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M&C Saatchi

AIM:SAA
Snowflake Description

Excellent balance sheet average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SAA
AIM
£350M
Market Cap
  1. Home
  2. GB
  3. Media
Company description

M&C Saatchi plc provides advertising and marketing services worldwide. The last earnings update was 177 days ago. More info.


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  • M&C Saatchi has significant price volatility in the past 3 months.
SAA Share Price and Events
7 Day Returns
2.5%
AIM:SAA
0.7%
GB Media
1.8%
GB Market
1 Year Returns
-8.8%
AIM:SAA
13.4%
GB Media
-0.9%
GB Market
SAA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
M&C Saatchi (SAA) 2.5% 3.3% 28.5% -8.8% 18.7% 33.6%
GB Media 0.7% 3.7% 7.1% 13.4% -1.6% 10.8%
GB Market 1.8% 1.5% 6.3% -0.9% 13.7% 3.1%
1 Year Return vs Industry and Market
  • SAA underperformed the Media industry which returned 13.4% over the past year.
  • SAA underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -0.9% over the past year.
Price Volatility
SAA
Industry
5yr Volatility vs Market
Related Companies

SAA Value

 Is M&C Saatchi 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 M&C Saatchi 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    Our intrinsic value calculation method has changed recently, learn more here.

Below are the data sources, inputs and calculation used to determine the intrinsic value for M&C Saatchi.

AIM:SAA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.3%
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 AIM:SAA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Media Unlevered Beta Simply Wall St/ S&P Global 0.8
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.804 (1 + (1- 19%) (9.26%))
0.909
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.91
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.909 * 6.65%)
7.27%

Discounted Cash Flow Calculation for AIM:SAA using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for M&C Saatchi is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

AIM:SAA DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 7.27%)
2019 20.40 Est @ 15.64% 19.01
2020 22.71 Est @ 11.31% 19.73
2021 24.59 Est @ 8.29% 19.92
2022 26.10 Est @ 6.17% 19.71
2023 27.33 Est @ 4.69% 19.24
2024 28.32 Est @ 3.65% 18.59
2025 29.15 Est @ 2.92% 17.84
2026 29.86 Est @ 2.41% 17.03
2027 30.47 Est @ 2.06% 16.20
2028 31.02 Est @ 1.81% 15.37
Present value of next 10 years cash flows £182.64
AIM:SAA DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £31.02 × (1 + 1.23%) ÷ (7.27% – 1.23%)
£519.52
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £519.52 ÷ (1 + 7.27%)10
£257.49
AIM:SAA Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £182.64 + £257.49
£440.13
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £440.13 / 88.90
£4.95
AIM:SAA Discount to Share Price
Calculation Result
Value per share (GBP) From above. £4.95
Current discount Discount to share price of £3.74
= -1 x (£3.74 - £4.95) / £4.95
24.5%

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

Current Discount
Amount off the current price M&C Saatchi is available for.
Intrinsic value
24%
Share price is £3.74 vs Future cash flow value of £4.95
Current Discount Checks
For M&C Saatchi to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • M&C Saatchi's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • M&C Saatchi's share price is below the future cash flow value, but not 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 M&C Saatchi's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are M&C Saatchi's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
AIM:SAA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-06-30) in GBP £0.03
AIM:SAA Share Price ** AIM (2019-03-15) in GBP £3.74
United Kingdom of Great Britain and Northern Ireland Media Industry PE Ratio Median Figure of 29 Publicly-Listed Media Companies 25.11x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 806 Publicly-Listed Companies 15.93x

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

** Primary Listing of M&C Saatchi.

AIM:SAA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= AIM:SAA Share Price ÷ EPS (both in GBP)

= 3.74 ÷ 0.03

145.88x

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

  • M&C Saatchi is overvalued based on earnings compared to the GB Media industry average.
  • M&C Saatchi is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does M&C Saatchi's expected growth come at a high price?
Raw Data
AIM:SAA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 145.88x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
8.8%per year
United Kingdom of Great Britain and Northern Ireland Media Industry PEG Ratio Median Figure of 21 Publicly-Listed Media Companies 1.26x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 572 Publicly-Listed Companies 1.36x

