M&C Saatchi plc (SAA) AI Stock Analysis

• Market Cap: £158.78M
• Dividend Yield: 1.09%
• Average Volume (3M): 250.42K
• Price to Earnings (P/E): 20.7
• Beta (1Y): 0.27
• Revenue Growth: -21.19%
• EPS Growth: -29.54%
• Country: UK
• Employees: 2,003
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 0.03
• Shares Outstanding: 122,257,460
• 10 Day Avg. Volume: 195,683
• 30 Day Avg. Volume: 250,419
• PEG Ratio: -0.03
• Price to Book (P/B): 5.17
• Price to Sales (P/S): 0.52
• P/FCF Ratio: 12.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £157.25
• Price Target Upside: 15.63% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: 132.00p ▼(-2.94% Downside)

M&C Saatchi plc's overall stock score reflects strong corporate events and improving financial performance, despite technical analysis indicating bearish trends. The CEO's share purchase and strategic acquisition are significant positives, while valuation metrics suggest moderate attractiveness.

Positive Factors

Profitability Improvement

The improvement in net profit margin indicates enhanced operational efficiency and cost management, which can lead to sustainable profitability.

Cash Flow Generation

Positive free cash flow reflects effective capital management and provides the company with flexibility for investments and debt reduction.

Financial Leverage Management

Improved leverage management reduces financial risk and enhances the company's ability to invest in growth opportunities.

Negative Factors

Revenue Decline

A decline in revenue suggests challenges in maintaining market share or client demand, which could impact long-term growth prospects.

Equity Position Concerns

A low equity ratio can indicate vulnerability to financial instability, limiting the company's ability to withstand economic downturns.

Revenue Growth Challenges

Sustained revenue growth challenges could hinder the company's ability to scale operations and compete effectively in the market.

M&C Saatchi plc Business Overview & Revenue Model

Company Description

M&C Saatchi plc is a global advertising agency network headquartered in London, operating in the marketing and communications sector. The company specializes in integrated marketing solutions, including advertising, digital marketing, public relations, and brand consultancy. M&C Saatchi provides services across various industries, helping clients build and maintain their brand presence through creative campaigns and strategic insights.

How the Company Makes Money

M&C Saatchi generates revenue primarily through service fees charged for its advertising and marketing services. The company's revenue model includes project-based fees, retainer contracts, and performance-based compensation, where earnings are linked to the success of campaigns. Key revenue streams include traditional advertising, digital marketing services, public relations, and brand consulting. The agency often collaborates with clients on long-term contracts, ensuring a steady flow of income. Additionally, M&C Saatchi benefits from partnerships with media companies and technology platforms, allowing for integrated advertising solutions that enhance client visibility and engagement, thereby contributing to its overall earnings.

M&C Saatchi plc Financial Statement Overview

Summary

M&C Saatchi plc shows strong improvements in profitability and cash flow generation, despite revenue challenges. The company's leverage is improving, though the equity position remains a concern. Overall, the financial health is on an upward trajectory, with potential risks in maintaining revenue growth.

Income Statement

M&C Saatchi plc demonstrated a strong improvement in profitability with a rising net profit margin from negative in 2023 to 3.72% in 2024. The gross profit margin also improved significantly. However, revenue declined by 12.89% from 2023 to 2024, indicating challenges in top-line growth. EBIT and EBITDA margins have improved, reflecting better operational efficiency.

Balance Sheet

The company's debt-to-equity ratio improved as stockholders' equity increased, showing better financial leverage management. The equity ratio is relatively low, which could indicate higher risk. Return on Equity (ROE) improved to 36.79% in 2024, showing enhanced shareholder value creation.

Cash Flow

There was a significant turnaround in free cash flow from negative to positive in 2024, showing improved cash generation. The operating cash flow to net income ratio is favorable, suggesting robust cash conversion. The free cash flow growth rate is impressive, reflecting effective management of capital expenditures and cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	355.27M	395.42M	420.05M	462.53M	394.57M	323.25M
Gross Profit	61.52M	231.41M	51.44M	271.14M	249.34M	41.40M
EBITDA	22.96M	30.90M	15.65M	20.21M	36.91M	9.44M
Net Income	9.74M	14.73M	-3.53M	90.00K	12.76M	-9.92M
Balance Sheet
Total Assets	223.27M	235.76M	247.29M	291.07M	317.01M	270.90M
Cash, Cash Equivalents and Short-Term Investments	24.20M	25.86M	24.33M	41.49M	69.42M	76.30M
Total Debt	55.69M	55.69M	65.39M	66.80M	91.40M	89.70M
Total Liabilities	183.74M	195.65M	217.76M	252.88M	284.15M	226.54M
Stockholders Equity	39.46M	40.02M	29.00M	38.01M	32.48M	44.90M
Cash Flow
Free Cash Flow	9.74M	16.28M	-5.41M	16.89M	16.32M	29.97M
Operating Cash Flow	11.37M	19.21M	-3.56M	22.47M	18.95M	33.66M
Investing Cash Flow	3.12M	829.00K	-1.78M	-4.27M	-1.38M	-6.53M
Financing Cash Flow	-16.37M	-18.21M	-5.37M	-38.67M	-24.91M	-17.75M

