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Nexstar Media Group (NXST)
NASDAQ:NXST
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Nexstar Media Group (NXST) AI Stock Analysis

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NXST

Nexstar Media Group

(NASDAQ:NXST)

Rating:79Outperform
Price Target:
$236.00
▲(14.47% Upside)
Nexstar Media Group's strong financial performance and attractive valuation are the primary drivers of its score. Positive corporate events and technical indicators support the stock's outlook, despite some revenue and advertising challenges.
Positive Factors
Acquisition Deal
Nexstar successfully completed a revolutionary deal with an all-cash, $22 per share bid for TEGNA, which was unanimously approved by both boards, showcasing strong strategic execution.
Financial Outlook
Analyst raises the price target on Nexstar from $225 to $250, reflecting confidence in the company's prospects and potential for growth.
Synergies and Growth
The combined entity from the Nexstar-TEGNA deal will cover 80% of US households, with projected synergies potentially leading to over 35% of TEGNA’s adjusted EBITDA.
Negative Factors
Leverage Concerns
The leverage at the close of the Nexstar-TEGNA transaction is expected to be 4.0x, highlighting concerns about the company's debt levels and financial stability.
Market Challenges
The ad market conditions make achieving the higher end of the projected range more challenging, possibly affecting revenue expectations.

Nexstar Media Group (NXST) vs. SPDR S&P 500 ETF (SPY)

Nexstar Media Group Business Overview & Revenue Model

Company DescriptionNexstar Media Group, Inc. is a leading local media company that operates a vast portfolio of television stations and digital media properties across the United States. The company primarily focuses on the acquisition, operation, and management of television stations, providing local news, weather, sports, and entertainment programming to its audiences. Nexstar's core services also include digital advertising and content distribution through various platforms, leveraging its extensive reach and community engagement to attract viewers and advertisers alike.
How the Company Makes MoneyNexstar Media Group generates revenue through multiple key streams, primarily from advertising sales on its television stations and digital platforms. Local and national advertisers pay for ad slots during programming, which is a significant portion of their income. Additionally, Nexstar earns revenue through retransmission consent fees from cable and satellite providers, who pay to carry its local broadcast signals. The company also benefits from digital media revenue, including online advertising and content partnerships. Strategic alliances with other media companies and the expansion of its digital presence further enhance its earning potential, allowing Nexstar to capitalize on both traditional and digital advertising markets.

Nexstar Media Group Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative elements. While Nexstar showcased strong financial management and success in expanding its audience through NewsNation and The CW, it also faced challenges in declining revenue and advertising, especially within the automotive sector. Regulatory developments offer potential future advantages, but the current landscape includes significant obstacles.
Q2-2025 Updates
Positive Updates
Strong Financial Performance
Nexstar delivered solid financial results with adjusted EBITDA of $770 million and adjusted free cash flow of nearly $450 million for the first half of 2025. The company returned $238 million or 53% of adjusted free cash flow to shareholders.
Success of NewsNation and The CW
NewsNation was ranked the #1 basic cable network for year-over-year growth with viewership increasing by nearly 50%. The CW achieved 5 consecutive quarters of audience growth and is now the #8 ranked network in total audience growth.
Refinancing and Debt Repayment
Nexstar refinanced its credit facilities and term loans, extending maturities and strengthening its capital structure. The company allocated $132 million to debt repayment.
Regulatory Progress
Positive developments in regulatory reform, including the FCC's move to refresh the record on the national ownership cap and the Eighth Circuit vacating a Top-Four rule.
Negative Updates
Decline in Net Revenue
Second quarter net revenue of $1.23 billion represented a decline of 3.2% compared to the prior year, primarily due to a reduction in political advertising.
Decrease in Advertising Revenue
Advertising revenue decreased by $47 million or 9%, mainly due to a $36 million year-over-year decrease in political advertising.
Challenges in Automotive Advertising
A high single-digit decline in goods-based advertising, with more than half attributable to the automotive category.
Subscriber Attrition
Second quarter distribution revenue was flat due to subscriber attrition, despite some improvement in subscriber trends reported by MVPD partners.
Company Guidance
During Nexstar Media Group's Second Quarter 2025 conference call, Perry Sook, the Founder, Chairman, and CEO, highlighted several key metrics. For the first half of 2025, Nexstar generated an adjusted EBITDA of $770 million and an adjusted free cash flow of nearly $450 million. They returned $238 million, or 53% of adjusted free cash flow, to shareholders through share repurchases and dividends. The company's net revenue for the second quarter was $1.23 billion, a decrease of 3.2% compared to the previous year, primarily due to a reduction in political advertising. Distribution revenue was $733 million, essentially flat year-over-year. Advertising revenue totaled $475 million, with nonpolitical advertising down by 2.5% year-over-year. Nexstar's digital revenue contributed positively, with mid-single-digit growth. The CW network improved profitability by $21 million year-over-year, and the company remains on track to improve CW losses by about 25% for the year. Nexstar's balance sheet was further strengthened by refinancing its credit facilities, with debt reduced to $6.4 billion. The second quarter's adjusted EBITDA was $389 million, representing a 31.7% margin.

