Saga CommunicationsSGA -0.06%53 Gross Margin % is 3.74% as of Mar. 2026, which is 84% below its 10-year median of 23.49. GuruFocus rates SGA with a GF Score™ of 53/100 and a GF Value™ of $12.51 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 953 Media - Diversified companies, Saga Communications ranks worse than 85.41% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Saga Communications had a gross margin of 3.74% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Saga Communications Gross Margin % Related Terms
Saga Communications Gross Margin % Historical Data
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The historical data trend for Saga Communications's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
SGA vs MDIA, CAST, SALM: Gross Margin % Comparison
For the Broadcasting subindustry, Saga Communications's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Saga Communications Gross Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Saga Communications's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Saga Communications's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Saga Communications (SGA) has a Gross Margin % of 3.74% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Saga Communications and its competitors. This is 84% below median its historical median of 23.49. Over the past decade, Saga Communications' Gross Margin % has ranged from 13.18 to 27.03. According to the industry distribution chart, Saga Communications ranks #814 out of 953 companies in the Media - Diversified industry, placing it in the top 85.4%.
Is Saga Communications' Gross Margin % too high?
Saga Communications' current Gross Margin % of 3.74% is 84% below median its 10-year median of 23.49. Over the past 10 years, this metric has ranged from a low of 13.18 to a high of 27.03. The Media - Diversified industry median Gross Margin % is 38.90. Saga Communications' value of 3.74% is 90.4% below this industry median. Based on the distribution chart, Saga Communications ranks #814 out of 953 companies in the Media - Diversified industry, which is in the bottom quartile relative to peers. Overall, Saga Communications has a GF Score™ of 53/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Saga Communications' Gross Margin % compare to MDIA and CAST?
According to the Media - Diversified industry distribution chart, Saga Communications ranks #814 out of 953 companies for Gross Margin %. This places Saga Communications in the lower half of its industry. The industry median Gross Margin % is 38.90. Saga Communications' value of 3.74% is 90.4% below this benchmark. Historically, Saga Communications' own Gross Margin % has ranged from 13.18 to 27.03 over the past decade. While the company's 10-year median is 23.49 vs. the industry median of 38.90, Saga Communications has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Media - Diversified company?
The median Gross Margin % among Media - Diversified companies is 38.90, based on 953 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Saga Communications's current Gross Margin % of 3.74% is 90.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Saga Communications and its competitors. For the Media - Diversified industry, the median Gross Margin % is 38.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Saga Communications's current Gross Margin % is 3.74%, which is 84% below median its own 10-year median of 23.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Saga Communications stock overvalued right now?
Based on GuruFocus' analysis, Saga Communications (SGA) is currently considered Significantly Undervalued. The stock's GF Value™ is $12.51, compared to a current price of $8.43 — trading 32.7% below its estimated fair value. The current Gross Margin % is 3.74%, which is 84% below median its 10-year median of 23.49 and 90.4% below the Media - Diversified industry median of 38.90. Saga Communications' overall GF Score™ is 53/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Saga Communications (SGA), the current Gross Margin % is 3.74% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Saga Communications (SGA) Overvalued in 2026?
Based on GuruFocus' analysis, Saga Communications stock appears to be undervalued.
The current stock price of $8.43 is trading 32.7% below its estimated GF Value™ of $12.51.
GuruFocus considers Saga Communications to be Significantly Undervalued.
Key valuation signals for SGA:
Gross Margin %: 3.74% (84% below median its 10-year median of 23.49)
GF Value™: $12.51 vs. price of $8.43 (32.7% below fair value)
Industry Position: 90.4% below the Media - Diversified median (#814 of 953)
No single metric tells the full story. See the SGA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Saga Communications Inc is a broadcast company engaged in acquiring, developing, and operating broadcast properties. The company's objective is to operate top billing radio stations in mid-sized markets. It derives a majority of its revenue from the sale of advertising for broadcast on its stations.
53GF Score
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