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Saga

LSE:SAGA
Snowflake Description

Adequate balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SAGA
LSE
£647M
Market Cap
  1. Home
  2. GB
  3. Insurance
Company description

Saga plc engages in insurance, travel, personal finance, healthcare, retirement villages, and media businesses in the United Kingdom. The last earnings update was 17 days ago. More info.


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  • Saga has significant price volatility in the past 3 months.
SAGA Share Price and Events
7 Day Returns
0.6%
LSE:SAGA
3.5%
GB Insurance
0.6%
GB Market
1 Year Returns
-55.5%
LSE:SAGA
-5%
GB Insurance
1.1%
GB Market
SAGA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Saga (SAGA) 0.6% -48.6% -46.5% -55.5% -72% -
GB Insurance 3.5% 5.2% 10.1% -5% 14.9% 23.7%
GB Market 0.6% 1.9% 6.9% 1.1% 15.6% 6.2%
1 Year Return vs Industry and Market
  • SAGA underperformed the Insurance industry which returned -5% over the past year.
  • SAGA underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 1.1% over the past year.
Price Volatility
SAGA
Industry
5yr Volatility vs Market

Value

 Is Saga undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Saga to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Saga.

LSE:SAGA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= £1.05 * 12.7%
£0.13
Book Value of Equity per Share Weighted future Book Value estimates from 3 analysts. £1.05
Discount Rate (Cost of Equity) See below 8.4%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:SAGA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Insurance Unlevered Beta Simply Wall St/ S&P Global 0.72
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.724 (1 + (1- 19%) (68.8%))
1.086
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.09
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.086 * 6.65%)
8.45%

Discounted Cash Flow Calculation for LSE:SAGA using Excess Returns Model Model

The calculations below outline how an intrinsic value for Saga is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

LSE:SAGA Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (12.7% – 8.45%) * £1.05)
£0.04
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= £0.04 / (8.45% - 1.23%)
£0.62
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= £1.05 + £0.62
£1.67
LSE:SAGA Discount to Share Price
Calculation Result
Value per share (GBP) From above. £1.67
Current discount Discount to share price of £0.58
= -1 x (£0.58 - £1.67) / £1.67
65.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Saga is available for.
Intrinsic value
>50%
Share price is £0.58 vs Future cash flow value of £1.67
Current Discount Checks
For Saga to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Saga's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Saga's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Saga's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Saga's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:SAGA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-01-31) in GBP £-0.14
LSE:SAGA Share Price ** LSE (2019-04-18) in GBP £0.58
United Kingdom of Great Britain and Northern Ireland Insurance Industry PE Ratio Median Figure of 19 Publicly-Listed Insurance Companies 16.26x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 797 Publicly-Listed Companies 16.29x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Saga.

LSE:SAGA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:SAGA Share Price ÷ EPS (both in GBP)

= 0.58 ÷ -0.14

-3.98x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Saga is loss making, we can't compare its value to the GB Insurance industry average.
  • Saga is loss making, we can't compare the value of its earnings to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Saga's expected growth come at a high price?
Raw Data
LSE:SAGA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -3.98x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
74.9%per year
United Kingdom of Great Britain and Northern Ireland Insurance Industry PEG Ratio Median Figure of 16 Publicly-Listed Insurance Companies 1.54x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 564 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Saga, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Saga's assets?
Raw Data
LSE:SAGA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-01-31) in GBP £0.86
LSE:SAGA Share Price * LSE (2019-04-18) in GBP £0.58
United Kingdom of Great Britain and Northern Ireland Insurance Industry PB Ratio Median Figure of 24 Publicly-Listed Insurance Companies 2.12x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,367 Publicly-Listed Companies 1.51x
LSE:SAGA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:SAGA Share Price ÷ Book Value per Share (both in GBP)

= 0.58 ÷ 0.86

0.67x

* Primary Listing of Saga.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Saga is good value based on assets compared to the GB Insurance industry average.
X
Value checks
We assess Saga's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Insurance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Insurance industry average (and greater than 0)? (1 check)
  5. Saga has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
74.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Saga expected to grow at an attractive rate?
  • Saga's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Saga's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Saga's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:SAGA Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:SAGA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 74.9%
LSE:SAGA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 2.1%
United Kingdom of Great Britain and Northern Ireland Insurance Industry Earnings Growth Rate Market Cap Weighted Average 11.8%
United Kingdom of Great Britain and Northern Ireland Insurance Industry Revenue Growth Rate Market Cap Weighted Average 18.3%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 11%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:SAGA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:SAGA Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-01-31 912 192 1
2021-01-31 850 167 1
2020-01-31 803 139 1
LSE:SAGA Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-01-31 843 138 -162
2018-07-31 862 120 147
2018-04-30 866 128 146
2018-01-31 869 135 145
2017-07-31 882 144 155
2017-04-30 885 141 156
2017-01-31 888 139 157
2016-10-31 911 137 156
2016-07-31 934 136 155
2016-04-30 954 143 151

