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Saga Communications Inc (SGA)
NASDAQ:SGA
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Saga Communications
(NASDAQ:SGA)
66Neutral
Saga Communications (SGA) vs. S&P 500 (SPY)
Market Cap
$73.50M
Dividend Yield8.76%
Average Volume (3M)4.34K
Price to Earnings (P/E)20.5
Beta (1Y)0.27
Revenue Growth-1.65%
EPS Growth-51.45%
CountryUS
Employees601
SectorCommunication Services
Sector Strength82
IndustryBroadcasting
Share Statistics
EPS (TTM)-0.29
Shares Outstanding6,441,913
10 Day Avg. Volume2,721
30 Day Avg. Volume4,339
Financial Highlights & Ratios
PEG Ratio-0.82
Price to Book (P/B)0.43
Price to Sales (P/S)0.00
P/FCF Ratio17.66
Enterprise Value/Market Cap0.84
Enterprise Value/Revenue0.14
Enterprise Value/Gross Profit3.87
Enterprise Value/Ebitda1.31
Forecast
1Y Price Target
$18.00Price Target Upside50.38% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Saga Communications Business Overview & Revenue Model
Company DescriptionSaga 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 MoneySaga Communications generates revenue primarily through the sale of advertising time on its radio stations. This involves local and national advertisers purchasing airtime to reach the company's audience with their marketing messages. The company's revenue streams are bolstered by its ability to attract a large and engaged listener base, which in turn draws advertisers seeking to target specific demographics. Additionally, Saga Communications may earn revenue from digital advertising on its online platforms associated with its radio stations. The company’s earnings are influenced by factors such as audience ratings, the economic environment affecting advertising budgets, and the competitive landscape of the media industry.
Saga Communications Financial Statement Overview
Summary
Saga Communications exhibits a stable financial position with strong equity and low leverage. However, declining revenue and inconsistent profitability, along with modest cash flow growth, underscore challenges in maintaining growth and profitability.Income Statement
Saga Communications shows mixed performance with declining revenue over recent years, from $123 million in 2019 to $110 million in 2024. Gross profit margins have remained strong due to efficient cost management. However, net profit margins have been inconsistent, reflecting challenges in maintaining consistent profitability. The EBIT and EBITDA margins have shown fluctuations, indicating some operational challenges.70
Positive
Balance Sheet
The balance sheet reflects a strong equity position with a consistent debt-to-equity ratio below 0.05 over the years, indicating low leverage. Return on equity (ROE) has been relatively stable, though it faced a dip in 2020. The company's equity ratio remains healthy, suggesting a stable financial foundation.75
Positive
Cash Flow
Operating cash flow has shown a declining trend from 2019 to 2024, impacting free cash flow growth. The company maintains a positive free cash flow, but its growth has been moderate. The operating cash flow to net income ratio suggests effective cash generation relative to earnings, but the free cash flow to net income ratio indicates potential room for improvement in converting earnings into free cash.68
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 112.92M | 112.77M | 114.89M | 108.34M | 95.81M |
| Gross Profit | ||||
| 16.01M | 22.57M | 27.36M | 25.10M | 14.23M |
| EBIT | ||||
| 2.35M | 11.49M | 8.96M | 9.95M | -2.24M |
| EBITDA | ||||
| 10.20M | 18.10M | 18.23M | 20.80M | 5.66M |
| Net Income Common Stockholders | ||||
| 3.46M | 9.50M | 9.20M | 11.16M | -1.91M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 27.79M | 40.18M | 46.92M | 54.76M | 51.35M |
| Total Assets | ||||
| 221.72M | 232.21M | 240.75M | 247.93M | 246.49M |
| Total Debt | ||||
| 5.00M | 7.35M | 6.83M | 6.43M | 10.00M |
| Net Debt | ||||
| -13.86M | -22.23M | -29.97M | -48.33M | -41.35M |
| Total Liabilities | ||||
| 55.80M | 61.66M | 62.22M | 51.01M | 55.95M |
| Stockholders Equity | ||||
| 165.92M | 170.55M | 178.53M | 196.92M | 190.54M |
| Cash Flow | Free Cash Flow | |||
| 4.29M | 11.02M | 11.07M | 14.98M | 9.58M |
| Operating Cash Flow | ||||
| 13.77M | 15.38M | 17.13M | 19.10M | 12.09M |
| Investing Cash Flow | ||||
| -6.68M | -2.50M | -14.99M | -3.35M | -604.00K |
| Financing Cash Flow | ||||
| -17.81M | -20.10M | -20.09M | -12.35M | -4.17M |
Saga Communications Technical Analysis
Positive
11.97
Price Trends
11.77
Positive
11.78
Positive
12.62
Negative
Market Momentum
-0.02
Negative
56.96
Neutral
67.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SGA, the sentiment is Positive. The current price of 11.97 is above the 20-day moving average (MA) of 11.49, above the 50-day MA of 11.77, and below the 200-day MA of 12.62, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 56.96 is Neutral, neither overbought nor oversold. The STOCH value of 67.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SGA.
