Loading...

We've got a brand new version of Simply Wall St! Try it out

Saga Communications

Nasdaq:SGA
Snowflake Description

Flawless balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SGA
Nasdaq
$178M
Market Cap
  1. Home
  2. US
  3. Media
Company description

Saga Communications, Inc., a broadcast company, acquires, develops, and operates broadcast properties in the United States. The last earnings update was 6 days ago. More info.


Add to Portfolio Compare Print
SGA Share Price and Events
7 Day Returns
-1%
NasdaqGM:SGA
2%
US Media
0.5%
US Market
1 Year Returns
-16.9%
NasdaqGM:SGA
17.6%
US Media
12.8%
US Market
SGA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Saga Communications (SGA) -1% -2.4% 4.6% -16.9% -37.2% -24.6%
US Media 2% 4.5% 10% 17.6% 24.9% 33%
US Market 0.5% 4.3% 8% 12.8% 38.7% 44.5%
1 Year Return vs Industry and Market
  • SGA underperformed the Media industry which returned 17.6% over the past year.
  • SGA underperformed the Market in United States of America which returned 12.8% over the past year.
Price Volatility
SGA
Industry
5yr Volatility vs Market

Value

 Is Saga Communications 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 Saga Communications 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

Below are the data sources, inputs and calculation used to determine the intrinsic value for Saga Communications.

NasdaqGM:SGA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 8%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

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 NasdaqGM:SGA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Media Unlevered Beta Simply Wall St/ S&P Global 0.78
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.775 (1 + (1- 21%) (9.06%))
0.887
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.89
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.887 * 5.96%)
8.01%

Discounted Cash Flow Calculation for NasdaqGM:SGA using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Saga Communications 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.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGM:SGA DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.01%)
2020 7.39 Est @ 3.36% 6.85
2021 7.63 Est @ 3.17% 6.54
2022 7.86 Est @ 3.04% 6.24
2023 8.09 Est @ 2.95% 5.94
2024 8.32 Est @ 2.88% 5.66
2025 8.56 Est @ 2.84% 5.39
2026 8.80 Est @ 2.8% 5.13
2027 9.05 Est @ 2.78% 4.88
2028 9.30 Est @ 2.77% 4.64
2029 9.55 Est @ 2.76% 4.42
Present value of next 10 years cash flows $55.00
NasdaqGM:SGA DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $9.55 × (1 + 2.73%) ÷ (8.01% – 2.73%)
$185.71
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $185.71 ÷ (1 + 8.01%)10
$85.90
NasdaqGM:SGA Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $55.00 + $85.90
$140.90
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $140.90 / 5.94
$23.74
NasdaqGM:SGA Discount to Share Price
Calculation Result
Value per share (USD) From above. $23.74
Current discount Discount to share price of $30.00
= -1 x ($30.00 - $23.74) / $23.74
-26.4%

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

  • The current share price of Saga Communications is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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 Saga Communications's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Saga Communications's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGM:SGA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in USD $2.31
NasdaqGM:SGA Share Price ** NasdaqGM (2019-11-13) in USD $30
United States of America Media Industry PE Ratio Median Figure of 38 Publicly-Listed Media Companies 13.32x
United States of America Market PE Ratio Median Figure of 2,922 Publicly-Listed Companies 18.24x

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

** Primary Listing of Saga Communications.

NasdaqGM:SGA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGM:SGA Share Price ÷ EPS (both in USD)

= 30 ÷ 2.31

12.99x

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

  • Saga Communications is good value based on earnings compared to the US Media industry average.
  • Saga Communications is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Saga Communications's expected growth come at a high price?
Raw Data
NasdaqGM:SGA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 12.99x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
16.4%per year
United States of America Media Industry PEG Ratio Median Figure of 29 Publicly-Listed Media Companies 1.38x
United States of America Market PEG Ratio Median Figure of 2,023 Publicly-Listed Companies 1.46x

*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 Saga Communications, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Saga Communications's assets?
Raw Data
NasdaqGM:SGA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in USD $31.72
NasdaqGM:SGA Share Price * NasdaqGM (2019-11-13) in USD $30
United States of America Media Industry PB Ratio Median Figure of 73 Publicly-Listed Media Companies 1.37x
United States of America Market PB Ratio Median Figure of 5,070 Publicly-Listed Companies 1.73x
NasdaqGM:SGA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGM:SGA Share Price ÷ Book Value per Share (both in USD)

= 30 ÷ 31.72

0.95x

* Primary Listing of Saga Communications.

