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Saga plc (GB:SAGA)
LSE:SAGA

Saga plc (SAGA) AI Stock Analysis

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GB

Saga plc

(LSE:SAGA)

Rating:67Neutral
Price Target:
195.00p
▲(3.83%Upside)
Saga plc's stock score is supported by strong technical indicators and positive strategic corporate events, which offset challenges in financial performance and valuation. The strategic sales and partnerships improve future prospects despite current profitability and leverage issues.

Saga plc (SAGA) vs. iShares MSCI United Kingdom ETF (EWC)

Saga plc Business Overview & Revenue Model

Company DescriptionSaga plc (SAGA) is a British company primarily focused on serving the needs of customers over the age of 50. The company operates in sectors including insurance, travel, and media. Saga's core products and services include insurance policies, such as home and motor insurance, package holidays, cruise offerings, and a magazine aimed at its demographic.
How the Company Makes MoneySaga plc makes money through a diverse range of revenue streams. The company's insurance division generates income by offering tailored insurance products, including home and motor insurance, to its target demographic. The travel sector contributes to revenue through the sale of package holidays and cruises, targeting the over-50 market with bespoke travel experiences. The media division adds to earnings through the sale of advertising space in its publications, particularly its magazine. Additionally, partnerships with other companies to provide products and services that appeal to its customer base can also contribute to its income.

Saga plc Financial Statement Overview

Summary
Saga plc demonstrates positive cash flow improvements and revenue growth, yet faces significant profitability and leverage challenges. High debt levels and negative net income affect financial stability, while operational efficiencies need improvement to enhance margins and shareholder returns.
Income Statement
60
Neutral
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
45
Neutral
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
70
Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue588.30M564.60M581.10M377.20M337.60M
Gross Profit279.50M262.60M262.70M222.80M229.80M
EBITDA-43.10M67.70M-188.90M46.80M-2.00M
Net Income-164.90M-113.00M-259.20M-28.00M-67.80M
Balance Sheet
Total Assets1.59B1.88B1.98B2.30B2.21B
Cash, Cash Equivalents and Short-Term Investments141.60M262.80M239.30M336.90M206.80M
Total Debt689.90M824.40M895.50M934.60M823.80M
Total Liabilities1.53B1.66B1.61B1.65B1.53B
Stockholders Equity57.70M223.50M369.50M652.90M680.70M
Cash Flow
Free Cash Flow93.10M57.00M-34.70M27.60M-363.50M
Operating Cash Flow113.20M83.70M-13.90M46.50M-78.40M
Investing Cash Flow14.80M18.00M4.10M-27.30M-211.80M
Financing Cash Flow-144.50M-73.80M-54.20M69.60M318.00M

Saga plc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price187.80
Price Trends
50DMA
151.80
Positive
100DMA
138.72
Positive
200DMA
128.70
Positive
Market Momentum
MACD
10.18
Negative
RSI
74.95
Negative
STOCH
80.94
Negative
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 187.8 is above the 20-day moving average (MA) of 168.25, above the 50-day MA of 151.80, and above the 200-day MA of 128.70, indicating a bullish trend. The MACD of 10.18 indicates Negative momentum. The RSI at 74.95 is Negative, neither overbought nor oversold. The STOCH value of 80.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SAGA.

Saga plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBAV
80
Outperform
£16.12B25.705.48%5.75%-1.13%-38.11%
GBIPF
75
Outperform
£382.00M6.4012.58%6.78%-5.41%27.41%
GBLIO
72
Outperform
£226.79M13.8010.79%27.66%-14.24%
67
Neutral
$17.01B11.909.70%3.76%11.63%-9.47%
67
Neutral
£264.63M-127.10%-20.62%-44.96%
GBDLG
66
Neutral
£3.96B27.145.97%2.44%26.11%-29.43%
65
Neutral
£367.96M10.1714.37%4.62%32.88%99.17%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:SAGA
Saga plc
187.80
76.40
68.58%
GB:AV
Aviva plc
613.40
175.14
39.96%
GB:DLG
Direct Line Insurance
304.80
113.92
59.68%
GB:LIO
Liontrust Asset Management
360.50
-163.87
-31.25%
GB:IPF
International Personal Finance
173.00
54.80
46.36%
GB:SBRE
Sabre Insurance Group plc
144.00
7.92
5.82%

Saga plc Corporate Events

Business Operations and Strategy
Saga plc Announces Change in Major Shareholdings
Neutral
Jul 1, 2025

Saga plc, a non-UK issuer, announced a change in its major holdings due to an acquisition or disposal of voting rights. Eldose Babu, based in Dubai, has increased his voting rights in the company to 9.18% from a previous 8.02%, as of June 30, 2025. This change signifies a notable shift in shareholder influence, potentially impacting the company’s strategic decisions and stakeholder interests.

