Nexstar Media Group (NXST) AI Stock Analysis

• Market Cap: $6.23B
• Dividend Yield: 3.65%
• Average Volume (3M): 306.75K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.61
• Revenue Growth: -1.42%
• EPS Growth: -8.99%
• Country: US
• Employees: 11,773
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): 2.14
• Shares Outstanding: 30,326,193
• 10 Day Avg. Volume: 239,306
• 30 Day Avg. Volume: 306,748
• PEG Ratio: 0.06
• Price to Book (P/B): 2.26
• Price to Sales (P/S): 0.94
• P/FCF Ratio: 4.62
• Enterprise Value/Market Cap: 2.01
• Enterprise Value/Revenue: 2.43
• Enterprise Value/Gross Profit: 4.57
• Enterprise Value/Ebitda: 5.48
• 1Y Price Target: $232.25
• Price Target Upside: 14.03% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 12.94
• Revenue Forecast (FY): $4.91B

• Rating: 69 Neutral
• Price Target: $214.00 ▲(5.07% Upside)

Nexstar Media Group's overall stock score is driven by strong valuation metrics and positive technical indicators. While the company's profitability is solid, challenges in revenue growth and high leverage pose risks. The recent earnings call and corporate events provide a mixed but generally positive outlook, supporting a moderately favorable stock score.

Positive Factors

TEGNA Acquisition

The acquisition of TEGNA is expected to enhance Nexstar's scale and community impact, potentially increasing revenue and cash flow significantly.

CEO Leadership

The extension of CEO Perry Sook's contract reflects confidence in his leadership, which is crucial for executing strategic initiatives like the TEGNA acquisition.

Sports Programming Growth

Growth in sports programming strengthens Nexstar's content offerings, attracting more viewers and advertisers, which supports long-term revenue growth.

Negative Factors

High Leverage

Significant leverage could strain Nexstar's financial flexibility, impacting its ability to invest in growth opportunities and manage economic downturns.

Decline in Revenue

A decline in net revenue, particularly from political advertising, indicates challenges in maintaining revenue momentum, affecting future profitability.

Free Cash Flow Decline

A decline in free cash flow growth raises concerns about Nexstar's liquidity and its ability to fund operations and strategic initiatives.

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, primarily from advertising sales and retransmission consent fees. The company sells advertising space on its television stations, targeting local businesses and national advertisers looking to reach specific demographics. Additionally, Nexstar earns revenue from retransmission consent fees, where it negotiates agreements with cable and satellite providers to carry its channels. This revenue model is bolstered by the company's extensive reach and strong ratings in local markets. Furthermore, Nexstar has expanded its digital footprint through online streaming services and digital advertising, creating additional revenue opportunities. Significant partnerships with major networks and content providers enhance its programming offerings and attract more viewers, further driving advertising revenue.

Nexstar Media Group Financial Statement Overview

Summary

Nexstar Media Group shows solid profitability with a healthy net profit margin and operational efficiency. However, challenges include a decline in revenue growth and high leverage, with a significant debt-to-equity ratio and declining free cash flow growth.

Income Statement

Nexstar Media Group's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate by -3.16%, reflecting challenges in maintaining revenue momentum. However, the company maintains a healthy net profit margin of 10.04% and an EBIT margin of 17.54%, indicating operational efficiency. The gross profit margin has decreased significantly from previous years, suggesting increased cost pressures.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.80, indicating significant leverage, which could pose financial risks. The return on equity (ROE) stands at 22.86%, showcasing the company's ability to generate returns on shareholders' investments. However, the equity ratio is relatively low, suggesting a reliance on debt financing.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by -21.61% in the TTM period, indicating potential liquidity challenges. The operating cash flow to net income ratio is strong at 1.49, suggesting good cash generation relative to net income. However, the decline in free cash flow growth is a concern for future cash availability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.15B	5.41B	4.93B	5.21B	4.65B	4.50B
Gross Profit	2.73B	3.19B	2.81B	3.21B	2.79B	2.78B
EBITDA	2.28B	2.21B	1.79B	2.22B	1.97B	2.00B
Net Income	517.00M	722.00M	346.00M	971.00M	834.00M	811.50M
Balance Sheet
Total Assets	11.25B	11.47B	12.08B	12.68B	13.26B	13.40B
Cash, Cash Equivalents and Short-Term Investments	236.00M	144.00M	147.00M	204.00M	190.90M	152.70M
Total Debt	6.66B	6.81B	7.13B	7.00B	7.46B	7.70B
Total Liabilities	8.96B	9.20B	9.77B	9.91B	10.41B	10.87B
Stockholders Equity	2.29B	2.26B	2.30B	2.74B	2.85B	2.52B
Cash Flow
Free Cash Flow	983.00M	1.10B	850.00M	1.25B	1.06B	1.04B
Operating Cash Flow	1.11B	1.25B	999.00M	1.40B	1.22B	1.25B
Investing Cash Flow	-152.00M	-102.00M	-173.00M	125.00M	-232.00M	-39.80M
Financing Cash Flow	-905.00M	-1.15B	-899.00M	-1.51B	-945.00M	-1.29B

Nexstar Media Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 203.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 203.67 is above the 20-day moving average (MA) of 190.87, above the 50-day MA of 192.03, and above the 200-day MA of 179.76, indicating a bullish trend. The MACD of 3.01 indicates Negative momentum. The RSI at 72.23 is Negative, neither overbought nor oversold. The STOCH value of 96.04 is Negative, 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
FOXA	77 Outperform	$29.89B	16.15	17.33%	0.77%	14.91%	9.30%
FOX	76 Outperform	$29.89B	14.28	17.33%	0.87%	14.91%	9.30%
NWS	70 Outperform	$15.30B	36.81	5.59%	0.67%	-16.36%	29.53%
NXST	69 Neutral	$6.23B	12.65	22.38%	3.65%	-1.42%	-8.99%
NWSA	67 Neutral	$15.30B	32.53	5.59%	0.76%	-16.36%	29.53%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
SBGI	53 Neutral	$1.15B	―	-11.81%	6.08%	-0.98%	82.16%

Nexstar Media Group Corporate Events

Nexstar Faces DOJ Inquiry on TEGNA Merger

On August 18, 2025, Nexstar Media Group, Inc. entered into a merger agreement with TEGNA Inc., where TEGNA will become a wholly owned subsidiary of Nexstar. The U.S. Department of Justice issued a Second Request for additional information on October 30, 2025, extending the waiting period for the merger’s completion, which is expected by the second half of 2026, pending regulatory approval and other conditions.

Nexstar Media Extends CEO Perry Sook’s Contract

On October 30, 2025, Nexstar Media Group announced the extension of Chairman and CEO Perry A. Sook’s employment agreement through March 31, 2029. This decision underscores Sook’s pivotal role in Nexstar’s growth, including over 40 acquisitions, and positions him to lead the company through its next growth phase, including the proposed acquisition of TEGNA. The agreement includes a significant compensation package and reflects confidence in Sook’s leadership to continue delivering value to shareholders and stakeholders.

Nexstar Media Declares Quarterly Dividend for Shareholders

On October 29, 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 November 26, 2025, to shareholders of record on November 12, 2025. This decision reflects the company’s commitment to providing regular returns to its shareholders, although future dividends will be subject to quarterly review by the Board.