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Saga Communications (SGA)
:SGA
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Saga Communications
(NASDAQ:SGA)
69Neutral
Saga Communications (SGA) vs. S&P 500 (SPY)
Market Cap
$75.82M
Dividend Yield8.5%
Average Volume (3M)14.51K
Price to Earnings (P/E)21.3
Beta (1Y)0.35
Revenue Growth-2.20%
EPS Growth-64.03%
CountryUS
Employees589
SectorCommunication Services
Sector Strength73
IndustryBroadcasting
Share Statistics
EPS (TTM)0.55
Shares Outstanding6,441,913
10 Day Avg. Volume7,374
30 Day Avg. Volume14,509
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.71
Price to Cash Flow (P/CF)3.90
P/FCF Ratio4.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$24.00Price Target Upside103.91% 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 financial stability with strong equity and low leverage, as shown by its low debt-to-equity ratio and high equity ratio. However, the company faces challenges with declining revenue and profitability, evidenced by declining gross and net profit margins. Cash flow is robust, though there are difficulties in maintaining free cash flow levels.Income Statement
Saga Communications shows a mixed performance in its income statement. The TTM Gross Profit Margin is approximately 15.69%, showing a decline from the previous period. The Net Profit Margin for TTM stands at 4.28%, which is lower than the previous year. Revenue has been declining, with a negative growth rate of -1.87% from 2023 to the TTM. EBIT Margin and EBITDA Margin are also lower in the TTM compared to prior periods. These factors suggest some challenges in maintaining profitability and revenue growth.72
Positive
Balance Sheet
Saga Communications maintains a strong balance sheet with a low debt-to-equity ratio of 0.03 in the TTM, indicating low leverage and financial stability. The company's Equity Ratio is 74.36%, reflecting a strong equity position relative to its assets. However, the Return on Equity has decreased to 2.86% in the TTM, indicating less efficiency in generating profit from shareholders' equity compared to previous years.80
Positive
Cash Flow
Cash flow analysis shows stability, with an Operating Cash Flow to Net Income Ratio of 2.45 in the TTM, indicating strong cash flow generation relative to net income. However, Free Cash Flow has decreased, leading to a negative Free Cash Flow Growth Rate of -84.32% from 2023 to the TTM. The Free Cash Flow to Net Income Ratio is 0.36, suggesting some challenges in converting earnings into free cash flow.75
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 110.67M | 112.77M | 114.89M | 108.34M | 95.81M | 123.07M | Gross Profit |
| 17.36M | 22.57M | 27.36M | 25.10M | 14.23M | 30.38M | EBIT |
| 4.17M | 11.49M | 8.96M | 9.95M | -2.24M | 12.49M | EBITDA |
| 10.39M | 18.10M | 18.23M | 20.80M | 5.66M | 25.75M | Net Income Common Stockholders |
| 4.74M | 9.50M | 9.20M | 11.16M | -1.91M | 13.28M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 16.43M | 40.18M | 46.92M | 54.76M | 51.35M | 44.03M | Total Assets |
| 202.82M | 232.21M | 240.75M | 247.93M | 246.49M | 252.39M | Total Debt |
| 116.08M | 7.35M | 6.83M | 6.43M | 10.00M | 10.00M | Net Debt |
| 99.65M | -22.23M | -29.97M | -48.33M | -41.35M | -34.03M | Total Liabilities |
| 135.19M | 61.66M | 62.22M | 51.01M | 55.95M | 60.04M | Stockholders Equity |
| 67.63M | 170.55M | 178.53M | 196.92M | 190.54M | 192.35M |
| Cash Flow | Free Cash Flow | ||||
| 1.73M | 11.02M | 11.07M | 14.98M | 9.58M | 18.84M | Operating Cash Flow |
| 11.60M | 15.38M | 17.13M | 19.10M | 12.09M | 25.34M | Investing Cash Flow |
| -5.24M | -2.50M | -14.99M | -3.35M | -604.00K | -6.24M | Financing Cash Flow |
| -17.69M | -20.10M | -20.09M | -12.35M | -4.17M | -19.80M |
Saga Communications Technical Analysis
Negative
11.77
Price Trends
12.08
Negative
11.93
Negative
13.02
Negative
Market Momentum
0.19
Negative
53.74
Neutral
24.50
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 11.77 is below the 20-day moving average (MA) of 12.28, below the 50-day MA of 12.08, and below the 200-day MA of 13.02, indicating a bearish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 53.74 is Neutral, neither overbought nor oversold. The STOCH value of 24.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $75.82M | 21.35 | 1.99% | 8.50% | -2.20% | -64.03% | |
