NEXSTAR MEDIA GROUP INC (NXST)
US65336K1034 - Common Stock
NXST gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 92 industry peers in the Media industry. NXST scores excellent on profitability, 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.
In the past year NXST had a positive cash flow from operations.
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's Return On Assets of 4.94% is amongst the best of the industry. NXST outperforms 83.52% of its industry peers.
NXST has a better Return On Equity (26.05%) than 91.21% 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 78.02% 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 7.61%.
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 has a Profit Margin of 11.07%. This is amongst the best in the industry. NXST outperforms 84.62% of its industry peers.
In the last couple of years the Profit Margin of NXST has declined.
NXST's Operating Margin of 21.37% is amongst the best of the industry. NXST outperforms 93.41% of its industry peers.
NXST's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 58.36%, NXST is in the better half of the industry, outperforming 70.33% of the companies in the same industry.
NXST's Gross Margin has been stable in the last couple of years.
| 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
NXST has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
NXST has less shares outstanding than it did 1 year ago.
The number of shares outstanding for NXST has been reduced compared to 5 years ago.
The debt/assets ratio for NXST is higher compared to a year ago.
2.2 Solvency
NXST has an Altman-Z score of 1.57. This is a bad value and indicates that NXST is not financially healthy and even has some risk of bankruptcy.
NXST has a Altman-Z score of 1.57. This is comparable to the rest of the industry: NXST outperforms 59.34% 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.
Looking at the Debt to FCF ratio, with a value of 8.00, NXST is in the better half of the industry, outperforming 64.84% of the companies in the same industry.
A Debt/Equity ratio of 2.96 is on the high side and indicates that NXST has dependencies on debt financing.
NXST has a Debt to Equity ratio of 2.96. This is amonst the worse of the industry: NXST underperforms 82.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.96 | ||
| Debt/FCF | 8 | ||
| Altman-Z | 1.57 |
ROIC/WACC1.14
WACC6.53%
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's Current ratio of 1.68 is in line compared to the rest of the industry. NXST outperforms 57.14% of its industry peers.
NXST has a Quick 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.
Looking at the Quick ratio, with a value of 1.68, NXST is in line with its industry, outperforming 57.14% of the companies in the same 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.
The Earnings Per Share has been growing slightly by 3.24% on average over the past years.
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
Based on estimates for the next years, NXST will show a very strong growth in Earnings Per Share. The EPS will grow by 26.54% on average per year.
The Revenue is expected to decrease by -0.10% on average over the next years.
EPS Next Y159.9%
EPS Next 2Y27.03%
EPS Next 3Y41.8%
EPS Next 5Y26.54%
Revenue Next Year11.52%
Revenue Next 2Y1.61%
Revenue Next 3Y4.09%
Revenue Next 5Y-0.1%
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 accelerating.
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
A Price/Earnings ratio of 9.82 indicates a reasonable valuation of NXST.
Based on the Price/Earnings ratio, NXST is valued cheaper than 82.42% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.96, NXST is valued rather cheaply.
The Price/Forward Earnings ratio is 10.92, which indicates a very decent valuation of NXST.
NXST's Price/Forward Earnings ratio is rather cheap when compared to the industry. NXST is cheaper than 80.22% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.82. NXST is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.82 | ||
| Fwd PE | 10.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NXST is valued cheaply inside the industry as 86.81% of the companies are valued more expensively.
85.71% of the companies in the same industry are more expensive than NXST, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.29 | ||
| EV/EBITDA | 6.15 |
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.
NXST has a very decent profitability rating, which may justify a higher PE ratio.
NXST's earnings are expected to grow with 41.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.06
PEG (5Y)3.03
EPS Next 2Y27.03%
EPS Next 3Y41.8%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.07%, NXST is a good candidate for dividend investing.
NXST's Dividend Yield is rather good when compared to the industry average which is at 3.98. NXST pays more dividend than 87.91% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, NXST pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.07% |
5.2 History
On average, the dividend of NXST grows each year by 29.40%, 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)29.4%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
NXST pays out 36.85% of its income as dividend. This is a 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 2Y27.03%
EPS Next 3Y41.8%
NEXSTAR MEDIA GROUP INC
NASDAQ:NXST (11/22/2024, 4:40:12 PM)
After market: 169.733 -0.02 (-0.01%)169.75
+0.63 (+0.37%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.27B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.07% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.82 | ||
| Fwd PE | 10.92 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.06
PEG (5Y)3.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.94% | ||
| ROE | 26.05% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21.37% | ||
| PM (TTM) | 11.07% | ||
| GM | 58.36% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.96 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.68 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)48.92%
EPS 3Y-17.75%
EPS 5Y
EPS Q2Q%
EPS Next Y159.9%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.1%
Revenue growth 3Y3.1%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y