Nexstar Media Group, Inc. (NXST) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Nexstar Media Group, Inc. (NXST) Media & Communications Profile

Nexstar Media Group, Inc. operates as a prominent television broadcasting and digital media company, owning and servicing nearly 200 stations. With a focus on local content and diverse network affiliations, Nexstar delivers free programming and leverages digital platforms for advertising revenue, positioning itself in a competitive media landscape.

What Is the Investment Thesis for NXST?

Nexstar Media Group presents a mixed investment thesis. The company's extensive portfolio of local television stations and digital platforms provides a stable revenue base, as evidenced by its $5.19B market cap. The dividend yield of 3.67% offers an income stream for investors. However, a P/E ratio of 30.14 suggests a relatively high valuation compared to peers. Growth catalysts include further expansion of its digital advertising platforms and potential acquisitions of additional television stations. Potential risks include cord-cutting trends and increased competition from streaming services, which could erode viewership and advertising revenue. Investors should monitor the company's ability to adapt to the evolving media landscape and maintain its market share.

Based on FMP financials and quantitative analysis

NXST Key Highlights

Market Cap of $5.19B reflects Nexstar's significant presence in the television broadcasting and digital media sector.

• P/E Ratio of 30.14 indicates the price investors are willing to pay for each dollar of Nexstar's earnings.
• Profit Margin of 3.2% shows the percentage of revenue that turns into profit, highlighting efficiency.
• Gross Margin of 45.2% demonstrates the profitability of Nexstar's core business operations before operating expenses.
• Dividend Yield of 3.67% provides a return on investment for shareholders, making it attractive for income-seeking investors.

Who Are NXST's Competitors?

NXST is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are NXST's Key Strengths?

Large portfolio of television stations with broad geographic reach.

• Affiliations with major broadcast television networks.
• Diversified revenue streams from advertising, subscription fees, and service agreements.
• Experienced management team with a proven track record of acquisitions and integrations.

What Are NXST's Weaknesses?

Exposure to cord-cutting trends and declining linear TV viewership.

• Reliance on advertising revenue, which can be cyclical and sensitive to economic conditions.
• Competition from streaming services and other digital media platforms.
• High debt levels due to acquisitions.

What Could Drive NXST Stock Higher?

Potential acquisitions of additional television stations to expand market presence.

• Continued growth in digital advertising revenue through enhanced platforms.
• Development and distribution of original content to attract viewers.
• Strategic partnerships with streaming services to expand reach and generate revenue.

What Are the Key Risks for NXST?

Financial-distress signal — its Altman Z-Score of 1.06 sits in the distress zone (elevated bankruptcy risk).

• Rich valuation — a P/E of 30.14 runs well above the Communication Services sector’s ~17.60x, leaving little room for a miss.
• Insider selling — insiders were net sellers of roughly $1.8M recently.
• Cord-cutting trends and declining linear TV viewership impacting advertising revenue.
• Increased competition from streaming services and digital media platforms.
• Changes in advertising spending patterns due to economic conditions.
• Regulatory changes affecting the television broadcasting industry.

What Are the Growth Opportunities for NXST?

• Expansion of Digital Advertising Platforms: Nexstar can capitalize on the growing digital advertising market by enhancing its video and display advertising platforms. By investing in technology and data analytics, Nexstar can deliver targeted advertising solutions to its clients, increasing its market share and revenue. Timeline: Ongoing.
• Acquisition of Additional Television Stations: Nexstar has a proven track record of acquiring and integrating television stations. Further acquisitions can expand its geographic reach and increase its audience base. The fragmented nature of the television broadcasting industry provides opportunities for consolidation. By acquiring stations in strategic markets, Nexstar can strengthen its competitive position and generate synergies. Timeline: Ongoing.
• Development of Original Content: Investing in the development of original content can attract viewers and differentiate Nexstar from its competitors. Original programming can be distributed across its television stations and digital platforms, increasing viewership and advertising revenue. By focusing on local and regional content, Nexstar can cater to specific audience interests and build brand loyalty. Timeline: Ongoing.
• Enhancement of Interactive Community Websites: Nexstar's interactive community websites provide a platform for local news, information, and community engagement. By enhancing these websites with new features and content, Nexstar can attract more users and increase its digital advertising revenue. The company can also leverage these websites to promote its television stations and programming. Timeline: Ongoing.
• Strategic Partnerships with Streaming Services: Collaborating with streaming services can provide Nexstar with access to new audiences and revenue streams. By licensing its content to streaming platforms, Nexstar can generate additional revenue and expand its reach. Strategic partnerships can also help Nexstar adapt to the changing media landscape and compete with other broadcasters. Timeline: Ongoing.

What Are NXST's Competitive Advantages?

