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Saga Communications Inc (SGA)
NASDAQ:SGA
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Saga Communications (SGA) AI Stock Analysis

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SGA

Saga Communications

(NASDAQ:SGA)

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Neutral 63 (OpenAI - 4o)
Rating:63Neutral
Price Target:
$13.00
▲(8.06% Upside)
Saga Communications' stock score is primarily influenced by its financial stability and strong cash management, despite facing profitability challenges. The technical analysis indicates a neutral market sentiment, while the high P/E ratio suggests overvaluation. The earnings call provided mixed signals with both strategic positives and operational challenges.

Saga Communications (SGA) vs. SPDR S&P 500 ETF (SPY)

Saga Communications Business Overview & Revenue Model

Company DescriptionSaga Communications, Inc. (SGA) is a diversified media company primarily focused on radio broadcasting. With a portfolio of radio stations across the United States, Saga operates in multiple markets, delivering a variety of content that caters to local audiences. The company also engages in digital media services, offering advertising solutions to businesses seeking to reach their target demographics through effective marketing strategies. Saga is committed to high-quality programming and community engagement, making it a recognized name in the broadcasting industry.
How the Company Makes MoneySaga Communications generates revenue primarily through the sale of advertising time on its radio stations, which constitutes the largest portion of its income. Advertisers pay to place their commercials during specific time slots, targeting local audiences in various markets. Additionally, the company earns revenue from digital advertising services, including online streaming and social media marketing initiatives. Key revenue streams also include sponsorships and partnerships with local businesses, as well as event promotions and ancillary services related to their broadcasting operations. The company's strong community presence and tailored advertising solutions contribute significantly to its earnings.

Saga Communications Earnings Call Summary

Earnings Call Date:Nov 06, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Mar 05, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted strong growth in interactive revenue and strategic asset sales aimed at enhancing shareholder value through stock buybacks and maintaining dividends. However, the company faced challenges with a decline in net revenue, an operating loss due to a music licensing settlement, and continued weakness in national advertising revenue. While there are positive developments, significant challenges remain.
Q3-2025 Updates
Positive Updates
Strong Interactive Revenue Growth
Interactive revenue increased by $1.1 million or 32.6% for the quarter, and up 17.1% for the nine-month period. This growth almost completely offset the decrease in broadcast revenue when adjusted for political.
Successful Asset Sales and Capital Allocation
Saga entered into an agreement to sell telecommunications towers for a total cash purchase price of approximately $10.7 million, with proceeds to be used for stock buybacks and other capital allocation strategies.
High Cash Reserves
Saga's balance sheet reflects $34.2 million in cash and short-term investments as of November 3, 2025.
Commitment to Dividend Payments
Saga paid a quarterly dividend of $0.25 per share, amounting to approximately $1.6 million, and intends to continue regular quarterly cash dividends.
Negative Updates
Net Revenue Decline
Net revenue decreased by $528,000 or 1.8% to $28.2 million compared to the previous year for the quarter ended September 30, 2025.
Operating Loss Due to Music Licensing Settlement
Saga reported an operating loss of $626,000 for the quarter, primarily due to a music licensing settlement. Without the settlement, operating income would have been $1.5 million.
Decline in Broadcast Revenue
Gross broadcast revenue, including nontraditional revenue, decreased by $1.8 million or 6.8% for the quarter.
Weak National Advertising
National advertising, typically a key revenue driver, showed weakness in the fourth quarter.
Company Guidance
During Saga Communications' Third Quarter 2025 earnings call, several key metrics and financial results were highlighted. The company reported a net revenue decrease of $528,000 or 1.8% to $28.2 million, compared to the previous year. Station operating expenses rose by $2 million to $24.7 million, primarily due to an industry-wide music licensing settlement. This impacted operating results, leading to an operating loss of $626,000 for the quarter, which would have been an operating income of $1.5 million without the settlement. Gross broadcast revenue, including nontraditional revenue, decreased by 6.8%, while gross interactive revenue saw a significant increase of 32.6%. The company paid a quarterly dividend of $0.25 per share, totaling $1.6 million. Saga's cash and short-term investments stood at $34.2 million as of November 3, 2025. Looking ahead, the company expects capital expenditures between $3.25 million and $3.75 million for the year and plans to keep station operating expenses flat compared to 2024. The company also completed the sale of telecommunications towers for $10.7 million, with plans to use part of the proceeds for stock buybacks. The call emphasized the company's digital transformation efforts, with interactive revenue gains nearly offsetting decreases in broadcast revenue when adjusted for political factors.

