Saga Communications (SGA) AI Stock Analysis

• Market Cap: $78.72M
• Dividend Yield: 8.18%
• Average Volume (3M): 5.51K
• Price to Earnings (P/E): 21.9
• Beta (1Y): 0.32
• Revenue Growth: -1.65%
• EPS Growth: -51.45%
• Country: US
• Employees: 601
• Sector: Communication Services
• Sector Strength: 89
• Industry: Broadcasting
• EPS (TTM): -0.29
• Shares Outstanding: 6,441,913
• 10 Day Avg. Volume: 8,031
• 30 Day Avg. Volume: 5,508
• PEG Ratio: N/A
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 35.17
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: 0.14
• Enterprise Value/Gross Profit: 3.90
• Enterprise Value/Ebitda: 1.60
• 1Y Price Target: $18.00
• Price Target Upside: 47.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: $14.00 ▲(14.57%Upside)

Saga Communications' overall score is driven by a solid financial foundation and attractive valuation metrics, including a high dividend yield. Positive technical trends support the stock's momentum. However, the company faces challenges with declining net revenue and ongoing losses, as highlighted in recent earnings. Corporate events such as dividends and buybacks bolster investor confidence.

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 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 displays stable financials with a strong balance sheet and low leverage. However, profitability is moderate with room for operational improvements, and cash flow needs better conversion efficiency.

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.

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.

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.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
112.47M	112.92M	112.77M	114.89M	108.34M	95.81M
	Gross Profit
16.58M	16.01M	22.57M	27.36M	25.10M	14.23M
	EBIT
2.47M	2.35M	11.49M	8.96M	9.95M	-2.24M
	EBITDA
9.01M	10.20M	18.10M	18.23M	20.80M	5.66M
	Net Income Common Stockholders
3.46M	3.46M	9.50M	9.20M	11.16M	-1.91M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
55.15M	27.79M	40.18M	46.92M	54.76M	51.35M
	Total Assets
245.07M	221.72M	232.21M	240.75M	247.93M	246.49M
	Total Debt
6.08M	5.00M	7.35M	6.83M	6.43M	10.00M
	Net Debt
-49.06M	-13.86M	-22.23M	-29.97M	-48.33M	-41.35M
	Total Liabilities
47.33M	55.80M	61.66M	62.22M	51.01M	55.95M
	Stockholders Equity
197.74M	165.92M	170.55M	178.53M	196.92M	190.54M
Cash Flow		Free Cash Flow
2.21M	4.29M	11.02M	11.07M	14.98M	9.58M
	Operating Cash Flow
11.33M	13.77M	15.38M	17.13M	19.10M	12.09M
	Investing Cash Flow
-8.22M	-6.68M	-2.50M	-14.99M	-3.35M	-604.00K
	Financing Cash Flow
-5.35M	-17.81M	-20.10M	-20.09M	-12.35M	-4.17M

Saga Communications Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 12.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 12.22 is below the 20-day moving average (MA) of 12.25, above the 50-day MA of 11.73, and above the 200-day MA of 12.14, indicating a neutral trend. The MACD of 0.16 indicates Positive momentum. The RSI at 51.20 is Neutral, neither overbought nor oversold. The STOCH value of 51.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SGA.

Saga Communications Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SGA	74 Outperform	$78.72M	21.92	2.06%	8.18%	-1.65%	-51.45%
Sector *	61 Neutral	$14.57B	5.94	-3.83%	7.78%	2.79%	-33.24%
EVC	57 Neutral	$211.97M	―	-82.15%	8.58%	-66.94%	-52.19%
UONE	53 Neutral	$42.30M	―	-56.08%	―	-7.35%	-1093.79%
CMLS	42 Neutral	$14.51M	―	-243.54%	―	-2.92%	-165.37%
BBGI	39 Underperform	$8.36M	3.37	-5.85%	―	-3.65%	89.15%

Saga Communications Corporate Events

Saga Communications Announces Quarterly Cash Dividend

On May 27, 2025, Saga Communications announced a quarterly cash dividend of $0.25 per share, to be paid on June 27, 2025, to shareholders of record on June 6, 2025, amounting to approximately $1.6 million. This dividend is part of Saga’s capital allocation plan for 2025, which includes potential stock buybacks funded by the sale of non-core assets, reflecting the company’s strategic focus on financial flexibility and shareholder returns.

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 Elects Directors at Annual Meeting

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.