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NXST

Nexstar Media Group NasdaqGS:NXST Stock Report

Last Price

US$164.34

Market Cap

US$6.6b

7D

2.8%

1Y

11.1%

Updated

29 Jun, 2022

Data

Company Financials +
NXST fundamental analysis
Snowflake Score
Valuation5/6
Future Growth2/6
Past Performance2/6
Financial Health3/6
Dividends3/6

NXST Stock Overview

Nexstar Media Group, Inc., a television broadcasting and digital media company, focuses on the acquisition, development, and operation of television stations and interactive community websites and digital media services in the United States.

Nexstar Media Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Nexstar Media Group
Historical stock prices
Current Share PriceUS$164.34
52 Week HighUS$192.84
52 Week LowUS$135.87
Beta1.53
1 Month Change-7.00%
3 Month Change-12.81%
1 Year Change11.13%
3 Year Change48.83%
5 Year Change175.74%
Change since IPO1,140.30%

Recent News & Updates

Jun 29

Nexstar Media nears deal for control of CW Network - WSJ

Nexstar Media Group (NASDAQ:NXST), the nation's No. 1 TV station owner, is closing in on a deal to acquire majority control of the CW Network from its co-owners, Warner Bros. Discovery (NASDAQ:WBD) and Paramount Global (NASDAQ:PARA) (NASDAQ:PARAA), The Wall Street Journal reports. The deal as discussed would have WBD and Paramount each holding on to a 12.5% stake while Nexstar acquires 75%, according to the report. Nexstar stock (NXST) is up 2.5% after hours.

Jun 01

Buy Superbly Managed, Growing Nexstar Media At 5x FCF Ahead Of Major New Business Initiative

Nexstar has an excellent track record of delivering for shareholders, increasing fully taxed FCF from $2/share in 2012 to ~$35/share today. The stock is up ~25x over that period. Despite this growth, Nexstar has been assigned a low "melting ice cube" multiple for more than a decade due to concerns over the cable ecosystem. Management has guided to FCF growth through 2027 in its legacy broadcast business. If that's true, the stock is substantially underpriced based on the legacy business alone. Nexstar is using its legacy spectrum to build a data "toll road", leasing connectivity to third parties. Revenue begins in 2024, ramping to half the current business by 2030. Management has a stellar track record and a superb reputation. If they deliver on what they have guided to, the stock is wildly underpriced.

Shareholder Returns

NXSTUS MediaUS Market
7D2.8%1.8%1.6%
1Y11.1%-33.9%-20.8%

Return vs Industry: NXST exceeded the US Media industry which returned -33.6% over the past year.

Return vs Market: NXST exceeded the US Market which returned -20.4% over the past year.

Price Volatility

Is NXST's price volatile compared to industry and market?
NXST volatility
NXST Average Weekly Movement5.2%
Media Industry Average Movement8.5%
Market Average Movement8.1%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market3.2%

Stable Share Price: NXST is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: NXST's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199611,817Perry Sookhttps://www.nexstar.tv

Nexstar Media Group, Inc., a television broadcasting and digital media company, focuses on the acquisition, development, and operation of television stations and interactive community websites and digital media services in the United States. The company offers free programming to television viewing audiences. As of December 31, 2020, it provided sales, programming, and other services through various local service agreements to 37 power television stations owned by independent third parties; and owned, operated, programmed, or provided sales and other services to 198 television stations.

Nexstar Media Group Fundamentals Summary

How do Nexstar Media Group's earnings and revenue compare to its market cap?
NXST fundamental statistics
Market CapUS$6.64b
Earnings (TTM)US$885.27m
Revenue (TTM)US$4.74b

7.5x

P/E Ratio

1.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NXST income statement (TTM)
RevenueUS$4.74b
Cost of RevenueUS$1.88b
Gross ProfitUS$2.87b
Other ExpensesUS$1.98b
EarningsUS$885.27m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)21.91
Gross Margin60.47%
Net Profit Margin18.66%
Debt/Equity Ratio248.5%

How did NXST perform over the long term?

See historical performance and comparison

Dividends

2.2%

Current Dividend Yield

14%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is NXST undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NXST?

Other financial metrics that can be useful for relative valuation.

NXST key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.9x
Enterprise Value/EBITDA7.8x
PEG Ratio1.2x

Price to Earnings Ratio vs Peers

How does NXST's PE Ratio compare to its peers?

NXST PE Ratio vs Peers
The above table shows the PE ratio for NXST vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average13.1x
TGNA TEGNA
9.4x8.0%US$4.7b
FOXA Fox
15.8x11.0%US$17.6b
SBGI Sinclair Broadcast Group
0.6x-96.2%US$1.4b
GTN Gray Television
26.6x4.5%US$1.6b
NXST Nexstar Media Group
7.5x6.0%US$6.6b

Price-To-Earnings vs Peers: NXST is good value based on its Price-To-Earnings Ratio (7.5x) compared to the peer average (13.1x).