Saga Communications Financial Statement Overview

Summary
Saga Communications demonstrates financial stability with low leverage and efficient cash management. However, challenges in profitability and operational efficiency are evident, with low margins and declining free cash flow growth.
Income Statement
65
Positive
Saga Communications shows a mixed performance in its income statement. The TTM data indicates a slight revenue growth of 4.3%, but profitability metrics such as the gross profit margin (12.18%) and net profit margin (0.26%) are relatively low. The EBIT margin is negative, indicating operational challenges. However, the company has shown resilience in maintaining a positive EBITDA margin of 5.45%.
Balance Sheet
75
Positive
The balance sheet reflects a strong financial position with a low debt-to-equity ratio of 0.03, indicating minimal leverage. The equity ratio stands at a healthy level, showcasing financial stability. However, the return on equity is low at 0.18%, suggesting limited profitability from shareholders' investments.
Cash Flow
70
Positive
Cash flow analysis reveals a decline in free cash flow growth by 11.41% in the TTM period, which is a concern. However, the operating cash flow to net income ratio is robust at 0.50, indicating strong cash generation relative to net income. The free cash flow to net income ratio is high at 0.94, reflecting efficient cash management.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue112.00M112.92M112.77M114.89M108.34M95.81M
Gross Profit13.64M16.01M22.57M27.36M25.10M14.23M
EBITDA6.10M10.20M18.10M19.30M21.45M5.66M
Net Income290.00K3.46M9.50M9.20M11.16M-1.91M
Balance Sheet
Total Assets218.35M221.72M232.21M240.75M247.93M246.49M
Cash, Cash Equivalents and Short-Term Investments26.27M27.79M40.18M46.92M54.76M51.35M
Total Debt5.00M12.27M0.000.000.0010.00M
Total Liabilities56.30M55.80M61.66M62.22M51.01M55.95M
Stockholders Equity162.06M165.92M170.55M178.53M196.92M190.54M
Cash Flow
Free Cash Flow7.96M4.29M11.02M11.07M14.98M9.58M
Operating Cash Flow9.11M13.77M15.38M17.13M19.10M12.09M
Investing Cash Flow-3.74M-6.68M-2.50M-14.99M-3.35M-604.00K
Financing Cash Flow-8.23M-17.81M-20.10M-20.09M-12.35M-4.17M

Saga Communications Technical Analysis

Technical Analysis Sentiment
Negative
Last Price12.03
Price Trends
50DMA
12.35
Negative
100DMA
12.52
Negative
200DMA
12.07
Negative
Market Momentum
MACD
-0.10
Negative
RSI
46.21
Neutral
STOCH
59.55
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 12.03 is below the 20-day moving average (MA) of 12.12, below the 50-day MA of 12.35, and below the 200-day MA of 12.07, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 46.21 is Neutral, neither overbought nor oversold. The STOCH value of 59.55 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 (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
$77.28M35.990.18%8.31%-0.77%-93.46%
61
Neutral
$191.68M4.461.81%-3.27%86.01%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
53
Neutral
$247.46M-81.68%10.10%-45.95%-75.87%
45
Neutral
$31.46M-0.37-90.36%-13.08%-69.47%
41
Neutral
$79.86M3.32-53.47%83.96%-73.70%
40
Underperform
$8.95M-0.97-5.90%-7.78%-369.53%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SGA
Saga Communications
12.03
-0.32
-2.59%
BBGI
Beasley Broadcast Group
3.92
-5.33
-57.62%
SSP
E. W. Scripps Company Class A
4.12
2.05
99.03%
EVC
Entravision
2.72
0.48
21.43%
UONE
Urban One
1.17
-0.38
-24.52%
MDIA
Mediaco Holding
0.97
-0.35
-26.52%

