Saga Communications (SGA) AI Stock Analysis

• Market Cap: $73.67M
• Dividend Yield: 8.81%
• Average Volume (3M): 6.58K
• Price to Earnings (P/E): 231.1
• Beta (1Y): 0.31
• Revenue Growth: -0.77%
• EPS Growth: -93.46%
• Country: US
• Employees: 601
• Sector: Communication Services
• Sector Strength: 97
• Industry: Broadcasting
• EPS (TTM): -0.08
• Shares Outstanding: 6,439,921
• 10 Day Avg. Volume: 8,898
• 30 Day Avg. Volume: 6,576
• PEG Ratio: -0.30
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.59
• P/FCF Ratio: 15.60
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 0.60
• Enterprise Value/Gross Profit: 4.90
• Enterprise Value/Ebitda: 10.97
• 1Y Price Target: $18.00
• Price Target Upside: 57.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: $12.00 ▲(4.90% Upside)

The score reflects solid financial stability and cash management (low leverage, strong cash conversion) tempered by weak profitability and declining free cash flow. Technical signals are neutral-to-bearish, valuation looks expensive due to a very high P/E despite a strong dividend yield, and the latest earnings call/corporate actions were supportive on capital returns but mixed on core revenue and operating performance.

Positive Factors

Strong Interactive Revenue Growth

The significant growth in interactive revenue indicates successful digital transformation efforts, potentially offsetting declines in traditional broadcast revenue and positioning Saga for future growth in digital markets.

Successful Asset Sales and Capital Allocation

The strategic sale of assets and subsequent capital allocation, including stock buybacks, reflect effective management decisions aimed at enhancing shareholder value and optimizing the company's financial structure.

High Cash Reserves

Maintaining high cash reserves provides Saga with financial flexibility to invest in growth opportunities, manage economic downturns, and continue shareholder returns through dividends and buybacks.

Negative Factors

Net Revenue Decline

The decline in net revenue reflects challenges in maintaining sales momentum, potentially impacting long-term growth prospects if not addressed through strategic initiatives or market expansion.

Operating Loss Due to Music Licensing Settlement

The operating loss highlights the impact of industry-wide settlements on profitability, underscoring the need for effective cost management and negotiation strategies to mitigate future financial risks.

Decline in Broadcast Revenue

The decline in broadcast revenue suggests challenges in the traditional media segment, necessitating a shift towards more sustainable revenue streams such as digital and interactive media to ensure long-term viability.

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, 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 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	112.00M	112.92M	112.77M	114.89M	108.34M	95.81M
Gross Profit	13.64M	16.01M	22.57M	27.36M	25.10M	14.23M
EBITDA	6.10M	10.20M	18.10M	19.30M	21.45M	5.66M
Net Income	290.00K	3.46M	9.50M	9.20M	11.16M	-1.91M
Balance Sheet
Total Assets	218.35M	221.72M	232.21M	240.75M	247.93M	246.49M
Cash, Cash Equivalents and Short-Term Investments	26.27M	27.79M	40.18M	46.92M	54.76M	51.35M
Total Debt	5.00M	12.27M	0.00	0.00	0.00	10.00M
Total Liabilities	56.30M	55.80M	61.66M	62.22M	51.01M	55.95M
Stockholders Equity	162.06M	165.92M	170.55M	178.53M	196.92M	190.54M
Cash Flow
Free Cash Flow	7.96M	4.29M	11.02M	11.07M	14.98M	9.58M
Operating Cash Flow	9.11M	13.77M	15.38M	17.13M	19.10M	12.09M
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: Neutral
• Last Price: 11.44
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 11.44 is above the 20-day moving average (MA) of 11.33, below the 50-day MA of 11.61, and below the 200-day MA of 11.85, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 50.36 is Neutral, neither overbought nor oversold. The STOCH value of 55.98 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
SSP	64 Neutral	$323.24M	-8.32	1.81%	―	-3.27%	86.01%
SGA	62 Neutral	$73.67M	231.11	0.18%	8.81%	-0.77%	-93.46%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
EVC	53 Neutral	$290.21M	-2.46	-81.68%	6.56%	-45.95%	-75.87%
UONE	49 Neutral	$39.64M	-0.36	-90.36%	―	-13.08%	-69.47%
BBGI	46 Neutral	$9.81M	-1.15	-5.90%	―	-7.78%	-369.53%
MDIA	44 Neutral	$48.59M	-1.04	-53.47%	―	83.96%	-73.70%

Saga Communications Corporate Events

Saga Communications Completes Stock Repurchase Deal

On December 12, 2025, Saga Communications, Inc. completed a repurchase of 184,215 shares of its common stock for approximately $2.1 million, representing about 2.8% of its outstanding shares. This transaction, conducted through a privately negotiated deal, underscores the company’s commitment to delivering shareholder value and reflects confidence in its long-term strategy and financial strength.

The most recent analyst rating on (SGA) stock is a Buy with a $18.00 price target. To see the full list of analyst forecasts on Saga Communications stock, see the SGA Stock Forecast page.

Saga Communications Announces Quarterly Cash Dividend

On November 13, 2025, Saga Communications announced a quarterly cash dividend of $0.25 per share, payable on December 12, 2025, with a total payout of approximately $1.6 million. This decision is part of Saga’s capital allocation plan, which includes potential stock buybacks funded by the sale of non-core assets, demonstrating the company’s commitment to returning value to shareholders.

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.

Saga Communications Sells Tower Sites to GTC Uno

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.