Want to see GB:SAGA full AI Analyst Report?
Top Page
Saga plc
(LSE:SAGA)
Select Model
Select Model
Rating:55Neutral
Price Target:
610.00 p
▼(-10.16% Downside)
Action:Reiterated
Date:07/31/26
The score is driven primarily by improving operating performance and much stronger cash generation, but it is materially offset by very high leverage and thin equity on the balance sheet. Technically, the stock is in an uptrend (trading above key moving averages), while valuation remains a headwind due to the high P/E and no provided dividend yield.
Positive Factors
Revenue Growth
Strong revenue expansion indicates improving customer demand across Saga’s operating activities and a broader earnings base. If maintained, this growth can support better fixed-cost absorption, strengthen cash generation, and provide a foundation for rebuilding profitability over the next several quarters.
Negative Factors
High Leverage
Very high debt relative to the equity base leaves Saga exposed to refinancing pressure and makes earnings more sensitive to operating setbacks. It also limits financial flexibility, potentially restricting investment, reducing room to absorb weaker trading, and increasing the importance of sustained cash generation.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Strong revenue expansion indicates improving customer demand across Saga’s operating activities and a broader earnings base. If maintained, this growth can support better fixed-cost absorption, strengthen cash generation, and provide a foundation for rebuilding profitability over the next several quarters.
Read all positive factors
Saga plc (SAGA) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£854.77M
Dividend Yield5.24%
Average Volume (3M)358.42K
Price to Earnings (P/E)57.3
Beta (1Y)1.16
Revenue Growth12.19%
EPS GrowthN/A
CountryUK
Employees2,936
SectorFinancial
Sector Strength70
IndustryInsurance - Diversified
Share Statistics
EPS (TTM)0.10
Shares Outstanding146,290,480
10 Day Avg. Volume295,167
30 Day Avg. Volume358,416
Financial Highlights & Ratios
PEG Ratio-0.50
Price to Book (P/B)10.62
Price to Sales (P/S)1.12
P/FCF Ratio7.34
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£910.00Price Target Upside34.02% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.42
Revenue Forecast (FY)£700.36M
Saga plc Business Overview & Revenue Model
Company Description
Saga plc is a United Kingdom-based company that delivers a broad spectrum of services, encompassing general insurance, holiday packages, cruises, and various personal finance offerings. Operating through its Insurance, Travel, and Other Businesses...
How the Company Makes Money
Saga makes money mainly through two operating segments: Travel and Insurance. In Travel, revenue is generated from selling holidays to customers—most notably cruise holidays and other packaged travel products—where Saga earns the holiday price pai...
Saga plc Earnings Call Summary
Earnings Call Date:Sep 24, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Sep 30, 2026
Earnings Call Sentiment Positive
Saga delivered a strong first half with significant revenue growth and debt reduction, particularly excelling in its travel and insurance broking segments. The strategic moves, including the sale of the underwriting business and upcoming partnerships, position Saga for future growth. However, challenges remain in the home insurance segment and the impact of higher finance costs. Overall, the positive aspects significantly outweigh the negatives.Positive Updates
Strong Revenue Growth
Underlying revenue increased by 7% from the prior period, driven largely by growth in travel businesses and improved performance in insurance broking.
Negative Updates
Insurance Home Segment Decline
Home insurance contribution decreased by GBP 6.2 million due to net rate inflation within the panel, leading to 19% fewer policy sales.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue Growth
Underlying revenue increased by 7% from the prior period, driven largely by growth in travel businesses and improved performance in insurance broking.