The most recent analyst rating on (GB:SAGA) stock is a Buy with a £1.85 price target. To see the full list of analyst forecasts on Saga plc stock, see the GB:SAGA Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
Saga plc Completes Sale of Underwriting Business to Ageas
Positive
Jul 1, 2025

Saga plc has completed the sale of its Insurance Underwriting business, Acromas Insurance Company Limited, to Ageas (UK) Limited. This transaction is a key part of Saga’s strategy to streamline its insurance operations and eliminate underwriting risk. The deal, which includes a significant cash flow boost and aligns with Saga’s plans for a motor and home insurance partnership with Ageas, marks a significant milestone for the company.

The most recent analyst rating on (GB:SAGA) stock is a Buy with a £1.85 price target. To see the full list of analyst forecasts on Saga plc stock, see the GB:SAGA Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Saga plc Grants Share Awards to Key Executives Under 2025 Plan
Neutral
Jun 26, 2025

Saga plc has announced the grant of awards under its 2025 Restricted Share Plan (RSP) to key directors and persons discharging managerial responsibility, including CEO Mike Hazell and CFO Mark Watkins. These awards, structured as nil-cost options, will vest after three years, contingent upon continued service and performance evaluations by the company’s Remuneration Committee. This move is part of Saga’s strategy to align leadership incentives with company performance, potentially impacting its operational focus and stakeholder confidence.

The most recent analyst rating on (GB:SAGA) stock is a Buy with a £1.85 price target. To see the full list of analyst forecasts on Saga plc stock, see the GB:SAGA Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Saga plc Successfully Passes All Resolutions at 2025 AGM
Neutral
Jun 24, 2025

Saga plc held its Annual General Meeting on June 24, 2025, where all proposed resolutions were passed. The meeting, conducted at Numis Securities Limited in London, saw the approval of both ordinary and special resolutions, including the re-election of several directors, the appointment of new directors, and the re-appointment of KPMG LLP as auditor. These resolutions reflect Saga’s ongoing governance and operational strategies, potentially impacting its market positioning and stakeholder relations.

The most recent analyst rating on (GB:SAGA) stock is a Buy with a £154.00 price target. To see the full list of analyst forecasts on Saga plc stock, see the GB:SAGA Stock Forecast page.

Executive/Board Changes
Saga plc Director Joins Telecom Plus Board
Neutral
Jun 24, 2025

Saga plc has announced that Gemma Godfrey, an Independent Non-Executive Director at Saga, will be joining Telecom Plus PLC in a similar capacity starting August 6, 2025. This appointment reflects Saga’s commitment to fostering leadership that can contribute to the broader industry, potentially enhancing its strategic influence and stakeholder relationships.

The most recent analyst rating on (GB:SAGA) stock is a Buy with a £1.85 price target. To see the full list of analyst forecasts on Saga plc stock, see the GB:SAGA Stock Forecast page.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Saga plc Reports Strong Start to Financial Year and Strategic Progress
Positive
Jun 24, 2025

Saga plc has reported a positive start to the financial year, with all business segments performing well and meeting expectations. The company is experiencing strong performance in its Ocean and River Cruise and Holidays segments, with bookings and revenue surpassing last year’s figures. The sale of its insurance underwriting business to Ageas is progressing as planned, and a new partnership with NatWest for personal banking products is in final negotiations. Saga’s net debt has decreased, reflecting a solid financial position as it continues to focus on growing its Travel and Money businesses while transitioning to a simplified Insurance model.

The most recent analyst rating on (GB:SAGA) stock is a Buy with a £1.85 price target. To see the full list of analyst forecasts on Saga plc stock, see the GB:SAGA Stock Forecast page.