Saga Communications Risk Analysis
Saga Communications disclosed 23 risk factors in its most recent earnings report. Saga Communications reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Saga Communications Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $73.50M | 20.47 | 2.06% | 8.76% | -1.65% | -51.45% | |
60 Neutral | $13.80B | 7.25 | -2.76% | 3.77% | 2.19% | -42.55% | |
49 Neutral | $36.88M | ― | -56.08% | ― | -5.86% | -4497.25% | |
48 Neutral | $182.86M | ― | -82.15% | 9.95% | -66.94% | -52.19% | |
43 Neutral | $10.28M | 3.37 | -5.85% | ― | -3.65% | 89.15% | |
35 Underperform | $15.00M | ― | -243.54% | ― | -2.92% | -165.37% |
* Communication Services Sector Average
Performance Comparison
SGA
Saga Communications
11.97
-6.66
-35.75%
BBGI
Beasley Broadcast Group
5.62
-8.67
-60.67%
CMLS
Cumulus Media
0.13
-2.71
-95.42%
EVC
Entravision
2.01
-0.01
-0.50%
UONE
Urban One
1.64
-0.45
-21.53%
MDIA
Mediaco Holding
0.89
-0.64
-41.83%
Saga Communications Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 3.91%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong growth in digital ad revenue and interactive revenue, showing the success of Saga's digital strategy. However, this was offset by a decrease in net revenue and ongoing net losses. The uncertain pacing for Q2 adds to the challenges faced by the company.Q1-2025 Updates
Positive Updates
Digital Ad Revenue Growth
Saga produced $5 million in digital ad revenue for all of 2024 and has already generated $5.3 million in 2025 by May 8, experiencing 4 months of significant growth.
Increase in Total Interactive Revenue
Saga's total interactive revenue for 2024 was $14.2 million, and as of May 8, 2025, the company has already written $12.5 million.
High Profit Margin in Interactive Revenue
For the quarter, total Interactive revenue was up 14% with a 51% profit margin.
Successful Digital Strategy
Saga's digital strategy focuses on merging radio with digital ads, showing growth and trust from clients, evidenced by a $1 million order from a single client in one market.
Negative Updates
Decrease in Net Revenue
Net revenue decreased 4.3% to $24.2 million compared to $25.3 million last year.
Operating Loss
The company had an operating loss of $2.3 million compared to $2.4 million last year.
Net Loss
Saga reported a net loss of $1.6 million for the quarter, approximately the same as last year.
Uncertain Pacing for Q2
Pacing for the second quarter is still uncertain, with April pacing down high single digits, May showing improvement to down low single digits, and June currently flat with last year.
Company Guidance
During the Saga Communications Q1 2025 earnings call, the company provided guidance on several key metrics and strategic plans. Saga's net revenue for the quarter decreased by 4.3% to $24.2 million, with an operating loss of $2.3 million, mirroring last year's figures. Despite this, Saga's digital platform showed impressive growth, with $5.3 million in digital ad revenue generated by May 8, 2025, surpassing the total digital revenue for 2024. Total interactive revenue reached $12.5 million by the same date. The company plans to use proceeds from potential non-core asset sales, including tower sites, for stock buybacks as part of its capital allocation strategy. Saga's digital strategy aims to capture a larger share of the rapidly growing digital ad market, with a focus on blending radio with digital advertising solutions. The company anticipates capital expenditures between $4 million and $4.5 million for 2025 and expects station operating expenses to remain flat or decrease slightly compared to 2024. Additionally, Saga plans to continue paying regular quarterly dividends while maintaining a strong financial position.Saga Communications Corporate Events
Executive/Board ChangesShareholder Meetings
Saga Communications Elects Directors at Annual Meeting
Neutral
May 6, 2025
At the Annual Meeting of Stockholders held on May 2, 2025, Saga Communications, Inc. elected seven directors for the upcoming year. Additionally, stockholders approved the appointment of Crowe LLP as independent auditors for the fiscal year ending December 31, 2024, re-approved the CEO Annual Incentive Plan, and supported a resolution on executive compensation.
Spark’s Take on SGA Stock
According to Spark, TipRanks’ AI Analyst, SGA is a Neutral.
Saga Communications maintains a strong financial foundation with low leverage and solid equity. However, declining revenues and profitability pose challenges. Technical indicators suggest bearish momentum, but the high dividend yield provides some valuation support. The company’s strategic initiatives in digital advertising and potential asset sales offer future growth potential, but current market headwinds in radio advertising limit immediate upside.
To see Spark’s full report on SGA stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.