| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 3910.01 | 44946 |
| Intrinsic value (DCF) | 300.98 | 3368 |
| Graham-Dodd Method | 20.00 | 130 |
| Graham Formula | 14.70 | 69 |
Security National Financial Corporation (SNFCA) is a diversified financial services company operating in life insurance, cemetery and mortuary services, and mortgage lending. Founded in 1965 and headquartered in Salt Lake City, Utah, SNFCA serves customers across multiple states, including Utah, California, New Mexico, Florida, Nevada, and Texas. The company's Life Insurance segment offers a range of products such as funeral plans, interest-sensitive life insurance, annuities, and accident and health policies, supported by reinsurance agreements. Its Cemetery and Mortuary segment provides end-of-life services, including burial plots, mausoleums, caskets, and professional funeral services. The Mortgages segment focuses on residential and commercial loan origination, catering to real estate brokers, builders, and consumers. With a market capitalization of approximately $240 million, SNFCA operates in the competitive financial services sector, leveraging its diversified business model to mitigate industry-specific risks. The company's integrated approach to financial and death care services positions it uniquely in the market, appealing to customers seeking comprehensive solutions.
Security National Financial Corporation presents a mixed investment profile. Its diversified operations across life insurance, mortuary services, and mortgage lending provide revenue stability, reducing reliance on any single segment. The company's strong cash position ($140.5 million) and positive operating cash flow ($57.3 million) suggest financial resilience. However, the absence of dividends may deter income-focused investors. The mortgage segment faces cyclical risks tied to interest rates and housing demand, while the life insurance business operates in a highly competitive, regulated environment. With a beta of 0.88, SNFCA exhibits lower volatility than the broader market, potentially appealing to risk-averse investors. The company's niche in integrated death care and financial services could offer long-term growth, but investors should monitor regulatory changes and macroeconomic factors affecting its core markets.
Security National Financial Corporation's competitive advantage lies in its diversified business model, combining life insurance, death care services, and mortgage lending. This diversification helps mitigate sector-specific downturns, providing stability. In the life insurance segment, SNFCA competes with larger insurers but differentiates itself through specialized funeral plans and reinsurance strategies. Its cemetery and mortuary operations benefit from regional dominance in Utah, New Mexico, and California, where established facilities and brand recognition create barriers to entry. The mortgage segment, while smaller, leverages relationships with builders and brokers in key states. However, SNFCA lacks the scale of national mortgage lenders, limiting its ability to compete on pricing. The company's integrated approach—offering insurance and end-of-life services—provides cross-selling opportunities but requires careful management across disparate industries. Its relatively small market cap may restrict investment in technology and marketing compared to larger peers. SNFCA's regional focus in certain segments could be both a strength (local expertise) and a weakness (limited geographic diversification).