Nexstar Media Group Financial Statement Overview

Summary
Nexstar Media Group demonstrates strong profitability with high margins and excellent cash flow management. However, the slight revenue decline and high debt-to-equity ratio indicate potential risks.
Income Statement
80
Positive
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
72
Positive
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
85
Very Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue5.32B5.41B4.93B5.21B4.65B4.50B
Gross Profit2.89B3.19B2.81B3.21B2.80B2.79B
EBITDA2.06B2.21B1.79B2.22B1.96B2.00B
Net Income634.00M722.00M346.00M971.00M834.00M811.50M
Balance Sheet
Total Assets526.00M11.47B12.08B12.68B13.26B13.40B
Cash, Cash Equivalents and Short-Term Investments584.00M144.00M147.00M204.10M190.87M152.70M
Total Debt0.006.81B7.13B7.00B7.46B7.67B
Total Liabilities0.009.20B9.77B9.91B10.41B10.87B
Stockholders Equity0.002.26B2.30B2.74B2.85B2.52B
Cash Flow
Free Cash Flow1.25B1.10B850.00M1.25B1.06B1.04B
Operating Cash Flow1.38B1.25B999.00M1.40B1.21B1.25B
Investing Cash Flow-152.00M-102.00M-173.00M125.20M-232.10M-39.75M
Financing Cash Flow-4.54B-1.15B-899.00M-1.51B-945.56M-1.29B

Nexstar Media Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price206.16
Price Trends
50DMA
186.38
Positive
100DMA
172.87
Positive
200DMA
166.06
Positive
Market Momentum
MACD
6.24
Positive
RSI
63.67
Neutral
STOCH
26.00
Neutral
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 206.16 is above the 20-day moving average (MA) of 197.82, above the 50-day MA of 186.38, and above the 200-day MA of 166.06, indicating a bullish trend. The MACD of 6.24 indicates Positive momentum. The RSI at 63.67 is Neutral, neither overbought nor oversold. The STOCH value of 26.00 is Neutral, 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 23 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 (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$6.18B10.4327.64%3.53%6.57%55.37%
78
Outperform
$25.11B12.1819.96%0.91%16.60%57.39%
70
Outperform
$17.66B37.025.69%0.67%-11.42%75.42%
63
Neutral
$984.81M18.0014.27%6.87%8.11%
60
Neutral
$43.56B4.52-13.01%4.07%1.87%-43.08%
50
Neutral
-1.75%99.73%
42
Neutral
-2.85%75.96%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NXST
Nexstar Media Group
206.16
44.44
27.48%
NWSA
News Corp
29.66
2.02
7.31%
SBGI
Sinclair Broadcast
14.55
1.38
10.48%
LGF.B
Lions Gate Entertainment Class B
7.69
0.80
11.61%
FOXA
Fox
59.52
18.92
46.60%
PARAA
Paramount Global
16.91
-5.09
-23.14%

Nexstar Media Group Corporate Events

M&A Transactions
Nexstar Media Group Announces Acquisition of TEGNA Inc.
Positive
Aug 19, 2025

On August 18, 2025, Nexstar Media Group announced a definitive agreement to acquire TEGNA Inc. for $6.2 billion, including debt, in a transaction that enhances Nexstar’s position in the media industry. The merger, unanimously approved by TEGNA’s board, will create a combined entity with a significant presence in local media markets, expanding Nexstar’s reach and operational scale. The acquisition is expected to drive increased profitability and shareholder returns, with anticipated annual net synergies of approximately $300 million. The transaction is subject to customary closing conditions and regulatory approvals, with an expected close by the second half of 2026.

Dividends
Nexstar Media Group Declares Quarterly Cash Dividend
Positive
Aug 1, 2025

On August 1, 2025, Nexstar Media Group announced that its Board of Directors declared a quarterly cash dividend of $1.86 per share on its common stock, payable on August 29, 2025, to shareholders of record as of August 15, 2025. This decision reflects the company’s ongoing commitment to providing regular returns to its shareholders, although future dividends will be subject to quarterly review and board discretion.

Private Placements and Financing
Nexstar Media Group Completes Major Refinancing Deal
Positive
Jun 30, 2025

On June 27, 2025, Nexstar Media Inc. and Mission Broadcasting, Inc. successfully completed the refinancing of their revolving credit facilities and term loans. This refinancing extends the maturities, reduces interest rate margins, and enhances the company’s financial flexibility, thereby strengthening its capital structure. The new facilities include significant term loans and revolving credit facilities with improved terms, allowing Nexstar to prepay existing loans and reduce its financial burden.

Executive/Board ChangesShareholder Meetings
Nexstar Media Group Holds Annual Stockholders Meeting
Positive
Jun 20, 2025

On June 17, 2025, Nexstar Media Group held its Annual Meeting of Stockholders, where shareholders voted to elect all board nominees, approve executive compensation, and ratify PricewaterhouseCoopers LLP as the independent accounting firm for 2025. The decisions reflect strong shareholder support and are expected to reinforce Nexstar’s governance and financial oversight, potentially impacting its market position positively.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 20, 2025