NEXSTAR MEDIA GROUP INC (NXST) Stock Fundamental Analysis
NASDAQ:NXST - Nasdaq - US65336K1034 - Common Stock - Currency: USD
Overall NXST gets a fundamental rating of 6 out of 10. We evaluated NXST against 91 industry peers in the Media industry. NXST has an excellent profitability rating, but there are some minor concerns on its financial health. NXST may be a bit undervalued, certainly considering the very reasonable score on growth Finally NXST also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
NXST had positive earnings in the past year.
NXST had a positive operating cash flow in the past year.
Each year in the past 5 years NXST has been profitable.
In the past 5 years NXST always reported a positive cash flow from operatings.
1.2 Ratios
NXST's Return On Assets of 4.94% is amongst the best of the industry. NXST outperforms 83.91% of its industry peers.
The Return On Equity of NXST (26.05%) is better than 91.95% of its industry peers.
NXST has a Return On Invested Capital of 7.45%. This is in the better half of the industry: NXST outperforms 78.16% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NXST is in line with the industry average of 6.90%.
The 3 year average ROIC (6.89%) for NXST is below the current ROIC(7.45%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.94% | ||
| ROE | 26.05% | ||
| ROIC | 7.45% |
ROA(3y)5.61%
ROA(5y)4.9%
ROE(3y)26.59%
ROE(5y)24.67%
ROIC(3y)6.89%
ROIC(5y)6.37%
1.3 Margins
NXST's Profit Margin of 11.07% is amongst the best of the industry. NXST outperforms 86.21% of its industry peers.
In the last couple of years the Profit Margin of NXST has declined.
Looking at the Operating Margin, with a value of 21.37%, NXST belongs to the top of the industry, outperforming 93.10% of the companies in the same industry.
In the last couple of years the Operating Margin of NXST has declined.
The Gross Margin of NXST (58.36%) is better than 68.97% of its industry peers.
In the last couple of years the Gross Margin of NXST has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.37% | ||
| PM (TTM) | 11.07% | ||
| GM | 58.36% |
OM growth 3Y-20.65%
OM growth 5Y-11.73%
PM growth 3Y-26.99%
PM growth 5Y-13.01%
GM growth 3Y-2.97%
GM growth 5Y-0.91%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NXST is still creating some value.
NXST has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, NXST has less shares outstanding
NXST has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.55, we must say that NXST is in the distress zone and has some risk of bankruptcy.
NXST's Altman-Z score of 1.55 is fine compared to the rest of the industry. NXST outperforms 62.07% of its industry peers.
NXST has a debt to FCF ratio of 8.00. This is a slightly negative value and a sign of low solvency as NXST would need 8.00 years to pay back of all of its debts.
NXST's Debt to FCF ratio of 8.00 is fine compared to the rest of the industry. NXST outperforms 62.07% of its industry peers.
A Debt/Equity ratio of 2.96 is on the high side and indicates that NXST has dependencies on debt financing.
With a Debt to Equity ratio value of 2.96, NXST is not doing good in the industry: 81.61% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.96 | ||
| Debt/FCF | 8 | ||
| Altman-Z | 1.55 |
ROIC/WACC1.15
WACC6.46%
2.3 Liquidity
NXST has a Current Ratio of 1.68. This is a normal value and indicates that NXST is financially healthy and should not expect problems in meeting its short term obligations.
NXST has a Current ratio (1.68) which is comparable to the rest of the industry.
A Quick Ratio of 1.68 indicates that NXST should not have too much problems paying its short term obligations.
NXST has a Quick ratio (1.68) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 48.92% over the past year.
NXST shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.24% yearly.
Looking at the last year, NXST shows a small growth in Revenue. The Revenue has grown by 2.10% in the last year.
NXST shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.26% yearly.
EPS 1Y (TTM)48.92%
EPS 3Y-17.75%
EPS 5Y3.24%
EPS Q2Q%652.86%
Revenue 1Y (TTM)2.1%
Revenue growth 3Y3.1%
Revenue growth 5Y12.26%
Sales Q2Q%20.67%
3.2 Future
NXST is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.00% yearly.
Based on estimates for the next years, NXST will show a small growth in Revenue. The Revenue will grow by 1.60% on average per year.
EPS Next Y136.26%
EPS Next 2Y24.44%
EPS Next 3Y42.18%
EPS Next 5Y27%
Revenue Next Year9.68%
Revenue Next 2Y0.89%
Revenue Next 3Y3.69%
Revenue Next 5Y1.6%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
NXST is valuated reasonably with a Price/Earnings ratio of 8.86.
Compared to the rest of the industry, the Price/Earnings ratio of NXST indicates a rather cheap valuation: NXST is cheaper than 81.61% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of NXST to the average of the S&P500 Index (28.46), we can say NXST is valued rather cheaply.
The Price/Forward Earnings ratio is 10.28, which indicates a very decent valuation of NXST.
Based on the Price/Forward Earnings ratio, NXST is valued a bit cheaper than the industry average as 77.01% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 92.56. NXST is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.86 | ||
| Fwd PE | 10.28 |
4.2 Price Multiples
83.91% of the companies in the same industry are more expensive than NXST, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NXST indicates a rather cheap valuation: NXST is cheaper than 85.06% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.68 | ||
| EV/EBITDA | 5.95 |
4.3 Compensation for Growth
NXST's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of NXST may justify a higher PE ratio.
A more expensive valuation may be justified as NXST's earnings are expected to grow with 42.18% in the coming years.
