NEXSTAR MEDIA GROUP INC (NXST) Stock Fundamental Analysis
NASDAQ:NXST - Nasdaq - US65336K1034 - Common Stock - Currency: USD
Taking everything into account, NXST scores 6 out of 10 in our fundamental rating. NXST was compared to 92 industry peers in the Media industry. NXST has an excellent profitability rating, but there are some minor concerns on its financial health. NXST scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally NXST also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year NXST was profitable.
NXST had a positive operating cash flow in the past year.
NXST had positive earnings in each of the past 5 years.
In the past 5 years NXST always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.30%, NXST belongs to the top of the industry, outperforming 86.96% of the companies in the same industry.
With an excellent Return On Equity value of 31.99%, NXST belongs to the best of the industry, outperforming 93.48% of the companies in the same industry.
NXST has a Return On Invested Capital of 8.37%. This is amongst the best in the industry. NXST outperforms 82.61% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NXST is in line with the industry average of 6.86%.
The last Return On Invested Capital (8.37%) for NXST is above the 3 year average (7.17%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.3% | ||
| ROE | 31.99% | ||
| ROIC | 8.37% |
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
NXST's Profit Margin of 13.36% is amongst the best of the industry. NXST outperforms 88.04% of its industry peers.
NXST's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 23.88%, NXST belongs to the best of the industry, outperforming 95.65% of the companies in the same industry.
In the last couple of years the Operating Margin of NXST has grown nicely.
NXST has a better Gross Margin (59.43%) than 72.83% of its industry peers.
NXST's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.88% | ||
| PM (TTM) | 13.36% | ||
| GM | 59.43% |
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
NXST has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for NXST has been reduced compared to 1 year ago.
NXST has less shares outstanding than it did 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 1.69. This is a bad value and indicates that NXST is not financially healthy and even has some risk of bankruptcy.
NXST's Altman-Z score of 1.69 is fine compared to the rest of the industry. NXST outperforms 68.48% of its industry peers.
The Debt to FCF ratio of NXST is 5.90, which is a neutral value as it means it would take NXST, 5.90 years of fcf income to pay off all of its debts.
NXST has a better Debt to FCF ratio (5.90) than 73.91% 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.
The Debt to Equity ratio of NXST (2.84) is worse than 73.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.84 | ||
| Debt/FCF | 5.9 | ||
| Altman-Z | 1.69 |
ROIC/WACC1.12
WACC7.48%
2.3 Liquidity
A Current Ratio of 1.66 indicates that NXST should not have too much problems paying its short term obligations.
NXST's Current ratio of 1.66 is in line compared to the rest of the industry. NXST outperforms 57.61% of its industry peers.
A Quick Ratio of 1.66 indicates that NXST should not have too much problems paying its short term obligations.
NXST has a Quick ratio (1.66) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.66 |
3. Growth
3.1 Past
NXST shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 123.57%, which is quite impressive.
Measured over the past years, NXST shows a very strong growth in Earnings Per Share. The EPS has been growing by 39.47% on average per year.
Looking at the last year, NXST shows a quite strong growth in Revenue. The Revenue has grown by 9.59% in the last year.
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)123.57%
EPS 3Y4.27%
EPS 5Y39.47%
EPS Q2Q%127.71%
Revenue 1Y (TTM)9.59%
Revenue growth 3Y5.17%
Revenue growth 5Y12.21%
Sales Q2Q%14.11%
3.2 Future
Based on estimates for the next years, NXST will show a decrease in Earnings Per Share. The EPS will decrease by -0.44% on average per year.
NXST is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.82% yearly.
EPS Next Y-31%
EPS Next 2Y12.55%
EPS Next 3Y6.65%
EPS Next 5Y-0.44%
Revenue Next Year-7.38%
Revenue Next 2Y0.49%
Revenue Next 3Y-1.81%
Revenue Next 5Y-3.82%
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
Based on the Price/Earnings ratio of 7.88, the valuation of NXST can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of NXST indicates a rather cheap valuation: NXST is cheaper than 85.87% of the companies listed in the same industry.
NXST is valuated cheaply when we compare the Price/Earnings ratio to 29.71, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.42, 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 77.17% of the companies are valued more expensively.
NXST is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.34, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.88 | ||
| Fwd PE | 11.42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NXST is valued cheaply inside the industry as 84.78% of the companies are valued more expensively.
