Saga plc (SAGA) AI Stock Analysis

• Market Cap: £574.12M
• Dividend Yield: N/A
• Average Volume (3M): 379.69K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.01
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: 464.00p ▲(20.99% Upside)

The score is driven mainly by mixed fundamentals—strong cash generation but weak profitability and very high leverage—partly offset by a constructive earnings update showing revenue growth, improved leverage, and segment strength. Technically the trend is strong, but overbought indicators raise near-term pullback risk, while valuation is constrained by negative earnings and no stated dividend yield.

Positive Factors

Free cash flow strength

Sustained and materially higher free cash flow improves funding flexibility for deleveraging, capital allocation and investment. A large FCF uplift versus prior year supports meeting medium-term leverage targets and buffers against cyclical travel and insurance revenue swings.

Underlying revenue momentum

Consistent underlying revenue growth across reporting periods indicates durable demand for Saga’s products among the 50+ demographic. Structural revenue expansion supports operating leverage, making medium-term margin recovery and debt reduction targets more achievable.

Travel segment profitability and demand

High cruise load factors and strong PBT gains show resilient, high-margin travel demand and effective yield management. Durable outperformance in core travel verticals provides a stable cash-generating engine to offset weaker insurance lines and supports strategic simplification.

Negative Factors

High balance sheet leverage

Very high leverage and a thin equity base increase refinancing, interest and covenant risks over the medium term. Leverage constrains strategic optionality, leaves little buffer for adverse shocks, and makes profit recovery more critical before equity value is restored.

Persistent net losses

A deeply negative net margin indicates current operations aren’t converting gross profit into sustainable net profitability. Even with strong gross margins, continued net losses can erode capital, hinder reinvestment and slow progress toward stated medium-term profit targets.

Weakness in home insurance

A sharp decline in home insurance sales and a material revenue hit point to competitive or pricing pressures in a core product line. Structural weakness in this segment undermines revenue diversification and increases reliance on travel and broking to drive overall profitability.

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 strong cash flow improvements. However, it faces significant profitability challenges with a negative net profit margin and high leverage, impacting financial stability.

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	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

• Technical Analysis Sentiment: Positive
• Last Price: 383.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 405.85, above the 50-day MA of 333.47, and above the 200-day MA of 226.65, indicating a bullish trend. The MACD of 22.41 indicates Positive momentum. The RSI at 60.99 is Neutral, neither overbought nor oversold. The STOCH value of 30.43 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LRE	76 Outperform	£1.52B	8.47	15.18%	11.03%	8.78%	-38.83%
SBRE	75 Outperform	£322.95M	8.25	16.39%	4.89%	7.77%	35.65%
AV	73 Outperform	£20.73B	30.58	10.13%	6.03%	-19.71%	-53.86%
CSN	72 Outperform	£693.85M	-65.75	-2.53%	8.03%	-48.03%	-289.17%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PAG	65 Neutral	£1.69B	9.84	12.70%	4.74%	-4.98%	3.02%
SAGA	62 Neutral	£574.12M	-15.28	-76.14%	―	-35.05%	74.73%

Saga plc Corporate Events

Saga plc Launches Strategic Insurance Partnership with Ageas

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 and customer service, while Saga focuses on brand and marketing, maintaining customer ownership. The partnership is expected to drive growth in Saga’s insurance offerings by delivering high-quality services and value. Additionally, Saga will receive substantial financial inflows from this partnership and the completed sale of Acromas Insurance Company Limited, further strengthening its financial position.

The most recent analyst rating on (GB:SAGA) stock is a Hold with a £341.00 price target. To see the full list of analyst forecasts on Saga plc stock, see the GB:SAGA Stock Forecast page.