Saga Communications Profitability Analysis

SGA Stock  USD 12.60  0.03  0.24%   
Based on Saga Communications' profitability indicators, Saga Communications' profitability may be sliding down. It has an above-average likelihood of reporting lower numbers next quarter. Profitability indicators assess Saga Communications' ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
1992-03-31
Previous Quarter
1.3 M
Current Value
1.3 M
Quarterly Volatility
7.5 M
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At present, Saga Communications' Days Sales Outstanding is projected to increase slightly based on the last few years of reporting. The current year's Operating Cash Flow Sales Ratio is expected to grow to 0.20, whereas Price To Sales Ratio is forecasted to decline to 0.58. At present, Saga Communications' Total Other Income Expense Net is projected to increase significantly based on the last few years of reporting. The current year's Net Income Applicable To Common Shares is expected to grow to about 15.8 M, whereas Operating Income is forecasted to decline to about 2.2 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.220.23
Sufficiently Down
Slightly volatile
For Saga Communications profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Saga Communications to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Saga Communications utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Saga Communications's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Saga Communications over time as well as its relative position and ranking within its peers.
  

Saga Communications' Revenue Breakdown by Earning Segment

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Is Broadcasting space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Saga Communications. If investors know Saga will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Saga Communications listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.51)
Dividend Share
1.6
Earnings Share
0.55
Revenue Per Share
18.155
Quarterly Revenue Growth
(0.01)
The market value of Saga Communications is measured differently than its book value, which is the value of Saga that is recorded on the company's balance sheet. Investors also form their own opinion of Saga Communications' value that differs from its market value or its book value, called intrinsic value, which is Saga Communications' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Saga Communications' market value can be influenced by many factors that don't directly affect Saga Communications' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Saga Communications' value and its price as these two are different measures arrived at by different means. Investors typically determine if Saga Communications is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Saga Communications' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Saga Communications Return On Asset vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Saga Communications's current stock value. Our valuation model uses many indicators to compare Saga Communications value to that of its competitors to determine the firm's financial worth.
Saga Communications is rated below average in return on equity category among its peers. It is rated below average in return on asset category among its peers reporting about  0.69  of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Saga Communications is roughly  1.45 . At present, Saga Communications' Return On Equity is projected to slightly decrease based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Saga Communications' earnings, one of the primary drivers of an investment's value.

Saga Return On Asset vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Saga Communications

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0206
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Saga Communications

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0142
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Saga Return On Asset Comparison

Saga Communications is currently under evaluation in return on asset category among its peers.

Saga Communications Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Saga Communications, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Saga Communications will eventually generate negative long term returns. The profitability progress is the general direction of Saga Communications' change in net profit over the period of time. It can combine multiple indicators of Saga Communications, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Operating Income2.4 M2.2 M
Income Before Tax4.6 M4.3 M
Total Other Income Expense Net2.2 M2.3 M
Net Income10.9 M8.2 M
Income Tax Expense1.1 M1.1 M
Net Income Applicable To Common Shares10.6 M15.8 M
Net Income From Continuing Ops10.2 M12 M
Non Operating Income Net Other1.2 M1.3 M
Interest Income1.1 M1.2 M
Net Interest Income1.2 M1.3 M
Change To Netincome7.1 M3.9 M
Net Income Per Share 0.57  1.08 
Income Quality 1.86  1.57 
Net Income Per E B T 0.76  0.51 

Saga Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Saga Communications. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Saga Communications position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Saga Communications' important profitability drivers and their relationship over time.

Saga Communications Profitability Trends

Saga Communications profitability trend refers to the progression of profit or loss within a business. An upward trend means that Saga Communications' profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Saga Communications' gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Saga Communications Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Saga Communications different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Saga Communications in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Saga Communications' future profitability.

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Use Investing Themes to Complement your Saga Communications position

In addition to having Saga Communications in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Communication Services
Communication Services Theme
Companies that provide networking, telecom, and long distance services. The Communication Services theme has 48 constituents at this time.
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When determining whether Saga Communications offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Saga Communications' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Saga Communications Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Saga Communications Stock:
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You can also try the Global Correlations module to find global opportunities by holding instruments from different markets.
To fully project Saga Communications' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Saga Communications at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Saga Communications' income statement, its balance sheet, and the statement of cash flows.
Potential Saga Communications investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Saga Communications investors may work on each financial statement separately, they are all related. The changes in Saga Communications's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Saga Communications's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.