*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 M&C Saatchi, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on M&C Saatchi's assets?
Raw Data
AIM:SAA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-06-30) in GBP £0.97
AIM:SAA Share Price * AIM (2019-03-15) in GBP £3.74
United Kingdom of Great Britain and Northern Ireland Media Industry PB Ratio Median Figure of 44 Publicly-Listed Media Companies 1.4x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,359 Publicly-Listed Companies 1.52x
AIM:SAA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= AIM:SAA Share Price ÷ Book Value per Share (both in GBP)

= 3.74 ÷ 0.97

3.86x

* Primary Listing of M&C Saatchi.

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

  • M&C Saatchi is overvalued based on assets compared to the GB Media industry average.
X
Value checks
We assess M&C Saatchi'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 Media 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 Media industry average (and greater than 0)? (1 check)
  5. M&C Saatchi has a total score of 1/6, 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.

SAA Future Performance

 How is M&C Saatchi expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

  • No analysts cover M&C Saatchi, future earnings growth has been estimated based on fundamentals.
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
8.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is M&C Saatchi expected to grow at an attractive rate?
  • M&C Saatchi's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • M&C Saatchi's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • M&C Saatchi's revenues are expected to decrease over the next 1-3 years, this is below the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
AIM:SAA Future Growth Rates Data Sources
Data Point Source Value (per year)
AIM:SAA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 8.8%
AIM:SAA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts -2.3%
United Kingdom of Great Britain and Northern Ireland Media Industry Earnings Growth Rate Market Cap Weighted Average 10.7%
United Kingdom of Great Britain and Northern Ireland Media Industry Revenue Growth Rate Market Cap Weighted Average 4.1%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 11.2%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 5%

*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
AIM:SAA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (8 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
AIM:SAA Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 298 1
2019-12-31 280 32 2
2018-12-31 265 28 2
AIM:SAA Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-06-30 346 22 2
2018-03-31 299 23 2
2017-12-31 251 24 3
2017-09-30 249 21 1
2017-06-30 246 18 -1
2017-03-31 236 18 0
2016-12-31 225 19 0
2016-09-30 208 15 5
2016-06-30 192 12 9
2016-03-31 185 14 8
2015-12-31 179 16 6
2015-09-30 177 14 1

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • M&C Saatchi's earnings are expected to grow by 8.8% yearly, however this is not considered high growth (20% yearly).
  • M&C Saatchi's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
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
AIM:SAA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (8 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from M&C Saatchi Company Filings, last reported 8 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AIM:SAA Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31
2019-12-31
2018-12-31
AIM:SAA Past Financials Data
Date (Data in GBP Millions) EPS *
2018-06-30 0.03
2018-03-31 0.03
2017-12-31 0.03
2017-09-30 0.01
2017-06-30 -0.01
2017-03-31 -0.01
2016-12-31 0.00
2016-09-30 0.07
2016-06-30 0.13
2016-03-31 0.11
2015-12-31 0.09
2015-09-30 0.01

*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.
  • Unable to establish if M&C Saatchi will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess M&C Saatchi'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.
M&C Saatchi has a total score of 1/6, 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.

SAA Past Performance

  How has M&C Saatchi 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 M&C Saatchi's growth in the last year to its industry (Media).
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.
  • M&C Saatchi has delivered over 20% year on year earnings growth in the past 5 years.
  • M&C Saatchi has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • M&C Saatchi has become profitable in the last year making it difficult to compare the GB Media industry average.
Earnings and Revenue History
M&C Saatchi'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 M&C Saatchi Company Filings, last reported 8 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AIM:SAA Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-06-30 345.84 2.08 0.63
2018-03-31 298.66 2.38 0.31
2017-12-31 251.48 2.67
2017-09-30 248.84 0.78 115.70
2017-06-30 246.20 -1.11 115.70
2017-03-31 235.80 -0.48 57.85
2016-12-31 225.39 0.14
2016-09-30 208.48 4.75
2016-06-30 191.58 9.37
2016-03-31 185.25 7.92
2015-12-31 178.93 6.47
2015-09-30 176.63 0.73
2015-06-30 174.33 -5.02
2015-03-31 171.85 -2.59
2014-12-31 169.37 -0.16
2014-09-30 166.94 1.29
2014-06-30 164.51 2.73
2014-03-31 163.28 -2.94
2013-12-31 162.04 -8.61
2013-06-30 151.77 -5.09
2013-03-31 153.12 -3.28
2012-12-31 154.48 -1.47
2012-09-30 166.78 5.28
2012-06-30 164.07 8.10
2012-03-31 158.60 8.85

