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M&C Saatchi plc (GB:SAA)
LSE:SAA
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M&C Saatchi plc (SAA) AI Stock Analysis

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M&C Saatchi plc

(LSE:SAA)

Rating:67Neutral
Price Target:
206.00p
▲(8.14%Upside)
M&C Saatchi's overall stock score is driven by strong corporate events and improving financial performance. However, technical analysis indicates overbought conditions, suggesting caution. Valuation is fair, though not compelling. The company is positioned for growth, but revenue and equity challenges remain.

M&C Saatchi plc (SAA) vs. iShares MSCI United Kingdom ETF (EWC)

M&C Saatchi plc Business Overview & Revenue Model

Company DescriptionM&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 MoneyM&C Saatchi plc generates revenue primarily through its advertising and marketing services. The company's key revenue streams include fees for creative services, media planning and buying commissions, and digital marketing solutions. Additionally, M&C Saatchi may earn income from performance-based contracts, where compensation is linked to the achievement of specific outcomes or metrics. The company also benefits from strategic partnerships and collaborations with media outlets, technology providers, and other agencies, which enhance its service offerings and broaden its client base. By leveraging its global presence and diverse expertise, M&C Saatchi effectively monetizes its capabilities to provide tailored marketing solutions that drive client success.

M&C Saatchi plc Financial Statement Overview

Summary
M&C Saatchi plc shows strong improvements in profitability and cash flow generation, despite revenue challenges. Enhanced net profit and gross profit margins, improved operating efficiency, and better cash flow conversion are notable positives. However, declining revenue and a relatively low equity ratio present ongoing risks.
Income Statement
76
Positive
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
68
Positive
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
72
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue395.42M453.91M462.53M394.57M225.39M
Gross Profit231.41M62.40M271.14M249.34M127.53M
EBITDA30.90M15.65M20.21M36.91M9.78M
Net Income14.73M-3.53M245.00K12.76M-9.92M
Balance Sheet
Total Assets235.76M247.29M291.07M317.01M270.90M
Cash, Cash Equivalents and Short-Term Investments25.86M24.33M41.49M69.42M76.30M
Total Debt55.69M65.39M66.80M91.40M89.70M
Total Liabilities195.65M217.76M252.88M284.15M226.54M
Stockholders Equity40.02M29.00M38.01M32.48M44.13M
Cash Flow
Free Cash Flow16.28M-5.41M16.89M16.32M29.97M
Operating Cash Flow19.21M-3.56M22.47M18.95M33.66M
Investing Cash Flow829.00K-1.78M-4.27M-1.38M-6.53M
Financing Cash Flow-18.21M-5.37M-38.67M-24.91M-17.75M

M&C Saatchi plc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price190.50
Price Trends
50DMA
181.31
Positive
100DMA
173.29
Positive
200DMA
179.14
Positive
Market Momentum
MACD
2.67
Positive
RSI
51.59
Neutral
STOCH
61.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SAA, the sentiment is Positive. The current price of 190.5 is below the 20-day moving average (MA) of 193.24, above the 50-day MA of 181.31, and above the 200-day MA of 179.14, indicating a neutral trend. The MACD of 2.67 indicates Positive momentum. The RSI at 51.59 is Neutral, neither overbought nor oversold. The STOCH value of 61.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SAA.

M&C Saatchi plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBNFG
68
Neutral
£274.52M6.8223.38%7.79%-0.66%-26.16%
GBSAA
67
Neutral
£233.93M18.3233.95%0.74%-12.89%
GBYOU
62
Neutral
£373.57M277.880.70%2.82%42.19%-94.16%
GBWPP
61
Neutral
£4.44B8.2215.82%11.85%-0.70%388.07%
GBCAU
60
Neutral
£47.82M9.61-24.72%7.27%-5.93%
55
Neutral
HK$66.29B-2.30-3.61%6.47%-4.24%-17.51%
49
Neutral
£137.83M99.88-42.53%4.42%-16.14%-5856.63%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:SAA
M&C Saatchi plc
190.50
-13.95
-6.82%
GB:CAU
Centaur Media
33.00
-3.56
-9.74%
GB:NFG
Next Fifteen Communications
268.00
-520.71
-66.02%
GB:YOU
Yougov plc
314.00
-128.96
-29.11%
GB:WPP
WPP
413.80
-285.23
-40.80%
GB:SFOR
S4 Capital Plc
22.65
-27.72
-55.03%

M&C Saatchi plc Corporate Events

Business Operations and StrategyRegulatory Filings and Compliance
M&C Saatchi Sees Change in Major Shareholder Holdings
Neutral
Jul 15, 2025

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.

Business Operations and Strategy
Octopus Investments Increases Stake in M&C Saatchi PLC
Neutral
Jul 7, 2025

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.

Executive/Board ChangesBusiness Operations and Strategy
M&C Saatchi Strengthens Leadership with Key Appointments
Positive
Jun 17, 2025

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.

Business Operations and Strategy
M&C Saatchi PLC Announces Change in Shareholder Structure
Neutral
Jun 11, 2025

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.

Business Operations and Strategy
M&C Saatchi CEO Increases Shareholding, Signaling Confidence in Company
Positive
Jun 2, 2025

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&A TransactionsBusiness Operations and Strategy
M&C Saatchi Expands Middle East Presence with Dune 23 Acquisition
Positive
May 27, 2025

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.

Executive/Board ChangesBusiness Operations and Strategy
M&C Saatchi Grants Long-Term Incentive Awards to Executives
Neutral
May 16, 2025

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.

Executive/Board ChangesShareholder MeetingsStock BuybackDividends
M&C Saatchi PLC Announces Successful AGM Resolutions
Positive
May 15, 2025

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.

Business Operations and StrategyFinancial Disclosures
M&C Saatchi Reports Steady Q1 Performance Amid Global Challenges
Positive
May 15, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 17, 2025