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NXST

Nexstar Media Group NasdaqGS:NXST Stock Report

Last Price

US$200.34

Market Cap

US$7.8b

7D

-0.8%

1Y

42.7%

Updated

18 Aug, 2022

Data

Company Financials +
NXST fundamental analysis
Snowflake Score
Valuation5/6
Future Growth2/6
Past Performance2/6
Financial Health3/6
Dividends5/6

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

Summary of all time highs, changes and price drops for Nexstar Media Group
Historical stock prices
Current Share PriceUS$200.34
52 Week HighUS$204.62
52 Week LowUS$138.80
Beta1.5
1 Month Change13.97%
3 Month Change15.14%
1 Year Change42.65%
3 Year Change106.75%
5 Year Change226.82%
Change since IPO1,412.00%

Recent News & Updates

Aug 11

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.

Aug 03

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

NXSTUS MediaUS Market
7D-0.8%-1.5%1.4%
1Y42.7%-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

Is NXST's price volatile compared to industry and market?
NXST volatility
NXST Average Weekly Movement4.9%
Media Industry Average Movement7.9%
Market Average Movement7.6%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.1%

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

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, Inc. Fundamentals Summary

How do Nexstar Media Group's earnings and revenue compare to its market cap?
NXST fundamental statistics
Market CapUS$7.77b
Earnings (TTM)US$912.67m
Revenue (TTM)US$4.86b

8.5x

P/E Ratio

1.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NXST income statement (TTM)
RevenueUS$4.86b
Cost of RevenueUS$1.91b
Gross ProfitUS$2.94b
Other ExpensesUS$2.03b
EarningsUS$912.67m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)23.53
Gross Margin60.59%
Net Profit Margin18.79%
Debt/Equity Ratio252.1%

How did NXST perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

14%

Payout Ratio