Saga plc (GB:SAGA)
LSE:SAGA
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Saga plc
(LSE:SAGA)
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Select Model
Rating:65Neutral
Price Target:
615.00 p
▲(60.37% Upside)
Action:ReiteratedDate:01/30/26
The score reflects solid technical strength and a positive earnings update with meaningful debt reduction, offset by structurally weak profitability and high leverage in the financial statements. Valuation is also less supportive given the loss-making profile (negative P/E) and no dividend yield data.
Positive Factors
Targeted, diversified business model
Saga's dual focus on travel and insurance for the 50+ demographic creates durable revenue diversification and customer loyalty. The targeted product set enables tailored pricing, repeat sales and cross‑sell opportunities, reducing reliance on any single market and supporting stable medium‑term cash flows.
Negative Factors
Very high leverage
Saga's extremely high debt-to-equity and very low equity ratio indicate heavy reliance on debt financing, which constrains strategic flexibility. Elevated leverage increases sensitivity to interest rates and cash‑flow shocks, meaning deleveraging must continue to materially lower refinancing and solvency risk over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Targeted, diversified business model
Saga's dual focus on travel and insurance for the 50+ demographic creates durable revenue diversification and customer loyalty. The targeted product set enables tailored pricing, repeat sales and cross‑sell opportunities, reducing reliance on any single market and supporting stable medium‑term cash flows.
Read all positive factors
Saga plc (SAGA) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£693.08M
Dividend YieldN/A
Average Volume (3M)379.69K
Price to Earnings (P/E)―
Beta (1Y)0.91
Revenue Growth-35.05%
EPS Growth74.73%
CountryUK
Employees3,682
SectorFinancial
Sector Strength70
IndustryInsurance - Diversified
Share Statistics
EPS (TTM)0.28
Shares Outstanding144,855,480
10 Day Avg. Volume237,304
30 Day Avg. Volume379,687
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)3.02
Price to Sales (P/S)0.30
P/FCF Ratio1.87
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.38
Revenue Forecast (FY)£676.20M
Saga plc Business Overview & Revenue Model
Company Description
Saga plc provides general insurance, package and cruise holidays, and personal finance products and services in the United Kingdom. The company operates in three segments: Insurance, Travel, and Other Businesses and Central Costs. It offers car, h...
How the Company Makes Money
Saga generates revenue through multiple streams, primarily from its insurance and travel divisions. The insurance segment is a significant contributor, offering policies that cater to the specific needs of older adults, which allows for targeted m...
Saga plc Earnings Call Summary
Earnings Call Date:Sep 24, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Apr 15, 2026
Earnings Call Sentiment Positive
Saga delivered a strong first half with significant revenue growth and debt reduction, particularly excelling in its travel and insurance broking segments. The strategic moves, including the sale of the underwriting business and upcoming partnerships, position Saga for future growth. However, challenges remain in the home insurance segment and the impact of higher finance costs. Overall, the positive aspects significantly outweigh the negatives.Positive Updates
Strong Revenue Growth
Underlying revenue increased by 7% from the prior period, driven largely by growth in travel businesses and improved performance in insurance broking.
Negative Updates
Insurance Home Segment Decline
Home insurance contribution decreased by GBP 6.2 million due to net rate inflation within the panel, leading to 19% fewer policy sales.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue Growth
Underlying revenue increased by 7% from the prior period, driven largely by growth in travel businesses and improved performance in insurance broking.
