Company Overview
Security National Financial Corporation operates within the Financial Services sector, specifically focusing on the Insurance - Life industry, where it manages a portfolio of life insurance, cemetery and mortuary services, and mortgage businesses. The company's Life Insurance segment is directly involved in selling and servicing lines of life insurance, annuity products, and accident and health insurance, providing a diversified revenue stream across these distinct lines of business. In terms of scale, the corporation holds a market capitalization of $237.30M and generates annual revenue of $344.59M while employing a workforce of 1035 individuals. These financial figures indicate that the company functions as a mid-sized entity within its niche, possessing sufficient revenue to sustain operations but maintaining a modest market valuation relative to larger conglomerates in the broader financial services landscape.
Financial Health
The company reported a total revenue of $344.59M over the trailing twelve months, resulting in a net income of $32.15M and an EBITDA of $54.99M. The substantial gap between the $344.59M in revenue and the $32.15M in net income reveals a significant cost structure where approximately 8.3% of revenue translates to the bottom line, with the remaining portion absorbed by operating expenses and claims payouts inherent to the insurance business. Free cash flow stands at $19.96M, which provides the company with financial flexibility to manage its obligations, maintain liquidity, or potentially return capital to shareholders without compromising its ability to meet policyholder needs. The gross margin is recorded at 50.4%, indicating the proportion of revenue remaining after direct costs are deducted, while the operating margin of 22.2% reflects the efficiency of core business operations before interest and taxes. The profit margin of 9.3% further illustrates the final profitability after all expenses are accounted for, showing a conservative approach to earnings generation typical of the insurance sector. Regarding liquidity and leverage, the company holds $105.89M in cash against total debt of $102.75M, supported by a current ratio of 2.01, which indicates strong short-term liquidity and the ability to cover current liabilities more than twice over. Additionally, the debt-to-equity ratio is 25.04%, suggesting a highly leveraged balance sheet where debt significantly exceeds equity, a common characteristic for insurance companies that utilize leverage to support their investment portfolios. Return on Equity is 8.1%, and Return on Assets is 1.9%, metrics that reveal management's effectiveness in generating profits from shareholder equity and the total asset base, respectively, with the lower ROA reflecting the capital-intensive nature of the insurance industry.
Valuation Assessment
The trailing P/E ratio is 7.24, while the forward P/E is listed as N/A, implying that analysts do not have a projected earnings trajectory sufficient to calculate a forward multiple, or the market is pricing in significant uncertainty regarding future earnings growth. The price-to-book ratio stands at 0.55, which indicates that the company's market value is trading below its book value, suggesting the market may be undervaluing the assets or anticipating future challenges that have not yet been realized. The price-to-sales ratio is 0.69, and the EV/EBITDA is 4.06, providing alternative valuation metrics that suggest the company is priced conservatively relative to its sales and earnings before interest, taxes, depreciation, and amortization. The stock has traded between a 52-week high of $12.33 and a 52-week low of $7.32, and without a specific current price provided in the source data, the valuation context is strictly defined by these historical trading bounds which set the range for potential volatility. The beta value is 0.74, meaning the stock exhibits lower price volatility relative to the broader market, moving less aggressively than the overall index during periods of market fluctuation.
Growth & Income
Revenue growth year-over-year is 4.7%, whereas earnings growth year-over-year is 414.7%, indicating that earnings are growing at a dramatically faster pace than revenue, likely driven by non-recurring gains, one-time events, or significant improvements in margins that disproportionately impacted the bottom line. The company does not pay a dividend, as evidenced by a dividend yield of N/A and a payout ratio of 0.0%, which means the corporation chooses to retain all of its earnings rather than distributing them to shareholders. This strategy of zero dividend distribution suggests that the company reinvests its earnings into growth initiatives, reserve building, or debt management rather than providing immediate income to investors. The overall growth and income profile is characterized by robust earnings expansion that outpaces revenue growth, combined with a complete retention of capital for internal deployment rather than dividend payments.