact its business and financial performance. One significant risk is the cyclicality of the mortgage market. The company's Mortgages segment is sensitive to interest rate fluctuations, economic conditions, and housing market trends. A slowdown in the housing market or an increase in interest rates could negatively impact the company's mortgage origination volume and profitability. The company's geographic concentration in Florida, Nevada, Texas, and Utah also exposes it to regional economic risks.
Another risk is the competition in the life insurance and death care industries. SNFCA faces competition from larger, more established players with greater resources and brand recognition. The company's ability to differentiate itself through superior service, competitive pricing, or innovative products is crucial to its success. The increasing consolidation in the death care industry could also pose a threat to SNFCA's market share. The company's reliance on reinsurance treaties in the Life Insurance segment also exposes it to counterparty risk.
The company's high debt-to-equity ratio is a significant financial risk. This increases the company's vulnerability to economic downturns and interest rate increases. The company's ability to manage its debt burden and generate consistent free cash flow will be crucial to its long-term financial health. Regulatory changes in the insurance, mortgage, and death care industries could also impact the company's business and financial performance. Changes in regulations related to capital requirements, underwriting standards, or pricing could increase the company's costs and reduce its profitability.
Bulls Say / Bears Say
The Bull Case
BULL VIEWSNFCA's diversified business model across life insurance, cemeteries/mortuaries, and mortgages provides stability and reduces reliance on any single market segment.
BULL VIEWThe company's high gross margins and established presence in its local markets, particularly in the death care segment, offer a competitive edge and potential for future growth.
The Bear Case
BEAR VIEWSNFCA's high P/E ratio and negative free cash flow suggest the stock is overvalued, and its profitability metrics lag sector averages, indicating operational inefficiencies.
BEAR VIEWThe company's high debt-to-equity ratio increases financial risk, and its exposure to the cyclical mortgage market makes it vulnerable to economic downturns and interest rate fluctuations.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score SNFCA and 4,400+ other equities.
SECURITY NATIONAL FINANCIAL CORP exhibits a 5% valuation discount relative to institutional benchmarks. This represents a balanced risk/reward profile based on current multiples.
Return on Assets
Efficiency of asset utilization
1.9%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
98.7%
Sector: 0.0%
Operating Margin
Core business profitability
9.1%
Sector: 21.8%
Net Margin
Bottom-line profitability
8.7%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.48%
Yield Delta+121%
Income Projection audit
A $10,000 investment would generate approximately $547 annually in dividends at the current trailing rate.