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Saga's earnings are expected to grow significantly at over 20% yearly.
  • Saga's revenue is expected to grow by 2.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:SAGA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from Saga Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:SAGA Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-01-31 0.13 0.17 0.10 2.00
2021-01-31 0.12 0.15 0.08 2.00
2020-01-31 0.10 0.12 0.08 3.00
LSE:SAGA Past Financials Data
Date (Data in GBP Millions) EPS *
2019-01-31 -0.14
2018-07-31 0.13
2018-04-30 0.13
2018-01-31 0.13
2017-07-31 0.14
2017-04-30 0.14
2017-01-31 0.14
2016-10-31 0.14
2016-07-31 0.14
2016-04-30 0.14

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Saga is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Saga's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Saga has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Saga performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Saga's growth in the last year to its industry (Insurance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Saga does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Saga's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Saga's 1-year growth to the GB Insurance industry average as it is not currently profitable.
Earnings and Revenue History
Saga's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Saga Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:SAGA Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-01-31 843.20 -162.00 246.20
2018-07-31 862.30 147.40 219.10
2018-04-30 865.65 146.25 222.25
2018-01-31 869.00 145.10 225.40
2017-07-31 882.40 155.00 227.80
2017-04-30 885.00 156.15 226.50
2017-01-31 887.60 157.30 225.20
2016-10-31 910.60 156.00 222.05
2016-07-31 933.60 154.70 218.90
2016-04-30 953.90 151.25 210.55
2016-01-31 974.20 147.80 202.20
2015-10-31 964.75 142.50 171.10
2015-07-31 955.30 137.20 140.00
2015-04-30 936.30 111.60 156.75
2015-01-31 917.30 86.00 173.50
2014-07-31 762.70 88.40 153.10
2014-04-30 859.70 107.60 154.55
2014-01-31 956.70 126.80 156.00
2013-01-31 1,329.30 113.10 252.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Saga has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Saga has efficiently used its assets last year compared to the GB Insurance industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Saga improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Saga's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Insurance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Saga has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Saga's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Saga's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Saga is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Saga's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Saga's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Saga Company Filings, last reported 2 months ago.

LSE:SAGA Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-01-31 964.30 444.90 57.60
2018-07-31 1,268.10 454.90 29.30
2018-04-30 1,268.10 454.90 29.30
2018-01-31 1,223.50 455.80 36.30
2017-07-31 1,221.00 485.50 51.40
2017-04-30 1,221.00 485.50 51.40
2017-01-31 1,195.20 487.50 53.60
2016-10-31 1,195.20 487.50 53.60
2016-07-31 1,126.60 557.10 275.30
2016-04-30 1,126.60 557.10 275.30
2016-01-31 1,088.20 567.80 152.50
2015-10-31 1,088.20 567.80 152.50
2015-07-31 1,024.30 568.10 169.30
2015-04-30 1,024.30 568.10 169.30
2015-01-31 984.10 698.00 216.30
2014-07-31 1,163.10 693.20 172.20
2014-04-30 1,163.10 693.20 172.20
2014-01-31 1,119.80 1,790.30 218.10
2013-01-31 1,045.10 2,957.20 566.40
  • Saga's level of debt (46.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (158.7% vs 46.1% today).
  • Debt is well covered by operating cash flow (31%, greater than 20% of total debt).
  • Saga is making a loss, therefore interest payments are not well covered by earnings.
X
Financial health checks
We assess Saga's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Saga has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
6.94%
Current annual income from Saga dividends. Estimated to be 10.61% next year.
If you bought £2,000 of Saga shares you are expected to receive £139 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Saga's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.01%).
  • Saga's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.19%).
Upcoming dividend payment