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

  • Saga Communications is good value based on assets compared to the US Media industry average.
X
Value checks
We assess Saga Communications'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. Saga Communications has a total score of 3/6, 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.

Future Performance

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

  • No analysts cover Saga Communications, 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
16.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Saga Communications expected to grow at an attractive rate?
  • Saga Communications's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Saga Communications's earnings growth is expected to exceed the United States of America market average.
  • Unable to compare Saga Communications's revenue growth to the United States of America market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NasdaqGM:SGA Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGM:SGA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 16.4%
United States of America Media Industry Earnings Growth Rate Market Cap Weighted Average 18.4%
United States of America Media Industry Revenue Growth Rate Market Cap Weighted Average 3.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*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
NasdaqGM:SGA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGM:SGA Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-30 124 13
2019-06-30 125 25 14
2019-03-31 125 27 13
2018-12-31 125 26 13
2018-09-30 123 5 24
2018-06-30 122 5 23
2018-03-31 120 4 22
2017-12-31 118 5 21
2017-09-30 117 27 10
2017-06-30 117 30 11
2017-03-31 118 28 12
2016-12-31 119 29 13

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Saga Communications's earnings are expected to grow by 16.4% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if Saga Communications is high growth as no revenue estimate data is available.
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
NasdaqGM:SGA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Saga Communications Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:SGA Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-30 2.31
2019-06-30 2.37
2019-03-31 2.28
2018-12-31 2.30
2018-09-30 4.10
2018-06-30 3.89
2018-03-31 3.75
2017-12-31 3.68
2017-09-30 1.72
2017-06-30 1.97
2017-03-31 2.02
2016-12-31 2.18

*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 Saga Communications will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Saga Communications'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 States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America 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.
Saga Communications has a total score of 2/6, 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.

Past Performance

  How has Saga Communications 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 Saga Communications'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.
  • Saga Communications's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Saga Communications's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Saga Communications's 1-year earnings growth is negative, it can't be compared to the US Media industry average.
Earnings and Revenue History
Saga Communications'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 Saga Communications Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:SGA Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 124.22 13.48 11.33
2019-06-30 124.59 13.82 11.36
2019-03-31 124.64 13.28 11.50
2018-12-31 124.83 13.43 11.36
2018-09-30 123.36 23.87 10.99
2018-06-30 121.98 22.63 11.31
2018-03-31 120.00 21.83 11.34
2017-12-31 118.15 21.34 11.66
2017-09-30 117.43 9.97 11.79
2017-06-30 117.04 11.38 11.39
2017-03-31 117.65 11.64 11.13
2016-12-31 118.96 12.59 10.98
2016-09-30 123.81 12.91 10.51
2016-06-30 127.77 12.17 10.36
2016-03-31 131.26 13.02 10.33
2015-12-31 111.79 8.90 10.09
2015-09-30 133.62 13.87 9.96
2015-06-30 134.16 14.02 9.69
2015-03-31 133.64 14.35 9.23
2014-12-31 134.00 14.67 8.90
2014-09-30 131.39 13.46 8.77
2014-06-30 129.94 14.54 8.52
2014-03-31 129.94 14.61 8.38
2013-12-31 129.48 14.92 8.17
2013-09-30 131.26 17.62 8.14
2013-06-30 130.74 17.69 8.00
2013-03-31 129.89 18.08 7.96
2012-12-31 130.26 18.06 7.96

*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.
  • Saga Communications has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Saga Communications used its assets less efficiently than the US Media industry average last year based on Return on Assets.
  • Saga Communications's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Saga Communications'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.
Saga Communications 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.

Health

 How is Saga Communications'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 Saga Communications's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Saga Communications is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Saga Communications's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Saga Communications'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.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 6.1x 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 Saga Communications Company Filings, last reported 1 month ago.

