M&C Saatchi plc (SAA) AI Stock Analysis

• Market Cap: £160.60M
• Dividend Yield: 1.12%
• Average Volume (3M): 307.44K
• Price to Earnings (P/E): 21.0
• Beta (1Y): 0.35
• 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: 183,022
• 30 Day Avg. Volume: 307,445
• 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: 48.29% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 57 Neutral
• Price Target: 137.00p ▲(0.74% Upside)

The overall stock score of 57 reflects strong financial performance improvements, particularly in profitability and cash flow, but is weighed down by bearish technical indicators and a relatively high valuation. The lack of earnings call and corporate events data limits further insights.

M&C Saatchi plc Business Overview & Revenue Model

Company Description

M&C Saatchi plc is a multinational advertising agency based in London, known for its innovative and creative marketing solutions. The company operates primarily in the advertising and marketing sector, offering a wide range of services including brand strategy, digital marketing, media planning and buying, public relations, and customer engagement. With a strong presence in various global markets, M&C Saatchi addresses the diverse needs of its clients across different industries, helping them build and enhance their brand identities.

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: 136.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 136 is below the 20-day moving average (MA) of 137.85, below the 50-day MA of 150.58, and below the 200-day MA of 169.20, indicating a bearish trend. The MACD of -6.08 indicates Positive momentum. The RSI at 35.31 is Neutral, neither overbought nor oversold. The STOCH value of 17.57 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
NFG	―	£389.57M	24.52	9.53%	3.98%	-5.98%	-74.21%
WPP	―	£3.90B	10.22	11.44%	8.80%	-4.54%	86.79%
Sector *	―	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
YOU	―	£316.45M	23.43	7.16%	3.35%	15.99%	―
SAA	―	£160.60M	20.97	18.23%	1.12%	-21.19%	-29.54%
CAU	―	£60.86M	-5.71	-32.35%	4.29%	-13.72%	-361.92%
SFOR	―	£154.31M	-0.47	-45.75%	4.06%	-14.27%	-15466.67%

M&C Saatchi plc Corporate Events

M&C Saatchi Expands Sports Portfolio with Acquisition of Women’s Sports Group

M&C Saatchi plc has announced the acquisition of The Women’s Sports Group Limited, a specialist advisory and media rights consultancy in women’s sports. This acquisition, funded by available cash, aligns with M&C Saatchi’s strategy to invest in high-margin growth areas, enhancing its capabilities in the sport and entertainment sector. The acquisition is expected to bolster M&C Saatchi’s position in the dynamic sports industry, complementing recent global wins and partnerships, and further strengthening its Passions & PR specialism.

The most recent analyst rating on (GB:SAA) stock is a Buy with a £220.00 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 Navigates Challenges with Strategic Restructuring and Growth Initiatives

M&C Saatchi reported a challenging first half of 2025, with a 5.1% decline in like-for-like net revenue, primarily due to macroeconomic uncertainties and a significant downturn in its Australian operations. The company has implemented strategic restructuring in Australia and is targeting annual cost savings of £12 million to maintain profitability. Despite these challenges, M&C Saatchi continues to see growth in regions like the Middle East and Europe and has secured new client wins. The company remains focused on its transformation program and strategic investments to drive future growth and shareholder value.

The most recent analyst rating on (GB:SAA) stock is a Hold with a £200.00 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 to Announce Half Year Results on 18 September 2025

M&C Saatchi PLC has announced that it will release its Half Year Results for the period ending 30 June 2025 on 18 September 2025. The announcement will include an in-person presentation by the CEO and CFO for analysts and investors, indicating the company’s commitment to transparency and stakeholder engagement. This event is expected to provide insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and stakeholder confidence.

The most recent analyst rating on (GB:SAA) stock is a Hold with a £200.00 price target. To see the full list of analyst forecasts on M&C Saatchi plc stock, see the GB:SAA Stock Forecast page.