M&C Saatchi plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 136.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SAA, the sentiment is Negative. The current price of 136 is above the 20-day moving average (MA) of 129.71, above the 50-day MA of 128.32, and below the 200-day MA of 157.28, indicating a neutral trend. The MACD of 1.67 indicates Negative momentum. The RSI at 52.82 is Neutral, neither overbought nor oversold. The STOCH value of 32.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SAA.

M&C Saatchi plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PEBB	73 Outperform	£63.75M	11.59	7.09%	4.25%	1.24%	7.54%
WPP	71 Outperform	£3.77B	9.90	11.44%	9.68%	-4.54%	86.79%
SYS1	69 Neutral	£27.66M	9.77	21.43%	2.29%	3.32%	-10.58%
SAA	65 Neutral	£158.78M	20.73	18.23%	1.09%	-21.19%	-29.54%
NFG	63 Neutral	£365.72M	23.00	9.53%	4.98%	-5.98%	-74.21%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
SFOR	54 Neutral	£140.23M	-0.42	-45.75%	6.33%	-14.27%	-15466.67%

M&C Saatchi plc Corporate Events

M&C Saatchi Addresses CEO Speculation, Highlights Ongoing Succession Planning

M&C Saatchi has responded to recent media speculation about its chief executive officer position by stating that it will not comment directly on the reports but emphasising that succession planning for leadership roles remains under ongoing review by the board. The brief announcement signals that the company is actively considering its long-term leadership structure, an issue of interest to investors and clients given the strategic importance of executive stability and continuity in the competitive global marketing and communications sector.

The most recent analyst rating on (GB:SAA) stock is a Hold with a £132.00 price target. To see the full list of analyst forecasts on M&C Saatchi plc stock, see the GB:SAA Stock Forecast page.

M&C Saatchi CEO Increases Stake with Significant Share Purchase

M&C Saatchi PLC announced that its CEO, Zaid Al-Qassab, purchased 79,990 ordinary shares at £1.25 each, increasing his stake to 177,128 shares, or 0.14% of the company’s issued share capital. This transaction, conducted on the London Stock Exchange, underscores the CEO’s confidence in the company’s future prospects and may positively influence stakeholder perception.

The most recent analyst rating on (GB:SAA) stock is a Hold with a £123.00 price target. To see the full list of analyst forecasts on M&C Saatchi plc stock, see the GB:SAA Stock Forecast page.

M&C Saatchi Faces Revenue Decline Amid US Shutdown, Plans Share Buyback

M&C Saatchi has announced a trading update for FY 2025, revealing that its performance was adversely affected by an unprecedented US Government shutdown, impacting its Issues specialism and leading to a projected 7% decline in net revenue. Despite this setback, the company is committed to launching a £5m share buyback programme, supported by its strong balance sheet, and remains optimistic about its long-term growth prospects, particularly in its high-margin Issues specialism, which is expected to return to double-digit growth in FY 2026.

The most recent analyst rating on (GB:SAA) stock is a Hold with a £137.00 price target. To see the full list of analyst forecasts on M&C Saatchi plc stock, see the GB:SAA Stock Forecast page.

M&C Saatchi Rejects Unsolicited Offer for Performance Division

M&C Saatchi PLC has confirmed receiving an unsolicited offer from Brave Bison Plc for its M&C Saatchi Performance division. The Board believes the offer undervalues the division, which is integral to the company’s growth plans, and thus no discussions are ongoing. The Board remains committed to delivering value to shareholders.

The most recent analyst rating on (GB:SAA) stock is a Hold with a £137.00 price target. To see the full list of analyst forecasts on M&C Saatchi plc stock, see the GB:SAA Stock Forecast page.