NasdaqGM:SGA

Stock Analysis Report

Executive Summary

Saga Communications, Inc., a broadcast company, acquires, develops, and operates broadcast properties in the United States.


Snowflake Analysis

Flawless balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has Saga Communications's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SGA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

15.4%

SGA

3.9%

US Media

2.4%

US Market


1 Year Return

-14.1%

SGA

-14.1%

US Media

-10.0%

US Market

Return vs Industry: SGA matched the US Media industry which returned -14.1% over the past year.

Return vs Market: SGA underperformed the US Market which returned -10% over the past year.


Shareholder returns

SGAIndustryMarket
7 Day15.4%3.9%2.4%
30 Day4.1%-13.2%-11.0%
90 Day-10.7%-23.6%-19.4%
1 Year-10.3%-14.1%-12.8%-14.1%-8.1%-10.0%
3 Year-38.0%-45.6%-10.5%-14.4%17.3%9.6%
5 Year-18.1%-32.2%3.4%-4.7%36.1%21.1%

Price Volatility Vs. Market

How volatile is Saga Communications's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

12.47x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SGA ($27.75) is trading above our estimate of fair value ($27)

Significantly Below Fair Value: SGA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SGA is poor value based on its PE Ratio (12.5x) compared to the Media industry average (9.2x).

PE vs Market: SGA is good value based on its PE Ratio (12.5x) compared to the US market (13x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SGA is good value based on its PB Ratio (0.9x) compared to the US Media industry average (0.9x).


Next Steps

Future Growth

How is Saga Communications forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.4%

Forecasted Media industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Saga Communications has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Saga Communications performed over the past 5 years?

4.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SGA has high quality earnings.

Growing Profit Margin: SGA's current net profit margins (10.6%) are lower than last year (10.8%).


Past Earnings Growth Analysis

Earnings Trend: SGA's earnings have grown by 4.8% per year over the past 5 years.

Accelerating Growth: SGA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SGA had negative earnings growth (-3.3%) over the past year, making it difficult to compare to the Media industry average (7.2%).


Return on Equity

High ROE: SGA's Return on Equity (6.9%) is considered low.


Next Steps

Financial Health

How is Saga Communications's financial position?


Financial Position Analysis

Short Term Liabilities: SGA's short term assets ($66.7M) exceed its short term liabilities ($17.5M).

Long Term Liabilities: SGA's short term assets ($66.7M) exceed its long term liabilities ($42.5M).


Debt to Equity History and Analysis

Debt Level: SGA's debt to equity ratio (5.2%) is considered satisfactory.

Reducing Debt: SGA's debt to equity ratio has reduced from 31.3% to 5.2% over the past 5 years.

Debt Coverage: SGA's debt is well covered by operating cash flow (253.4%).

Interest Coverage: SGA's interest payments on its debt are well covered by EBIT (150.5x coverage).


Balance Sheet


Next Steps

Dividend

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

4.61%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SGA's dividend (4.61%) is higher than the bottom 25% of dividend payers in the US market (1.93%).

High Dividend: SGA's dividend (4.61%) is low compared to the top 25% of dividend payers in the US market (5.46%).


Stability and Growth of Payments

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

Growing Dividend: SGA has only been paying a dividend for 6 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53.9%), SGA's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

25.6yrs

Average management tenure


CEO

Ed Christian (74yo)

34.25s

Tenure

US$3,387,989

Compensation

Mr. Edward K. Christian has been President, Chief Executive Officer and Chairman since Saga Communications, Inc.’s inception in 1986. He is known as a Pioneer in the radio broadcasting industry. From 1977  ...


CEO Compensation Analysis

Compensation vs Market: Ed's total compensation ($USD3.39M) is above average for companies of similar size in the US market ($USD1.51M).

Compensation vs Earnings: Ed's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Edward Christian
President34.25yrsUS$3.39m15.96% $26.6m
Samuel Bush
Senior VP22.58yrsUS$585.26k0.42% $694.8k
Christopher Forgy
Senior Vice President of Operations1.92yrsUS$435.99k0.098% $162.8k
Catherine Bobinski
Senior VP of Finance28.58yrsUS$363.26k0.25% $410.2k
Marcia Lobaito
Corporate Secretary34.25yrsUS$392.92k0.30% $498.9k
Tracy Cleeton
Chief Technical Officer1.08yrsno datano data

25.6yrs

Average Tenure

61yo

Average Age

Experienced Management: SGA's management team is seasoned and experienced (25.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Edward Christian
President34.25yrsUS$3.39m15.96% $26.6m
Roy Coppedge
Independent Director6.83yrsUS$51.44k0.065% $107.6k
Warren Lada
Director1.92yrsUS$271.35k0.37% $608.1k
Gary Stevens
Lead Directorno dataUS$112.64k0.18% $300.0k
Timothy Clarke
Independent Director6.33yrsUS$65.83k0.061% $101.5k
Clarke Brown
Independent Director15.75yrsUS$51.44k0.098% $163.3k
G. Pearce
Director2.92yrsUS$51.44k0.019% $32.4k

6.6yrs

Average Tenure

74yo

Average Age

Experienced Board: SGA's board of directors are considered experienced (6.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Saga Communications, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Saga Communications, Inc.
  • Ticker: SGA
  • Exchange: NasdaqGM
  • Founded: 1986
  • Industry: Broadcasting
  • Sector: Media
  • Market Cap: US$166.414m
  • Shares outstanding: 6.00m
  • Website: https://sagacom.com

Number of Employees


Location

  • Saga Communications, Inc.
  • 73 Kercheval Avenue
  • Suite 201
  • Grosse Pointe Farms
  • Michigan
  • 48236
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SGANasdaqGM (Nasdaq Global Market)YesClass A Common StockUSUSDMar 1993

Biography

Saga Communications, Inc., a broadcast company, acquires, develops, and operates broadcast properties in the United States. The company’s radio stations employ various programming formats, including classic hits, adult hits, top 40, country, country legends, mainstream/hot/soft adult contemporary, pure oldies, classic rock, and news/talk. As of February 28, 2019, the company owned 79 FM and 34 AM radio stations serving 27 markets. Saga Communications, Inc. was founded in 1986 and is headquartered in Grosse Pointe Farms, Michigan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 04:41
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.