Purchase Saga before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:SAGA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Insurance Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 4.5%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 706 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:SAGA Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2022-01-31 0.07 3.00
2021-01-31 0.06 3.00
2020-01-31 0.06 3.00
LSE:SAGA Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-04-04 0.040 6.749
2018-09-27 0.090 7.920
2018-05-11 0.090 7.178
2018-04-12 0.090 6.826
2017-06-22 0.085 5.522
2016-09-23 0.077 3.885
2016-06-21 0.100 4.779
2015-09-30 0.044 2.204
2015-06-24 0.041 1.952
2015-04-30 0.060 2.881
2015-04-29 0.060 3.144

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Saga has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Saga has only been paying a dividend for 4 years, and since then dividends per share have fallen.
Current Payout to shareholders
What portion of Saga's earnings are paid to the shareholders as a dividend.
  • The company is paying a dividend however it is incurring a loss.
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.9x coverage).
X
Income/ dividend checks
We assess Saga's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Saga afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Saga has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Saga's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Lance H. Batchelor
COMPENSATION £1,058,869
AGE 54
TENURE AS CEO 5.1 years
CEO Bio

Mr. Lance H. L. Batchelor has been the Group Chief Executive Officer at Saga Group Limited, Saga plc since March 2014. Mr. Batchelor joined Saga in March 2014. He served as the Chief Executive Officer at Domino's Pizza Group plc from December 12, 2011 to March 16, 2014 and served as its Deputy Chief Executive Officer from June 27, 2011 to December 12, 2011. Mr. Batchelor served as Marketing Director of UK at Tesco PLC since August 6, 2007. He served as Chief Executive Officer of Tesco Mobile Limited (alternate name, Tesco Telecom) from September 2008 to February 2011 and oversaw the development and commercial success across all parts of its business. He served as Global Director of Vodafone 'Live'. He also served as Marketing Director Vodafone U.K. From 2000 to 2002 he worked for Amazon.com, where he served as Chief Marketing Officer and general manager. He spent 8 years in senior marketing roles at Procter & Gamble, both in the UK and the USA. Mr. Batchelor started his career with The Royal Navy where he served as a Submarine Warfare Officer. He is also a Vice Patron of the Royal Navy & Royal Marines Charity. He has been a Director of Saga plc since April 2014. He is a Trustee of The National Gallery and White Ensign Association. He served as an Executive Director of Domino's Pizza Group plc (alternate name, Domino's Pizza UK & Ireland plc) from July 13, 2010 to March 16, 2014. He served as a Non-Executive Director of HiWave Technologies PLC since October 20, 2004. He completed his MBA at Harvard Business School.

CEO Compensation
  • Lance H.'s compensation has been consistent with company performance over the past year.
  • Lance H.'s remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Saga management team in years:

1.3
Average Tenure
49
Average Age
  • The average tenure for the Saga management team is less than 2 years, this suggests a new team.
Management Team

Lance H. Batchelor

TITLE
Group CEO & Director
COMPENSATION
£1M
AGE
54
TENURE
5.1 yrs

James Quin

TITLE
Group CFO & Executive Director
AGE
49
TENURE
0.3 yrs

Mark Watkins

TITLE
Director of Investor Relations

Helen Webb

TITLE
Chief Risk & Compliance Officer

Karen Caddick

TITLE
Group Human Resources Director
AGE
49
TENURE
4.3 yrs

Andy Bulgin

TITLE
Chief Risk Officer

Stuart Beamish

TITLE
Group Chief Customer Officer
TENURE
0.4 yrs

Vicki Haynes

TITLE
Company Secretary

Robin Shaw

TITLE
Chief Executive Officer of Travels
TENURE
1.3 yrs

Gary Duggan

TITLE
Chief Executive of Insurance Broking
TENURE
1.3 yrs
Board of Directors Tenure

Average tenure and age of the Saga board of directors in years:

0.9
Average Tenure
58
Average Age
  • The average tenure for the Saga board of directors is less than 3 years, this suggests a new board.
Board of Directors

Patrick Henry O'Sullivan

TITLE
Chairman
AGE
69
TENURE
0.9 yrs

Lance H. Batchelor

TITLE
Group CEO & Director
COMPENSATION
£1M
AGE
54
TENURE
5.1 yrs

James Quin

TITLE
Group CFO & Executive Director
AGE
49
TENURE
0.3 yrs

Ray King

TITLE
Independent Non-Executive Director
COMPENSATION
£73K
AGE
64
TENURE
4.9 yrs

Orna Ni-Chionna

TITLE
Senior Independent Non Executive Director
COMPENSATION
£96K
AGE
62
TENURE
2.1 yrs

