NasdaqGS:NXST

Stock Analysis Report

Executive Summary

Nexstar Media Group, Inc. operates as a television broadcasting and digital media company in the United States.


Snowflake Analysis

Good value with reasonable growth potential.


Similar Companies

Share Price & News

How has Nexstar Media Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NXST's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

16.0%

NXST

3.9%

US Media

2.4%

US Market


1 Year Return

-44.0%

NXST

-14.1%

US Media

-10.0%

US Market

Return vs Industry: NXST underperformed the US Media industry which returned -17.4% over the past year.

Return vs Market: NXST underperformed the US Market which returned -13.3% over the past year.


Shareholder returns

NXSTIndustryMarket
7 Day16.0%3.9%2.4%
30 Day-28.7%-13.2%-11.0%
90 Day-46.8%-23.6%-19.4%
1 Year-43.0%-44.0%-12.8%-14.1%-8.1%-10.0%
3 Year3.6%-2.3%-10.5%-14.4%17.3%9.6%
5 Year20.7%9.9%3.4%-4.7%36.1%21.1%

Price Volatility Vs. Market

How volatile is Nexstar Media Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Nexstar Media Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NXST ($59.21) is trading below our estimate of fair value ($322.12)

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


Price To Earnings Ratio

PE vs Industry: NXST is poor value based on its PE Ratio (11.8x) compared to the Media industry average (8.8x).

PE vs Market: NXST is good value based on its PE Ratio (11.8x) compared to the US market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: NXST is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: NXST is overvalued based on its PB Ratio (1.3x) compared to the US Media industry average (0.8x).


Next Steps

Future Growth

How is Nexstar Media Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

26.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NXST's forecast earnings growth (26.2% per year) is above the savings rate (1.7%).

Earnings vs Market: NXST's earnings (26.2% per year) are forecast to grow faster than the US market (13.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NXST's revenue (13.8% per year) is forecast to grow faster than the US market (7% per year).

High Growth Revenue: NXST's revenue (13.8% 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 low in 3 years time (17.9%).


Next Steps

Past Performance

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

37.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NXST has high quality earnings.

Growing Profit Margin: NXST's current net profit margins (7.6%) are lower than last year (14.1%).


Past Earnings Growth Analysis

Earnings Trend: NXST's earnings have grown significantly by 37% per year over the past 5 years.

Accelerating Growth: NXST's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NXST had negative earnings growth (-40.9%) over the past year, making it difficult to compare to the Media industry average (7.2%).


Return on Equity

High ROE: NXST's Return on Equity (11.5%) is considered low.


Next Steps

Financial Health

How is Nexstar Media Group's financial position?


Financial Position Analysis

Short Term Liabilities: NXST's short term assets ($1.4B) exceed its short term liabilities ($947.6M).

Long Term Liabilities: NXST's short term assets ($1.4B) do not cover its long term liabilities ($11.0B).


Debt to Equity History and Analysis

Debt Level: NXST's debt to equity ratio (413.6%) is considered high.

Reducing Debt: NXST's debt to equity ratio has reduced from 2158.5% to 413.6% over the past 5 years.

Debt Coverage: NXST's debt is not well covered by operating cash flow (4.9%).

Interest Coverage: NXST's interest payments on its debt are not well covered by EBIT (2.5x coverage).


Balance Sheet


Next Steps

Dividend

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

3.47%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NXST's dividend (3.78%) is higher than the bottom 25% of dividend payers in the US market (2.01%).

High Dividend: NXST's dividend (3.78%) is low compared to the top 25% of dividend payers in the US market (5.66%).


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 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.9%), NXST's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NXST's dividends in 3 years are forecast to be thoroughly covered by earnings (14.5% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Perry Sook (61yo)

24.25s

Tenure

US$14,587,076

Compensation

Mr. Perry A. Sook has over 37 years of professional experience in the television and radio broadcasting industries. He founded Nexstar Media Group, Inc. (“Nexstar”) in 1996 and has been its Chairman, Presi ...


CEO Compensation Analysis

Compensation vs Market: Perry's total compensation ($USD14.59M) is above average for companies of similar size in the US market ($USD5.69M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Perry Sook
Chairman24.25yrsUS$14.59m2.65% $78.4m
Thomas Carter
Executive VP & CFO10.67yrsUS$5.31m0.32% $9.6m
Timothy Busch
President of Nexstar Broadcasting Inc3.25yrsUS$4.75m0.19% $5.7m
Gregory Raifman
President of Nexstar Digital LLC3yrsUS$3.50m0.081% $2.4m
Brian Jones
Executive VP & COO of Nexstar Broadcasting3.25yrsUS$1.82m0.056% $1.7m
Brett Jenkins
Executive VP & CTO3.25yrsno data0.043% $1.3m
Elizabeth Ryder
Executive VP10.92yrsno data0.021% $616.4k
Gary Weitman
Executive VP & Chief Communications Officer0.58yrno data0.0024% $71.0k
Terri Bush
Senior VP of Human Resources & Associate Counsel3.33yrsno datano data
William Sally
Executive Vice President of Sales at Nexstar Broadcasting6.58yrsno data0.016% $481.6k

3.3yrs

Average Tenure

59yo

Average Age

Experienced Management: NXST's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Perry Sook
Chairman24.25yrsUS$14.59m2.65% $78.4m
Jay Grossman
Independent Director23.25yrsUS$256.07k0.080% $2.4m
John Muse
Director3.25yrsUS$256.07k0.022% $646.6k
Dennis FitzSimons
Independent Director3.25yrsUS$261.07k0.027% $799.8k
D. Armstrong
Independent Director16.42yrsUS$281.07k0.019% $548.1k
Charles McMillen
Independent Director5.75yrsUS$256.07k0.012% $346.7k
Irving Pompadur
Independent Director16.42yrsUS$263.57k0.021% $612.9k
Dennis Miller
Independent Director6.17yrsUS$256.07k0.0022% $64.5k
Lisbeth McNabb
Independent Director13.92yrsUS$273.57k0.013% $393.4k

13.9yrs

Average Tenure

62yo

Average Age

Experienced Board: NXST's board of directors are seasoned and experienced ( 13.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: NXST insiders have sold more shares than they have bought 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 company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nexstar Media Group, Inc.
  • Ticker: NXST
  • Exchange: NasdaqGS
  • Founded: 1996
  • Industry: Broadcasting
  • Sector: Media
  • Market Cap: US$2.958b
  • Shares outstanding: 45.86m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NXSTNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDNov 2003
NXZDB (Deutsche Boerse AG)YesClass A Common StockDEEURNov 2003

Biography

Nexstar Media Group, Inc. operates as a television broadcasting and digital media company in the United States. The company focuses on the acquisition, development, and operation of television stations and interactive community Websites in small and medium-sized markets. It offers free over-the-air programming to television viewing audiences. As of December 31, 2018, the company also provides sales, programming, and other services through various local service agreements to 38 power television stations owned and/or operated by independent third parties; owned, operated, programmed, or provided sales and other services to 174 television stations in 100 markets in the states of Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Louisiana, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Montana, Nevada, New Mexico, New York, North Carolina, North Dakota, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, West Virginia, and Wisconsin; and reaches 42.7 million television households. It affiliates of ABC, NBC, FOX, CBS, The CW, MNTV and other broadcast television networks. The company was formerly known as Nexstar Broadcasting Group, Inc. and changed its name to Nexstar Media Group, Inc. in January 2017. Nexstar Media Group, Inc. was founded in 1996 and is headquartered in Irving, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/09 01:57
End of Day Share Price2020/04/08 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.