LSE:SAGA

Stock Analysis Report

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Executive Summary

Saga plc provides general insurance, package and cruise holidays, and personal finance products and services in the United Kingdom. More Details


Snowflake Analysis

High growth potential and overvalued.

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: SAGA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

14.2%

SAGA

-0.02%

GB Insurance

0.07%

GB Market


1 Year Return

-79.3%

SAGA

-20.3%

GB Insurance

-15.4%

GB Market

Return vs Industry: SAGA underperformed the UK Insurance industry which returned -20.3% over the past year.

Return vs Market: SAGA underperformed the UK Market which returned -15.4% over the past year.


Shareholder returns

SAGAIndustryMarket
7 Day14.2%-0.02%0.07%
30 Day-18.6%0.9%1.7%
90 Day-36.1%-2.5%-1.8%
1 Year-77.2%-79.3%-17.2%-20.3%-12.1%-15.4%
3 Year-93.8%-94.9%-20.1%-34.2%-8.4%-19.7%
5 Year-93.7%-95.3%0.7%-25.6%16.4%-9.7%

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?

0.2x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate SAGA's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate SAGA's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: SAGA is unprofitable, so we can't compare its PE Ratio to the GB 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

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 (0.2x) compared to the GB Insurance industry average (1.1x).


Next Steps

Future Growth

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

66.0%

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 years, which is considered above average market growth.

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

Revenue vs Market: SAGA's revenue (20.7% per year) is forecast to grow faster than the UK market (6% per year).

High Growth Revenue: SAGA's revenue (20.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SAGA's Return on Equity is forecast to be low in 3 years time (10.5%).


Next Steps

Past Performance

How has Saga performed over the past 5 years?

-59.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SAGA is currently unprofitable.

Growing Profit Margin: SAGA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SAGA is unprofitable, and losses have increased over the past 5 years at a rate of 59.7% 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 (-7.6%).


Return on Equity

High ROE: SAGA has a negative Return on Equity (-74.71%), as it is currently unprofitable.


Next Steps

Financial Health

How is Saga's financial position?


Financial Position Analysis

Short Term Liabilities: SAGA's short term assets (£690.6M) exceed its short term liabilities (£623.6M).

Long Term Liabilities: SAGA's short term assets (£690.6M) do not cover its long term liabilities (£782.0M).


Debt to Equity History and Analysis

Debt Level: SAGA's debt to equity ratio (118.7%) is considered high.

Reducing Debt: SAGA's debt to equity ratio has increased from 55.1% to 118.7% over the past 5 years.

Debt Coverage: SAGA's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: SAGA is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

6.17%

Forecast Dividend Yield


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: SAGA is not paying a notable dividend for the UK market.


Future Payout to Shareholders

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


Next Steps

Management

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

0.9yrs

Average management tenure


CEO

Euan Sutherland (51 yo)

0.75

Tenure

UK£838,394

Compensation

Mr. Euan Angus Sutherland has been Group Chief Executive Officer and Executive Director at Saga plc since January 6, 2020. He serves as the Chairman of B&Q plc. He has been an Independent Non-Executive Dir ...


CEO Compensation Analysis

Compensation vs Market: Euan's total compensation ($USD1.09M) is above average for companies of similar size in the UK market ($USD665.09K).

Compensation vs Earnings: Insufficient data to compare Euan's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Euan Sutherland
Group CEO & Director0.75yrUK£838.39k0.019%
£ 38.4k
James Quin
Group CFO & Executive Director1.75yrsUK£741.49k0.011%
£ 21.6k
Cheryl Agius
CEO of Insurance & Director0.75yrUK£392.30k0.0071%
£ 14.4k
Mark Watkins
Director of Investor Relationsno datano datano data
Helen Webb
Chief Risk & Compliance Officerno datano data0.000030%
£ 61.1
Jane Storm
Chief People Officer1yrno datano data
Andy Bulgin
Chief Risk Officerno datano datano data
Stuart Beamish
Group Chief Customer Officer1.92yrsno data0.000040%
£ 81.4
Lynn Fournier
Head of Internal Auditno datano datano data
Nick Stace
Chief Strategy Officer0.58yrno datano data
Vicki Haynes
Group Company Secretaryno datano datano data

0.9yrs

Average Tenure

51yo

Average Age

Experienced Management: SAGA's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Euan Sutherland
Group CEO & Director0.75yrUK£838.39k0.019%
£ 38.4k
James Quin
Group CFO & Executive Director1.75yrsUK£741.49k0.011%
£ 21.6k
Cheryl Agius
CEO of Insurance & Director0.75yrUK£392.30k0.0071%
£ 14.4k
Gareth Williams
Independent Non-Executive Director6.42yrsUK£73.67k0.0032%
£ 6.6k
Patrick Henry O'Sullivan
Independent Non Executive Chairman2.42yrsUK£325.00k0.013%
£ 26.3k
Gareth Hoskin
Independent Non-Executive Director1.58yrsUK£106.20k0.010%
£ 20.4k
Orna Ni-Chionna
Senior Independent Non Executive Director3.58yrsUK£93.67k0.0022%
£ 4.4k
Roger De Haan
Directorno datano data26.4%
£ 53.7m
Eva Eisenschimmel
Independent Non-Executive Director1.75yrsUK£63.67k0.0031%
£ 6.2k
Julie Hopes
Independent Non-Executive Director2yrsUK£125.79k0.0032%
£ 6.5k

1.8yrs

Average Tenure

59yo

Average Age

Experienced Board: SAGA's board of directors are not considered experienced ( 1.8 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: SAGA insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 86.9%.


Top Shareholders

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£203.510m
  • Shares outstanding: 139.58m
  • 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
5UHDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2014
SAGALBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMay 2014

Biography

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 Busi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/25 21:32
End of Day Share Price2020/10/23 00:00
Earnings2020/07/31
Annual Earnings2020/01/31


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.