Nexstar Media Group (NXST) AI Stock Analysis

• Market Cap: $5.40B
• Dividend Yield: 4.14%
• Average Volume (3M): 269.55K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.74
• 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: 222,915
• 30 Day Avg. Volume: 269,548
• PEG Ratio: -1.00
• Price to Book (P/B): 2.45
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.63
• Enterprise Value/Market Cap: 2.16
• Enterprise Value/Revenue: 0.56
• Enterprise Value/Gross Profit: 3.73
• Enterprise Value/Ebitda: 1.43
• 1Y Price Target: $203.86
• Price Target Upside: 10.75% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 78 Outperform
• Price Target: $197.00 ▲(7.02%Upside)

Nexstar Media Group scores well due to strong financial performance marked by profitability and robust cash flow, coupled with attractive valuation metrics. Recent corporate events further bolster its financial stance. However, challenges such as revenue decline and high leverage pose risks that require careful management.

Positive Factors

Capital Return

Nexstar returned $132 million in capital to shareholders in Q1 and has worked to reduce its debt load.

Operational Efficiency

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

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.

Flat 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 exhibits strong financial performance with high profitability and robust cash flow management. However, concerns arise from its significant reliance on debt and a slight revenue decline, necessitating careful management to mitigate financial 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	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	3.19B	2.81B	3.21B	2.80B	2.79B
EBITDA	2.21B	1.79B	2.22B	1.96B	2.00B
Net Income	722.00M	346.00M	971.00M	834.00M	811.50M
Balance Sheet
Total Assets	11.47B	12.08B	12.68B	13.26B	13.40B
Cash, Cash Equivalents and Short-Term Investments	144.00M	147.00M	204.10M	190.87M	152.70M
Total Debt	6.52B	7.13B	7.00B	7.46B	7.67B
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

• Technical Analysis Sentiment: Positive
• Last Price: 184.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 184.07 is above the 20-day moving average (MA) of 177.68, above the 50-day MA of 172.41, and above the 200-day MA of 162.98, indicating a bullish trend. The MACD of 3.45 indicates Negative momentum. The RSI at 59.68 is Neutral, neither overbought nor oversold. The STOCH value of 44.58 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
FOXA	81 Outperform	$23.93B	13.83	16.89%	0.97%	15.70%	26.73%
NWSA	79 Outperform	$17.65B	34.76	5.88%	0.67%	-5.43%	135.46%
NXST	78 Outperform	$5.40B	8.81	28.46%	4.14%	8.00%	71.49%
SBGI	67 Neutral	$1.05B	7.61	34.07%	6.65%	11.62%	―
Sector *	62 Neutral	$40.93B	-1.67	-12.06%	3.96%	2.10%	-69.66%
PARAA	53 Neutral	$9.16B	―	-28.56%	0.85%	-4.50%	-898.86%
LGF.B	42 Neutral	$1.93B	―	259.47%	―	-2.85%	75.96%

Nexstar Media Group Corporate Events

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.

The most recent analyst rating on (NXST) stock is a Buy with a $200.00 price target. To see the full list of analyst forecasts on Nexstar Media Group stock, see the NXST Stock Forecast page.

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.

The most recent analyst rating on (NXST) stock is a Buy with a $200.00 price target. To see the full list of analyst forecasts on Nexstar Media Group stock, see the NXST Stock Forecast page.