Saga Communications (SGA) AI Stock Analysis

• Market Cap: $77.21M
• Dividend Yield: 8.81%
• Average Volume (3M): 6.58K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.31
• Revenue Growth: -0.77%
• EPS Growth: -93.46%
• Country: US
• Employees: 601
• Sector: Communication Services
• Sector Strength: 97
• Industry: Broadcasting
• EPS (TTM): -0.88
• Shares Outstanding: 6,439,921
• 10 Day Avg. Volume: 8,898
• 30 Day Avg. Volume: 6,576
• PEG Ratio: 0.03
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.66
• P/FCF Ratio: 29.07
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 0.73
• Enterprise Value/Gross Profit: 7.72
• Enterprise Value/Ebitda: 26.06
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.54
• Revenue Forecast (FY): $113.20M

• Rating: 52 Neutral
• Price Target: $11.00 ▼(-1.70% Downside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

SGA scores in the low-50s primarily due to weakened financial performance (recent loss, softer revenue and cash-flow trajectory) and bearish technical conditions (below key moving averages with negative momentum). These risks are partially offset by strong liquidity/capital returns and encouraging digital growth discussed on the earnings call, while valuation is supported mainly by the high dividend yield despite a loss-driven negative P/E.

Positive Factors

Accelerating digital revenue mix

Sustained double-digit Interactive growth indicates a structural shift toward digital monetization. Diverse channels (search, targeted display, e‑commerce, hyperlocal sites) increase recurring, higher-margin revenue streams, lowering reliance on cyclical spot radio ads and improving long-term revenue stability.

Conservative leverage and liquidity

Very low reported debt relative to a large asset base provides financial flexibility to fund digital investments and capital returns without external financing. Strong liquidity and modest leverage reduce refinancing and solvency risk amid advertising cyclicality and operational transition.

Consistent shareholder capital returns

A long-standing dividend program plus executed buybacks signal disciplined capital allocation and shareholder-focus. Returning cash while retaining liquidity suggests management prioritizes durable shareholder value and has historically funded payouts without adding material leverage.

Negative Factors

Major drop in political advertising

The sharp decline in political revenue illustrates high concentration and cyclical exposure. Large election-related swings materially depress near-term top line and make sales planning and revenue predictability difficult, increasing reliance on other channels while recovery may lag until election cycles resume.

Large noncash impairment charge

A sizable goodwill and license impairment materially reduced reported equity and earnings quality. Such write-offs point to past overvaluation or asset underperformance, weaken reported profitability metrics, and can constrain confidence in management's historical M&A or valuation assumptions over the medium term.

Earnings deterioration and weakening cash trends

Transition from multi-year profitability to negative EBITDA and a 2025 loss, alongside falling operating and free cash flow, reduces internal funding capacity. Sustained margin pressure and volatile cash generation constrain reinvestment in digital growth and increase vulnerability if ad demand softens further.

Saga Communications Business Overview & Revenue Model

Company Description

Saga Communications, Inc., a broadcast company, acquires, develops, and operates broadcast properties in the United States. The company's radio stations employ various programming formats, including classic hits, adult hits, top 40, country, country legends, mainstream/hot/soft adult contemporary, pure oldies, classic rock, and news/talk. As of February 28, 2022, it owned seventy-nine FM, thirty- four AM radio stations, and seventy-nine metro signals serving twenty-seven markets. The company was founded in 1986 and is headquartered in Grosse Pointe Farms, Michigan.

How the Company Makes Money

Saga Communications primarily generates revenue by selling advertising and marketing services tied to its radio stations and their digital extensions. The core revenue stream is the sale of commercial airtime (local and, to a lesser extent, national/regional advertising) across its owned-and-operated radio stations; pricing is generally driven by audience reach/ratings, time of day, market demand, and the mix of spot advertising and longer-term contracts. A second major stream is digital advertising and marketing tied to the stations’ online and mobile presence—such as display ads, streaming audio ads, and other station-affiliated digital products sold to advertisers seeking multi-platform campaigns. Saga also earns revenue from sponsorships and promotional programs (e.g., advertiser-supported station events, contests, and branded segments) that bundle on-air mentions with digital placement and/or experiential marketing. The company’s earnings are influenced by local economic conditions in its markets, advertiser demand (especially from local businesses), and audience engagement that supports ad rates. Specific material partnerships or non-advertising revenue sources are null.

Saga Communications Financial Statement Overview

Summary

Financials are pressured by a sharp earnings deterioration (down to a sizable 2025 loss and negative EBITDA) and declining revenue/cash-flow trends. Offsetting factors include generally low leverage and still-positive operating/free cash flow in 2025, but the anomalous 2025 equity datapoint reduces confidence and weighs on quality.

Income Statement

Profitability has deteriorated meaningfully: the company moved from solid profits in 2021–2023 (roughly 8–10% net margins) to modest profitability in 2024 (~3% net margin) and then a sizable loss in 2025 (about -7% net margin) with negative EBITDA. Revenue has also drifted down over time, including a ~4% decline in 2025, suggesting weakening operating leverage. Strength: the business has shown it can generate healthy margins in prior years, but the latest annual results show a sharp reset that weighs heavily on the score.

