Nexstar Media Group (NXST) AI Stock Analysis

• Market Cap: $5.02B
• Dividend Yield: 4.47%
• Average Volume (3M): 378.46K
• Price to Earnings (P/E): 8.2
• Beta (1Y): 0.75
• Revenue Growth: 8.00%
• EPS Growth: 71.49%
• Country: US
• Employees: 11,773
• Sector: Communication Services
• Sector Strength: 85
• Industry: Entertainment
• EPS (TTM): 3.37
• Shares Outstanding: 30,148,874
• 10 Day Avg. Volume: 238,758
• 30 Day Avg. Volume: 378,457
• PEG Ratio: -0.27
• Price to Book (P/B): 2.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.51
• Enterprise Value/Market Cap: 2.49
• Enterprise Value/Revenue: 0.60
• Enterprise Value/Gross Profit: 4.00
• Enterprise Value/Ebitda: 1.53
• 1Y Price Target: $201.17
• Price Target Upside: 20.79% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 80 Outperform
• Price Target: $203.00 ▲(21.89%Upside)

Nexstar Media Group scores a solid 80, driven by strong profitability and cash flow, positive technical indicators, and attractive valuation. The company's strategic initiatives in sports programming and distribution are promising, but challenges remain with declining advertising revenue. Overall, the stock presents a balanced mix of growth potential and risks.

Positive Factors

EBITDA and Operational Efficiency

The company's ability to turn a revenue beat into a significant EBITDA beat demonstrates strong operational efficiency and management.

Financial Performance

Nexstar deserves credit for exceeding consensus on every revenue metric, with significant improvement in digital revenue and a revenue beat in the non-political advertising segment.

Revenue Diversification

The diversification of revenue away from ad spend helps provide some insulation from economic challenges.

Negative Factors

Ad Revenue Decline

Excluding political, ad revenues were 4% lower YOY, and non-political ads are expected to dip mid-single digits in the second quarter.

Share Performance

The share performance is flat year-over-year, right in the middle of the pack, with highly leveraged names generally doing better.

Nexstar Media Group Business Overview & Revenue Model

Company Description

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. The company also offers video and display advertising platforms that are delivered locally or nationally through its own and various third party websites and mobile applications, as well as owns WGN America, a national general entertainment cable network. Its stations are affiliates of ABC, NBC, FOX, CBS, The CW, MyNetworkTV, 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.

How the Company Makes Money

Nexstar Media Group generates revenue through several key streams. The primary source of income is advertising sales from its television stations, which include both local and national advertising slots. The company benefits from retransmission consent agreements, where cable, satellite, and telecom providers pay Nexstar for the right to broadcast their local stations. Nexstar also earns revenue from digital advertising on its online platforms and websites. Additionally, the company engages in production and distribution of content, monetizing its broadcast and digital content through syndication deals and partnerships with other media entities. Significant revenue is also derived from political advertising, especially during election cycles, which provides a substantial boost to its earnings.

Nexstar Media Group Financial Statement Overview

Summary

Nexstar Media Group's financial performance is marked by high profitability and cash generation capacity, making it a strong player in the entertainment industry. The company is effectively utilizing its equity but carries a significant amount of debt, which could pose risks if not managed carefully. While the revenue shows a slight decline, the company maintains robust margins and cash flow ratios, reflecting operational efficiency.

Income Statement

Nexstar Media Group shows strong profitability with a gross profit margin of 58.5% and a net profit margin of 12.2% for TTM (Trailing-Twelve-Months). The EBIT margin stands at 22.6%, and the EBITDA margin is robust at 39.5%. However, revenue has slightly decreased compared to the previous annual period, indicating a potential area of concern for growth sustainability.

Balance Sheet

The company's balance sheet reflects a moderate debt-to-equity ratio of 2.91, indicating a reliance on debt financing. Return on equity is relatively strong at 29.2%, showcasing efficient equity utilization. However, the equity ratio is on the lower side at 19.7%, suggesting higher leverage which could pose financial risk.

Cash Flow

Nexstar Media Group demonstrates healthy cash flow with a free cash flow growth rate of 6.3% compared to the previous annual period. The operating cash flow to net income ratio is at 2.00, signaling strong cash generation relative to earnings. Furthermore, the free cash flow to net income ratio is high at 1.79, indicating excellent cash flow management.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.36B	5.41B	4.93B	5.21B	4.65B	4.50B
	Gross Profit
3.13B	3.19B	2.81B	3.21B	2.80B	2.79B
	EBIT
1.21B	1.27B	708.00M	1.31B	1.18B	1.38B
	EBITDA
2.12B	2.21B	1.79B	2.22B	1.96B	2.00B
	Net Income Common Stockholders
655.00M	722.00M	346.00M	971.00M	834.00M	811.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
152.70M	144.00M	147.00M	204.10M	190.87M	152.70M
	Total Assets
13.40B	11.47B	12.08B	12.68B	13.26B	13.40B
	Total Debt
7.67B	6.52B	7.13B	7.00B	7.46B	7.67B
	Net Debt
7.52B	6.38B	6.98B	6.80B	7.27B	7.52B
	Total Liabilities
10.87B	9.20B	9.77B	9.91B	10.41B	10.87B
	Stockholders Equity
2.52B	2.26B	2.30B	2.74B	2.85B	2.52B
Cash Flow		Free Cash Flow
1.18B	1.10B	850.00M	1.25B	1.06B	1.04B
	Operating Cash Flow
1.31B	1.25B	999.00M	1.40B	1.21B	1.25B
	Investing Cash Flow
-159.00M	-102.00M	-173.00M	125.20M	-232.10M	-39.75M
	Financing Cash Flow
-1.14B	-1.15B	-899.00M	-1.51B	-945.56M	-1.29B

Nexstar Media Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 166.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NXST, the sentiment is Neutral. The current price of 166.54 is below the 20-day moving average (MA) of 170.59, above the 50-day MA of 160.69, and above the 200-day MA of 161.19, indicating a neutral trend. The MACD of 1.48 indicates Positive momentum. The RSI at 48.50 is Neutral, neither overbought nor oversold. The STOCH value of 49.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NXST.

Nexstar Media Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FOXA	81 Outperform	$23.18B	13.35	16.89%	1.00%	15.70%	26.73%
NXST	80 Outperform	$5.02B	8.19	28.46%	4.47%	8.00%	71.49%
NWSA	73 Outperform	$16.27B	32.12	5.88%	0.73%	-5.43%	135.46%
Sector *	61 Neutral	$14.55B	5.81	-3.99%	6.41%	2.71%	-31.56%
SBGI	59 Neutral	$904.43M	6.58	34.07%	7.69%	11.62%	―
PARAA	51 Neutral	$8.45B	―	-28.56%	0.89%	-4.50%	-898.86%

Nexstar Media Group Corporate Events

Dennis FitzSimons to Resign from Nexstar Board

On March 21, 2025, Dennis FitzSimons announced his decision not to seek re-election as a director of Nexstar Media Group, Inc. He will complete his current term and resign from the Board and its Audit Committee at the 2025 annual stockholders meeting. His resignation is not due to any disagreement with Nexstar’s management or Board regarding the company’s operations, policies, or practices.