*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.
  • M&C Saatchi has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • M&C Saatchi used its assets less efficiently than the GB Media industry average last year based on Return on Assets.
  • M&C Saatchi's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess M&C Saatchi'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 Media 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.
M&C Saatchi has a total score of 1/6, 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.

SAA Health

 How is M&C Saatchi'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 M&C Saatchi's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • M&C Saatchi is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • M&C Saatchi's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of M&C Saatchi'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 5.7x 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 M&C Saatchi Company Filings, last reported 8 months ago.

AIM:SAA Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-06-30 85.91 32.43 36.27
2018-03-31 85.91 32.43 36.27
2017-12-31 64.07 41.50 48.96
2017-09-30 64.07 41.50 48.96
2017-06-30 67.26 39.88 31.64
2017-03-31 67.26 39.88 31.64
2016-12-31 49.40 31.95 32.22
2016-09-30 49.40 31.95 32.22
2016-06-30 48.09 37.78 29.27
2016-03-31 48.09 37.78 29.27
2015-12-31 42.02 26.85 32.34
2015-09-30 42.02 26.85 32.34
2015-06-30 43.75 24.67 26.10
2015-03-31 43.75 24.67 26.10
2014-12-31 35.87 18.37 23.45
2014-09-30 35.87 18.37 23.45
2014-06-30 45.00 10.47 20.06
2014-03-31 45.00 10.47 20.06
2013-12-31 50.82 0.49 33.70
2013-06-30 55.26 4.04 23.93
2013-03-31 55.26 4.04 23.93
2012-12-31 56.19 4.54 22.33
2012-09-30 56.19 4.54 22.33
2012-06-30 58.29 3.82 18.07
2012-03-31 58.29 3.82 18.07
  • M&C Saatchi's level of debt (37.8%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (7.3% vs 37.8% today).
  • Debt is well covered by operating cash flow (68.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 18.7x coverage).
X
Financial health checks
We assess M&C Saatchi'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. M&C Saatchi has a total score of 5/6, 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.

SAA Dividends

 What is M&C Saatchi'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
2.55%
Current annual income from M&C Saatchi dividends. Estimated to be 3.28% next year.
If you bought £2,000 of M&C Saatchi shares you are expected to receive £51 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?
  • M&C Saatchi's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.03%).
  • M&C Saatchi's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.17%).
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
AIM:SAA 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 2 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Media Industry Average Dividend Yield Market Cap Weighted Average of 29 Stocks 2.8%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 704 Stocks 4.3%
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.

AIM:SAA Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 0.13 1.00
2019-12-31 0.12 2.00
2018-12-31 0.11 2.00
AIM:SAA Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2018-05-04 0.095 2.773
2018-03-22 0.095 2.464
2017-03-16 0.083 2.403
2017-03-15 0.083 2.334
2016-09-22 0.075 2.197
2016-03-18 0.072 2.196
2016-03-17 0.072 2.244
2015-04-14 0.063 1.967
2015-03-26 0.063 1.829
2014-03-20 0.055 1.894
2014-03-19 0.055 1.833
2013-03-18 0.050 1.749
2012-03-20 0.045 2.738
2012-03-19 0.045 2.927
2011-03-24 0.039 3.060
2011-03-23 0.039 2.757
2010-09-30 0.036 2.878
2010-03-25 0.036 3.816
2010-03-01 0.036 4.862
2009-04-23 0.036 4.950
2009-03-26 0.036 6.862
2009-03-18 0.036 10.175

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

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of M&C Saatchi's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.2x coverage).
X
Income/ dividend checks
We assess M&C Saatchi'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 M&C Saatchi afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. M&C Saatchi has a total score of 4/6, see the detailed checks below.