Balance Sheet

Leverage appears low overall, with debt modest relative to assets and historically near-zero in 2021–2023; even in 2025 total debt is only about $5M against ~$201M in assets. That said, the 2025 equity figure is reported as zero (which also forces debt-to-equity and return on equity to read as 0), creating a data-quality/structural red flag and reducing analytical confidence for the latest year. Strength: generally conservative debt load; weakness: the latest equity datapoint is anomalous and coincides with a loss year.

Cash Flow

Cash generation is a relative bright spot: operating cash flow remained positive in 2025 (~$5.5M) despite a net loss, and free cash flow was also positive. However, cash flow has weakened versus prior years (operating cash flow fell from ~15–19M in 2021–2023 to ~13.8M in 2024 and ~5.5M in 2025), and free cash flow growth in 2025 was sharply negative (down ~31%). Strength: continued positive cash flow through a down earnings year; weakness: declining cash flow trajectory and volatility in free cash flow.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	107.11M	112.92M	112.77M	114.89M	108.34M
Gross Profit	10.15M	16.01M	22.57M	27.36M	25.10M
EBITDA	3.01M	10.20M	18.10M	19.30M	21.45M
Net Income	-7.90M	3.46M	9.50M	9.20M	11.16M
Balance Sheet
Total Assets	201.32M	221.72M	232.21M	240.75M	247.93M
Cash, Cash Equivalents and Short-Term Investments	0.00	27.79M	40.18M	46.92M	54.76M
Total Debt	5.00M	12.27M	0.00	0.00	0.00
Total Liabilities	0.00	55.80M	61.66M	62.22M	51.01M
Stockholders Equity	0.00	165.92M	170.55M	178.53M	196.92M
Cash Flow
Free Cash Flow	2.42M	4.29M	11.02M	11.07M	14.98M
Operating Cash Flow	5.46M	13.77M	15.38M	17.13M	19.10M
Investing Cash Flow	7.15M	-6.68M	-2.50M	-14.99M	-3.35M
Financing Cash Flow	-8.97M	-17.81M	-20.10M	-20.09M	-12.35M

Saga Communications Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.19
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SGA, the sentiment is Negative. The current price of 11.19 is below the 20-day moving average (MA) of 11.49, below the 50-day MA of 11.25, and below the 200-day MA of 11.71, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 45.93 is Neutral, neither overbought nor oversold. The STOCH value of 43.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SGA.

Saga Communications Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
EVC	55 Neutral	$275.89M	-3.41	-98.27%	6.56%	-45.95%	-75.87%
UONE	55 Neutral	$26.42M	-0.21	-119.60%	―	-13.08%	-69.47%
SGA	52 Neutral	$77.21M	-8.92	0.18%	8.81%	-0.77%	-93.46%
SSP	52 Neutral	$300.03M	-3.48	1.81%	―	-3.27%	86.01%
MDIA	44 Neutral	$50.01M	-1.45	-49.86%	―	83.96%	-73.70%
BBGI	40 Underperform	$6.71M	-0.67	-5.86%	―	-7.78%	-369.53%

Saga Communications Corporate Events

Saga Communications CEO Begins Temporary Medical Leave Period

On February 13, 2026, Saga Communications, Inc. announced that Chief Executive Officer Christopher S. Forgy had begun a temporary medical leave of absence requiring an indefinite recovery period. During his leave, the board expects Forgy to remain available for consultation on significant matters, while Chief Operating Officer Wayne Leland and Chief Financial Officer Samuel D. Bush have been designated to jointly assist with and assume his responsibilities, aiming to maintain continuity in the company’s leadership and operations.

The most recent analyst rating on (SGA) stock is a Hold with a $12.00 price target. To see the full list of analyst forecasts on Saga Communications stock, see the SGA Stock Forecast page.

Saga Communications Declares Quarterly Dividend, Reaffirms Capital Returns

On February 12, 2026, Saga Communications announced that its board declared a quarterly cash dividend of $0.25 per share on its Class A common stock, to be paid on March 20, 2026, to shareholders of record as of February 26, 2026. The payout, totaling about $1.6 million and funded from existing cash, brings cumulative dividends since 2012 to more than $143 million and underscores Saga’s continued emphasis on returning capital to shareholders.

The company signaled that regular quarterly dividends remain part of its capital allocation strategy for fiscal 2026, alongside potential stock buybacks and special dividends at the board’s discretion. This approach highlights Saga’s effort to balance shareholder returns with operational needs in a competitive media and advertising landscape, leaving investors attentive to future board decisions tied to financial performance and cash demands.

The most recent analyst rating on (SGA) stock is a Hold with a $12.00 price target. To see the full list of analyst forecasts on Saga Communications stock, see the SGA Stock Forecast page.

Saga Communications Completes Stock Repurchase Deal

On December 12, 2025, Saga Communications, Inc. completed a repurchase of 184,215 shares of its common stock for approximately $2.1 million, representing about 2.8% of its outstanding shares. This transaction, conducted through a privately negotiated deal, underscores the company’s commitment to delivering shareholder value and reflects confidence in its long-term strategy and financial strength.

The most recent analyst rating on (SGA) stock is a Buy with a $18.00 price target. To see the full list of analyst forecasts on Saga Communications stock, see the SGA Stock Forecast page.