Nexstar Media Group, Inc.
NXST
Television Broadcasting Stations
Mkt Cap
$3.777BPE
10.82Debt
$7.028BCash
$164MEV
$10.64BFCF
$864.7MP/E Ratio
10.82Debt
$7.028BCash
$164MEV
$10.64BFCF
$864.7MNexstar Media Group, Inc., a television broadcasting and digital media company, focuses on the acquisition, development, and operation of television stations and interactive community websites and digital media services in the United States. The company offers free programming to television viewing audiences. It owns, operates, programs, or provides sales and other services to various markets. The company also offers video and display advertising platforms that are delivered locally or nationally through its own and various third party websites, mobile and over-the-top applications, other digital media solutions to media publishers, and advertisers and a consumer product reviews platform. In addition, it owns NewsNation, a national cable news network; and WGN-AM, a Chicago radio station, as well as owns and operates digital multicast networks and other multicast network services. Further, it engages in digital business; and management of real estate assets, including leasing of owned office and production facilities. Its stations are affiliates of ABC, NBC, FOX, CBS, The CW, MyNetworkTV, and other broadcast television networks. The company was formerly known as Nexstar Broadcasting Group, Inc. and changed its name to Nexstar Media Group, Inc. in January 2017. Nexstar Media Group, Inc. was founded in 1996 and is headquartered in Irving, Texas.
DCF
Discounted Cash Flow Valuation of Nexstar Media Group, Inc.
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $864.7M | $1.124B | $1.43B | $1.78B | $2.165B | $2.574B | $2.989B | $3.388B | $3.745B | $4.036B | $4.238B | $42.38B |
| DCF | $977.5M | $1.081B | $1.17B | $1.238B | $1.28B | $1.292B | $1.274B | $1.224B | $1.147B | $1.048B | $10.48B | |
| Value | $22.21B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 39%
Earnings Stability 76%
Competitiveness and MOAT
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
| Years | 12-2014 | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 10% | 8.5% | 8.3% | 20% | 14% | 7.6% | 18% | 18% | 18% | 6.8% |
| ROA | 12% | 11% | 9.7% | 6.9% | 11% | 4.7% | 10% | 8.9% | 10% | 6.4% |
| ROE | 110% | 88% | 32% | 30% | 21% | 11% | 32% | 29% | 34% | 15% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +15.84%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is +0.42%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +8.64%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is +0.49%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +26.17%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is +1.88%.
Safety & Stabiliy
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
| Years | 12-2014 | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | 8.57 | 8.91 | 9.39 | 69.33 | 6.54 | 39.59 | 7.49 | 7.07 | 5.72 | 8.13 |
| Debt Equity | 22.14 | 17.35 | 8.34 | 2.82 | 2.21 | 4.24 | 3.06 | 2.63 | 2.57 | 3.00 |
| MIN | ||||||||||
| Graham Stability | - | - | 100% | 100% | 100% | 72% | 100% | 100% | 100% | 72% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 8.13.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is -9.96.
What is the Graham’s Stability?
Graham’s Stability measure stands at 0.72.
Growth
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
| Years | 12-2015 | 12-2017 | 12-2019 | 12-2021 | Trend |
|---|---|---|---|---|---|
| Revenue | 29% | 16% | 20% | 12% | -3.8% |
| Net Income | 43% | 15% | 60% | 14% | -7.7% |
| Stockholders Equity | 64% | 12% | 10% | -3.1% | -33% |
| FCF | 33% | 81% | 78% | 17% | -98% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +16.46%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is -3.85%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is +14.71%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is -7.68%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +11.86%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is -33.09%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is +80.92%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is -98.15%.