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

SAA Management

 What is the CEO of M&C Saatchi'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
David Kershaw
COMPENSATION £420,000
CEO Bio

Mr. David Kershaw serves as the Chief Executive Officer at M&C Saatchi. Mr. Kershaw joined Saatchi & Saatchi in 1982, served as Managing Director since 1990 and also as its Chief Executive & Chairman of the UK agency since 1994. Mr. Kershaw serves as an Executive Director of M&C Saatchi Plc. He serves as the Chairman of the Advertising Association, a UK federation of trade bodies representing the advertising and promotional marketing industries. He obtained an MBA at The London Business School.

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

Average tenure of the M&C Saatchi management team in years:

10.2
Average Tenure
  • The average tenure for the M&C Saatchi management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Jeremy Sinclair

TITLE
Chairman
COMPENSATION
£419K

David Kershaw

TITLE
Chief Executive & Executive Director
COMPENSATION
£420K

Jamie Hewitt

TITLE
Finance Director & Executive Director
COMPENSATION
£394K
AGE
59
TENURE
9 yrs

Maurice Saatchi

TITLE
Executive Director
COMPENSATION
£416K

Bill Muirhead

TITLE
Executive Director
COMPENSATION
£421K
AGE
72

Charles Saatchi

TITLE
Founder & Partner

Richard Storey

TITLE
Chief Strategy Officer

Richard Alford

TITLE
Joint Managing Director
TENURE
11.9 yrs

Moray MacLennan

TITLE
Worldwide Chief Executive Officer
TENURE
10.2 yrs

Jane Boardman

TITLE
Chief Executive of Talk PR - Subsidiary
Board of Directors Tenure

Average tenure and age of the M&C Saatchi board of directors in years:

3.2
Average Tenure
69
Average Age
  • The tenure for the M&C Saatchi board of directors is about average.
Board of Directors

Jeremy Sinclair

TITLE
Chairman
COMPENSATION
£419K
TENURE
33.2 yrs

David Kershaw

TITLE
Chief Executive & Executive Director
COMPENSATION
£420K

Jamie Hewitt

TITLE
Finance Director & Executive Director
COMPENSATION
£394K
AGE
59
TENURE
9 yrs

Maurice Saatchi

TITLE
Executive Director
COMPENSATION
£416K

Bill Muirhead

TITLE
Executive Director
COMPENSATION
£421K
AGE
72

Michael Charles Peat

TITLE
Independent Non-Executive Director
COMPENSATION
£40K
AGE
69
TENURE
2.8 yrs

Michael Dobbs

TITLE
Independent Non Executive Director
COMPENSATION
£40K
AGE
69
TENURE
3.2 yrs

Lorna Tilbian

TITLE
Independent Non-Executive Director
AGE
61
TENURE
1.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
X
Management checks
We assess M&C Saatchi'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. M&C Saatchi 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.

SAA News

Simply Wall St News

Is M&C Saatchi plc (LON:SAA) Struggling With Its 14% Return On Capital Employed?

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Should M&C Saatchi plc (LON:SAA) Focus On Improving This Fundamental Metric?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … One way to conceptualize this, is that for each £1 of shareholders' equity it has, the company made £0.053 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Estimating The Fair Value Of M&C Saatchi plc (LON:SAA)

In this article I am going to calculate the intrinsic value of M&C Saatchi plc (LON:SAA). … by projecting its future cash flows and then discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

M&C Saatchi plc (LON:SAA): Did It Outperform The Industry?

For investors with a long-term horizon, assessing earnings trend over time and against industry benchmarks is more valuable than looking at a single earnings announcement in one point in time. … How SAA fared against its long-term earnings performance and its industry … SAA's trailing twelve-month earnings (from 31 December 2017) of UK£2.67m has

Simply Wall St -

Is M&C Saatchi plc (LON:SAA) A Smart Pick For Income Investors?