58 Neutral | $25.21B | 3.07 | -13.86% | 4.29% | 2.47% | -43.03% | |
47 Neutral | $39.17M | ― | -47.37% | ― | -5.86% | -4497.25% | |
44 Neutral | $9.84M | 3.37 | -3.98% | ― | -2.76% | 92.67% | |
39 Underperform | $19.94M | ― | -193.00% | ― | -2.07% | -138.25% |
* Communication Services Sector Average
Performance Comparison
SGA
Saga Communications
11.77
-9.18
-43.82%
BBGI
Beasley Broadcast Group
5.25
-9.60
-64.65%
CMLS
Cumulus Media
0.40
-2.73
-87.22%
UONE
Urban One
1.33
-1.09
-45.04%
SALM
Salem Communications
0.51
0.11
27.50%
SBSAA
Spanish Broadcasting System
0.30
-0.20
-40.00%
Saga Communications Earnings Call Summary
Earnings Call Date: Mar 11, 2025 | % Change Since: 5.94% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Neutral
Saga Communications is navigating a challenging radio advertising market with a strategic focus on digital and blended advertising, which has shown promising revenue growth and potential for future expansion. However, declines in overall revenue and increased operating expenses present significant challenges.Highlights
Blended Advertising Strategy Success
Saga's blended advertising strategy has led to significant new revenue, with a $5.7 million increase in local direct blended orders and a 27% year-over-year increase in overall radio and digital spend for advertisers who bought blended products.
Interactive and E-commerce Revenue Growth
Gross interactive revenue increased by 20.9% to $11.6 million for the year, and e-commerce revenue increased by $904,000 to $2.4 million, indicating strong growth in digital and online initiatives.
Dividend Payments and Strong Cash Position
Saga has paid over $137 million in dividends since 2012 and maintains a strong cash position with $27.8 million in cash and short-term investments at year-end.
Potential Asset Sales for Stock Buybacks
Saga is considering selling non-core assets like radio towers, with proceeds potentially used for stock buybacks to enhance shareholder value.
Lowlights
Decline in Net Revenue and Operating Income
Net revenue decreased by 2.2% for the year to $110.3 million, with operating income dropping to $2.4 million. Without political revenue, gross revenue would have decreased approximately 4.3%.
Increase in Operating Expenses
Station operating expense increased by 4.5% for the year to $94.3 million, with significant increases attributed to compensation-related costs and interactive initiatives.
Challenges in Radio Advertising Market
The radio advertising market is experiencing a downturn, with pacing for the first quarter down mid to high single digits, and radio spend dropping 13% year-over-year for advertisers not buying blended products.
Company Guidance
During the Saga Communications Fourth Quarter and Year-End Conference Call, the company provided guidance on various financial metrics and strategic initiatives for 2025. For the quarter ending December 31, 2024, Saga reported a net revenue decrease of 1.3% to $28.8 million, with political revenues increasing significantly to $2.0 million compared to the previous year. Despite a 4.1% rise in station operating expenses to $24.3 million, the company achieved operating income of $984,000. Looking at the full year, net revenue declined by 2.2% to $110.3 million, impacted by a 4.5% increase in station operating expenses to $94.3 million. Saga's digital strategy, focusing on "blended advertising," aims to capitalize on the growing digital ad market, with interactive revenue increasing 20.9% to $11.6 million for the year. The company anticipates capital expenditures of $4 million to $4.5 million in 2025, aims to reduce existing expenses by 1% to 2%, and plans to leverage its strong financial position for potential asset sales, including tower sites, to fund stock buybacks. The company expects a tax rate between 26% and 29% and forecasts an improvement in revenue growth starting in the second quarter of 2025.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.