Saga Communications Corporate Events

Saga Communications’ Earnings Call: Growth Amid Challenges
Nov 8, 2025

Saga Communications’ recent earnings call painted a mixed picture, with strong growth in interactive revenue and strategic asset sales aimed at enhancing shareholder value. However, the company is grappling with challenges such as a decline in net revenue, an operating loss due to a music licensing settlement, and continued weakness in national advertising revenue. While there are positive developments, significant challenges remain for the company.

Saga Communications Reports Q3 2025 Financial Results
Nov 7, 2025

Saga Communications, Inc. is a media company that operates in the radio, digital, and e-commerce sectors, providing services to advertisers across 28 markets. In its latest earnings report for the third quarter of 2025, Saga Communications reported a decrease in net revenue by 1.8% to $28.2 million compared to the same period last year. The company also faced an increase in station operating expenses due to a settlement with music licensing organizations, resulting in an operating loss of $626 thousand for the quarter.

Business Operations and StrategyStock BuybackM&A Transactions
Saga Communications Sells Tower Sites to GTC Uno
Positive
Oct 20, 2025

On October 17, 2025, Saga Communications, Inc. completed the sale of 22 telecommunications tower sites to GTC Uno, LLC for approximately $10.7 million. The sale is part of Saga’s strategy to optimize its asset portfolio, allowing the company to continue using the towers without cash lease payments. A portion of the proceeds from the sale is intended to fund stock buybacks. The transaction reflects Saga’s commitment to efficiently managing its assets while maintaining operational effectiveness.

The most recent analyst rating on (SGA) stock is a Hold with a $13.00 price target. To see the full list of analyst forecasts on Saga Communications stock, see the SGA Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
Saga Communications Appoints Gregg Sutherland to Board
Neutral
Oct 1, 2025

On October 1, 2025, Saga Communications announced the appointment of Gregg Sutherland to its Board of Directors, increasing the board size to eight members. Sutherland, with a background in strategy consulting and board experience, is expected to help Saga scale its digital and other vertical initiatives. This appointment is part of Saga’s ongoing board refreshment strategy, which included adding Michael Scafidi earlier in the year. The company plans to reduce the board size to seven members at the 2026 Annual Shareholder Meeting.

The most recent analyst rating on (SGA) stock is a Hold with a $13.00 price target. To see the full list of analyst forecasts on Saga Communications stock, see the SGA Stock Forecast page.

Business Operations and StrategyStock BuybackDividends
Saga Communications Declares Quarterly Cash Dividend
Positive
Aug 13, 2025

On August 13, 2025, Saga Communications announced a quarterly cash dividend of $0.25 per share, to be paid on September 19, 2025, with an aggregate payment of approximately $1.6 million. This dividend is part of Saga’s broader capital allocation strategy, which includes potential stock buybacks funded by the sale of non-core assets, reflecting the company’s commitment to returning value to shareholders and maintaining financial flexibility.

The most recent analyst rating on (SGA) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on Saga Communications stock, see the SGA Stock Forecast page.

Saga Communications Balances Digital Growth with Revenue Challenges
Aug 12, 2025

Saga Communications’ recent earnings call presented a balanced sentiment, highlighting both promising developments and significant challenges. The company showcased positive strides in its digital strategy and interactive revenue growth, which are expected to bolster future profitability. However, these advancements are counterbalanced by notable declines in overall net revenue and profit, alongside persistent challenges in traditional broadcasting revenue streams.

Saga Communications Reports Q2 2025 Earnings Decline
Aug 8, 2025

Saga Communications, Inc. is a media company focused on acquiring, developing, and operating broadcast properties, with a growing emphasis on digital and e-commerce opportunities. The company owns and operates radio stations across 28 markets, including 82 FM and 31 AM stations.

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: Nov 08, 2025