Nexstar Media Group (NXST) AI Stock Analysis

• Market Cap: $6.20B
• Dividend Yield: 3.53%
• Average Volume (3M): 394.76K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.77
• Revenue Growth: 6.57%
• EPS Growth: 55.37%
• Country: US
• Employees: 11,773
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): 3.06
• Shares Outstanding: 30,315,770
• 10 Day Avg. Volume: 278,206
• 30 Day Avg. Volume: 394,763
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.89
• Enterprise Value/Revenue: 2.20
• Enterprise Value/Gross Profit: 4.05
• Enterprise Value/Ebitda: 5.69
• 1Y Price Target: $238.86
• Price Target Upside: 16.00% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 79 Outperform
• Price Target: $236.00 ▲(14.61% 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 of TEGNA

The acquisition of TEGNA is expected to enhance Nexstar's market position by expanding its reach and operational scale. The anticipated annual net synergies of approximately $300 million will likely drive increased profitability and shareholder returns, making it a strategic move for long-term growth.

Strong Cash Flow Management

Nexstar's strong cash flow management, indicated by a high free cash flow to net income ratio, ensures robust cash generation. This financial strength supports ongoing investments, debt reduction, and shareholder returns, contributing to long-term business stability.

Refinancing and Debt Repayment

Refinancing efforts improve Nexstar's capital structure by extending debt maturities and reducing interest costs. This enhances financial flexibility and reduces financial risk, supporting sustainable growth and operational resilience over the long term.

Negative Factors

Decline in Net Revenue

A decline in net revenue, primarily due to reduced political advertising, indicates challenges in sustaining growth. This could impact Nexstar's ability to maintain its market position and profitability if not addressed through diversification or new revenue streams.

High Debt Levels

Nexstar's high debt levels, reflected in its debt-to-equity ratio, pose a financial risk. This reliance on debt financing can strain cash flow and limit financial flexibility, potentially affecting long-term stability and investment capacity.

Challenges in Advertising Revenue

The decrease in advertising revenue, particularly in political and automotive sectors, highlights challenges in maintaining revenue streams. This could impact future profitability and necessitates strategic adjustments to diversify and stabilize income sources.

Nexstar Media Group Business Overview & Revenue Model

Company Description

Nexstar 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 Money

Nexstar 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 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

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	5.32B	5.41B	4.93B	5.21B	4.65B	4.50B
Gross Profit	2.89B	3.19B	2.81B	3.21B	2.80B	2.79B
EBITDA	2.06B	2.21B	1.79B	2.22B	1.96B	2.00B
Net Income	634.00M	722.00M	346.00M	971.00M	834.00M	811.50M
Balance Sheet
Total Assets	526.00M	11.47B	12.08B	12.68B	13.26B	13.40B
Cash, Cash Equivalents and Short-Term Investments	584.00M	144.00M	147.00M	204.10M	190.87M	152.70M
Total Debt	0.00	6.81B	7.13B	7.00B	7.46B	7.67B
Total Liabilities	0.00	9.20B	9.77B	9.91B	10.41B	10.87B
Stockholders Equity	0.00	2.26B	2.30B	2.74B	2.85B	2.52B
Cash Flow
Free Cash Flow	1.25B	1.10B	850.00M	1.25B	1.06B	1.04B
Operating Cash Flow	1.38B	1.25B	999.00M	1.40B	1.21B	1.25B
Investing Cash Flow	-152.00M	-102.00M	-173.00M	125.20M	-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 Price: 205.92
• 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 Positive. The current price of 205.92 is above the 20-day moving average (MA) of 204.81, above the 50-day MA of 195.23, and above the 200-day MA of 169.01, indicating a bullish trend. The MACD of 2.53 indicates Positive momentum. The RSI at 55.31 is Neutral, neither overbought nor oversold. The STOCH value of 60.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NXST.

Nexstar Media Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NXST	79 Outperform	$6.20B	10.31	27.64%	3.53%	6.57%	55.37%
FOXA	78 Outperform	25.05B	11.71	18.92%	0.93%	16.60%	57.39%
NWSA	67 Neutral	17.63B	36.51	13.45%	0.66%	-11.42%	75.42%
SBGI	64 Neutral	993.16M	17.45	53.17%	7.01%	8.11%	0.00%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Nexstar Media Group Corporate Events

Nexstar Media Group Announces Acquisition of TEGNA Inc.

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.

Nexstar Media Group Declares Quarterly Cash Dividend

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.

Nexstar Media Group Completes Major Refinancing Deal

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.

Nexstar Media Group Holds Annual Stockholders Meeting

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.