Saga Communications (SGA) AI Stock Analysis

• Market Cap: $85.65M
• Dividend Yield: 7.54%
• Average Volume (3M): 4.61K
• Price to Earnings (P/E): 39.9
• Beta (1Y): 0.40
• Revenue Growth: -1.72%
• EPS Growth: -66.67%
• Country: US
• Employees: 601
• Sector: Communication Services
• Sector Strength: 92
• Industry: Broadcasting
• EPS (TTM): 0.41
• Shares Outstanding: 6,439,921
• 10 Day Avg. Volume: 3,669
• 30 Day Avg. Volume: 4,607
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.78
• Enterprise Value/Revenue: 0.60
• Enterprise Value/Gross Profit: 4.15
• Enterprise Value/Ebitda: 7.88
• 1Y Price Target: $16.25
• Price Target Upside: 22.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 69 Neutral
• Price Target: $14.50 ▲(9.35% Upside)

Saga Communications' overall stock score reflects a stable financial position with strong technical indicators and a high dividend yield. However, the high P/E ratio suggests potential overvaluation, and the earnings call highlights challenges in traditional broadcasting. The company's focus on digital growth and shareholder returns through dividends and buybacks are positive factors, but operational improvements are needed to enhance profitability.

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 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.

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	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	0.00	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	0.00	55.80M	61.66M	62.22M	51.01M	55.95M
Stockholders Equity	0.00	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

• Technical Analysis Sentiment: Positive
• Last Price: 13.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 13.26 is above the 20-day moving average (MA) of 12.99, above the 50-day MA of 12.98, and above the 200-day MA of 12.04, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 53.82 is Neutral, neither overbought nor oversold. The STOCH value of 66.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SGA.

Saga Communications Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SGA	69 Neutral	$85.65M	39.89	1.23%	7.54%	-1.72%	-66.67%
Sector *	60 Neutral	$43.67B	3.93	-13.01%	4.05%	1.89%	-42.25%
EVC	54 Neutral	$226.53M	―	-75.89%	8.03%	-58.44%	-130.21%
UONE	48 Neutral	$40.62M	―	-97.71%	―	-10.63%	-61.23%
BBGI	45 Neutral	$8.20M	3.37	-5.76%	―	-5.52%	87.59%
CMLS	44 Neutral	$15.19M	―	-274.30%	―	-4.57%	-103.56%
MDIA	―	$70.32M	4.46	55.64%	―	―	―

Saga Communications Corporate Events

Saga Communications Declares Quarterly Cash Dividend

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.

Saga Communications Updates Bylaws for 2026 Meeting

Saga Communications has updated its Amended and Restated Bylaws regarding shareholder proposals and nominations for its 2026 Annual Meeting. The new bylaws specify that such proposals must be received by February 1, 2026, unless the meeting date changes, in which case different deadlines apply. This update revises the previously communicated deadlines in the 2025 proxy statement.

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.