Saga Communications operates through two segments, Radio and Television, with radio formats that include classic hits, adult contemporary, classic rock, news/talk, and country. The company was founded in 1986 and is based in Grosse Pointe Farms, Michigan.
SGA Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for SGA, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Saga Communications Inc ranked in the 45th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 12.33%. In terms of the factors that were most noteworthy in this DCF analysis for SGA, they are:
Its compound free cash flow growth rate, as measured over the past 5.5 years, is -0.04% -- higher than just 23.73% of stocks in our DCF forecasting set.
SGA's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 45.56% of tickers in our DCF set.
Relative to other stocks in its sector (Consumer Cyclical), Saga Communications Inc has a reliance on debt greater than only 7.63% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as SGA, try MUSA, SGMS, TGNA, GOLF, and PII.
As a result of COVID-19 and the future economic uncertainties, Saga Communications (SGA) temporarily suspends common shares dividend.The company will also reduce planned CapEx and seek discounts from vendors to conserve the cash.The Company will consider the resumption of dividends in the near future as economic conditions permit.Press Release...
Saga Communications, Inc. (Nasdaq - SGA) today announced that its Board of Directors is temporarily suspending the quarterly cash dividend in response to the continued economic uncertainty of the impact of COVID-19. Additional actions being taken to conserve the Company's cash position include reducing planned capital spending and seeking discounts from vendors.
Before we spend countless hours researching a company, we like to analyze what insiders, hedge funds and billionaire investors think of the stock first. This is a necessary first step in our investment process because our research has shown that the elite investors' consensus returns have been exceptional. In the following paragraphs, we find out […]
Saga Communications, Inc. (Nasdaq - SGA) today reported net income increased to $1.7 million from $1.4 million for the same period last year. Net revenue of $26.1 million for the quarter compared to $27.8 million for the 1st quarter last year. Gross political revenue increased $963 thousand for the quarter this year to $1.0 million. Station operating expense decreased $964 thousand to $22.2 million and operating income increased $202 thousand to $2.2 million. Diluted earnings per share were $0.28/share in the 1st quarter of 2020 compared to $0.23/share during the same period in 2019. Free cash flow was $1.5 million for the quarter ended March 31, 2020 compared to $2.6 million for the same period last year. A $1.4 million gain on the sale of the land and building at one of the Company...