Nexstar Media Group, Inc. (NASDAQ: NXST)

Sector: Communication Services Industry: Broadcasting CIK: 0001142417
Market Cap 8.26 Bn
P/B 3.59
P/E 23.87
P/S 1.67
ROIC (Qtr) 8.20
Div Yield % 3.26
Rev 1y % (Qtr) -12.30
Total Debt (Qtr) 6.40 Bn
Debt/Equity (Qtr) 2.80
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About

Investment thesis

Bull case

  • Operating cash flow of 1.11B provides strong 14.08x coverage of stock compensation 79M, indicating sustainable incentive practices.
  • Robust free cash flow of 983M exceeds capital expenditure of 129M by 7.62x, indicating strong organic growth funding capability.
  • Robust tangible asset base of 3.65B provides 5.64x coverage of working capital 648M, indicating strong operational backing.
  • Operating cash flow of 1.11B provides solid 1.49x coverage of current liabilities 745M, showing strong operational health.
  • Tangible assets of 3.65B provide robust 8.66x coverage of other current liabilities 422M, indicating strong asset backing.

Bear case

  • Operating cash flow of 1.11B barely covers its investment activities of (152M), with a coverage ratio of -7.32, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 1.11B provides thin coverage of dividend payments of (221M) with a -5.03 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 236M provide limited coverage of acquisition spending of (22M), which is -10.73x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating earnings of 1.13B show weak coverage of depreciation charges of 812M, with a 1.39 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 983M represents just -2.76x of debt issuance (356M), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Product and Service Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Broadcasting
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NXST Nexstar Media Group, Inc. 8.26 Bn 23.87 1.67 6.40 Bn
2 TGNA Tegna Inc 4.06 Bn 7.22 1.41 2.59 Bn
3 SBGI Sinclair, Inc. 1.07 Bn 0.49 0.18 4.24 Bn
4 SSP E.W. SCRIPPS Co 0.81 Bn -7.98 0.35 2.74 Bn
5 IHRT iHeartMedia, Inc. 0.53 Bn -1.32 0.14 5.87 Bn
6 FUBO FuboTV Inc. 0.46 Bn 2.96 0.17 0.41 Bn
7 GTN Gray Media, Inc 0.23 Bn -7.34 0.80 5.68 Bn
8 NMAX Newsmax Inc. 0.20 Bn -2.81 1.18 0.01 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.33 0.87
EV to Cash from Ops. EV/CFO 15.02 -0.15
EV to Debt EV to Debt 2.34 6.39
EV to EBIT EV/EBIT 16.24 3.66
EV to EBITDA EV/EBITDA 9.10 3.24
EV to Free Cash Flow [EV/FCF] EV/FCF 17.45 7.40
EV to Market Cap EV to Market Cap 1.82 6.46
EV to Revenue EV/Rev 3.04 1.70
Price to Book Value [P/B] P/B 3.59 614.59
Price to Earnings [P/E] P/E 23.87 -1.43
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 2.34 -21.94
Dividend Payout Ratio % Div Payout % (Qtr) 44.80 114.41
Dividend per Basic Share Div per Share (Qtr) 7.27 0.74
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 22.42 23.53
Interest Coverage Int. cover (Qtr) 2.88 -1.29
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 11.64 19.60
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 30.39 18.99
Dividend Growth (1y) % Div 1y % (Qtr) 13.24 17.54
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -14.55 546.44
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -2.24 -17.28
EBIT Growth (1y) % EBIT 1y % (Qtr) -10.91 266.27
EBT Growth (1y) % EBT 1y % (Qtr) -9.26 -496.56
EPS Growth (1y) % EPS 1y % (Qtr) -7.26 -40.46
FCF Growth (1y) % FCF 1y % (Qtr) 12.34 25.60
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -3.31 3.01
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.46 0.48
Cash Payout Ratio Cash Payout (Qtr) 0.18 0.20
Cash Ratio Cash Ratio (Qtr) 0.32 0.41
Current Ratio Curr Ratio (Qtr) 1.87 1.64
Debt to Equity Ratio Debt/Equity (Qtr) 2.80 2.17
Interest Cover Ratio Int Coverage (Qtr) 2.88 -1.29
Times Interest Earned Times Interest Earned (Qtr) 2.88 -1.29
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 37.70 -11.99
EBIT Margin % EBIT Margin % (Qtr) 21.89 -20.47
EBT Margin % EBT Margin % (Qtr) 14.28 -27.40
Gross Margin % Gross Margin % (Qtr) 56.70 34.96
Net Profit Margin % Net Margin % (Qtr) 10.00 -28.49