Saga plc (SAGA) AI Stock Analysis

• Market Cap: £227.07M
• Dividend Yield: N/A
• Average Volume (3M): 192.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.69
• Revenue Growth: -20.62%
• EPS Growth: -44.96%
• Country: UK
• Employees: 3,682
• Sector: Financial
• Sector Strength: 79
• Industry: Insurance - Diversified
• EPS (TTM): -0.41
• Shares Outstanding: 143,361,740
• 10 Day Avg. Volume: 283,047
• 30 Day Avg. Volume: 192,730
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.49
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £185.00
• Price Target Upside: 16.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 65 Neutral
• Price Target: 164.00p ▲(3.67%Upside)

Saga plc's stock score is driven primarily by positive corporate events and strong technical indicators, suggesting bullish momentum. However, financial performance challenges, particularly in profitability and high leverage, along with unfavorable valuation metrics, temper the overall score.

Saga plc Business Overview & Revenue Model

Company Description

Saga plc provides general insurance, package and cruise holidays, and personal finance products and services in the United Kingdom. The company operates in three segments: Insurance, Travel, and Other Businesses and Central Costs. It offers car, home, health, travel, landlord, boat, motorhome, caravan, pet, personal accident, breakdown cover, building, content, renter, holiday, and holiday home insurance. The company also operates and delivers package tours and cruise holiday products; and provides equity release and care funding advice, savings accounts, credit cards, and wealth management services, as well as shares ISA and share dealing services. In addition, it offers mailing house services; retirement benefit schemes; and publishes Saga Magazine, as well as repairs automotive vehicles. The company was formerly known as Saga Limited and changed its name to Saga plc in May 2014. The company was founded in 1950 and is headquartered in Folkestone, the United Kingdom.

How the Company Makes Money

Saga plc makes money through a diverse range of revenue streams. The company's insurance division generates income by offering tailored insurance products, including home and motor insurance, to its target demographic. The travel sector contributes to revenue through the sale of package holidays and cruises, targeting the over-50 market with bespoke travel experiences. The media division adds to earnings through the sale of advertising space in its publications, particularly its magazine. Additionally, partnerships with other companies to provide products and services that appeal to its customer base can also contribute to its income.

Saga plc Financial Statement Overview

Summary

Saga plc demonstrates positive cash flow improvements and revenue growth, yet faces significant profitability and leverage challenges. High debt levels and negative net income affect financial stability, while operational efficiencies need improvement to enhance margins and shareholder returns.

Income Statement

Saga plc has shown a modest revenue growth from the previous year, with a Revenue Growth Rate of 4.20%. However, the company is struggling with profitability, as indicated by a persistent negative Net Profit Margin, reaching -28.04% in the latest year. The Gross Profit Margin is relatively strong at 47.50%, but the EBIT Margin of 7.81% and a negative Net Income suggest challenges in operational efficiency and profitability.

Balance Sheet

Saga plc's balance sheet reveals high leverage with a Debt-to-Equity Ratio of 11.96, indicating significant reliance on debt financing. The Equity Ratio stands at a low 3.63%, showing limited equity buffer. Return on Equity is negative due to ongoing net losses, pointing to challenges in generating shareholder value.

Cash Flow

The company shows positive Free Cash Flow of £93.1 million with a strong Free Cash Flow Growth Rate of 63.33% from the previous year, indicating improved cash generation ability. Operating Cash Flow is also positive, significantly higher than net income, suggesting better cash management despite profitability issues.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
588.30M	564.60M	581.10M	377.20M	337.60M
	Gross Profit
279.50M	262.60M	262.70M	222.80M	229.80M
	EBIT
45.90M	-24.50M	59.80M	27.40M	44.00M
	EBITDA
-43.10M	67.70M	-188.90M	46.80M	-2.00M
	Net Income Common Stockholders
-164.90M	-113.00M	-259.20M	-28.00M	-67.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
141.60M	262.80M	239.30M	336.90M	206.80M
	Total Assets
1.59B	1.88B	1.98B	2.30B	2.21B
	Total Debt
689.90M	824.40M	895.50M	934.60M	823.80M
	Net Debt
560.70M	635.70M	719.00M	707.70M	722.20M
	Total Liabilities
1.53B	1.66B	1.61B	1.65B	1.53B
	Stockholders Equity
57.70M	223.50M	369.50M	652.90M	680.70M
Cash Flow		Free Cash Flow
93.10M	57.00M	-34.70M	27.60M	-363.50M
	Operating Cash Flow
113.20M	83.70M	-13.90M	46.50M	-78.40M
	Investing Cash Flow
14.80M	18.00M	4.10M	-27.30M	-211.80M
	Financing Cash Flow
-144.50M	-73.80M	-54.20M	69.60M	318.00M

Saga plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 158.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SAGA, the sentiment is Positive. The current price of 158.2 is above the 20-day moving average (MA) of 146.68, above the 50-day MA of 138.43, and above the 200-day MA of 123.13, indicating a bullish trend. The MACD of 5.69 indicates Negative momentum. The RSI at 72.43 is Negative, neither overbought nor oversold. The STOCH value of 68.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SAGA.

