NEXSTAR MEDIA GROUP INC (NXST) Stock Fundamental Analysis
NASDAQ:NXST - Nasdaq - US65336K1034 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to NXST. NXST was compared to 96 industry peers in the Media industry. While NXST has a great profitability rating, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on NXST. Finally NXST also has an excellent dividend rating. With these ratings, NXST could be worth investigating further for value and dividend investing!.
1. Profitability
1.1 Basic Checks
NXST had positive earnings in the past year.
In the past year NXST had a positive cash flow from operations.
Each year in the past 5 years NXST has been profitable.
Each year in the past 5 years NXST had a positive operating cash flow.
1.2 Ratios
NXST's Return On Assets of 6.30% is amongst the best of the industry. NXST outperforms 87.50% of its industry peers.
The Return On Equity of NXST (31.99%) is better than 94.79% of its industry peers.
With an excellent Return On Invested Capital value of 8.37%, NXST belongs to the best of the industry, outperforming 82.29% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NXST is in line with the industry average of 6.73%.
The 3 year average ROIC (7.17%) for NXST is below the current ROIC(8.37%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.3% | ||
| ROE | 31.99% | ||
| ROIC | 8.37% |
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
Looking at the Profit Margin, with a value of 13.36%, NXST belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
NXST's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 23.88%, NXST belongs to the top of the industry, outperforming 94.79% of the companies in the same industry.
NXST's Operating Margin has improved in the last couple of years.
The Gross Margin of NXST (59.43%) is better than 73.96% of its industry peers.
NXST's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.88% | ||
| PM (TTM) | 13.36% | ||
| GM | 59.43% |
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.
Compared to 1 year ago, NXST has less shares outstanding
The number of shares outstanding for NXST has been reduced compared to 5 years ago.
The debt/assets ratio for NXST is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.69, we must say that NXST is in the distress zone and has some risk of bankruptcy.
NXST has a better Altman-Z score (1.69) than 63.54% of its industry peers.
The Debt to FCF ratio of NXST is 5.90, which is a neutral value as it means it would take NXST, 5.90 years of fcf income to pay off all of its debts.
NXST's Debt to FCF ratio of 5.90 is fine compared to the rest of the industry. NXST outperforms 68.75% of its industry peers.
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: 71.88% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.84 | ||
| Debt/FCF | 5.9 | ||
| Altman-Z | 1.69 |
ROIC/WACC1.14
WACC7.33%
2.3 Liquidity
NXST has a Current Ratio of 1.66. This is a normal value and indicates that NXST is financially healthy and should not expect problems in meeting its short term obligations.
NXST's Current ratio of 1.66 is fine compared to the rest of the industry. NXST outperforms 65.63% of its industry peers.
NXST has a Quick Ratio of 1.66. This is a normal value and indicates that NXST is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of NXST (1.66) is better than 67.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.66 |
3. Growth
3.1 Past
NXST shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 67.01%, which is quite impressive.
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.
Looking at the last year, NXST shows a quite strong growth in Revenue. The Revenue has grown by 9.61% in the last year.
The Revenue has been growing by 12.21% on average over the past years. This is quite good.
EPS 1Y (TTM)67.01%
EPS 3Y4.27%
EPS 5Y39.47%
EPS Q2Q%-34.69%
Revenue 1Y (TTM)9.61%
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 2.12% yearly.
Based on estimates for the next years, NXST will show a decrease in Revenue. The Revenue will decrease by -3.81% on average per year.
EPS Next Y-35.94%
EPS Next 2Y11.02%
EPS Next 3Y-5.25%
EPS Next 5Y2.12%
Revenue Next Year-8.54%
Revenue Next 2Y0.36%
Revenue Next 3Y-2.13%
Revenue Next 5Y-3.81%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.69, the valuation of NXST can be described as reasonable.
83.33% of the companies in the same industry are more expensive than NXST, based on the Price/Earnings ratio.
NXST is valuated cheaply when we compare the Price/Earnings ratio to 25.91, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 6.46, which indicates a rather cheap valuation of NXST.
NXST's Price/Forward Earnings ratio is rather cheap when compared to the industry. NXST is cheaper than 84.38% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.85. NXST is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.69 | ||
| Fwd PE | 6.46 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NXST indicates a rather cheap valuation: NXST is cheaper than 83.33% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, NXST is valued cheaper than 88.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.73 | ||
| EV/EBITDA | 5.53 |
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 -5.25% in the coming years.