NasdaqGM:SGA Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 188.59 16.13 38.51
2019-06-30 188.59 10.00 38.51
2019-03-31 185.33 15.00 39.17
2018-12-31 185.00 20.00 44.73
2018-09-30 184.16 20.00 48.79
2018-06-30 182.41 25.00 52.91
2018-03-31 179.92 25.00 47.79
2017-12-31 179.47 25.00 53.03
2017-09-30 171.56 35.29 81.04
2017-06-30 139.32 35.29 30.23
2017-03-31 135.98 36.37 30.58
2016-12-31 134.98 35.29 26.70
2016-09-30 133.22 36.37 22.71
2016-06-30 129.04 36.37 17.74
2016-03-31 125.16 36.37 15.34
2015-12-31 122.82 36.37 21.61
2015-09-30 121.88 36.37 18.87
2015-06-30 120.48 36.08 27.38
2015-03-31 116.90 36.08 24.52
2014-12-31 115.25 36.08 17.91
2014-09-30 118.92 41.08 28.04
2014-06-30 117.78 46.08 25.92
2014-03-31 112.82 46.08 23.33
2013-12-31 109.70 46.08 17.63
2013-09-30 116.65 51.08 27.45
2013-06-30 112.27 51.08 19.30
2013-03-31 107.41 58.83 25.29
2012-12-31 104.21 58.83 15.92
  • Saga Communications's level of debt (5.3%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (34.5% vs 5.3% today).
  • Debt is well covered by operating cash flow (252%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 171.3x coverage).
X
Financial health checks
We assess Saga Communications'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. Saga Communications has a total score of 6/6, 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.

Dividends

 What is Saga Communications'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
4.83%
Current annual income from Saga Communications dividends.
If you bought $2,000 of Saga Communications shares you are expected to receive $97 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?
  • Saga Communications's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).
  • Saga Communications's dividend is above the markets top 25% of dividend payers in United States of America (3.67%).
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
NasdaqGM:SGA 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 0 Analyst Estimates (S&P Global) See Below
United States of America Media Industry Average Dividend Yield Market Cap Weighted Average of 28 Stocks 2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1948 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGM:SGA Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-09-12 1.450 4.776
2019-05-30 1.450 4.900
2019-02-26 1.450 4.503
2018-11-28 1.450 4.317
2018-08-14 2.000 5.516
2018-05-15 2.000 5.249
2018-02-28 2.000 5.234
2017-12-07 2.000 4.911
2017-09-13 1.400 3.170
2017-08-09 1.400 3.403
2017-03-03 1.400 2.938
2016-11-21 1.400 2.813
2016-08-30 1.450 3.296
2016-06-01 1.250 3.031
2016-03-02 1.250 3.043
2015-11-17 1.250 3.122
2015-09-02 2.000 5.297
2015-06-10 2.000 5.292
2015-03-25 2.000 4.929
2014-12-03 2.000 4.835
2014-09-23 2.600 6.728
2014-06-30 2.600 6.832
2013-11-21 1.800 3.852

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

  • Saga Communications has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Saga Communications has only been paying a dividend for 6 years, and since then dividends per share have fallen.
Current Payout to shareholders
What portion of Saga Communications's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.9x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Saga Communications's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - 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 Saga Communications afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Saga Communications has a total score of 3/6, see the detailed checks below.


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

Management

 What is the CEO of Saga Communications'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
Ed Christian
COMPENSATION $3,387,989
AGE 74
TENURE AS CEO 33.8 years
CEO Bio

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 to 1986, Mr. Christian served as Executive Vice President and subsequently as President of Josephson Communications. From 1974 to 1977, he served as Vice President and General Manager of WNIC-FM in Detroit until the station was purchased by Josephson Communications. He serves as a Director of Saga Communications Inc. Mr. Christian holds a BA from Wayne State University and an MA in Management from Central Michigan University.

