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Saga Communications Inc (SGA)
NASDAQ:SGA
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Saga Communications
(NASDAQ:SGA)
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Rating:59Neutral
Price Target:
$13.00
▲(0.46% Upside)
Saga Communications' overall stock score reflects a balance of strengths and challenges. The strong balance sheet and improved cash flow are positive, but declining revenue and profitability are concerning. The company's focus on digital growth and cost management could enhance future performance, but current financial metrics indicate caution.
Saga Communications (SGA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$83.93M
Dividend Yield7.67%
Average Volume (3M)9.83K
Price to Earnings (P/E)39.1
Beta (1Y)0.43
Revenue Growth-1.72%
EPS Growth-66.67%
CountryUS
Employees601
SectorCommunication Services
Sector Strength97
IndustryBroadcasting
Share Statistics
EPS (TTM)0.41
Shares Outstanding6,439,921
10 Day Avg. Volume6,093
30 Day Avg. Volume9,834
Financial Highlights & Ratios
PEG Ratio-0.30
Price to Book (P/B)0.40
Price to Sales (P/S)0.59
P/FCF Ratio15.60
Enterprise Value/Market Cap0.80
Enterprise Value/Revenue0.60
Enterprise Value/Gross Profit4.15
Enterprise Value/Ebitda7.88
Forecast
1Y Price Target
$18.00Price Target Upside39.10% 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, 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:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call presents a mixed view with notable improvements in digital revenue and cost reductions but significant declines in net revenue, operating income, and traditional broadcasting. The company shows potential for future growth through digital initiatives and new accounts, but current financial metrics indicate challenges.Q2-2025 Updates
Positive Updates
Improvement in Digital Revenue
Saga's digital revenue increased quarter-over-quarter from 13.6% to 15.6% of total net revenue. Total interactive revenue was up 7% for the quarter and 10% for the 6-month period with a profit margin of 58% for the quarter.
Cash and Short-Term Investments
Saga maintains a strong financial position with $27.3 million in cash and short-term investments as of August 4, 2025.
Successful Cost Reductions
Station operating expenses decreased by 4.6% for the quarter and 3.4% for the 6-month period, with significant savings achieved by bringing digital expenses in-house and utilizing AI solutions.
Positive Digital Channel Partnerships
Saga is recognized by third-party digital partners as one of their leading and fastest-growing digital channel partners.
Potential for Large New Account
There is a potential new account that could generate $150,000 monthly, thanks to Saga's expertise in addressing client issues with other providers.
Negative Updates
Decline in Net Revenue
Net revenue decreased by $1.5 million or 5% for the quarter and $2.6 million or 4.7% for the 6-month period compared to last year.
Decrease in Operating Income
Operating income fell to $1.4 million for the quarter from $2.1 million last year. For the 6-month period, there was an operating loss of $889,000 compared to a loss of $274,000 last year.
Net Income Decline
Net income decreased to $1.1 million for the quarter compared to $2.5 million last year, and there was a net loss of $447,000 for the 6-month period compared to net income of $924,000 last year.
Challenges in Traditional Broadcasting
Traditional broadcasting revenue categories faced challenges, with local direct pacing down 4.4%, local agency down 0.8%, and national pacing down 19.1% for the third quarter.