PEG (NY)N/A
PEG (5Y)0.22
EPS Next 2Y11.02%
EPS Next 3Y-5.25%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.23%, NXST is a good candidate for dividend investing.
NXST's Dividend Yield is rather good when compared to the industry average which is at 4.91. NXST pays more dividend than 86.46% of the companies in the same industry.
NXST's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.23% |
5.2 History
On average, the dividend of NXST grows each year by 30.53%, which is quite nice.
NXST has paid a dividend for at least 10 years, which is 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
30.33% of the earnings are spent on dividend by NXST. This is a low number and sustainable payout ratio.
NXST's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP30.33%
EPS Next 2Y11.02%
EPS Next 3Y-5.25%
171.46
+0.73 (+0.43%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners97.07%
Inst Owner Change0.43%
Ins Owners6.03%
Ins Owner Change6.67%
Market Cap5.23B
Analysts81.25
Price Target204.32 (19.16%)
Short Float %7.28%
Short Ratio3.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.23% |
Yearly Dividend6.82
Dividend Growth(5Y)30.53%
DP30.33%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.27%
Min EPS beat(2)-8%
Max EPS beat(2)-4.54%
EPS beat(4)1
Avg EPS beat(4)-0.46%
Min EPS beat(4)-16.76%
Max EPS beat(4)27.46%
EPS beat(8)3
Avg EPS beat(8)-6.02%
EPS beat(12)6
Avg EPS beat(12)-2.1%
EPS beat(16)10
Avg EPS beat(16)2.49%
Revenue beat(2)0
Avg Revenue beat(2)-2.06%
Min Revenue beat(2)-2.11%
Max Revenue beat(2)-2.01%
Revenue beat(4)0
Avg Revenue beat(4)-2.64%
Min Revenue beat(4)-4.08%
Max Revenue beat(4)-2.01%
Revenue beat(8)0
Avg Revenue beat(8)-2.5%
Revenue beat(12)1
Avg Revenue beat(12)-2.26%
Revenue beat(16)2
Avg Revenue beat(16)-1.88%
PT rev (1m)-0.79%
PT rev (3m)1.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.26%
EPS NY rev (1m)-7.07%
EPS NY rev (3m)-7.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.03%
Revenue NY rev (1m)-0.49%
Revenue NY rev (3m)-1.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.69 | ||
| Fwd PE | 6.46 | ||
| P/S | 0.97 | ||
| P/FCF | 4.73 | ||
| P/OCF | 4.18 | ||
| P/B | 2.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.53 |
EPS(TTM)19.74
EY11.51%
EPS(NY)26.54
Fwd EY15.48%
FCF(TTM)36.22
FCFY21.12%
OCF(TTM)40.97
OCFY23.89%
SpS177.19
BVpS73.98
TBVpS-178.33
PEG (NY)N/A
PEG (5Y)0.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.3% | ||
| ROE | 31.99% | ||
| ROCE | 12.08% | ||
| ROIC | 8.37% | ||
| ROICexc | 8.48% | ||
| ROICexgc | 31.46% | ||
| OM | 23.88% | ||
| PM (TTM) | 13.36% | ||
| GM | 59.43% | ||
| FCFM | 20.44% |
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 | 5.9 | ||
| Debt/EBITDA | 3.05 | ||
| Cap/Depr | 17.95% | ||
| Cap/Sales | 2.68% | ||
| Interest Coverage | 3 | ||
| Cash Conversion | 59.55% | ||
| Profit Quality | 153.05% | ||
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.66 | ||
| Altman-Z | 1.69 |
F-Score8
WACC7.33%
ROIC/WACC1.14
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-35.94%
EPS Next 2Y11.02%
EPS Next 3Y-5.25%
EPS Next 5Y2.12%
Revenue 1Y (TTM)9.61%
Revenue growth 3Y5.17%
Revenue growth 5Y12.21%
Sales Q2Q%-3.89%
Revenue Next Year-8.54%
Revenue Next 2Y0.36%
Revenue Next 3Y-2.13%
Revenue Next 5Y-3.81%
EBIT growth 1Y73.76%
EBIT growth 3Y2.62%
EBIT growth 5Y15.73%
EBIT Next Year15.95%
EBIT Next 3Y5.86%
EBIT Next 5Y12.32%
FCF growth 1Y36.08%
FCF growth 3Y6.08%
FCF growth 5YN/A
OCF growth 1Y25.13%
OCF growth 3Y0.96%
OCF growth 5Y24.52%