CEO Compensation
  • Ed's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Ed's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Saga Communications management team in years:

18.5
Average Tenure
61
Average Age
  • The average tenure for the Saga Communications management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Ed Christian

TITLE
President
COMPENSATION
$3M
AGE
74
TENURE
33.8 yrs

Sam Bush

TITLE
Senior VP
COMPENSATION
$585K
AGE
61
TENURE
22.2 yrs

Chris Forgy

TITLE
Senior Vice President of Operations
COMPENSATION
$436K
AGE
58
TENURE
1.5 yrs

Cathy Bobinski

TITLE
Senior VP of Finance
COMPENSATION
$363K
AGE
59
TENURE
28.2 yrs

Marcia Lobaito

TITLE
Senior VP
COMPENSATION
$393K
AGE
70
TENURE
14.8 yrs

Tracy Cleeton

TITLE
Chief Technical Officer
TENURE
0.7 yrs
Board of Directors Tenure

Average tenure and age of the Saga Communications board of directors in years:

6.2
Average Tenure
74
Average Age
  • The tenure for the Saga Communications board of directors is about average.
Board of Directors

Gary Stevens

TITLE
Lead Director
COMPENSATION
$113K
AGE
79

Ed Christian

TITLE
President
COMPENSATION
$3M
AGE
74
TENURE
33.8 yrs

Tim Clarke

TITLE
Independent Director
COMPENSATION
$66K
AGE
75
TENURE
5.9 yrs

Warren Lada

TITLE
Director
COMPENSATION
$271K
AGE
64
TENURE
1.5 yrs

Clarke Brown

TITLE
Independent Director
COMPENSATION
$51K
AGE
78
TENURE
15.3 yrs

Copey Coppedge

TITLE
Independent Director
COMPENSATION
$51K
AGE
71
TENURE
6.4 yrs

G. Pearce

TITLE
Director
COMPENSATION
$51K
AGE
57
TENURE
2.5 yrs
Who owns this company?
Recent Insider Trading
  • Saga Communications individual insiders have only sold shares in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
12. Nov 19 Sell Warren Lada Individual 11. Nov 19 11. Nov 19 -992 $29.91 $-29,671
23. May 19 Buy Towerview LLC Company 22. May 19 22. May 19 3,605 $28.08 $101,216
22. May 19 Buy Towerview LLC Company 21. May 19 21. May 19 2,754 $28.35 $78,072
20. May 19 Buy Towerview LLC Company 20. May 19 20. May 19 1,705 $28.44 $48,493
X
Management checks
We assess Saga Communications'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. Saga Communications 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.

News

Simply Wall St News

Does Saga Communications, Inc. (NASDAQ:SGA) Have A Place In Your Dividend Stock Portfolio?

Dividend paying stocks like Saga Communications, Inc. … Looking at the data, we can see that Saga Communications has been paying a dividend for the past six years. … We struggle to make a case for buying Saga Communications for its dividend, given that payments have shrunk over the past six years.

Simply Wall St -

Is Saga Communications (NASDAQ:SGA) Using Too Much Debt?

NasdaqGM:SGA Historical Debt, August 19th 2019 How Strong Is Saga Communications's Balance Sheet? … Succinctly put, Saga Communications boasts net cash, so it's fair to say it does not have a heavy debt load! … While Saga Communications has net cash on its balance sheet, it's still worth taking a look at its ability to convert earnings before interest and tax (EBIT) to free cash flow, to help us understand how quickly it is building (or eroding) that cash balance.

Simply Wall St -

Should We Be Cautious About Saga Communications, Inc.'s (NASDAQ:SGA) ROE Of 7.3%?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Saga Communications: 7.3% = US$13m ÷ US$185m (Based on the trailing twelve months to March 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Combining Saga Communications's Debt And Its 7.3% Return On Equity Saga Communications has a debt to equity ratio of just 0.081, which is very low. … If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

Simply Wall St -

Do Saga Communications, Inc.’s (NASDAQ:SGA) Returns On Capital Employed Make The Cut?

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Saga Communications: 0.085 = US$20m ÷ (US$245m - US$14m) (Based on the trailing twelve months to March 2019.) So, Saga Communications has an ROCE of 8.5%. … How Saga Communications's Current Liabilities Impact Its ROCE Liabilities, such as supplier bills and bank overdrafts, are referred to as current liabilities if they need to be paid within 12 months. … Saga Communications has a low level of current liabilities, which have a minimal impact on its uninspiring ROCE.