PEG (NY)0.07
PEG (5Y)2.73
EPS Next 2Y24.44%
EPS Next 3Y42.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.32%, NXST is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.46, NXST pays a better dividend. On top of this NXST pays more dividend than 87.36% of the companies listed in the same industry.
NXST's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.32% |
5.2 History
On average, the dividend of NXST grows each year by 29.40%, which is quite nice.
NXST has been paying a dividend for at least 10 years, so it has a reliable track record.
NXST has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)29.4%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
36.85% of the earnings are spent on dividend by NXST. This is a low number and sustainable payout ratio.
The dividend of NXST is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP36.85%
EPS Next 2Y24.44%
EPS Next 3Y42.18%
NEXSTAR MEDIA GROUP INC
NASDAQ:NXST (1/31/2025, 8:00:01 PM)
After market: 153.22 0 (0%)153.22
-3.67 (-2.34%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners96.69%
Inst Owner Change4%
Ins Owners5.82%
Ins Owner Change-0.78%
Market Cap4.75B
Analysts81.33
Price Target205.13 (33.88%)
Short Float %6.57%
Short Ratio4.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.32% |
Yearly Dividend5.41
Dividend Growth(5Y)29.4%
DP36.85%
Div Incr Years11
Div Non Decr Years11
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-10.65%
Min EPS beat(2)-16.76%
Max EPS beat(2)-4.54%
EPS beat(4)1
Avg EPS beat(4)-3.84%
Min EPS beat(4)-21.52%
Max EPS beat(4)27.46%
EPS beat(8)3
Avg EPS beat(8)-9.66%
EPS beat(12)7
Avg EPS beat(12)0.42%
EPS beat(16)11
Avg EPS beat(16)3.61%
Revenue beat(2)0
Avg Revenue beat(2)-3.05%
Min Revenue beat(2)-4.08%
Max Revenue beat(2)-2.01%
Revenue beat(4)0
Avg Revenue beat(4)-2.82%
Min Revenue beat(4)-4.08%
Max Revenue beat(4)-2.01%
Revenue beat(8)0
Avg Revenue beat(8)-2.58%
Revenue beat(12)1
Avg Revenue beat(12)-2.17%
Revenue beat(16)3
Avg Revenue beat(16)-1.72%
PT rev (1m)0%
PT rev (3m)0.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-19.63%
EPS NY rev (1m)0%
EPS NY rev (3m)-11.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.56%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.86 | ||
| Fwd PE | 10.28 | ||
| P/S | 0.91 | ||
| P/FCF | 5.68 | ||
| P/OCF | 4.66 | ||
| P/B | 2.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.95 |
EPS(TTM)17.29
EY11.28%
EPS(NY)14.91
Fwd EY9.73%
FCF(TTM)26.98
FCFY17.61%
OCF(TTM)32.91
OCFY21.48%
SpS168.38
BVpS71.53
TBVpS-179.5
PEG (NY)0.07
PEG (5Y)2.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.94% | ||
| ROE | 26.05% | ||
| ROCE | 10.29% | ||
| ROIC | 7.45% | ||
| ROICexc | 7.58% | ||
| ROICexgc | 28.07% | ||
| OM | 21.37% | ||
| PM (TTM) | 11.07% | ||
| GM | 58.36% | ||
| FCFM | 16.03% |
ROA(3y)5.61%
ROA(5y)4.9%
ROE(3y)26.59%
ROE(5y)24.67%
ROIC(3y)6.89%
ROIC(5y)6.37%
ROICexc(3y)6.99%
ROICexc(5y)6.47%
ROICexgc(3y)24.66%
ROICexgc(5y)22.61%
ROCE(3y)9.51%
ROCE(5y)8.8%
ROICexcg growth 3Y-12.21%
ROICexcg growth 5Y-19.2%
ROICexc growth 3Y-14.54%
ROICexc growth 5Y-10.74%
OM growth 3Y-20.65%
OM growth 5Y-11.73%
PM growth 3Y-26.99%
PM growth 5Y-13.01%
GM growth 3Y-2.97%
GM growth 5Y-0.91%
F-Score7
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.96 | ||
| Debt/FCF | 8 | ||
| Debt/EBITDA | 3.44 | ||
| Cap/Depr | 23.06% | ||
| Cap/Sales | 3.52% | ||
| Interest Coverage | 2.5 | ||
| Cash Conversion | 53.34% | ||
| Profit Quality | 144.81% | ||
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.68 | ||
| Altman-Z | 1.55 |
F-Score7
WACC6.46%
ROIC/WACC1.15
Cap/Depr(3y)30.92%
Cap/Depr(5y)337.38%
Cap/Sales(3y)4.34%
Cap/Sales(5y)45.29%
Profit Quality(3y)157.96%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)48.92%
EPS 3Y-17.75%
EPS 5Y3.24%
EPS Q2Q%652.86%
EPS Next Y136.26%
EPS Next 2Y24.44%
EPS Next 3Y42.18%
EPS Next 5Y27%
Revenue 1Y (TTM)2.1%
Revenue growth 3Y3.1%
Revenue growth 5Y12.26%
Sales Q2Q%20.67%
Revenue Next Year9.68%
Revenue Next 2Y0.89%
Revenue Next 3Y3.69%
Revenue Next 5Y1.6%
EBIT growth 1Y23.47%
EBIT growth 3Y-18.19%
EBIT growth 5Y-0.91%
EBIT Next Year175.23%
EBIT Next 3Y39.6%
EBIT Next 5Y24.65%
FCF growth 1Y-39.03%
FCF growth 3Y7.66%
FCF growth 5Y9.04%
OCF growth 1Y-32.74%
OCF growth 3Y-7.3%
OCF growth 5Y6.28%