Saga

SAGA.L

Insurance - Diversified · Financial Services

Price

675.00 GBp

+15.00 (+2.27%)

Market Cap

£981.4M

Exchange

London Stock Exchange

Winston Score

Winston is serious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 23, 2026 · filings through Jan 31, 2026

How the score breaks down

Quality

Mixed

Growth

Mixed

Cash Flow

Mixed

Stability

Weak

Valuation

Good

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Share count rising — dilution

+5.4% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 139.5M (2022) → 147.1M (2026)

Winston Score History

The full picture

Saga plc is a UK company that sells insurance, financial products, and travel services exclusively to people aged 50 and over. Its core products include car insurance, home insurance, travel insurance, and cruise holidays, all marketed directly to older adults in the United Kingdom. Saga owns its own cruise ships and operates under the Saga brand, which has been focused on the over-50s market for decades.

Saga makes money through insurance premiums, financial product fees, and cruise bookings, giving it a mix of recurring and one-off revenues. It operates entirely in the UK, making it a relatively small, domestically focused business. Its main competitive advantage is brand recognition and loyalty among older British consumers, though its negative return on invested capital and heavy debt load from its cruise fleet are real concerns. The key challenge ahead is managing that debt while growing its insurance membership model, which it has been shifting toward in recent years.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+80.8% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+88.7% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

£0/ year

0.0% of revenue

Below sector average (7%)

Research and development spending

Insider Activity

43.4%ownership

↑ Rising

Insiders increasing their stake — aligned with shareholders

Cash Position

Cash flow positive

£258M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

Saga grew revenue 81% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

46.6%

Healthy — 46.6% gross margin

Profit after running costs

Operating Margin

8.1%

Modest — 8.1% operating margin

Return on the money invested

ROCE

11.2%

Below par — 11.2% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+12.2%

Fast-growing sales (+12.2% YoY)

Profit growth

EPS YoY

N/A

Data not available

How steady the profit is

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash

Cash Conversion

N/A

Data not available

Spare cash per sale

FCF Margin

12.6%

Converts sales into free cash efficiently (12.6%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns

Debt / Equity

9.35

Heavy debt load (9.35)

Covers its interest

Interest Cover

1.23x

Dangerous — barely covers interest (1.2x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

Price vs profit

P/E Ratio (TTM)

65.0x

Expensive — P/E 65.0

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year

P/E vs Forward

+51.1

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (65.0 → 13.9)

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Dividends

Not applicable for this business.

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