Nexstar Media Group, Inc. (NXST)

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 $5.60B market cap. The dividend yield of 3.67% offers an income stream for investors. However, a P/E ratio of 57.0 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 $5.60B reflects Nexstar's significant presence in the television broadcasting and digital media sector.
• P/E Ratio of 57.0 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 0.94 sits in the distress zone (elevated bankruptcy risk).
• Rich valuation — a P/E of 57.0 runs well above the Communication Services sector’s ~18x, leaving little room for a miss.
• 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. The digital advertising market is projected to reach $600 billion by 2024, offering significant revenue potential. 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 Opportunities Does NXST Have?

• Expansion of digital advertising platforms and revenue streams.
• Acquisition of additional television stations in strategic markets.
• Development of original content to attract viewers and differentiate from competitors.
• Strategic partnerships with streaming services to expand reach and generate revenue.

What Threats Does NXST Face?

• Further acceleration of cord-cutting trends.
• Increased competition from streaming services and digital media platforms.
• Changes in advertising spending patterns.
• Regulatory changes affecting the television broadcasting industry.

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.

How Nexstar Media Group, Inc. Is Valued

Nexstar Media Group, Inc. carries a market capitalization of $5.60B, placing it in the mid-cap category. Relative to its peer group, NXST's quantitative score of 51/100 is roughly in line with the peer average of 44/100.

Company Profile

Nexstar Media Group, Inc. operates in the Entertainment 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.

ROE 8%Key Financial Metrics

Return on equity for Nexstar Media Group, Inc. stands at 7.5%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 0.9%, showing how much profit it generates from its asset base. NXST trades at a trailing price-to-earnings ratio of 56.98, above the Communication Services sector average of ~18x. Its free cash flow yield is 12.9%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.76 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 3.0%, the inverse of the P/E and a quick read on earnings relative to price.

F-Score 6/9Financial Health

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 0.94 places it in the distress zone, a signal of elevated financial risk.

FY2026 estForward Outlook

Wall Street analysts project Nexstar Media Group, Inc. revenue of about $7.82B for fiscal 2026, with EPS near $33.65. The estimate reflects 6 contributing analysts.

NXST Financials

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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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