Nexstar Media Group, Inc.
Nexstar Media Group, Inc. Fundamental Analysis
Nexstar Media Group, Inc. (NXST) shows strong financial fundamentals with a PE ratio of 13.57, profit margin of 10.04%, and ROE of 22.86%. The company generates $5.1B in annual revenue with moderate year-over-year growth of 9.61%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 61.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze NXST's fundamental strength across five key dimensions:
Efficiency Score
WeakNXST struggles to generate sufficient returns from assets.
Valuation Score
ExcellentNXST trades at attractive valuation levels.
Growth Score
ModerateNXST shows steady but slowing expansion.
Financial Health Score
ModerateNXST shows balanced financial health with some risks.
Profitability Score
ModerateNXST maintains healthy but balanced margins.
Key Financial Metrics
Is NXST Expensive or Cheap?
P/E Ratio
NXST trades at 13.57 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NXST's PEG of -0.84 indicates potential undervaluation.
Price to Book
The market values Nexstar Media Group, Inc. at 3.07 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 0.26 times EBITDA. This is generally considered low.
How Well Does NXST Make Money?
Net Profit Margin
For every $100 in sales, Nexstar Media Group, Inc. keeps $10.04 as profit after all expenses.
Operating Margin
Core operations generate 19.91 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $22.86 in profit for every $100 of shareholder equity.
ROA
Nexstar Media Group, Inc. generates $4.60 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Nexstar Media Group, Inc. produces operating cash flow of $1.11B, showing steady but balanced cash generation.
Free Cash Flow
Nexstar Media Group, Inc. generates strong free cash flow of $982.00M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $32.38 in free cash annually.
FCF Yield
NXST converts 14.04% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.57
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.84
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.07
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.36
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.91
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.87
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.23
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How NXST Stacks Against Its Sector Peers
| Metric | NXST Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.57 | 21.66 | Better (Cheaper) |
| ROE | 22.86% | 1190.00% | Weak |
| Net Margin | 10.04% | -55754.00% (disorted) | Strong |
| Debt/Equity | 2.91 | 1.32 | Weak (High Leverage) |
| Current Ratio | 1.87 | 1.59 | Neutral |
| ROA | 4.60% | -202359.00% (disorted) | Weak |
NXST outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Nexstar Media Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
153.19%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
346.27%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
326.15%
Industry Style: Growth, Technology, Streaming
High Growth