LSE:SAGA

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

5.1%

SAGA

0.9%

GB Insurance

-0.4%

GB Market


1 Year Return

-62.4%

SAGA

2.7%

GB Insurance

2.9%

GB Market

Return vs Industry: SAGA underperformed the UK Insurance industry which returned 2.7% over the past year.

Return vs Market: SAGA underperformed the UK Market which returned 2.9% over the past year.


Shareholder returns

SAGAIndustryMarket
7 Day5.1%0.9%-0.4%
30 Day-6.8%2.7%-1.4%
90 Day4.3%-6.1%-2.1%
1 Year-60.6%-62.4%7.8%2.7%7.9%2.9%
3 Year-71.4%-75.6%23.5%6.2%18.0%3.6%
5 Year-59.1%-67.4%39.3%9.9%35.8%6.4%

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

Valuation

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

47.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: SAGA (£0.49) is trading below our estimate of fair value (£0.93)

Significantly Undervalued: SAGA is trading below fair value by more than 20%.


Price To Earnings Ratio

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

PE vs Market: SAGA is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SAGA is good value based on its PB Ratio (0.6x) compared to the GB Insurance industry average (2x).


Next Steps

Future Growth

How is Saga forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

28.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SAGA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.2%).

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

High Growth Earnings: SAGA's loss is forecast to worsen by 0% next year.

Revenue vs Market: SAGA's revenue (6% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: SAGA's revenue (6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: SAGA's Return on Equity is forecast to be low in 3 years time (10%).


Next Steps

Past Performance

How has Saga performed over the past 5 years?

-32.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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

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

Earnings vs Industry: SAGA is unprofitable, making it difficult to compare its past year earnings growth to the Insurance industry (15.2%).


Return on Equity

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


Return on Assets

ROA vs Industry: SAGA is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: SAGA is currently unprofitable, so its Return on Capital Employed is negative.


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: SAGA has a low level of unsold assets or inventory.

Debt Coverage by Assets: SAGA's debt is covered by short term assets (assets are 1.240830x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

8.13%

Current Dividend Yield


Dividend Yield vs Market

company8.1%marketbottom25%2.0%markettop25%5.4%industryaverage4.9%forecastin3Years8.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SAGA's dividend (8.13%) is higher than the bottom 25% of dividend payers in the UK market (2.01%).

High Dividend: SAGA's dividend (8.13%) is in the top 25% of dividend payers in the UK market (5.36%)

Stable Dividend: SAGA has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: SAGA has only been paying a dividend for 4 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: SAGA is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: SAGA's dividends in 3 years are forecast to be well covered by earnings (46.3% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Lance H. Batchelor (55yo)

5.5yrs

Tenure

UK£1,191,743

Compensation

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 D ...


CEO Compensation Analysis

Compensation vs. Market: Lance H.'s total compensation ($USD1.53M) is about average for companies of similar size in the UK market ($USD1.18M).

Compensation vs Earnings: Lance H.'s compensation has increased whilst the company is unprofitable.


Management Age and Tenure

1.8yrs

Average Tenure

Experienced Management: SAGA's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

1.4yrs

Average Tenure

59yo

Average Age

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


Insider Trading

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


Recent Insider Transactions

BuyUK£15016 Aug 19
Lance H. Batchelor
EntityIndividual
Role
Chief Executive Officer
Group CEO & Director
Shares344
Max PriceUK£0.44
BuyUK£1,50724 Apr 19
Lance H. Batchelor
EntityIndividual
Role
Chief Executive Officer
Group CEO & Director
Shares2,640
Max PriceUK£0.57
BuyUK£9,92624 Apr 19
Raymond King
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares16,852
Max PriceUK£0.59
BuyUK£17,10016 Apr 19
Patrick Henry O'Sullivan
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares30,000
Max PriceUK£0.57
BuyUK£6,44316 Apr 19
Gareth Williams
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares11,384
Max PriceUK£0.57
BuyUK£32,91027 Nov 18
Patrick Henry O'Sullivan
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares30,000
Max PriceUK£1.10

Ownership Breakdown


Management Team

  • Lance H. Batchelor (55yo)

    Group CEO & Director

    • Tenure: 5.5yrs
    • Compensation: UK£1.19m
  • Gary Duggan

    Chief Executive of Insurance Broking

    • Tenure: 1.8yrs
  • Robin Shaw

    Chief Executive Officer of Travels

    • Tenure: 1.8yrs
  • Vicki Haynes

    Company Secretary

    • Tenure: 0yrs
  • Andy Bulgin

    Chief Risk Officer

    • Tenure: 0yrs
  • Helen Webb

    Chief Risk & Compliance Officer

    • Tenure: 0yrs
  • Mark Watkins

    Director of Investor Relations

    • Tenure: 0yrs
  • Jane Storm

    Chief People Officer

    • Tenure: 0yrs
  • Stuart Beamish

    Group Chief Customer Officer

    • Tenure: 0.9yrs
  • James Quin (50yo)

    Group CFO & Executive Director

    • Tenure: 0.8yrs
    • Compensation: UK£401.86k

Board Members

  • Gareth Williams (66yo)

    Independent Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: UK£73.67k
  • Patrick Henry O'Sullivan (70yo)

    Independent Chairman

    • Tenure: 1.4yrs
    • Compensation: UK£243.75k
  • Gareth Hoskin (59yo)

    Independent Non-Executive Director

    • Tenure: 0.6yrs
  • Orna Ni-Chionna (63yo)

    Senior Independent Non Executive Director

    • Tenure: 2.6yrs
    • Compensation: UK£96.71k
  • Ray King (65yo)

    Independent Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: UK£73.67k
  • Lance H. Batchelor (55yo)

    Group CEO & Director

    • Tenure: 5.5yrs
    • Compensation: UK£1.19m
  • Eva Eisenschimmel (57yo)

    Non-Executive Director

    • Tenure: 0.8yrs
    • Compensation: UK£5.31k
  • Julie Hopes (51yo)

    Independent Non-Executive Director

    • Tenure: 1yrs
    • Compensation: UK£36.22k
  • James Quin (50yo)

    Group CFO & Executive Director

    • Tenure: 0.8yrs
    • Compensation: UK£401.86k

Company Information

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


Key Information

  • Name: Saga plc
  • Ticker: SAGA
  • Exchange: LSE
  • Founded: 1950
  • Industry: Multi-line Insurance
  • Sector: Insurance
  • Market Cap: UK£551.248m
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 21:22
End of Day Share Price2019/10/18 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.