Simply Wall St -

Should You Be Pleased About The CEO Pay At Saga Communications, Inc.'s (NASDAQ:SGA)

View our latest analysis for Saga Communications How Does Ed Christian's Compensation Compare With Similar Sized Companies? … The graphic below shows how CEO compensation at Saga Communications has changed from year to year. … With a three year total loss of 19%, Saga Communications, Inc.

Simply Wall St -

How Much Are Saga Communications, Inc. (NASDAQ:SGA) Insiders Taking Off The Table?

So we'll take a look at whether insiders have been buying or selling shares in Saga Communications, Inc. … For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.' View our latest analysis for Saga Communications The Last 12 Months Of Insider Transactions At Saga Communications Over the last year, we can see that the biggest insider sale was by the Director, Warren Lada, for US$61k worth of shares, at about US$35.89 per share. … NasdaqGM:SGA Recent Insider Trading, June 30th 2019 Insider Ownership I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders.

Simply Wall St -

Do You Like Saga Communications, Inc. (NASDAQ:SGA) At This P/E Ratio?

The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Saga Communications: P/E of 13.28 = $30.25 ÷ $2.28 (Based on the year to March 2019.) Is A High P/E Ratio Good? … Saga Communications's earnings per share fell by 39% in the last twelve months. … NasdaqGM:SGA Price Estimation Relative to Market, June 17th 2019 Its relatively low P/E ratio indicates that Saga Communications shareholders think it will struggle to do as well as other companies in its industry classification.

Simply Wall St -

Should You Be Concerned About Saga Communications, Inc.'s (NASDAQ:SGA) Historical Volatility?

Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … Check out our latest analysis for Saga Communications What SGA's beta value tells investors With a beta of 1.04, (which is quite close to 1) the share price of Saga Communications has historically been about as voltile as the broader market. … What this means for you: Saga Communications has a beta value quite close to that of the overall market.

Simply Wall St -

A Look At The Intrinsic Value Of Saga Communications, Inc. (NASDAQ:SGA)

A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $9.15 $9.05 $9.06 $9.14 $9.27 $9.44 $9.64 $9.86 $10.09 $10.35 Growth Rate Estimate Source Est @ -2.66% Est @ -1.04% Est @ 0.09% Est @ 0.88% Est @ 1.44% Est @ 1.82% Est @ 2.1% Est @ 2.29% Est @ 2.42% Est @ 2.51% Present Value ($, Millions) Discounted @ 8.23% $8.45 $7.73 $7.15 $6.66 $6.24 $5.87 $5.54 $5.24 $4.95 $4.69 Present Value of 10-year Cash Flow (PVCF)= $62.52m "Est" = FCF growth rate estimated by Simply Wall St We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$10m × (1 + 2.7%) ÷ (8.2% – 2.7%) = US$193m Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$193m ÷ ( 1 + 8.2%)10 = $87.68m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $150.20m. … NasdaqGM:SGA Intrinsic value, May 22nd 2019 The assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

Is Saga Communications, Inc. (NASDAQ:SGA) A Strong Dividend Stock?

In this case, Saga Communications likely looks attractive to dividend investors, given its 3.9% dividend yield and five-year payment history. … Click the interactive chart for our full dividend analysis NasdaqGM:SGA Historical Dividend Yield, May 10th 2019 Payout ratios Dividends are usually paid out of company earnings. … Saga Communications paid out 69% of its cash flow as dividends last year, which does not seem unusual.

Simply Wall St -

Company Info

Description

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.

Details
Name: Saga Communications, Inc.
SGA
Exchange: NasdaqGM
Founded: 1986
$178,052,040
5,935,068
Website: http://sagacom.com
Address: Saga Communications, Inc.
73 Kercheval Avenue,
Suite 201,
Grosse Pointe Farms,
Michigan, 48236,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGM SGA Class A Common Stock Nasdaq Global Market US USD 02. Mar 1993
Number of employees
Current staff
Staff numbers
859
Saga Communications employees.
Industry
Broadcasting
Media
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/13 23:38
End of day share price update: 2019/11/13 00:00
Last earnings filing: 2019/11/07
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


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.