Saga plc (SAGA) AI Stock Analysis

• Market Cap: £378.95M
• Dividend Yield: N/A
• Average Volume (3M): 379.69K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.08
• Revenue Growth: -35.05%
• EPS Growth: 74.73%
• Country: UK
• Employees: 3,682
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Diversified
• EPS (TTM): 0.28
• Shares Outstanding: 144,855,480
• 10 Day Avg. Volume: 237,304
• 30 Day Avg. Volume: 379,687
• PEG Ratio: -0.02
• Price to Book (P/B): 3.02
• Price to Sales (P/S): 0.30
• P/FCF Ratio: 1.87
• 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: £285.00
• Price Target Upside: 12.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: 248.00p ▼(-2.36% Downside)

Saga plc's stock score is driven by strong earnings call insights and positive technical momentum. However, financial performance challenges, particularly in profitability and leverage, and a weak valuation due to negative earnings, weigh on the overall score.

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, home, health, travel, landlord, boat, motorhome, caravan, pet, personal accident, breakdown cover, building, content, renter, holiday, and holiday home insurance. The company also operates and delivers package tours and cruise holiday products; and provides equity release and care funding advice, savings accounts, credit cards, and wealth management services, as well as shares ISA and share dealing services. In addition, it offers mailing house services; retirement benefit schemes; and publishes Saga Magazine, as well as repairs automotive vehicles. The company was formerly known as Saga Limited and changed its name to Saga plc in May 2014. The company was founded in 1950 and is headquartered in Folkestone, the United Kingdom.

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 marketing and reduced competition. Additionally, the company earns money through commissions on travel bookings, cruise sales, and holiday packages. Partnerships with various travel operators and insurance providers further bolster its offerings and revenue potential. Furthermore, Saga benefits from a loyal customer base, leading to repeat business and referrals, thereby enhancing its overall earnings.

Saga plc Financial Statement Overview

Summary

Saga plc shows positive revenue growth and cash flow improvements, but faces significant challenges with profitability and high leverage. The negative net income and high debt levels impact financial stability, while operational efficiencies need enhancement.

Income Statement

Saga plc has shown a modest revenue growth from the previous year, with a Revenue Growth Rate of 4.20%. However, the company is struggling with profitability, as indicated by a persistent negative Net Profit Margin, reaching -28.04% in the latest year. The Gross Profit Margin is relatively strong at 47.50%, but the EBIT Margin of 7.81% and a negative Net Income suggest challenges in operational efficiency and profitability.

Balance Sheet

Saga plc's balance sheet reveals high leverage with a Debt-to-Equity Ratio of 11.96, indicating significant reliance on debt financing. The Equity Ratio stands at a low 3.63%, showing limited equity buffer. Return on Equity is negative due to ongoing net losses, pointing to challenges in generating shareholder value.

Cash Flow

The company shows positive Free Cash Flow of £93.1 million with a strong Free Cash Flow Growth Rate of 63.33% from the previous year, indicating improved cash generation ability. Operating Cash Flow is also positive, significantly higher than net income, suggesting better cash management despite profitability issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	588.30M	588.30M	564.60M	581.10M	377.20M	337.60M
Gross Profit	279.50M	279.50M	262.60M	262.70M	222.80M	229.80M
EBITDA	-43.10M	-40.50M	67.70M	-188.90M	46.80M	-2.00M
Net Income	-164.90M	-164.90M	-113.00M	-259.20M	-28.00M	-67.80M
Balance Sheet
Total Assets	1.59B	1.59B	1.88B	1.98B	2.30B	2.21B
Cash, Cash Equivalents and Short-Term Investments	141.60M	141.60M	262.80M	239.30M	336.90M	206.80M
Total Debt	689.90M	689.90M	824.40M	895.50M	934.60M	823.80M
Total Liabilities	1.53B	1.53B	1.66B	1.61B	1.65B	1.53B
Stockholders Equity	57.70M	57.70M	223.50M	369.50M	652.90M	680.70M
Cash Flow
Free Cash Flow	93.10M	93.10M	57.00M	-34.70M	27.60M	-363.50M
Operating Cash Flow	113.20M	113.20M	83.70M	-13.90M	46.50M	-78.40M
Investing Cash Flow	14.80M	14.80M	18.00M	4.10M	-27.30M	-211.80M
Financing Cash Flow	-144.50M	-144.50M	-73.80M	-54.20M	69.60M	318.00M

