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: -15.43% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: 341.00p ▲(1.19% Upside)

Saga plc's overall score reflects strong technical momentum and positive earnings call insights, offset by significant financial performance challenges and valuation concerns. The company's strategic initiatives and growth in key segments are promising, but high leverage and profitability issues remain critical risks.

Positive Factors

Revenue Growth

The 7% revenue growth indicates strong demand in Saga's core travel and insurance segments, supporting long-term business expansion.

Debt Reduction

Significant debt reduction enhances financial stability and flexibility, positioning Saga for sustainable future growth.

Strategic Partnerships

New partnerships with Ageas and NatWest diversify revenue streams and reduce business risk, strengthening Saga's market position.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting Saga's ability to invest in growth opportunities.

Profitability Challenges

Ongoing profitability issues with a negative net margin hinder Saga's ability to generate shareholder value and reinvest in the business.

Home Insurance Segment Decline

Decline in the home insurance segment due to fewer policy sales affects Saga's revenue diversification and stability in the insurance market.

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: 337.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 337 is above the 20-day moving average (MA) of 279.52, above the 50-day MA of 272.06, and above the 200-day MA of 193.64, indicating a bullish trend. The MACD of 18.67 indicates Negative momentum. The RSI at 82.41 is Negative, neither overbought nor oversold. The STOCH value of 89.83 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AV	73 Outperform	£20.20B	29.81	10.13%	6.35%	-19.71%	-53.86%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
IPF	67 Neutral	£439.30M	6.13	14.70%	4.70%	-7.52%	50.23%
DLG	66 Neutral	―	―	―	―	26.11%	-29.43%
SAGA	65 Neutral	£378.95M	-9.95	-76.14%	―	-35.05%	74.73%
SBRE	65 Neutral	£319.04M	8.15	16.39%	5.05%	7.77%	35.65%
LIO	64 Neutral	£187.27M	11.39	9.72%	22.49%	-15.65%	-12.27%

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.

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.

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.