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Nexstar Media Group (NXST)
:NXST
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Nexstar Media Group
(NASDAQ:NXST)79Outperform
Positive Factors
Operational Efficiency
The company's ability to turn a revenue beat into a significant EBITDA beat demonstrates strong operational efficiency and management.
Revenue 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.
Negative Factors
Advertising Challenges
Advertising seems off to a sluggish start to begin the year, Nexstar has minimal big 4 renewals this year, the CW rates do not step up until later in the year, and the elevated sports rights costs against ramping advertising and retrans seems likely to produce another CW loss this year.
Nexstar Media Group (NXST) vs. S&P 500 (SPY)
Market Cap
$5.18B
Dividend Yield4.08%
Average Volume (3M)392.20K
Price to Earnings (P/E)7.9
Beta (1Y)0.84
Revenue Growth9.61%
EPS Growth128.67%
CountryUS
Employees13,294
SectorCommunication Services
Sector Strength85
IndustryTraditional Media
Share Statistics
EPS (TTM)22.11
Shares Outstanding30,509,207
10 Day Avg. Volume621,761
30 Day Avg. Volume392,203
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)N/A
Price to Sales (P/S)0.96
Price to Cash Flow (P/CF)3.20
P/FCF Ratio2.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$212.20Price Target Upside25.10% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Nexstar Media Group Business Overview & Revenue Model
Company DescriptionNexstar Media Group, Inc. (NXST) is a leading diversified media company headquartered in the United States. It operates in the broadcast and digital media sectors, primarily focusing on television broadcasting. Nexstar owns, operates, or provides services to numerous television stations across the country, making it one of the largest local television station operators in the U.S. The company also provides digital media services and produces local and national news content, reaching millions of viewers daily.
How the Company Makes MoneyNexstar Media Group generates revenue through several key streams. The primary source is advertising revenue, garnered from selling commercial airtime on its television stations to local and national advertisers. The company also earns significant subscription fees from cable and satellite operators who pay to carry Nexstar's local television channels. Additionally, Nexstar capitalizes on its digital media services, which include online advertising and content distribution. Political advertising during election cycles also contributes significantly to its earnings. Moreover, the company benefits from retransmission consent agreements and lucrative partnerships with major networks and content providers, which further bolster its financial performance.
Nexstar Media Group Financial Statement Overview
Summary
Nexstar Media Group exhibits a strong financial performance with robust revenue and profit growth, effective operational management, and solid cash generation. However, the high leverage could pose a risk if not managed prudently. The company is well-positioned within the traditional media industry, although maintaining leverage and operational efficiency will be key to sustaining growth.Income Statement
Nexstar Media Group has shown strong revenue growth of 9.6% from 2023 to 2024, with a significant improvement in net profit margin from 7.0% in 2023 to 13.4% in 2024. The gross profit margin remains robust at approximately 100% due to the nature of the revenue structure. The EBIT and EBITDA margins are also strong, reflecting efficient operational management. However, there was a slight dip in EBIT margin from 2022, indicating some pressure on operating efficiency.85
Very Positive
Balance Sheet
The company's balance sheet shows a high debt-to-equity ratio of 2.89 in 2024, indicating significant leverage, which poses a risk. However, return on equity is robust at 32.0%, demonstrating efficient use of shareholders' equity. The equity ratio of 19.7% suggests moderate reliance on equity financing, which is typical in the media industry.75
Positive
Cash Flow
Cash flow analysis reveals a healthy 30% growth in free cash flow from 2023 to 2024. The operating cash flow to net income ratio of 1.73 indicates strong cash generation relative to profit. The free cash flow to net income ratio of 1.53 further supports the company's solid cash flow position. Despite high financing outflows, the company maintains strong free cash flow, enhancing financial flexibility.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 5.41B | 4.93B | 5.21B | 4.65B | 4.50B | Gross Profit |
| 5.41B | 2.81B | 3.21B | 2.80B | 2.79B | EBIT |
| 1.27B | 708.00M | 1.31B | 1.18B | 1.38B | EBITDA |
| 2.22B | 1.79B | 2.22B | 1.96B | 2.00B | Net Income Common Stockholders |
| 722.00M | 346.00M | 971.00M | 834.00M | 811.50M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 144.00M | 147.00M | 204.10M | 190.87M | 152.70M | Total Assets |
| 11.47B | 12.08B | 12.68B | 13.26B | 13.40B | Total Debt |
| 6.52B | 7.13B | 7.00B | 7.46B | 7.67B | Net Debt |
| 6.38B | 6.98B | 6.80B | 7.27B | 7.52B | Total Liabilities |
| 9.20B | 9.77B | 9.91B | 10.41B | 10.87B | Stockholders Equity |
| 2.26B | 2.30B | 2.74B | 2.85B | 2.52B |
| Cash Flow | Free Cash Flow | |||
| 1.10B | 850.00M | 1.25B | 1.06B | 1.04B | Operating Cash Flow |
| 1.25B | 999.00M | 1.40B | 1.21B | 1.25B | Investing Cash Flow |
| -102.00M | -173.00M | 125.20M | -232.10M | -39.75M | Financing Cash Flow |
| -1.15B | -899.00M | -1.51B | -945.56M | -1.29B |
Nexstar Media Group Technical Analysis
Positive
169.63
Price Trends
154.89
Positive
160.86
Positive
160.97
Positive
Market Momentum
3.72
Negative
67.02
Neutral
90.67
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NXST, the sentiment is Positive. The current price of 169.63 is above the 20-day moving average (MA) of 155.46, above the 50-day MA of 154.89, and above the 200-day MA of 160.97, indicating a bullish trend. The MACD of 3.72 indicates Negative momentum. The RSI at 67.02 is Neutral, neither overbought nor oversold. The STOCH value of 90.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NXST.