Executive/Board Changes
Saga plc Announces Director Shareholding Changes Under Deferred Bonus Plan
Neutral
May 29, 2025

Saga plc has announced changes in the shareholding interests of its directors and persons discharging managerial responsibilities (PDMRs) under its Deferred Bonus Plan (DBP). On 28 May 2025, awards in the form of nil-cost options over shares were granted to key executives, including Mike Hazell and Mark Watkins, as part of their annual bonuses for the 2024/25 fiscal year. These shares are subject to a three-year holding period, reflecting a commitment to align executive interests with long-term company performance.

The most recent analyst rating on (GB:SAGA) stock is a Buy with a £1.85 price target. To see the full list of analyst forecasts on Saga plc stock, see the GB:SAGA Stock Forecast page.

Shareholder MeetingsFinancial DisclosuresRegulatory Filings and Compliance
Saga plc Releases 2025 Annual Report and AGM Notice
Neutral
May 20, 2025

Saga plc has announced the distribution of its 2025 Annual Report and Accounts along with the Notice of its Annual General Meeting (AGM) to shareholders. The AGM is scheduled for 24 June 2025. The company has also published its Environmental, Social, and Governance Report, reflecting its commitment to transparency and sustainability. These documents are available on Saga’s website and have been submitted to the National Storage Mechanism for public access, indicating a focus on regulatory compliance and shareholder engagement.

The most recent analyst rating on (GB:SAGA) stock is a Buy with a £1.85 price target. To see the full list of analyst forecasts on Saga plc stock, see the GB:SAGA Stock Forecast page.

Business Operations and Strategy
Saga plc Announces Major Shareholding Change
Neutral
Apr 11, 2025

Saga plc has announced a change in its major shareholdings, with Sir Roger De Haan acquiring a significant portion of voting rights, now holding 26.98% of the total. This acquisition could potentially impact the company’s strategic direction and influence its market positioning, given De Haan’s history with the company.

Other
Saga CEO Increases Stake with Share Purchase
Positive
Apr 10, 2025

Saga plc has announced a change in the shareholding interests of its directors, specifically noting that Mike Hazell, the Group Chief Executive Officer, has purchased 78,125 ordinary shares at a price of £1.24 each. This transaction, conducted in London on April 9, 2025, signifies a potential increase in confidence from the CEO in the company’s future performance and may impact stakeholder perceptions positively.

Business Operations and Strategy
Saga plc’s Chairman Increases Stake to Nearly 27%
Positive
Apr 9, 2025

Saga plc has announced a significant change in its shareholding structure, with Sir Roger De Haan, the Non-Executive Chairman, increasing his stake to 26.98% of the company’s issued share capital. This move could strengthen De Haan’s influence within the company and potentially impact its strategic direction, reflecting confidence in Saga’s future prospects.

Executive/Board ChangesBusiness Operations and Strategy
Saga plc Announces Board Restructuring Amid Strategic Shift
Positive
Apr 9, 2025

Saga plc announced significant changes to its Board, with Sir Peter Bazalgette and Steve Kingshott stepping down as part of the company’s strategic shift following a successful insurance agreement with Ageas SA/NV. These changes reflect Saga’s new simplified business model, with Gareth Hoskin and Julie Hopes taking on new roles within the Board’s committees, aiming to position Saga for future growth and stability.

Private Placements and FinancingM&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Saga plc Reports Strong Growth and Strategic Progress in 2025 Results
Positive
Apr 9, 2025

Saga plc has reported its unaudited preliminary results for the year ending January 31, 2025, highlighting significant strategic progress and a strong financial performance driven by high demand in its travel businesses. The company has achieved a 25% increase in underlying profit before tax, attributed to its cruise offerings, and has taken strategic actions to reposition itself for future growth. This includes a new 20-year insurance broking partnership with Ageas and the sale of its insurance underwriting business, which are expected to reduce risk and complexity. Saga has also completed the refinancing of its corporate debt, providing financial flexibility for future growth plans. Despite a reported loss before tax due to asset impairments and restructuring costs, the company is optimistic about its long-term growth, aiming for substantial profit increases and debt reduction.

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: Jul 02, 2025