Saga plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 254.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 254 is below the 20-day moving average (MA) of 267.10, above the 50-day MA of 250.35, and above the 200-day MA of 176.36, indicating a neutral trend. The MACD of 1.25 indicates Positive momentum. The RSI at 42.57 is Neutral, neither overbought nor oversold. The STOCH value of 15.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SAGA.

Saga plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AV	73 Outperform	£20.20B	29.81	10.13%	6.07%	-19.71%	-53.86%
LIO	70 Outperform	£187.27M	11.39	10.79%	24.28%	-14.24%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
IPF	67 Neutral	£439.30M	6.13	14.70%	4.82%	-7.52%	50.23%
DLG	66 Neutral	―	―	―	―	26.11%	-29.43%
SBRE	65 Neutral	£319.04M	8.15	16.39%	5.02%	7.77%	35.65%
SAGA	64 Neutral	£378.95M	-9.95	-76.14%	―	-35.05%	74.73%

Saga plc Corporate Events

Saga plc Chairman Increases Stake to 27.53%

Saga plc announced a significant change in its shareholding structure as Sir Roger De Haan, the Non-Executive Chairman, increased his stake in the company to 27.53% following the purchase of 1.2 million ordinary shares. This move underscores De Haan’s commitment to the company and could strengthen his influence in strategic decisions, potentially impacting the company’s future direction and market positioning.

The most recent analyst rating on (GB:SAGA) stock is a Hold with a £248.00 price target. To see the full list of analyst forecasts on Saga plc stock, see the GB:SAGA Stock Forecast page.

Saga plc’s Earnings Call Highlights Strong Growth and Strategic Moves

Saga plc’s recent earnings call painted a positive picture of the company’s financial health and strategic direction. The sentiment was largely optimistic, with significant revenue growth and debt reduction taking center stage. The travel and insurance broking segments were highlighted as key contributors to this success, while strategic moves such as the sale of the underwriting business and upcoming partnerships were seen as promising steps for future growth. Despite these positives, challenges in the home insurance segment and the impact of higher finance costs were noted, though they were outweighed by the overall positive developments.

Saga plc Reports Strong Interim Results and Strategic Progress

Saga plc reported strong interim results for the first half of 2025, driven by robust performance in its Travel business. The company achieved a significant increase in profit before tax and improved its net debt position, indicating solid progress towards long-term growth objectives. The sale of its Insurance Underwriting business and a new insurance partnership with Ageas are expected to bolster future growth. The launch of a new River Cruise ship and a savings partnership with NatWest Boxed further support Saga’s strategic initiatives.

The most recent analyst rating on (GB:SAGA) stock is a Hold with a £197.00 price target. To see the full list of analyst forecasts on Saga plc stock, see the GB:SAGA Stock Forecast page.

Saga plc Reports Strong Interim Results, Driven by Travel Business

Saga plc reported strong interim results for the first half of 2025, with significant growth in its Travel business driving financial performance beyond expectations. The company achieved a 9% increase in revenue and a 103% improvement in profit before tax compared to the previous year. Strategic objectives are progressing well, including the successful refinancing of debt and the sale of its Insurance Underwriting business to Ageas. The company is on track to achieve its long-term goals of reducing leverage and increasing profitability, with a focus on enhancing its Travel and Insurance operations.

The most recent analyst rating on (GB:SAGA) stock is a Hold with a £197.00 price target. To see the full list of analyst forecasts on Saga plc stock, see the GB:SAGA Stock Forecast page.