LSE:SAGA

Stock Analysis Report

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Market Cap

UK£589.0m

Last Updated

2021/06/20 19:44 UTC

Data Sources

Company Financials +

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 is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: SAGA's weekly volatility has decreased from 12% to 7% over the past year.


Market Performance


7 Day Return

2.4%

SAGA

-1.6%

GB Insurance

-1.7%

GB Market


1 Year Return

51.9%

SAGA

23.1%

GB Insurance

16.0%

GB Market

Return vs Industry: SAGA exceeded the UK Insurance industry which returned 23.1% over the past year.

Return vs Market: SAGA exceeded the UK Market which returned 16% over the past year.


Shareholder returns

SAGAIndustryMarket
7 Day2.4%-1.6%-1.7%
30 Day12.5%-0.9%0.2%
90 Day21.4%-1.6%5.7%
1 Year66.8%51.9%28.0%23.1%21.6%16.0%
3 Year-74.0%-78.0%3.6%-14.2%11.6%-1.3%
5 Year-81.7%-86.0%49.3%12.0%51.6%23.1%

Long-Term 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?

0.87x

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 UK 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 (0.9x) compared to the GB Insurance industry average (1.3x).


Future Growth

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

78.5%

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 (0.9%).

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 (27.2% per year) is forecast to grow faster than the UK market (5.3% per year).

High Growth Revenue: SAGA's revenue (27.2% 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 (11.4%).


Past Performance

How has Saga performed over the past 5 years?

-57.5%

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 57.5% 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 (-20.7%).


Return on Equity

High ROE: SAGA has a negative Return on Equity (-9.96%), as it is currently unprofitable.


Financial Health

How is Saga's financial position?


Financial Position Analysis

Short Term Liabilities: SAGA's short term assets (£719.8M) exceed its short term liabilities (£685.5M).

Long Term Liabilities: SAGA's short term assets (£719.8M) do not cover its long term liabilities (£846.5M).


Debt to Equity History and Analysis

Debt Level: SAGA's debt to equity ratio (120.3%) is considered high.

Reducing Debt: SAGA's debt to equity ratio has increased from 51.9% to 120.3% over the past 5 years.


Balance Sheet


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: SAGA has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: SAGA has less than a year of cash runway if free cash flow continues to reduce at historical rates of 54.1% each year


Dividend

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

1.42%

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?

1.7yrs

Average management tenure


CEO

Euan Sutherland (51 yo)

1.42yrs

Tenure

UK£2,118,471

Compensation

Mr. Euan Angus Sutherland serves as Interim Chief Executive Officer of Saga Insurance at Saga Plc since January 2021. He has been Group Chief Executive Officer and Executive Director at Saga plc since Janu...


CEO Compensation Analysis

Compensation vs Market: Euan's total compensation ($USD2.92M) is above average for companies of similar size in the UK market ($USD964.62K).

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


Leadership Team

Experienced Management: SAGA's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: SAGA's board of directors are not considered experienced ( 2.4 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: 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 87.3%.


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£588.954m
  • Shares outstanding: 140.09m
  • Website: https://www.saga.co.uk

Number of Employees


Location

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

Listings


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 Analysis2021/06/20 19:44
End of Day Share Price2021/06/18 00:00
Earnings2021/01/31
Annual Earnings2021/01/31


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.