NEXSTAR MEDIA GROUP INC (NXST) Stock Fundamental Analysis
NASDAQ:NXST - Nasdaq - US65336K1034 - Common Stock - Currency: USD
Overall NXST gets a fundamental rating of 7 out of 10. We evaluated NXST against 97 industry peers in the Media industry. NXST scores excellent on profitability, 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. These ratings would make NXST suitable for value and dividend investing!
1. Profitability
1.1 Basic Checks
NXST had positive earnings in the past year.
NXST had a positive operating cash flow in the past year.
NXST had positive earnings in each of the past 5 years.
Each year in the past 5 years NXST had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.70%, NXST belongs to the top of the industry, outperforming 84.54% of the companies in the same industry.
With an excellent Return On Equity value of 28.97%, NXST belongs to the best of the industry, outperforming 91.75% of the companies in the same industry.
NXST's Return On Invested Capital of 8.07% is amongst the best of the industry. NXST outperforms 81.44% 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 7.56%.
The 3 year average ROIC (7.17%) for NXST is below the current ROIC(8.07%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.7% | ||
| ROE | 28.97% | ||
| ROIC | 8.07% |
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 has a Profit Margin of 12.15%. This is amongst the best in the industry. NXST outperforms 87.63% of its industry peers.
In the last couple of years the Profit Margin of NXST has grown nicely.
NXST's Operating Margin of 23.08% is amongst the best of the industry. NXST outperforms 92.78% of its industry peers.
In the last couple of years the Operating Margin of NXST has grown nicely.
With a decent Gross Margin value of 59.00%, NXST is doing good in the industry, outperforming 72.16% of the companies in the same industry.
In the last couple of years the Gross Margin of NXST has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.08% | ||
| PM (TTM) | 12.15% | ||
| GM | 59% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NXST is still creating some value.
The number of shares outstanding for NXST has been reduced compared to 1 year ago.
Compared to 5 years ago, NXST has less shares outstanding
The debt/assets ratio for NXST is higher compared to a year ago.
2.2 Solvency
NXST has an Altman-Z score of 1.71. This is a bad value and indicates that NXST is not financially healthy and even has some risk of bankruptcy.
NXST has a Altman-Z score of 1.71. This is in the better half of the industry: NXST outperforms 61.86% of its industry peers.
The Debt to FCF ratio of NXST is 5.63, which is a neutral value as it means it would take NXST, 5.63 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.63, NXST is doing good in the industry, outperforming 72.16% of the companies in the same industry.
NXST has a Debt/Equity ratio of 2.84. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.84, NXST is not doing good in the industry: 77.32% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.84 | ||
| Debt/FCF | 5.63 | ||
| Altman-Z | 1.71 |
ROIC/WACC1.2
WACC6.7%
2.3 Liquidity
NXST has a Current Ratio of 1.74. This is a normal value and indicates that NXST is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.74, NXST is doing good in the industry, outperforming 65.98% of the companies in the same industry.
A Quick Ratio of 1.74 indicates that NXST should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.74, NXST is in the better half of the industry, outperforming 65.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.74 | ||
| Quick Ratio | 1.74 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 67.01% over the past year.
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.
The Revenue has been growing slightly by 7.98% in the past 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)67.01%
EPS 3Y4.27%
EPS 5Y39.47%
EPS Q2Q%-34.69%
Revenue 1Y (TTM)7.98%
Revenue growth 3Y5.17%
Revenue growth 5Y12.21%
Sales Q2Q%-3.89%
3.2 Future
NXST is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.47% yearly.
Based on estimates for the next years, NXST will show a decrease in Revenue. The Revenue will decrease by -3.56% on average per year.
EPS Next Y-37.6%
EPS Next 2Y11.55%
EPS Next 3Y-4%
EPS Next 5Y0.47%
Revenue Next Year-8.94%
Revenue Next 2Y0.14%
Revenue Next 3Y-2.04%
Revenue Next 5Y-3.56%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
The Price/Earnings ratio is 9.36, which indicates a very decent valuation of NXST.
Based on the Price/Earnings ratio, NXST is valued cheaper than 80.41% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.48. NXST is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 6.90, the valuation of NXST can be described as very cheap.
Based on the Price/Forward Earnings ratio, NXST is valued cheaply inside the industry as 84.54% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.52, NXST is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.36 | ||
| Fwd PE | 6.9 |
4.2 Price Multiples
84.54% of the companies in the same industry are more expensive than NXST, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, NXST is valued cheaply inside the industry as 89.69% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.83 | ||
| EV/EBITDA | 5.73 |
4.3 Compensation for Growth
NXST has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as NXST's earnings are expected to decrease with -4.00% in the coming years.