Nexstar Media Group Risk Analysis
Nexstar Media Group disclosed 24 risk factors in its most recent earnings report. Nexstar Media Group reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Nexstar Media Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $5.18B | 7.93 | 31.65% | 4.08% | 9.61% | 128.67% | |
74 Outperform | $2.77B | 4.90 | 19.96% | 2.83% | 6.56% | 57.12% | |
61 Neutral | $375.46M | 1.05 | 13.50% | 9.04% | 11.06% | ― | |
59 Neutral | $30.54B | 0.25 | -13.23% | 4.04% | 2.36% | -49.53% | |
53 Neutral | $901.32M | 2.89 | 71.43% | 7.37% | 13.21% | ― | |
41 Neutral | $21.39M | ― | -193.00% | ― | -2.07% | -138.25% | |
36 Underperform | $197.81M | ― | 86.54% | ― | 2.76% | 9.71% |
* Communication Services Sector Average
Performance Comparison
NXST
Nexstar Media Group
169.63
14.01
9.00%
CMLS
Cumulus Media
0.52
-2.99
-85.19%
GTN
Gray Television
3.49
-1.91
-35.37%
SBGI
Sinclair Broadcast
14.33
1.90
15.29%
TGNA
TEGNA
17.29
3.07
21.59%
IHRT
iHeartMedia
1.51
-0.65
-30.09%
Nexstar Media Group Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: 15.91% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
Nexstar Media Group, Inc. presented strong financial performance with record-breaking revenue and significant debt reduction. The transformation of the CW network and the launch of the Edge Beam Wireless Consortium showcase strategic growth initiatives. However, challenges in advertising revenue and subscriber attrition remain concerns.Highlights
Record-Breaking Revenue
Nexstar Media Group, Inc. delivered $5.4 billion in total net revenue for fiscal year 2024, marking the highest in the company's 28-year history. This was driven by strong election year political advertising and growth in distribution revenue.
Debt Reduction and Shareholder Returns
The company allocated $327 million toward debt reduction, achieving a record low net leverage of 2.91 times at year-end. Nexstar Media Group, Inc. returned $820 million or 68% of adjusted free cash flow to shareholders through share repurchases and dividends.
CW Network Transformation
The CW network saw a significant transformation with the introduction of sports programming, including NASCAR and WWE, leading to improved ratings. The network's performance led to a 105% year-over-year improvement in viewership for WWE NXT.
Launch of Edge Beam Wireless Consortium
Nexstar Media Group, Inc. announced a joint venture to harness ATSC 3.0 technology, representing spectrum covering over 97% of the continental US. The consortium signed its first paying customer in the digital signage space.
Lowlights
Non-Political Advertising Revenue Decline
Non-political advertising revenue saw a $51 million year-over-year reduction, approximately 9% due to market softness and political displacement.
Continued Subscriber Attrition
Despite some optimism about improved subscriber trends, the company expects continued subscriber attrition, which impacts distribution revenue.
Challenges in Automotive and Insurance Advertising
The company faced ongoing weakness in automotive and insurance advertising, impacting revenue growth.
Company Guidance
During Nexstar Media Group, Inc.'s fourth quarter 2024 conference call, the company reported record financial performance, achieving $5.4 billion in total net revenue and $2 billion in adjusted EBITDA for the year. The company also generated $1.2 billion in adjusted free cash flow, returning $820 million to shareholders through share repurchases and dividends, reducing shares outstanding by nearly 9%. Nexstar highlighted its record low net leverage of 2.91 times and announced a twelfth consecutive annual increase in the quarterly cash dividend, reflecting a near 5% yield. Looking forward, the company provided adjusted EBITDA guidance for 2025 in the range of $1.5 to $1.595 billion, with expectations of flat net distribution revenue and slightly up non-political advertising revenue. Nexstar emphasized its continued focus on growth opportunities and potential deregulation, which could facilitate further industry consolidation.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.