# M&C Saatchi plc (SAA.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Communication Services / Diversified Telecommunication Services. Price 148p, market value 176 millionp.

## Valuation
- **P/E (trailing): n/a** (negative earnings). M&C Saatchi plc reported negative earnings over the last twelve months, so the P/E is not meaningful; use price-to-sales, EV/EBITDA and free-cash-flow yield instead.
- **Price / sales: 0.2×**. Each dollar of revenue is priced at 0.2×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 5.2×**. The shares trade at 5.2× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 3.3×**. Enterprise value is 3.3× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 16.5%** (5-yr avg 0.1%). Free cash flow equals 16.5% of the market value, above its five-year average of 0.1%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.

## Profitability
- **Gross margin: 16.6%**. M&C Saatchi plc keeps 16.6% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 8.1%**. 8.1% of revenue is left after running the business.
- **Net margin: -0.6%**. The company reported a net loss over the last twelve months.
- **Return on equity: -6.5%**. Return on equity is negative because earnings are negative.
- **Return on invested capital: 51.6%**. Return on all capital, debt included, is 51.6%: comfortably above what that capital costs.
- **Return on assets: 6.2%**. Each dollar of assets produces 6.2% of profit.

## Growth
- **Revenue growth (1 yr): -12.1%** (3-yr -9.1%/yr, 5-yr 1.5%/yr). Revenue fell 12.1% over the last year, against 1.5% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -115.3%**. Earnings per share fell 115.3%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): -15.7%/yr**. Free cash flow has compounded at -15.7% a year over three years.

## Financial health
- **Debt to equity: 1.32**. Debt is 1.32 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: 0.4×**. It would take 0.4 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 5.3×**. Operating profit covers interest 5.3× over, a safe margin.
- **Current ratio: 1.11** (quick 1.11). Current assets cover the next year's liabilities 1.11 times.
- **Altman Z-score: 3.07**. A Z-score of 3.07 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 2.52%** (0p per share, trailing). M&C Saatchi plc yields 2.52%, a modest yield more typical of a growth-oriented payer.
- **Consecutive years of increases: 3**. 3 straight years of increases.
- **Shareholder yield: 3.0%**. Dividends plus net buybacks return 3.0% of the market value a year.

## Price and momentum
- **Total return (1 yr): -9.8%** (YTD 13.0%, 3-mo 5.7%). The shares are down 9.8% over twelve months including dividends.
- **From 52-week high: -12.5%** (47.6% above the low). Trading 13% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 61**. An RSI of 61 is neutral.
- **Beta (1 yr): 0.30** (volatility 29%). Beta of 0.30 against the FTSE All-Share: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=SAA.L · Page: https://foliofundamentals.com/stocks/saa.l

Not investment advice.