Saga Communications Story

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SGA -- USA Stock  

USD 22.84  0.27  1.17%

Saga Communications is scheduled to announce its earnings today. Saga Communications Net Income Per Employee is projected to increase significantly based on the last few years of reporting. The past year's Net Income Per Employee was at 11,926.8. The current year Average Assets is expected to grow to about 261.3 M, whereas Revenue Per Employee is forecasted to decline to about 107.5 K. As many millenniums are trying to avoid communication services space, it makes sense to go over Saga Communications a little further and try to understand its current market patterns.
Published over a month ago
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Is Saga Communications (NASDAQ:SGA) outlook still optimistic based on the current debt level?
Saga Communications has 16.59 M in debt with debt to equity (D/E) ratio of 0.09, which may show that Saga Communications is not taking advantage of profits from borrowing.
Saga Communications has performance score of 2 on a scale of 0 to 100. The entity has a beta of 0.9487, which indicates possible diversification benefits within a given portfolio. Let's try to break down what Saga Communications's beta means in this case. Saga Communications returns are very sensitive to returns on the market. As the market goes up or down, Saga Communications is expected to follow. Although it is extremely important to respect Saga Communications current price movements, it is better to be realistic regarding the information on equity historical returns. The philosophy towards measuring future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By inspecting Saga Communications technical indicators, you can presently evaluate if the expected return of 0.12% will be sustainable into the future. Saga Communications right now has a risk of 2.94%. Please validate Saga Communications jensen alpha, potential upside, accumulation distribution, as well as the relationship between the treynor ratio and expected short fall to decide if Saga Communications will be following its existing price patterns.
Saga Communications financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Saga Communications, including all of Saga Communications's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Saga Communications assets, the company is considered highly leveraged. Understanding the composition and structure of overall Saga Communications debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.
Please read more on our technical analysis page.

Understanding Saga Communications Total Debt

Saga Communications liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Saga Communications has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Saga Communications balance sheet include debt obligations and money owed to different Saga Communications vendors, workers, and loan providers. Below is the chart of Saga Communications main long-term debt accounts currently reported on its balance sheet.
You can use Saga Communications financial leverage analysis tool to get a better grip on understanding its financial position

How important is Saga Communications's Liquidity

Saga Communications financial leverage refers to using borrowed capital as a funding source to finance Saga Communications ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Saga Communications financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Saga Communications's total debt and its cash.

Sale by Towerview Llc of 2534 shares of Saga Communications

Legal trades by Saga Communications insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Saga Communications insider trading alert for sale of class a common stock by Towerview Llc, the corporate stakeholder, on 16th of March 2021. This event was filed by Saga Communications Inc with SEC on 2021-03-16. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is driving Saga Communications Investor Appetite?

The modest gains experienced by current holders of Saga Communications created some momentum for investors as it was traded today as low as 23.52 and as high as 24.44 per share. The company executives have been quite successful in maneuvering the stock at opportune times to take advantage of all market conditions in February. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.94. The current volatility is consistent with the ongoing market swings in February 2021 as well as with Saga Communications unsystematic, company-specific events.

Asset Breakdown

128.6 M
Goodwill
52.9 M
Current Assets
Total Assets210 Million
Current Assets52.94 Million
Assets Non Current209.5 Million
Goodwill128.61 Million
Tax Assets1.25 Million

Another setback for Saga Communications investors

Current value at risk is at -4.15. Saga Communications currently demonstrates below-average downside deviation. It has Information Ratio of 0.04 and Jensen Alpha of 0.14. However, we advise investors to further question Saga Communications expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Saga Communications' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Saga Communications' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Bottom Line On Saga Communications

Whereas some firms in the broadcasting industry are either recovering or due for a correction, Saga Communications may not be as strong as the others in terms of longer-term growth potentials. To conclude, as of the 12th of March 2021, we believe that at this point, Saga Communications is overvalued with low odds of financial distress within the next 2 years. Our ongoing Buy-Hold-Sell recommendation on the company is Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Saga Communications. Please refer to our Terms of Use for any information regarding our disclosure principles.

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