Read all positive updates
Company Guidance
The call provided comprehensive guidance on Saga's financial performance and strategic direction. Key metrics highlighted include a 7% increase in underlying revenue and an 8% growth in trading EBITDA, contributing to a reduction in net debt by GBP 77.7 million to GBP 515.1 million. The leverage ratio improved to 4.3x from 4.8x, reflecting strong cash generation. The Travel business was a significant profit driver, with a 33% increase in underlying PBT to GBP 41.6 million and ocean cruise PBT up 23%, alongside an 8% revenue growth and a 94% load factor. The River Cruise business saw a 34% increase in underlying PBT, with a load factor rising to 93%. The Holidays business reported a 14% revenue growth driven by a 13% increase in passenger numbers. Insurance Broking's underlying PBT stood at GBP 8.9 million, with policy volume growth across motor, travel, and private medical insurance. The sale of AICL added GBP 17 million in cash, aiding strategic simplification. The company is on track for its medium-term targets, including a GBP 100 million profit and leverage below 2x by 2030.Saga plc Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
33
Negative
Cash Flow
67
Positive
| Breakdown | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 | Jan 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 660.00M | 588.30M | 564.60M | 581.10M | 377.20M |
| Gross Profit | 318.90M | 279.50M | 262.60M | 262.70M | 222.80M |
| EBITDA | 104.50M | -40.50M | 67.70M | -188.90M | 46.80M |
| Net Income | 13.80M | -164.90M | -113.00M | -259.20M | -28.00M |
Balance Sheet | |||||
| Total Assets | 1.28B | 1.59B | 1.88B | 1.98B | 2.30B |
| Cash, Cash Equivalents and Short-Term Investments | 258.00M | 141.60M | 262.80M | 239.30M | 336.90M |
| Total Debt | 651.40M | 689.90M | 824.40M | 895.50M | 934.60M |
| Total Liabilities | 1.21B | 1.53B | 1.66B | 1.61B | 1.65B |
| Stockholders Equity | 69.70M | 57.70M | 223.50M | 369.50M | 652.90M |
Cash Flow | |||||
| Free Cash Flow | 100.90M | 93.10M | 57.00M | -34.70M | 27.60M |
| Operating Cash Flow | 117.00M | 113.20M | 83.70M | -13.90M | 46.50M |
| Investing Cash Flow | 6.10M | 14.80M | 18.00M | 4.10M | -27.30M |
| Financing Cash Flow | -69.50M | -144.50M | -73.80M | -54.20M | 69.60M |
Saga plc Technical Analysis
Negative
679.00
Price Trends
661.20
Negative
617.13
Negative
537.51
Positive
Market Momentum
-15.27
Positive
31.03
Neutral
9.83
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SAGA, the sentiment is Negative. The current price of 679 is above the 20-day moving average (MA) of 658.00, above the 50-day MA of 661.20, and above the 200-day MA of 537.51, indicating a neutral trend. The MACD of -15.27 indicates Positive momentum. The RSI at 31.03 is Neutral, neither overbought nor oversold. The STOCH value of 9.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SAGA.
Saga plc Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | £406.10M | 11.10 | 14.67% | 8.44% | -10.22% | -5.62% | |
75 Outperform | £1.52B | 6.55 | 21.73% | 17.85% | -1.60% | 36.00% | |
71 Outperform | £1.42B | 8.51 | 11.98% | 5.80% | -6.82% | -7.03% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
62 Neutral | £21.08B | 38.66 | 6.80% | 5.71% | 86.10% | -17.40% | |
59 Neutral | £802.76M | 147.86 | 0.25% | 6.64% | 192.47% | ― | |
55 Neutral | £854.77M | 57.32 | -15.72% | 5.24% | 12.19% | ― |
* Financial Sector Average
GB:SAGA
Saga plc
595.00
394.00
196.02%
GB:CSN
Chesnara
346.00
92.97
36.74%
GB:LRE
Lancashire Holdings
620.50
114.88
22.72%
GB:PAG
Paragon Banking Group PLC
782.50
-59.23
-7.04%
GB:AV
Aviva plc
703.60
76.25
12.15%
GB:SBRE
Sabre Insurance Group plc
168.20
44.51
35.98%
Saga plc Corporate Events
Other
Saga Executives Increase Holdings Through Share Incentive Plan
Positive
Jul 20, 2026
Saga plc reported changes in the shareholdings of its top executives, disclosing that Group Chief Executive Officer Mike Hazell and Group Chief Financial Officer Mark Watkins acquired ordinary shares under the company’s Share Incentive Plan....
Business Operations and StrategyShareholder Meetings
Saga appoints PwC as new external auditor from 2028
Positive
Jul 17, 2026
Saga plc has completed a formal audit tender process led by its Audit and Risk Committee, resulting in the Board approving the proposed appointment of PricewaterhouseCoopers LLP as independent external auditor for the financial year ending 31 Janu...
Regulatory Filings and Compliance
Saga CFO Mark Watkins Exercises and Sells Saga plc Share Award
Neutral
Jul 7, 2026
Saga plc has disclosed changes in the shareholdings of its Group Chief Financial Officer, Mark Watkins, in line with Market Abuse Regulation reporting requirements. The transactions relate to ordinary shares of 15 pence each in the company and ref...
Business Operations and StrategyExecutive/Board ChangesStock BuybackShareholder Meetings
Saga shareholders approve all resolutions at 2026 AGM
Positive
Jun 30, 2026
Saga plc reported that all resolutions put to shareholders at its 2026 annual general meeting were approved by poll, including the receipt of its latest annual report and accounts. Shareholders backed the directors’ remuneration report, re-e...
Business Operations and StrategyFinancial Disclosures
Saga Starts Year Strong as Travel Growth and Ageas Partnership Cut Debt
Positive
Jun 30, 2026
Saga plc reported a strong start to its new financial year, with trading from February to late June in line with expectations and the group on track to meet full-year guidance. Travel continues to underpin growth, as ocean and river cruises are se...
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.