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 503 industry peers in the Media industry. While NXST has a great profitability rating, there are some minor concerns on its financial health. NXST is valued quite cheap, while showing a decent growth score. This is a good combination! Finally NXST also has an excellent dividend rating. This makes NXST very considerable for value and dividend investing!
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.
Each year in the past 5 years NXST had a positive operating cash flow.
1.2 Ratios
NXST has a Return On Assets of 5.70%. This is amongst the best in the industry. NXST outperforms 84.54% of its industry peers.
NXST has a better Return On Equity (28.97%) than 91.75% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.07%, NXST belongs to the top of the industry, outperforming 81.44% of the companies in the same industry.
NXST had an Average Return On Invested Capital over the past 3 years of 7.17%. This is significantly below the industry average of 13.68%.
The last Return On Invested Capital (8.07%) for NXST is above the 3 year average (7.17%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.7% | ||
| ROE | 28.97% | ||
| ROIC | 8.07% |
ROA(3y)5.61%
ROA(5y)5.83%
ROE(3y)27.49%
ROE(5y)28.8%
ROIC(3y)7.17%
ROIC(5y)7.11%
1.3 Margins
With an excellent Profit Margin value of 12.15%, NXST belongs to the best of the industry, outperforming 87.63% of the companies in the same industry.
NXST's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 23.08%, NXST belongs to the top of the industry, outperforming 92.78% of the companies in the same industry.
NXST's Operating Margin has improved in the last couple of years.
The Gross Margin of NXST (59.00%) is better than 72.16% of its industry peers.
NXST's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.08% | ||
| PM (TTM) | 12.15% | ||
| GM | 59% |
OM growth 3Y-2.43%
OM growth 5Y3.14%
PM growth 3Y-9.4%
PM growth 5Y12%
GM growth 3Y-0.59%
GM growth 5Y1.16%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NXST is creating some value.
Compared to 1 year ago, NXST has less shares outstanding
NXST has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, NXST has a worse debt to assets ratio.
2.2 Solvency
NXST has an Altman-Z score of 1.69. This is a bad value and indicates that NXST is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.69, NXST is in the better half of the industry, outperforming 63.92% of the companies in the same industry.
The Debt to FCF ratio of NXST is 5.63, which is a neutral value as it means it would take NXST, 5.63 years of fcf income to pay off all of its debts.
NXST's Debt to FCF ratio of 5.63 is fine compared to the rest of the industry. NXST outperforms 72.16% of its industry peers.
NXST has a Debt/Equity ratio of 2.84. This is a high value indicating a heavy dependency on external financing.
NXST has a worse Debt to Equity ratio (2.84) than 77.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.84 | ||
| Debt/FCF | 5.63 | ||
| Altman-Z | 1.69 |
ROIC/WACC1.14
WACC7.07%
2.3 Liquidity
A Current Ratio of 1.74 indicates that NXST should not have too much problems paying its short term obligations.
The Current ratio of NXST (1.74) is better than 65.98% of its industry peers.
NXST has a Quick Ratio of 1.74. 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 Quick ratio of 1.74. This is in the better half of the industry: NXST outperforms 65.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.74 | ||
| Quick Ratio | 1.74 |
3. Growth
3.1 Past
NXST shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 67.01%, which is quite impressive.
The Earnings Per Share has been growing by 39.47% on average over the past years. This is a very strong growth
NXST shows a small growth in Revenue. In the last year, the Revenue has grown by 7.98%.
NXST shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.21% yearly.
EPS 1Y (TTM)67.01%
EPS 3Y4.27%
EPS 5Y39.47%
EPS Q2Q%-34.69%
Revenue 1Y (TTM)7.98%
Revenue growth 3Y5.17%
Revenue growth 5Y12.21%
Sales Q2Q%-3.89%
3.2 Future
The Earnings Per Share is expected to grow by 0.47% on average over the next years.
Based on estimates for the next years, NXST will show a decrease in Revenue. The Revenue will decrease by -3.56% on average per year.
EPS Next Y-36.21%
EPS Next 2Y11.94%
EPS Next 3Y-3.95%
EPS Next 5Y0.47%
Revenue Next Year-8.81%
Revenue Next 2Y0.3%
Revenue Next 3Y-2.03%
Revenue Next 5Y-3.56%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.01, the valuation of NXST can be described as very reasonable.
NXST's Price/Earnings ratio is rather cheap when compared to the industry. NXST is cheaper than 83.51% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.21, NXST is valued rather cheaply.
The Price/Forward Earnings ratio is 6.59, which indicates a rather cheap valuation of NXST.
84.54% of the companies in the same industry are more expensive than NXST, based on the Price/Forward Earnings ratio.
NXST's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.01 | ||
| Fwd PE | 6.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NXST is valued cheaper than 83.51% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NXST is valued cheaply inside the industry as 89.69% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.65 | ||
| EV/EBITDA | 5.56 |
4.3 Compensation for Growth
The excellent profitability rating of NXST may justify a higher PE ratio.
NXST's earnings are expected to decrease with -3.95% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.23
EPS Next 2Y11.94%
EPS Next 3Y-3.95%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.29%, NXST is a good candidate for dividend investing.
NXST's Dividend Yield is rather good when compared to the industry average which is at 2.42. NXST pays more dividend than 87.63% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, NXST pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.29% |
5.2 History
On average, the dividend of NXST grows each year by 30.53%, which is quite nice.