PEG (NY)N/A
PEG (5Y)0.24
EPS Next 2Y11.55%
EPS Next 3Y-4%
5. Dividend
5.1 Amount
NXST has a Yearly Dividend Yield of 4.02%, which is a nice return.
Compared to an average industry Dividend Yield of 4.62, NXST pays a better dividend. On top of this NXST pays more dividend than 87.63% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, NXST pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.02% |
5.2 History
The dividend of NXST is nicely growing with an annual growth rate of 30.53%!
NXST has been paying a dividend for at least 10 years, so it has a reliable track record.
NXST has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)30.53%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
NXST pays out 33.64% of its income as dividend. This is a sustainable payout ratio.
NXST's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP33.64%
EPS Next 2Y11.55%
EPS Next 3Y-4%
184.85
+0.78 (+0.42%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners100.12%
Inst Owner Change0%
Ins Owners6.62%
Ins Owner Change9.8%
Market Cap5.57B
Analysts81.33
Price Target203.91 (10.31%)
Short Float %5.81%
Short Ratio4.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.02% |
Yearly Dividend6.82
Dividend Growth(5Y)30.53%
DP33.64%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.98%
Min EPS beat(2)-8%
Max EPS beat(2)2.04%
EPS beat(4)1
Avg EPS beat(4)-6.81%
Min EPS beat(4)-16.76%
Max EPS beat(4)2.04%
EPS beat(8)3
Avg EPS beat(8)-6.9%
EPS beat(12)6
Avg EPS beat(12)-3.6%
EPS beat(16)10
Avg EPS beat(16)1.11%
Revenue beat(2)0
Avg Revenue beat(2)-1.85%
Min Revenue beat(2)-2.11%
Max Revenue beat(2)-1.59%
Revenue beat(4)0
Avg Revenue beat(4)-2.45%
Min Revenue beat(4)-4.08%
Max Revenue beat(4)-1.59%
Revenue beat(8)0
Avg Revenue beat(8)-2.64%
Revenue beat(12)0
Avg Revenue beat(12)-2.39%
Revenue beat(16)1
Avg Revenue beat(16)-2.01%
PT rev (1m)0%
PT rev (3m)-0.99%
EPS NQ rev (1m)-2.37%
EPS NQ rev (3m)-1.1%
EPS NY rev (1m)-2.6%
EPS NY rev (3m)-9.87%
Revenue NQ rev (1m)-0.32%
Revenue NQ rev (3m)-1.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.36 | ||
| Fwd PE | 6.9 | ||
| P/S | 1.04 | ||
| P/FCF | 4.83 | ||
| P/OCF | 4.25 | ||
| P/B | 2.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.73 |
EPS(TTM)19.74
EY10.68%
EPS(NY)26.79
Fwd EY14.49%
FCF(TTM)38.24
FCFY20.69%
OCF(TTM)43.48
OCFY23.52%
SpS177.65
BVpS74.53
TBVpS-179.24
PEG (NY)N/A
PEG (5Y)0.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.7% | ||
| ROE | 28.97% | ||
| ROCE | 11.65% | ||
| ROIC | 8.07% | ||
| ROICexc | 8.27% | ||
| ROICexgc | 31.65% | ||
| OM | 23.08% | ||
| PM (TTM) | 12.15% | ||
| GM | 59% | ||
| FCFM | 21.53% |
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 | 5.63 | ||
| Debt/EBITDA | 3.09 | ||
| Cap/Depr | 19.2% | ||
| Cap/Sales | 2.95% | ||
| Interest Coverage | 2.96 | ||
| Cash Conversion | 63.67% | ||
| Profit Quality | 177.11% | ||
| Current Ratio | 1.74 | ||
| Quick Ratio | 1.74 | ||
| Altman-Z | 1.71 |
F-Score8
WACC6.7%
ROIC/WACC1.2
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)67.01%
EPS 3Y4.27%
EPS 5Y39.47%
EPS Q2Q%-34.69%
EPS Next Y-37.6%
EPS Next 2Y11.55%
EPS Next 3Y-4%
EPS Next 5Y0.47%
Revenue 1Y (TTM)7.98%
Revenue growth 3Y5.17%
Revenue growth 5Y12.21%
Sales Q2Q%-3.89%
Revenue Next Year-8.94%
Revenue Next 2Y0.14%
Revenue Next 3Y-2.04%
Revenue Next 5Y-3.56%
EBIT growth 1Y51.84%
EBIT growth 3Y2.62%
EBIT growth 5Y15.73%
EBIT Next Year12.76%
EBIT Next 3Y6.59%
EBIT Next 5Y12.13%
FCF growth 1Y-5%
FCF growth 3Y6.08%
FCF growth 5YN/A
OCF growth 1Y-4.87%
OCF growth 3Y0.96%
OCF growth 5Y24.52%