Price to Earnings Ratio vs Industry

How does NXST's PE Ratio compare vs other companies in the US Media Industry?

Price-To-Earnings vs Industry: NXST is good value based on its Price-To-Earnings Ratio (7.5x) compared to the US Media industry average (13x)


Price to Earnings Ratio vs Fair Ratio

What is NXST's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NXST PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.5x
Fair PE Ratio18.8x

Price-To-Earnings vs Fair Ratio: NXST is good value based on its Price-To-Earnings Ratio (7.5x) compared to the estimated Fair Price-To-Earnings Ratio (18.8x).


Share Price vs Fair Value

What is the Fair Price of NXST when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NXST ($164.34) is trading below our estimate of fair value ($817.99)

Significantly Below Fair Value: NXST is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: NXST is poor value based on its PEG Ratio (1.2x)


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Future Growth

How is Nexstar Media Group forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


6.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NXST's forecast earnings growth (6% per year) is above the savings rate (1.9%).

Earnings vs Market: NXST's earnings (6% per year) are forecast to grow slower than the US market (13.7% per year).

High Growth Earnings: NXST's earnings are forecast to grow, but not significantly.

Revenue vs Market: NXST's revenue (4% per year) is forecast to grow slower than the US market (8.3% per year).

High Growth Revenue: NXST's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NXST's Return on Equity is forecast to be high in 3 years time (24.6%)


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Past Performance

How has Nexstar Media Group performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


28.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NXST has high quality earnings.

Growing Profit Margin: NXST's current net profit margins (18.7%) are lower than last year (18.9%).


Past Earnings Growth Analysis

Earnings Trend: NXST's earnings have grown significantly by 28% per year over the past 5 years.

Accelerating Growth: NXST's earnings growth over the past year (3.5%) is below its 5-year average (28% per year).

Earnings vs Industry: NXST earnings growth over the past year (3.5%) underperformed the Media industry 18.8%.


Return on Equity

High ROE: Whilst NXST's Return on Equity (30.21%) is high, this metric is skewed due to their high level of debt.


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Financial Health

How is Nexstar Media Group's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: NXST's short term assets ($1.5B) exceed its short term liabilities ($733.5M).

Long Term Liabilities: NXST's short term assets ($1.5B) do not cover its long term liabilities ($9.4B).


Debt to Equity History and Analysis

Debt Level: NXST's net debt to equity ratio (237.3%) is considered high.

Reducing Debt: NXST's debt to equity ratio has reduced from 368.7% to 248.5% over the past 5 years.

Debt Coverage: NXST's debt is not well covered by operating cash flow (17.7%).

Interest Coverage: NXST's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet


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Dividend

What is Nexstar Media Group current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.19%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: NXST's dividend (2.19%) is higher than the bottom 25% of dividend payers in the US market (1.59%).

High Dividend: NXST's dividend (2.19%) is low compared to the top 25% of dividend payers in the US market (4.25%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, NXST has been paying a dividend for less than 10 years.

Growing Dividend: NXST's dividend payments have increased, but the company has only paid a dividend for 9 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (14.1%), NXST's dividend payments are thoroughly covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (12.8%), NXST's dividend payments are thoroughly covered by cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

4.8yrs

Average management tenure


CEO

Perry Sook (63 yo)

26.42yrs

Tenure

US$21,145,853

Compensation

Mr. Perry A. Sook founded Nexstar Media Group, Inc. (“Nexstar”) in 1996 and has been its Chairman, Chief Executive Officer and Director since its inception in 1996 and served as its President since 1996 un...


CEO Compensation Analysis

Compensation vs Market: Perry's total compensation ($USD21.15M) is above average for companies of similar size in the US market ($USD8.21M).

Compensation vs Earnings: Perry's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: NXST's management team is considered experienced (4.8 years average tenure).


Board Members

Experienced Board: NXST's board of directors are seasoned and experienced ( 12.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: NXST insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Nexstar Media Group, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Nexstar Media Group, Inc.
  • Ticker: NXST
  • Exchange: NasdaqGS
  • Founded: 1996
  • Industry: Broadcasting
  • Sector: Media
  • Implied Market Cap: US$6.640b
  • Shares outstanding: 40.40m
  • Website: https://www.nexstar.tv

Number of Employees


Location

  • Nexstar Media Group, Inc.
  • 545 East John Carpenter Freeway
  • Suite 700
  • Irving
  • Texas
  • 75062
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/29 00:00
End of Day Share Price2022/06/29 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.