Gareth Williams

TITLE
Independent Non-Executive Director
COMPENSATION
£73K
AGE
65
TENURE
4.9 yrs

Julie Hopes

TITLE
Independent Non-Executive Director
AGE
50
TENURE
0.5 yrs

Eva Eisenschimmel

TITLE
Non-Executive Director
AGE
56
TENURE
0.3 yrs

Gareth Hoskin

TITLE
Independent Non-Executive Director
AGE
58
TENURE
0.1 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Saga insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
16. Apr 19 Buy Patrick Henry O'Sullivan Individual 12. Apr 19 12. Apr 19 30,000 £0.57 £17,100
16. Apr 19 Buy Gareth Williams Individual 12. Apr 19 12. Apr 19 11,384 £0.57 £6,443
27. Nov 18 Buy Patrick Henry O'Sullivan Individual 23. Nov 18 23. Nov 18 30,000 £1.10 £32,910
X
Management checks
We assess Saga's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Saga has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Should You Buy Saga plc (LON:SAGA) For Its Dividend?

A dividend paying company with growing earnings can be rewarding in the long term. … Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments. … In this case, Saga likely looks attractive to dividend investors, given its 6.9% dividend yield and four-year payment history.

Simply Wall St -

The Saga (LON:SAGA) Share Price Is Down 38% So Some Shareholders Are Getting Worried

While not a mind-blowing move, it is good to see that the Saga plc (LON:SAGA) share price has gained 11% in the last three months. … Truth be told the share price declined 38% in three years and that return, Dear Reader, falls short of what you could have got from passive investing with an index fund. … During the unfortunate three years of share price decline, Saga actually saw its earnings per share (EPS) improve by 2.1% per year.

Simply Wall St -

Is Saga plc's (LON:SAGA) P/E Ratio Really That Good?

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … Saga has a price to earnings ratio of 9.24, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

How Should Investors Feel About Saga plc's (LON:SAGA) CEO Pay?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … View our latest analysis for Saga. … Batchelor's Compensation Compare With Similar Sized Companies?

Simply Wall St -

An Examination Of Saga plc (LON:SAGA)

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook.

Simply Wall St -

Should Saga plc (LON:SAGA) Be Part Of Your Portfolio?

A large part of investment returns can be generated by dividend-paying stock given their role in compounding returns over time. … In the last few years Saga plc (LON:SAGA) has paid a dividend to shareholders. … 5 checks you should use to assess a dividend stock

Simply Wall St -

Have Insiders Been Buying Saga plc (LON:SAGA) Shares?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. … So shareholders might well want to know whether insiders have been buying or selling shares in Saga plc (LON:SAGA). … In the last twelve months there was more buying than selling by Saga insiders

Simply Wall St -

How Good Is Saga plc (LON:SAGA), When It Comes To ROE?

This article is for those who would like to learn about Return On Equity (ROE). … That means that for every £1 worth of shareholders' equity, it generated £0.12 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Is Saga plc's (LON:SAGA) PE Ratio A Signal To Buy For Investors?

and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … I will break down what the P/E ratio is, how to interpret it and what to watch out for … Check out our latest analysis for Saga

Simply Wall St -

Saga plc (LON:SAGA) Will Pay UK£0.03 In Dividends

If you are interested in cashing in on Saga plc's (LON:SAGA) upcoming dividend of UK£0.03 per share, you only have 4 days left to buy the shares before its ex-dividend date, 18 October 2018, in time for dividends payable on the 23 November 2018. … Is this future income stream a compelling catalyst for dividend investors to think about the stock as an investment today? … 5 checks you should do on a dividend stock?

Simply Wall St -

Company Info

Description

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.

Details
Name: Saga plc
SAGA
Exchange: LSE
Founded: 1950
£646,653,683
1,121,688,956
Website: http://www.saga.co.uk
Address: Saga plc
Enbrook Park,
Sandgate,
Folkestone,
Kent, CT20 3SE,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE SAGA Ordinary Shares London Stock Exchange GB GBP 23. May 2014
OTCPK SGPL.F Ordinary Shares Pink Sheets LLC US USD 23. May 2014
DB 2S8 Ordinary Shares Deutsche Boerse AG DE EUR 23. May 2014
BATS-CHIXE SAGAL Ordinary Shares BATS 'Chi-X Europe' GB GBP 23. May 2014
Number of employees
Current staff
Staff numbers
4,296
Saga employees.
Industry
Multi-line Insurance
Insurance
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/21 21:42
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/08
Last earnings filing: 2019/04/04
Last earnings reported: 2019/01/31
Last annual earnings reported: 2019/01/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.