M&C Saatchi plc (SAA) AI Stock Analysis

• Market Cap: £173.33M
• Dividend Yield: 1%
• Average Volume (3M): 328.36K
• Price to Earnings (P/E): 22.6
• Beta (1Y): 0.48
• 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: 210,315
• 30 Day Avg. Volume: 328,362
• 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: £201.67
• Price Target Upside: 41.52% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 59 Neutral
• Price Target: 154.00p ▲(8.07% Upside)

M&C Saatchi plc's overall stock score is primarily influenced by its strong financial performance, with improvements in profitability and cash flow. However, technical indicators suggest bearish momentum, and the valuation appears stretched with a high P/E ratio. The lack of earnings call data and corporate events limits additional insights.

M&C Saatchi plc Business Overview & Revenue Model

Company Description

M&C Saatchi plc provides advertising and marketing services in the United Kingdom, Europe, the Middle East, Africa, Asia, Australia, and the Americas. It offers its services in the areas of media and performance, advertising and CRM, sponsorship, branding, and global and social issues. The company was founded in 1995 and is based in London, the United Kingdom.

How the Company Makes Money

M&C Saatchi generates revenue primarily through its advertising and marketing services. The company operates on a fee-based model, where clients pay for the creative services rendered, media placements, and campaign management. Additionally, M&C Saatchi earns income from digital marketing services, including social media management and online advertising. Key revenue streams include project-based fees, retainer contracts with long-term clients, and performance-based incentives tied to campaign success. Significant partnerships with media platforms and technology providers also contribute to the agency's earnings by allowing them to offer integrated solutions to clients, enhancing their competitive edge in the market.

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: 142.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 142.5 is below the 20-day moving average (MA) of 150.15, below the 50-day MA of 163.82, and below the 200-day MA of 172.02, indicating a bearish trend. The MACD of -6.25 indicates Negative momentum. The RSI at 36.06 is Neutral, neither overbought nor oversold. The STOCH value of 16.44 is Positive, 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
WPP	71 Outperform	£3.95B	10.37	11.44%	8.65%	-4.54%	86.79%
NFG	70 Outperform	£365.35M	23.00	9.53%	4.24%	-5.98%	-74.21%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
CAU	60 Neutral	£60.86M	9.61	-32.35%	3.92%	-13.72%	-361.92%
SAA	59 Neutral	£173.33M	22.63	18.23%	1.00%	-21.19%	-29.54%
YOU	59 Neutral	£341.20M	256.19	0.70%	3.16%	42.19%	-94.16%
SFOR	56 Neutral	£156.59M	99.88	-45.75%	4.15%	-14.27%	-15466.67%

M&C Saatchi plc Corporate Events

M&C Saatchi Sees Change in Major Shareholder Holdings

M&C Saatchi PLC has announced a change in its major holdings, with Artisan Partners Asset Management Inc. and its affiliates increasing their voting rights to 11.06% from a previous 10.70%. This change reflects an acquisition of voting rights, indicating a strategic move by Artisan Partners to strengthen its influence within the company. The adjustment in holdings could impact M&C Saatchi’s governance and strategic direction, potentially affecting stakeholders and market perceptions.

The most recent analyst rating on (GB:SAA) stock is a Buy with a £2.40 price target. To see the full list of analyst forecasts on M&C Saatchi plc stock, see the GB:SAA Stock Forecast page.

Octopus Investments Increases Stake in M&C Saatchi PLC

M&C Saatchi PLC has announced a change in its major holdings, with Octopus Investments Limited increasing its voting rights from 17.06% to 18.01%. This adjustment in voting rights signifies a strengthened position for Octopus Investments within the company, potentially impacting the company’s governance and strategic decisions.

The most recent analyst rating on (GB:SAA) stock is a Buy with a £2.40 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 Strengthens Leadership with Key Appointments

M&C Saatchi has announced that Dame Heather Rabbatts will transition from interim to permanent Non-Executive Chair, while Georgina Harvey will assume the role of Senior Independent Director on a permanent basis. The company is also searching for a new Non-Executive Director, signaling a strategic strengthening of its leadership team to enhance shareholder returns.

M&C Saatchi PLC Announces Change in Shareholder Structure

M&C Saatchi PLC has announced a change in its shareholder structure, with Harwood Capital LLP acquiring a significant voting rights position of 3.067% in the company. This acquisition reflects a strategic move by Harwood Capital LLP, potentially impacting M&C Saatchi’s governance and future strategic decisions, which could have implications for stakeholders and market positioning.

M&C Saatchi CEO Increases Shareholding, Signaling Confidence in Company

M&C Saatchi PLC announced that its CEO, Zaid Al-Qassab, has purchased 43,597 ordinary shares at £1.72 each, increasing his total holding to 97,138 shares, which represents approximately 0.08% of the company’s issued share capital. This transaction, conducted on the London Stock Exchange, reflects a strategic move by the CEO, potentially signaling confidence in the company’s future prospects and stability, which could positively influence stakeholder perception.

M&C Saatchi Expands Middle East Presence with Dune 23 Acquisition

M&C Saatchi has announced the acquisition of Dune 23, a prominent sports agency in Dubai and Abu Dhabi, to strengthen its presence in the Middle East. This strategic move aligns with M&C Saatchi’s growth strategy and aims to leverage the cultural power of sport to enhance brand connections, further expanding its influence in the rapidly growing sport and entertainment market in the region.

M&C Saatchi Grants Long-Term Incentive Awards to Executives

M&C Saatchi PLC announced the grant of performance share awards under its Long Term Incentive Plan to key executive directors, including CEO Zaid Al-Qassab and CFO Simon Fuller. These awards, which will vest in 2028 subject to performance conditions, are part of the company’s strategy to align leadership incentives with long-term business goals, potentially impacting its market positioning and stakeholder interests.

M&C Saatchi PLC Announces Successful AGM Resolutions

M&C Saatchi PLC announced the successful passage of all resolutions at its Annual General Meeting, including the approval of the Annual Report, Directors’ Remuneration Report, and the declaration of a final dividend. The meeting also saw the election and re-election of several directors, with a notable approval for the authority to allot shares and purchase up to 10% of its own share capital. These resolutions reflect the company’s strategic decisions to strengthen its governance and financial flexibility, potentially impacting its market positioning and shareholder value.

M&C Saatchi Reports Steady Q1 Performance Amid Global Challenges

M&C Saatchi PLC reported a trading update for Q1 2025, showing like-for-like net revenue consistent with the previous year. The company experienced strong performance in the UAE and Europe, as well as in its Issues and Media divisions, despite facing macroeconomic challenges in Australia and the UK. The firm is investing in talent and capabilities for sustainable growth and is on track with planned cost savings. CEO Zaid Al-Qassab expressed confidence in meeting market expectations for the year, emphasizing the company’s resilient trading performance and diversified portfolio amid global volatility.