• Extensive portfolio of local television stations provides a strong distribution network.
• Affiliations with major broadcast television networks ensure access to popular programming.
• Focus on local content and community engagement fosters brand loyalty.
• Diversified revenue streams from advertising, subscription fees, and service agreements.

What Does NXST Do?

Founded in 1996 and headquartered in Irving, Texas, Nexstar Media Group, Inc. has grown into a significant player in the television broadcasting and digital media industry. The company's core business revolves around acquiring, developing, and operating television stations and interactive community websites across the United States. Nexstar provides free over-the-air programming to television viewers, generating revenue primarily through advertising sales. As of December 31, 2020, Nexstar owned, operated, programmed, or provided sales and other services to 198 television stations, including affiliations with major networks such as ABC, NBC, FOX, CBS, The CW, and MyNetworkTV. In addition to its broadcast operations, Nexstar owns WGN America, a national general entertainment cable network, and offers video and display advertising platforms through its own and third-party websites and mobile applications. The company also provides sales, programming, and other services through local service agreements to 37 power television stations owned by independent third parties. Nexstar's evolution from a broadcasting group to a diversified media company reflects its adaptability to changing consumer habits and technological advancements in the media landscape.

What Products and Services Does NXST Offer?

• Acquires and operates television stations across the United States.
• Develops and manages interactive community websites and digital media services.
• Offers free over-the-air programming to television viewing audiences.
• Provides sales, programming, and other services to television stations.
• Owns and operates WGN America, a national general entertainment cable network.
• Offers video and display advertising platforms through its websites and mobile applications.
• Affiliates with major broadcast television networks such as ABC, NBC, FOX, CBS, and The CW.

How Does NXST Make Money?

• Generates revenue primarily through the sale of advertising time on its television stations and digital platforms.
• Earns fees for providing sales, programming, and other services to television stations owned by third parties.
• Derives revenue from subscription fees for WGN America, its national general entertainment cable network.

What Industry Does NXST Operate In?

Nexstar Media Group operates in the dynamic entertainment industry, facing both opportunities and challenges. The industry is undergoing a significant transformation with the rise of streaming services and the decline of traditional linear TV viewership. Nexstar competes with other broadcasters, cable networks, and digital media companies for advertising revenue and audience share. The company's focus on local content and diverse network affiliations provides a competitive advantage in attracting viewers and advertisers. The increasing demand for digital advertising presents growth opportunities for Nexstar's online platforms.

Who Are NXST's Key Customers?

• Advertisers seeking to reach local and national audiences through television and digital media.
• Television viewers who consume free over-the-air programming.
• Affiliated television stations that receive programming and other services from Nexstar.
• Subscribers to WGN America, Nexstar's national general entertainment cable network.

Nexstar Media Group, Inc. Financial Trajectory

Nexstar Media Group, Inc. (NXST) reported $3.08B in revenue for Q2 FY2026, reflecting 120.6% growth compared to the prior quarter. The company recorded net income of $120.0M, with diluted EPS of $3.88. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this mid-cap Communication Services company. Across the four most recent quarters, NXST averaged $1.49 in diluted EPS.

Company Profile

Nexstar Media Group, Inc. operates in the Broadcasting industry within the Communication Services sector. It is headquartered in Irving, US. The company is led by CEO Perry A. Sook. NXST has traded publicly since 2003.

How Nexstar Media Group, Inc. Is Valued

Nexstar Media Group, Inc. carries a market capitalization of $5.19B, placing it in the mid-cap category. Analyst price targets span from $240.00 to $240.00, with a consensus of $240.00. At the current price of $169.97, that implies approximately 41% upside potential. Relative to its peer group, NXST's quantitative score of 53/100 is roughly in line with the peer average of 53/100.

Return on equity for Nexstar Media Group, Inc. stands at 8.6%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.1%, showing how much profit it generates from its asset base. NXST trades at a trailing price-to-earnings ratio of 30.14, above the Communication Services sector average of ~17.60x. Its free cash flow yield is 13.3%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.56 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 3.3%, the inverse of the P/E and a quick read on earnings relative to price.

Nexstar Media Group, Inc.'s Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 1.06 places it in the distress zone, a signal of elevated financial risk.

Nexstar Media Group, Inc. has beaten Wall Street's EPS estimate in 4 of its last 8 reported quarters — more hits than misses. Reported results have landed about 3.2% below estimates on average.

Over the past six months, Nexstar Media Group, Inc. insiders filed 99 SEC Form 4 transactions — 65 sales and 34 purchases. On net that is roughly 8K shares disposed (about $1.8M), a signal worth weighing alongside the fundamentals.

NXST Financials

NXST Latest News

NXST Analyst Consensus

NXST MoonshotScore

Nexstar Media Group, Inc. Communication Services Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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