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Saga plc (GB:SAGA)
:SAGA
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Saga plc (SAGA) AI Stock Analysis

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GB:SAGA

Saga plc

(LSE:SAGA)

Rating:65Neutral
Price Target:
197.00p
▲(9.69%Upside)
Saga plc's overall stock score is driven primarily by its strong technical indicators and positive corporate events. However, financial performance is hindered by high leverage and negative net income, and valuation metrics are weak due to a negative P/E ratio and lack of dividends. These factors collectively yield a moderate overall score.

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

Saga plc Business Overview & Revenue Model

Company DescriptionSaga 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 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 revenue growth and cash flow improvements, yet faces considerable profitability and leverage challenges. The company's high debt levels and negative net income impact financial stability, while operational efficiencies need to be enhanced to improve 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 Price179.60
Price Trends
50DMA
164.70
Positive
100DMA
147.12
Positive
200DMA
133.59
Positive
Market Momentum
MACD
3.13
Positive
RSI
58.91
Neutral
STOCH
64.47
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 179.6 is below the 20-day moving average (MA) of 180.67, above the 50-day MA of 164.70, and above the 200-day MA of 133.59, indicating a neutral trend. The MACD of 3.13 indicates Positive momentum. The RSI at 58.91 is Neutral, neither overbought nor oversold. The STOCH value of 64.47 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
£19.38B27.055.48%560.72%-1.13%-38.11%
76
Outperform
£232.13M14.1210.79%1945.95%-14.24%
75
Outperform
£399.92M6.6312.58%464.04%-5.41%27.41%
66
Neutral
$3.96B27.145.97%2.44%26.11%-29.43%
65
Neutral
£252.44M-127.10%-20.62%-44.96%
65
Neutral
£369.85M10.2814.37%601.56%32.88%99.17%
61
Neutral
C$15.12B6.8123.28%5.39%33.61%-23.38%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:SAGA
Saga plc
179.60
70.20
64.17%
GB:DLG
Direct Line Insurance
304.80
122.66
67.34%
GB:IPF
International Personal Finance
182.00
55.52
43.90%
GB:LIO
Liontrust Asset Management
370.00
-179.42
-32.66%
GB:AV
Aviva plc
637.20
179.14
39.11%
GB:SBRE
Sabre Insurance Group plc
151.00
6.54
4.53%

Saga plc Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
Saga plc Partners with NatWest Boxed to Launch Savings Products for Over 50s
Positive
Jul 14, 2025

Saga plc has announced a seven-year partnership with NatWest Boxed to launch a new suite of savings products specifically designed for individuals over 50. This collaboration will allow Saga to enhance its financial services offerings, starting with a new instant access savings product, and aims to strengthen its market position as a trusted brand for this demographic. The partnership leverages NatWest’s scale and expertise, enabling Saga to offer more competitive and flexible savings solutions, ultimately supporting customers in achieving their savings goals.

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 Merges Audit and Risk Committees to Streamline Operations
Neutral
Jul 9, 2025

Saga plc has announced the merger of its Audit and Risk Committees as part of its ongoing efforts to simplify its business model. The newly combined committee will be chaired by Gareth Hoskin, with Anand Aithal and Julie Hopes as members, while Gemma Godfrey steps down from the Risk Committee. This change reflects Saga’s strategic focus on streamlining operations, potentially enhancing efficiency and governance within 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.

Delistings and Listing ChangesPrivate Placements and Financing
Saga plc Issues New Shares for Employee Incentive Trust
Neutral
Jul 9, 2025

Saga plc has issued 1,493,744 new ordinary shares to be transferred into an employee benefit trust, facilitating employee incentive arrangements. These shares will be listed on the Official List and admitted to trading on the London Stock Exchange’s Main Market by 14 July 2025. This issuance increases Saga’s total share capital to 144,855,485 ordinary shares, impacting shareholder voting rights calculations under FCA guidelines.

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 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.

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 14, 2025