DB:2S8

Stock Analysis Report

Executive Summary

Saga plc engages in insurance, travel, personal finance, healthcare, retirement villages, and media businesses in the United Kingdom.


Snowflake Analysis

Reasonable growth potential and fair value.

Share Price & News

How has Saga's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2S8's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

8.9%

2S8

-3.7%

DE Insurance

-0.6%

DE Market


1 Year Return

-74.7%

2S8

-22.9%

DE Insurance

-20.9%

DE Market

Return vs Industry: 2S8 underperformed the German Insurance industry which returned -22.9% over the past year.

Return vs Market: 2S8 underperformed the German Market which returned -20.9% over the past year.


Shareholder returns

2S8IndustryMarket
7 Day8.9%-3.7%-0.6%
30 Day-10.9%-23.7%-18.6%
90 Day-66.4%-31.7%-26.2%
1 Year-73.5%-74.7%-19.5%-22.9%-18.6%-20.9%
3 Year-89.4%-91.0%3.7%-8.8%-19.0%-25.8%
5 Year-89.6%-91.7%13.3%-9.3%-21.2%-31.8%

Price Volatility Vs. Market

How volatile is Saga's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Saga undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2S8 (€0.21) is trading below our estimate of fair value (€1.18)

Significantly Below Fair Value: 2S8 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2S8 is unprofitable, so we can't compare its PE Ratio to the Insurance industry average.

PE vs Market: 2S8 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2S8's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2S8 is good value based on its PB Ratio (0.2x) compared to the DE Insurance industry average (0.8x).


Next Steps

Future Growth

How is Saga forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

33.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2S8 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: 2S8 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 2S8's is expected to become profitable in the next 3 years.

Revenue vs Market: 2S8's revenue (5% per year) is forecast to grow faster than the German market (3.9% per year).

High Growth Revenue: 2S8's revenue (5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2S8's Return on Equity is forecast to be low in 3 years time (6.6%).


Next Steps

Past Performance

How has Saga performed over the past 5 years?

-32.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2S8 is currently unprofitable.

Growing Profit Margin: 2S8 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 2S8 is unprofitable, and losses have increased over the past 5 years at a rate of -32.9% per year.

Accelerating Growth: Unable to compare 2S8's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 2S8 is unprofitable, making it difficult to compare its past year earnings growth to the Insurance industry (17.9%).


Return on Equity

High ROE: 2S8 has a negative Return on Equity (-20.71%), as it is currently unprofitable.


Next Steps

Financial Health

How is Saga's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 2S8 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 2S8's debt is covered by short term assets (assets are 1.2x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 2S8 has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: 2S8 has been profitable on average in the past, therefore cash runway is not a concern.


Financial Institutions Analysis

Asset Level: 2S8's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 2S8 has a sufficient allowance for bad loans.

Low Risk Liabilities: 2S8 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 2S8 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 2S8 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 2S8 has an appropriate level of bad loans.


Next Steps

Dividend

What is Saga's current dividend yield, its reliability and sustainability?

17.11%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 2S8's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 2S8's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 2S8's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2S8's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 2S8 is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 2S8's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.5yrs

Average management tenure


CEO

Euan Sutherland (50yo)

0.25

Tenure

Mr. Euan Angus Sutherland has been Group Chief Executive Officer and Director at Saga plc since January 6, 2020. He served as Chief Executive Officer of SuperGroup Plc since October 22, 2014 until April 2, ...


Leadership Team

NamePositionTenureCompensationOwnership
James Quin
Group CFO & Executive Director1.25yrsUK£401.86k0.013% £25.6k
Euan Sutherland
Group CEO & Director0.25yrno datano data
Gilles Normand
Chief Operating Officer0.42yrno datano data
Mark Watkins
Director of Investor Relationsno datano datano data
Helen Webb
Chief Risk & Compliance Officerno datano datano data
Jane Storm
Chief People Officer0.50yrno datano data
Andy Bulgin
Chief Risk Officerno datano datano data
Stuart Beamish
Group Chief Customer Officer1.42yrsno datano data
Cheryl Agius
CEO of Insurance & Director0.25yrno datano data
Vicki Haynes
Company Secretaryno datano datano data

0.5yrs

Average Tenure

50yo

Average Age

Experienced Management: 2S8's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
James Quin
Group CFO & Executive Director1.25yrsUK£401.86k0.013% £25.6k
Euan Sutherland
Group CEO & Director0.25yrno datano data
Cheryl Agius
CEO of Insurance & Director0.25yrno datano data
Gareth Williams
Independent Non-Executive Director5.92yrsUK£73.67k0.0039% £7.9k
Patrick Henry O'Sullivan
Independent Chairman1.92yrsUK£243.75k0.023% £46.8k
Gareth Hoskin
Independent Non-Executive Director1.08yrsno data0.012% £24.3k
Orna Ni-Chionna
Senior Independent Non Executive Director3.08yrsUK£96.71k0.0026% £5.3k
Raymond King
Independent Non-Executive Director5.92yrsUK£73.67k0.0039% £7.9k
Eva Eisenschimmel
Independent Non-Executive Director1.25yrsUK£5.31k0.0037% £7.4k
Julie Hopes
Independent Non-Executive Director1.5yrsUK£36.22k0.0038% £7.7k

1.4yrs

Average Tenure

58yo

Average Age

Experienced Board: 2S8's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 2S8 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Saga plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Saga plc
  • Ticker: 2S8
  • Exchange: DB
  • Founded: 1950
  • Industry: Multi-line Insurance
  • Sector: Insurance
  • Market Cap: UK£177.515m
  • Listing Market Cap: UK£201.463m
  • Shares outstanding: 1.12b
  • Website: https://www.saga.co.uk

Number of Employees


Location

  • Saga plc
  • Enbrook Park
  • Sandgate
  • Folkestone
  • Kent
  • CT20 3SE
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SAGALSE (London Stock Exchange)YesOrdinary SharesGBGBPMay 2014
2S8DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2014
SAGALBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMay 2014
SGPL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2014

Biography

Saga plc engages in insurance, travel, personal finance, healthcare, retirement villages, and media businesses in the United Kingdom. The company operates in three segments: Insurance, Travel, and Emerging Businesses and Central Costs. It offers car, caravan, motorhome, breakdown cover, home, landlord, holiday home, home emergency, pet, travel, boat, health, personal accident, and life insurance, as well as accidental death benefit products. The company also operates and delivers package tours and cruise holiday products; and provides personal loans, equity release and care funding advice, financial planning, savings accounts, shares ISAs, share dealing nominee and certificated accounts, travel money, credit cards, and wealth management services. In addition, it offers domiciliary care, automotive vehicles repair, and mailing house services; operates retirement villages; and publishes Saga Magazine. The company was formerly known as Saga Limited and changed its name to Saga plc in May 2014. Saga plc was founded in 1950 and is headquartered in Folkestone, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 07:58
End of Day Share Price2020/04/03 00:00
Earnings2019/07/31
Annual Earnings2019/01/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.