A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. … M&C Saatchi plc (LON:SAA) has returned to shareholders over the past 10 years, an average dividend yield of 3.00% annually. … Does M&C Saatchi tick all the boxes of a great dividend stock?

Simply Wall St -

June Fundamental Stock Pick: M&C Saatchi plc (LON:SAA)

Attractive stocks have exceptional fundamentals. … In the case of M&C Saatchi plc (LON:SAA), there's … track record

Simply Wall St -

3 Days Left To Cash In On M&C Saatchi plc (LON:SAA) Dividend, Should You Buy?

See our latest analysis for M&C Saatchi 5 questions I ask before picking a dividend stock Whenever I am looking at a potential dividend stock investment, I always check these five metrics: Is their annual yield among the top 25% of dividend payers? … In addition to this, EPS should increase to £0.25, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment. … Next Steps: Taking into account the dividend metrics, M&C Saatchi ticks most of the boxes as a strong dividend investment, putting it in my list of top dividend payers.

Simply Wall St -

What does M&C Saatchi plc's (LON:SAA) Balance Sheet Tell Us About Its Future?

SAA has built up its total debt levels in the last twelve months, from UK£31.95M to UK£41.50M – this includes both the current and long-term debt. … Additionally, SAA has generated cash from operations of UK£23.55M in the last twelve months, resulting in an operating cash to total debt ratio of 56.76%, meaning that SAA’s current level of operating cash is high enough to cover debt. … For SAA, the ratio of 11.18x suggests that interest is comfortably covered, which means that lenders may be less hesitant to lend out more funding as SAA’s high interest coverage is seen as responsible and safe practice.Next Steps: Although SAA’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet obligations which means its debt is being efficiently utilised.

Simply Wall St -

Is It Time To Sell M&C Saatchi plc (LON:SAA) Based Off Its PE Ratio?

It compares a stock’s price per share to the stock’s earnings per share. … Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for SAA Price per share = £4.05 Earnings per share = £0.034 ∴ Price-Earnings Ratio = £4.05 ÷ £0.034 = 118.2x On its own, the P/E ratio doesn’t tell you much; however, it becomes extremely useful when you compare it with other similar companies. … Since SAA's P/E of 118.2x is higher than its industry peers (20.9x), it means that investors are paying more than they should for each dollar of SAA's earnings.

Simply Wall St -

Was M&C Saatchi plc's (LON:SAA) Earnings Decline Part Of A Broader Industry Downturn?

After reading M&C Saatchi plc's (AIM:SAA) most recent earnings announcement (30 June 2017), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. … I look at the ‘latest twelve-month’ data, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. … For M&C Saatchi, its latest trailing-twelve-month earnings is -UK£1.11M, which, relative to the previous year's figure, has turned from positive to negative.

Simply Wall St -

SAA Company Info

Description

M&C Saatchi plc provides advertising and marketing services worldwide. The company offers its services in the areas of media buying, direct marketing, talent management, mobile marketing, research agency, Website construction, branding and digital marketing, design, marketing strategy, finished art and production, management studio, marketing consultant, and sport sponsorship and entertainment PR agency. The company was founded in 1995 and is based in London, the United Kingdom.

Details
Name: M&C Saatchi plc
SAA
Exchange: AIM
Founded: 1995
£350,278,253
88,903,110
Website: http://www.mcsaatchiplc.com
Address: M&C Saatchi plc
36 Golden Square,
Soho,
London,
Greater London, W1F 9EE,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
AIM SAA Ordinary Shares London Stock Exchange AIM Market GB GBP 09. Jul 2004
Number of employees
Current staff
Staff numbers
2,483
M&C Saatchi employees.
Industry
Advertising
Media
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/17 20:32
End of day share price update: 2019/03/15 00:00
Last estimates confirmation: 2019/02/22
Last earnings filing: 2018/09/21
Last earnings reported: 2018/06/30
Last annual earnings reported: 2017/12/31


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.