Saga Communications (SGA) AI Stock Analysis

• Market Cap: $80.37M
• Dividend Yield: 8.01%
• Average Volume (3M): 6.58K
• Price to Earnings (P/E): 36.3
• Beta (1Y): 0.44
• Revenue Growth: -1.72%
• EPS Growth: -66.67%
• Country: US
• Employees: 601
• Sector: Communication Services
• Sector Strength: 97
• Industry: Broadcasting
• EPS (TTM): 0.41
• 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: 0.83
• Enterprise Value/Revenue: 0.60
• Enterprise Value/Gross Profit: 4.15
• Enterprise Value/Ebitda: 7.88
• 1Y Price Target: $18.00
• Price Target Upside: 48.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 59 Neutral
• Price Target: $13.00 ▲(7.44% 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 weigh heavily. The high dividend yield is a notable strength, but the high P/E ratio suggests valuation concerns. Digital growth initiatives provide potential upside.

Saga Communications Business Overview & Revenue Model

Company Description

Saga 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 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	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

• Technical Analysis Sentiment: Positive
• Last Price: 12.10
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 12.1 is below the 20-day moving average (MA) of 12.58, below the 50-day MA of 12.42, and above the 200-day MA of 12.03, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 50.01 is Neutral, neither overbought nor oversold. The STOCH value of 17.02 is Positive, 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
SSP	―	$204.93M	4.77	8.30%	―	5.25%	―
Sector *	―	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
SGA	―	$80.37M	36.29	1.23%	8.01%	-1.72%	-66.67%
EVC	―	$184.68M	-1.54	-75.89%	9.95%	-58.44%	-130.21%
UONE	―	$34.56M	-0.38	-97.71%	―	-10.63%	-61.23%
BBGI	―	$9.53M	-1.04	-5.76%	―	-5.52%	87.59%

Saga Communications Corporate Events

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.

Saga Communications Appoints Gregg Sutherland to Board

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.

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.

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

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

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.