Saga plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AV	80 Outperform	£16.32B	26.01	5.48%	7.76%	-1.13%	-38.11%
IPF	75 Outperform	£353.84M	5.93	12.58%	9.88%	-5.41%	27.41%
SAGA	65 Neutral	£227.07M	―	-127.10%	―	-20.62%	-44.96%
SBRE	65 Neutral	£340.50M	9.41	14.37%	4.99%	32.88%	99.17%
Sector *	64 Neutral	$12.85B	9.81	7.79%	78.20%	12.23%	-7.93%
DLG	63 Neutral	£3.91B	26.79	5.97%	3.32%	26.11%	-29.43%
LIO	58 Neutral	£253.14M	17.68	8.88%	10.90%	-22.50%	-15.51%

Saga plc Corporate Events

Saga plc Announces Director Shareholding Changes Under Deferred Bonus Plan

Saga plc has announced changes in the shareholding interests of its directors and persons discharging managerial responsibilities (PDMRs) under its Deferred Bonus Plan (DBP). On 28 May 2025, awards in the form of nil-cost options over shares were granted to key executives, including Mike Hazell and Mark Watkins, as part of their annual bonuses for the 2024/25 fiscal year. These shares are subject to a three-year holding period, reflecting a commitment to align executive interests with long-term company performance.

The most recent analyst rating on (GB:SAGA) stock is a Buy with a £1.85 price target. To see the full list of analyst forecasts on Saga plc stock, see the GB:SAGA Stock Forecast page.

Saga plc Releases 2025 Annual Report and AGM Notice

Saga plc has announced the distribution of its 2025 Annual Report and Accounts along with the Notice of its Annual General Meeting (AGM) to shareholders. The AGM is scheduled for 24 June 2025. The company has also published its Environmental, Social, and Governance Report, reflecting its commitment to transparency and sustainability. These documents are available on Saga’s website and have been submitted to the National Storage Mechanism for public access, indicating a focus on regulatory compliance and shareholder engagement.

The most recent analyst rating on (GB:SAGA) stock is a Buy with a £1.85 price target. To see the full list of analyst forecasts on Saga plc stock, see the GB:SAGA Stock Forecast page.

Saga plc Announces Major Shareholding Change

Saga plc has announced a change in its major shareholdings, with Sir Roger De Haan acquiring a significant portion of voting rights, now holding 26.98% of the total. This acquisition could potentially impact the company’s strategic direction and influence its market positioning, given De Haan’s history with the company.

Saga CEO Increases Stake with Share Purchase

Saga plc has announced a change in the shareholding interests of its directors, specifically noting that Mike Hazell, the Group Chief Executive Officer, has purchased 78,125 ordinary shares at a price of £1.24 each. This transaction, conducted in London on April 9, 2025, signifies a potential increase in confidence from the CEO in the company’s future performance and may impact stakeholder perceptions positively.

Saga plc’s Chairman Increases Stake to Nearly 27%

Saga plc has announced a significant change in its shareholding structure, with Sir Roger De Haan, the Non-Executive Chairman, increasing his stake to 26.98% of the company’s issued share capital. This move could strengthen De Haan’s influence within the company and potentially impact its strategic direction, reflecting confidence in Saga’s future prospects.

Saga plc Announces Board Restructuring Amid Strategic Shift

Saga plc announced significant changes to its Board, with Sir Peter Bazalgette and Steve Kingshott stepping down as part of the company’s strategic shift following a successful insurance agreement with Ageas SA/NV. These changes reflect Saga’s new simplified business model, with Gareth Hoskin and Julie Hopes taking on new roles within the Board’s committees, aiming to position Saga for future growth and stability.

Saga plc Reports Strong Growth and Strategic Progress in 2025 Results

Saga plc has reported its unaudited preliminary results for the year ending January 31, 2025, highlighting significant strategic progress and a strong financial performance driven by high demand in its travel businesses. The company has achieved a 25% increase in underlying profit before tax, attributed to its cruise offerings, and has taken strategic actions to reposition itself for future growth. This includes a new 20-year insurance broking partnership with Ageas and the sale of its insurance underwriting business, which are expected to reduce risk and complexity. Saga has also completed the refinancing of its corporate debt, providing financial flexibility for future growth plans. Despite a reported loss before tax due to asset impairments and restructuring costs, the company is optimistic about its long-term growth, aiming for substantial profit increases and debt reduction.

Saga plc Director Takes Senior Role at OSB Group

Saga plc has announced that Gareth Hoskin, an Independent Non-Executive Director at the company, will take on the role of Senior Independent Non-Executive Director at OSB Group plc starting from April 1, 2025. This appointment highlights the recognition of Hoskin’s expertise and may strengthen Saga’s strategic positioning through enhanced leadership connections within the financial services sector.