NXST has paid a dividend for at least 10 years, which is a reliable track record.
NXST has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)30.53%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
33.64% 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.
DP33.64%
EPS Next 2Y11.94%
EPS Next 3Y-3.95%
177.86
+4.91 (+2.84%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners100.12%
Inst Owner Change0.51%
Ins Owners6.62%
Ins Owner Change9.8%
Market Cap5.36B
Analysts81.25
Price Target203.91 (14.65%)
Short Float %5.47%
Short Ratio3.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.29% |
Yearly Dividend6.82
Dividend Growth(5Y)30.53%
DP33.64%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.98%
Min EPS beat(2)-8%
Max EPS beat(2)2.04%
EPS beat(4)1
Avg EPS beat(4)-6.81%
Min EPS beat(4)-16.76%
Max EPS beat(4)2.04%
EPS beat(8)3
Avg EPS beat(8)-6.9%
EPS beat(12)6
Avg EPS beat(12)-3.6%
EPS beat(16)10
Avg EPS beat(16)1.11%
Revenue beat(2)0
Avg Revenue beat(2)-1.85%
Min Revenue beat(2)-2.11%
Max Revenue beat(2)-1.59%
Revenue beat(4)0
Avg Revenue beat(4)-2.45%
Min Revenue beat(4)-4.08%
Max Revenue beat(4)-1.59%
Revenue beat(8)0
Avg Revenue beat(8)-2.64%
Revenue beat(12)0
Avg Revenue beat(12)-2.39%
Revenue beat(16)1
Avg Revenue beat(16)-2.01%
PT rev (1m)-0.2%
PT rev (3m)-0.99%
EPS NQ rev (1m)1.65%
EPS NQ rev (3m)1.3%
EPS NY rev (1m)-0.43%
EPS NY rev (3m)-7.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.28%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)-1.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.01 | ||
| Fwd PE | 6.59 | ||
| P/S | 1 | ||
| P/FCF | 4.65 | ||
| P/OCF | 4.09 | ||
| P/B | 2.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.56 |
EPS(TTM)19.74
EY11.1%
EPS(NY)26.98
Fwd EY15.17%
FCF(TTM)38.24
FCFY21.5%
OCF(TTM)43.48
OCFY24.45%
SpS177.65
BVpS74.53
TBVpS-179.24
PEG (NY)N/A
PEG (5Y)0.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.7% | ||
| ROE | 28.97% | ||
| ROCE | 11.65% | ||
| ROIC | 8.07% | ||
| ROICexc | 8.27% | ||
| ROICexgc | 31.65% | ||
| OM | 23.08% | ||
| PM (TTM) | 12.15% | ||
| GM | 59% | ||
| FCFM | 21.53% |
ROA(3y)5.61%
ROA(5y)5.83%
ROE(3y)27.49%
ROE(5y)28.8%
ROIC(3y)7.17%
ROIC(5y)7.11%
ROICexc(3y)7.27%
ROICexc(5y)7.21%
ROICexgc(3y)26.43%
ROICexgc(5y)25.55%
ROCE(3y)10.35%
ROCE(5y)10.27%
ROICexcg growth 3Y11.09%
ROICexcg growth 5Y21.54%
ROICexc growth 3Y7.99%
ROICexc growth 5Y20.33%
OM growth 3Y-2.43%
OM growth 5Y3.14%
PM growth 3Y-9.4%
PM growth 5Y12%
GM growth 3Y-0.59%
GM growth 5Y1.16%
F-Score8
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.84 | ||
| Debt/FCF | 5.63 | ||
| Debt/EBITDA | 3.09 | ||
| Cap/Depr | 19.2% | ||
| Cap/Sales | 2.95% | ||
| Interest Coverage | 2.96 | ||
| Cash Conversion | 63.67% | ||
| Profit Quality | 177.11% | ||
| Current Ratio | 1.74 | ||
| Quick Ratio | 1.74 | ||
| Altman-Z | 1.69 |
F-Score8
WACC7.07%
ROIC/WACC1.14
Cap/Depr(3y)20.53%
Cap/Depr(5y)43.5%
Cap/Sales(3y)3.16%
Cap/Sales(5y)5.82%
Profit Quality(3y)172%
Profit Quality(5y)141.43%
High Growth Momentum
Growth
EPS 1Y (TTM)67.01%
EPS 3Y4.27%
EPS 5Y39.47%
EPS Q2Q%-34.69%
EPS Next Y-36.21%
EPS Next 2Y11.94%
EPS Next 3Y-3.95%
EPS Next 5Y0.47%
Revenue 1Y (TTM)7.98%
Revenue growth 3Y5.17%
Revenue growth 5Y12.21%
Sales Q2Q%-3.89%
Revenue Next Year-8.81%
Revenue Next 2Y0.3%
Revenue Next 3Y-2.03%
Revenue Next 5Y-3.56%
EBIT growth 1Y51.84%
EBIT growth 3Y2.62%
EBIT growth 5Y15.73%
EBIT Next Year12.76%
EBIT Next 3Y6.59%
EBIT Next 5Y12.13%
FCF growth 1Y-5%
FCF growth 3Y6.08%
FCF growth 5YN/A
OCF growth 1Y-4.87%
OCF growth 3Y0.96%
OCF growth 5Y24.52%