Company Guidance
During Saga Communications' second-quarter earnings call for 2025, several financial metrics and strategic initiatives were discussed. The company reported a decrease in net revenue by $1.5 million, or 5%, to $28.2 million compared to the same quarter last year. Station operating expense also decreased by 4.6% to $22.2 million. Despite these declines, the company is optimistic about its digital growth, with digital revenue increasing from 13.6% to 15.6% of total net revenue quarter-over-quarter. Saga's digital initiatives showed promising results, with interactive revenue up 7% for the quarter and 10% for the six-month period. The company anticipates a reduction in operating expenses by 2% to 3% for the year and is actively pursuing capital allocation strategies, including potential asset sales and reinvestment in digital expansion. Additionally, Saga is exploring the sale of tower sites, expecting proceeds in the high seven-figure or low eight-figure range, which will contribute to stock buybacks and ongoing quarterly dividends.Saga Communications Financial Statement Overview
Summary
Saga Communications displays a stable financial profile with a solid balance sheet, reflecting low leverage and a strong equity position. The income statement shows moderate profitability, with margins indicating room for operational improvements. Cash flow management is generally positive but requires attention to maintain free cash flow stability.Income Statement
Saga Communications has shown moderate stability in its income statement. The TTM (Trailing-Twelve-Months) gross profit margin is 14.74%, indicating a reasonable efficiency in managing production costs relative to revenue. However, the TTM net profit margin is 3.08%, suggesting room for improvement in profitability. Revenue growth has been relatively flat with minor fluctuations, showing a slight decrease in recent years. The EBIT margin at 2.20% and EBITDA margin at 8.01% underline the need for better operational efficiency.45
Neutral
Balance Sheet
The balance sheet of Saga Communications reflects solid financial stability. The debt-to-equity ratio is low, indicating conservative leverage use. The return on equity (ROE) stands at 2.12% for TTM, which is lower than ideal, pointing towards potential underutilization of equity. The equity ratio is strong at 74.59%, showcasing a robust capital structure with a high proportion of assets funded by equity.70
Positive
Cash Flow
The cash flow position of Saga Communications is stable, with a positive operating cash flow to net income ratio of 3.27, indicating strong cash generation relative to net income. The free cash flow has seen some volatility, with a TTM free cash flow growth rate of -48.55%, requiring attention to sustain liquidity. The free cash flow to net income ratio stands at 0.64, highlighting the need for better cash conversion efficiency.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 111.95M | 112.92M | 112.77M | 114.89M | 108.34M | 95.81M |
| Gross Profit | 16.12M | 16.01M | 22.57M | 27.36M | 25.10M | 14.23M |
| EBITDA | 8.49M | 10.20M | 18.10M | 18.23M | 20.80M | 5.66M |
| Net Income | 2.09M | 3.46M | 9.50M | 9.20M | 11.16M | -1.91M |
Balance Sheet | ||||||
| Total Assets | 218.87M | 221.72M | 232.21M | 240.75M | 247.93M | 246.49M |
| Cash, Cash Equivalents and Short-Term Investments | 24.91M | 27.79M | 40.18M | 46.92M | 54.76M | 51.35M |
| Total Debt | 5.00M | 12.27M | 7.35M | 6.83M | 6.43M | 10.00M |
| Total Liabilities | 55.19M | 55.80M | 61.66M | 62.22M | 51.01M | 55.95M |
| Stockholders Equity | 163.68M | 165.92M | 170.55M | 178.53M | 196.92M | 190.54M |
Cash Flow | ||||||
| Free Cash Flow | 9.64M | 4.29M | 11.02M | 11.07M | 14.98M | 9.58M |
| Operating Cash Flow | 10.84M | 13.77M | 15.38M | 17.13M | 19.10M | 12.09M |
| Investing Cash Flow | -3.81M | -6.68M | -2.50M | -14.99M | -3.35M | -604.00K |
| Financing Cash Flow | -6.63M | -17.81M | -20.10M | -20.09M | -12.35M | -4.17M |
Saga Communications Technical Analysis
Positive
12.94
Price Trends
12.48
Positive
12.44
Positive
11.89
Positive
Market Momentum
0.13
Negative
59.79
Neutral
82.54
Negative
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 12.94 is above the 20-day moving average (MA) of 12.36, above the 50-day MA of 12.48, and above the 200-day MA of 11.89, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 59.79 is Neutral, neither overbought nor oversold. The STOCH value of 82.54 is Negative, 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | $83.93M | 39.09 | 1.23% | 7.67% | -1.72% | -66.67% | |
54 Neutral | $202.88M | ― | -75.89% | 8.93% | -58.44% | -130.21% | |
47 Neutral | $10.53M | 3.37 | -5.76% | ― | -5.52% | 87.59% | |
45 Neutral | $40.58M | ― | -97.71% | ― | -10.63% | -61.23% | |
43 Neutral | $14.80M | ― | -274.30% | ― | -4.57% | -103.56% |
* Communication Services Sector Average
SGA
Saga Communications
12.94
-0.15
-1.15%
BBGI
Beasley Broadcast Group
6.09
-6.39
-51.20%
CMLS
Cumulus Media
0.15
-1.22
-89.05%
EVC
Entravision
2.24
0.30
15.46%
UONE
Urban One
1.33
-0.27
-16.88%
MDIA
Mediaco Holding
1.25
0.12
10.62%
Saga Communications Corporate Events
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.
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.