NXST's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NXST is cheaper than 85.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.76 | ||
| EV/EBITDA | 5.55 |
4.3 Compensation for Growth
NXST has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.2
EPS Next 2Y12.55%
EPS Next 3Y6.65%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.30%, NXST is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.48, NXST pays a better dividend. On top of this NXST pays more dividend than 88.04% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, NXST pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.3% |
5.2 History
The dividend of NXST is nicely growing with an annual growth rate of 30.53%!
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
NXST pays out 30.33% of its income as dividend. This is a sustainable payout ratio.
DP30.33%
EPS Next 2Y12.55%
EPS Next 3Y6.65%
169.63
-0.12 (-0.07%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners97.07%
Inst Owner Change4.03%
Ins Owners6.03%
Ins Owner Change-3.22%
Market Cap5.26B
Analysts81.25
Price Target200.34 (18.1%)
Short Float %7.45%
Short Ratio5.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.3% |
Yearly Dividend6.82
Dividend Growth(5Y)30.53%
DP30.33%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.27%
Min EPS beat(2)-8%
Max EPS beat(2)-4.54%
EPS beat(4)1
Avg EPS beat(4)-0.46%
Min EPS beat(4)-16.76%
Max EPS beat(4)27.46%
EPS beat(8)3
Avg EPS beat(8)-6.02%
EPS beat(12)6
Avg EPS beat(12)-2.1%
EPS beat(16)10
Avg EPS beat(16)2.49%
Revenue beat(2)0
Avg Revenue beat(2)-2.06%
Min Revenue beat(2)-2.11%
Max Revenue beat(2)-2.01%
Revenue beat(4)0
Avg Revenue beat(4)-2.64%
Min Revenue beat(4)-4.08%
Max Revenue beat(4)-2.01%
Revenue beat(8)0
Avg Revenue beat(8)-2.5%
Revenue beat(12)1
Avg Revenue beat(12)-2.26%
Revenue beat(16)2
Avg Revenue beat(16)-1.88%
PT rev (1m)-0.51%
PT rev (3m)-2.44%
EPS NQ rev (1m)0.39%
EPS NQ rev (3m)-0.35%
EPS NY rev (1m)-0.27%
EPS NY rev (3m)-2.07%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)0.53%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.88 | ||
| Fwd PE | 11.42 | ||
| P/S | 0.97 | ||
| P/FCF | 4.76 | ||
| P/OCF | 4.21 | ||
| P/B | 2.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.55 |
EPS(TTM)21.53
EY12.69%
EPS(NY)14.85
Fwd EY8.76%
FCF(TTM)35.62
FCFY21%
OCF(TTM)40.3
OCFY23.76%
SpS174.27
BVpS72.76
TBVpS-175.4
PEG (NY)N/A
PEG (5Y)0.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.3% | ||
| ROE | 31.99% | ||
| ROCE | 12.08% | ||
| ROIC | 8.37% | ||
| ROICexc | 8.48% | ||
| ROICexgc | 31.46% | ||
| OM | 23.88% | ||
| PM (TTM) | 13.36% | ||
| GM | 59.43% | ||
| FCFM | 20.44% |
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 | 5.9 | ||
| Debt/EBITDA | 3.05 | ||
| Cap/Depr | 17.95% | ||
| Cap/Sales | 2.68% | ||
| Interest Coverage | 3 | ||
| Cash Conversion | 59.55% | ||
| Profit Quality | 153.05% | ||
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.66 | ||
| Altman-Z | 1.69 |
F-Score8
WACC7.48%
ROIC/WACC1.12
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)123.57%
EPS 3Y4.27%
EPS 5Y39.47%
EPS Q2Q%127.71%
EPS Next Y-31%
EPS Next 2Y12.55%
EPS Next 3Y6.65%
EPS Next 5Y-0.44%
Revenue 1Y (TTM)9.59%
Revenue growth 3Y5.17%
Revenue growth 5Y12.21%
Sales Q2Q%14.11%
Revenue Next Year-7.38%
Revenue Next 2Y0.49%
Revenue Next 3Y-1.81%
Revenue Next 5Y-3.82%
EBIT growth 1Y73.76%
EBIT growth 3Y2.62%
EBIT growth 5Y15.73%
EBIT Next Year14.36%
EBIT Next 3Y8.92%
EBIT Next 5Y13.04%
FCF growth 1Y36.08%
FCF growth 3Y6.08%
FCF growth 5YN/A
OCF growth 1Y25.13%
OCF growth 3Y0.96%
OCF growth 5Y24.52%