Read all positive updates
Company Guidance
The call provided comprehensive guidance on Saga's financial performance and strategic direction. Key metrics highlighted include a 7% increase in underlying revenue and an 8% growth in trading EBITDA, contributing to a reduction in net debt by GBP 77.7 million to GBP 515.1 million. The leverage ratio improved to 4.3x from 4.8x, reflecting strong cash generation. The Travel business was a significant profit driver, with a 33% increase in underlying PBT to GBP 41.6 million and ocean cruise PBT up 23%, alongside an 8% revenue growth and a 94% load factor. The River Cruise business saw a 34% increase in underlying PBT, with a load factor rising to 93%. The Holidays business reported a 14% revenue growth driven by a 13% increase in passenger numbers. Insurance Broking's underlying PBT stood at GBP 8.9 million, with policy volume growth across motor, travel, and private medical insurance. The sale of AICL added GBP 17 million in cash, aiding strategic simplification. The company is on track for its medium-term targets, including a GBP 100 million profit and leverage below 2x by 2030.Saga plc Financial Statement Overview
Summary
Income Statement
60
Neutral
Balance Sheet
45
Neutral
Cash Flow
70
Positive
| Breakdown | TTM | Jan 2024 | Jan 2023 | Jan 2022 | Jan 2021 | Jan 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 511.70M | 588.30M | 564.60M | 581.10M | 377.20M | 337.60M |
| Gross Profit | 196.20M | 279.50M | 262.60M | 262.70M | 222.80M | 229.80M |
| EBITDA | 73.40M | -40.50M | 67.70M | -188.90M | 46.80M | -2.00M |
| Net Income | -62.20M | -164.90M | -113.00M | -259.20M | -28.00M | -67.80M |
Balance Sheet | ||||||
| Total Assets | 1.28B | 1.59B | 1.88B | 1.98B | 2.30B | 2.21B |
| Cash, Cash Equivalents and Short-Term Investments | 224.40M | 141.60M | 262.80M | 239.30M | 336.90M | 206.80M |
| Total Debt | 675.80M | 689.90M | 824.40M | 895.50M | 934.60M | 823.80M |
| Total Liabilities | 1.22B | 1.53B | 1.66B | 1.61B | 1.65B | 1.53B |
| Stockholders Equity | 58.80M | 57.70M | 223.50M | 369.50M | 652.90M | 680.70M |
Cash Flow | ||||||
| Free Cash Flow | 91.00M | 93.10M | 57.00M | -34.70M | 27.60M | -363.50M |
| Operating Cash Flow | 112.80M | 113.20M | 83.70M | -13.90M | 46.50M | -78.40M |
| Investing Cash Flow | 5.90M | 14.80M | 18.00M | 4.10M | -27.30M | -211.80M |
| Financing Cash Flow | -56.50M | -144.50M | -73.80M | -54.20M | 69.60M | 318.00M |
Saga plc Technical Analysis
Positive
383.50
Price Trends
512.67
Negative
426.09
Positive
321.98
Positive
Market Momentum
-5.69
Positive
47.16
Neutral
34.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SAGA, the sentiment is Positive. The current price of 383.5 is below the 20-day moving average (MA) of 493.90, below the 50-day MA of 512.67, and above the 200-day MA of 321.98, indicating a neutral trend. The MACD of -5.69 indicates Positive momentum. The RSI at 47.16 is Neutral, neither overbought nor oversold. The STOCH value of 34.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SAGA.
Saga plc Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | £381.09M | 8.52 | 11.29% | 4.89% | 7.77% | 35.65% | |
74 Outperform | £1.45B | 6.98 | 15.28% | 11.03% | 8.78% | -38.83% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | £693.08M | -18.58 | -106.78% | ― | -35.05% | 74.73% | |
65 Neutral | £1.38B | 5.39 | 12.70% | 4.74% | -4.98% | 3.02% | |
60 Neutral | £18.83B | 18.92 | 10.20% | 6.03% | -19.71% | -53.86% | |
53 Neutral | £672.06M | -59.40 | -2.93% | 8.03% | -48.03% | -289.17% |
* Financial Sector Average
GB:SAGA
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Saga plc Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Saga lifts profit outlook as cruises, holidays and insurance drive growth
Positive
Jan 29, 2026
Saga plc expects to report an increase in underlying profit before tax for 2025/26, ahead of both last year and its half‑year guidance, driven by strong performances in its Ocean and River Cruise, Holidays and Insurance Broking operations. H...
Business Operations and StrategyM&A Transactions
Saga plc Launches Strategic Insurance Partnership with Ageas
Positive
Dec 16, 2025
Saga plc has launched a significant 20-year insurance partnership with Ageas UK, marking a strategic milestone in simplifying and enhancing its business operations. This collaboration will see Ageas manage various operational aspects like pricing ...
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.