| Snowflake Score | |
|---|---|
| Valuation | 5/6 |
| Future Growth | 2/6 |
| Past Performance | 2/6 |
| Financial Health | 3/6 |
| Dividends | 5/6 |
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, Inc. Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$200.34 |
| 52 Week High | US$204.62 |
| 52 Week Low | US$138.80 |
| Beta | 1.5 |
| 1 Month Change | 13.97% |
| 3 Month Change | 15.14% |
| 1 Year Change | 42.65% |
| 3 Year Change | 106.75% |
| 5 Year Change | 226.82% |
| Change since IPO | 1,412.00% |
Recent News & Updates
Nexstar Media Group: Further Upside Likely
Nexstar Media Group has seen strong growth in Political Advertising revenue with the U.S. midterm elections approaching. Additionally, the company has managed to bolster free cash flow and reduce its debt levels. I take a long-term bullish view of Nexstar Media Group. Investment Thesis: Nexstar Media Group could see further upside from here on the basis of strong growth in Political Advertising revenue as well as growth in earnings and free cash flow. In a previous article back in May, I made the argument that Nexstar Media Group, Inc. (NXST) could see a potential rebound in revenue ahead - but that the company might also face some inflationary pressures. However, this has not deterred the stock so far - with price up by nearly 20% since my last article: investing.com The purpose of this article is to elaborate on why I see further upside ahead for this company - particularly taking the most recent quarterly results into account. Performance With U.S. midterm elections approaching in November, revenue is likely to continue seeing a significant rise given spend on political advertising. Already, we see a sharp increase in revenue for Q2 2022 as compared to last year: Nexstar Media Group Q2 2022 Earnings Release Moreover, for the six months ended June 30 for 2021 and 2022 - we can see that free cash flow to net revenue is also up slightly. June 2021 June 2022 Net Revenue 2245.5 2455.2 Free Cash Flow 664.7 779.4 Free Cash Flow to Net Revenue Ratio 29.60% 31.74% Source: Figures sourced from Nexstar Media Group Q2 2022 Earnings Release. Free Cash Flow to Net Revenue Ratio calculated by author. From this standpoint, while we have seen a strong seasonal boost in political advertising revenue - the fact that free cash flow has kept up with revenue growth is particularly encouraging. Moreover, the boost in cash flow has meant that the company has also been able to reduce its total outstanding debt by just over 2% as compared to December 2021. Nexstar Media Group Q2 2022 Earnings Release Looking Forward With respect to the previous point that I made about inflation potentially affecting television subscription rates - I may have overestimated this risk as inflation can also potentially benefit the company going forward. For one, the company has more scope to raise advertising prices under such an environment and thus further boost revenue growth. In addition, as a reader pointed out in my previous article - the fact that the company owns "over-the-air" TV channels still allows the company to draw in an audience and thus remain appealing from an advertising standpoint. Previous Comment on Seeking Alpha From a valuation standpoint, we can see that both earnings and free cash flow per share trade near 10-year highs - while EV to EBITDA and price to free cash flow trade near 10-year lows: EV to EBITDA ycharts.com Price to Free Cash Flow ycharts.com In this regard, I take the view that given continued upside in earnings and free cash flow - the stock is in a good position to see further upside from here. One potential risk for the company is the effect of a temporary drop-off in Political Advertising after November of this year - once the U.S. mid-terms conclude. While spend is expected to grow strongly in 2024 with the upcoming Presidential Elections - 2023 could be a relatively more quiet year for Political Advertising.
Nexstar Media Q2 2022 Earnings Preview
Nexstar Media (NASDAQ:NXST) is scheduled to announce Q2 earnings results on Thursday, August 4th, before market open. The consensus EPS Estimate is $4.90 (+8.6% Y/Y) and the consensus Revenue Estimate is $1.23B (+8.8% Y/Y). Over the last 3 months, EPS estimates have seen 2 upward revisions and 0 downward. Revenue estimates have seen 6 upward revisions and 1 downward.
Shareholder Returns
| NXST | US Media | US Market | |
|---|---|---|---|
| 7D | -0.8% | -1.5% | 1.4% |
| 1Y | 42.7% | -32.5% | -8.4% |
Return vs Industry: NXST exceeded the US Media industry which returned -32.1% over the past year.
Return vs Market: NXST exceeded the US Market which returned -9% over the past year.
Price Volatility
| NXST volatility | |
|---|---|
| NXST Average Weekly Movement | 4.9% |
| Media Industry Average Movement | 7.9% |
| Market Average Movement | 7.6% |
| 10% most volatile stocks in US Market | 17.1% |
| 10% least volatile stocks in US Market | 3.1% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1996 | 11,817 | Perry Sook | https://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, Inc. Fundamentals Summary
| NXST fundamental statistics | |
|---|---|
| Market Cap | US$7.77b |
| Earnings (TTM) | US$912.67m |
| Revenue (TTM) | US$4.86b |
8.5x
P/E Ratio1.6x
P/S RatioIs NXST overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| NXST income statement (TTM) | |
|---|---|
| Revenue | US$4.86b |
| Cost of Revenue | US$1.91b |
| Gross Profit | US$2.94b |
| Other Expenses | US$2.03b |
| Earnings | US$912.67m |
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 23.53 |
| Gross Margin | 60.59% |
| Net Profit Margin | 18.79% |
| Debt/Equity Ratio | 252.1% |
How did NXST perform over the long term?
See historical performance and comparison