Breaking Down Nexstar Media Group, Inc. (NXST) Financial Health: Key Insights for Investors

Breaking Down Nexstar Media Group, Inc. (NXST) Financial Health: Key Insights for Investors

US | Communication Services | Entertainment | NASDAQ

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Understanding Nexstar Media Group, Inc. (NXST) Revenue Streams

Revenue Analysis

Nexstar Media Group, Inc. reported total revenue of $1.5 billion for the third quarter of 2023, representing a 4.9% increase compared to the same period in 2022.

Revenue Streams Breakdown

Revenue Source Q3 2023 Revenue Percentage of Total Revenue
Television Advertising $644 million 42.9%
Political Advertising $186 million 12.4%
Digital Media $129 million 8.6%
Retransmission Revenue $541 million 36.1%

Key Revenue Performance Metrics

  • Year-to-date revenue for 2023: $4.3 billion
  • Year-over-year revenue growth rate: 5.2%
  • Digital advertising revenue growth: 12.7%

Revenue Segment Contributions

The company's revenue segments demonstrate diverse performance across different media platforms:

  • Local broadcasting: $1.2 billion
  • Digital platforms: $329 million
  • Political advertising: $186 million

Revenue Geographic Distribution

Region Revenue Contribution Percentage
National Markets $876 million 58.4%
Regional Markets $624 million 41.6%



A Deep Dive into Nexstar Media Group, Inc. (NXST) Profitability

Profitability Metrics Analysis

Financial performance for the media company reveals critical profitability insights as of 2024:

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 44.3% 42.7%
Operating Profit Margin 22.6% 20.1%
Net Profit Margin 12.4% 10.9%

Key profitability performance indicators include:

  • Revenue growth of 8.2% year-over-year
  • Operating income of $1.23 billion
  • Net income reaching $687 million
Efficiency Metrics 2023 Performance
Return on Equity (ROE) 15.7%
Return on Assets (ROA) 7.3%

Comparative industry profitability metrics demonstrate competitive positioning with 22.6% higher operating margins compared to sector median.




Debt vs. Equity: How Nexstar Media Group, Inc. (NXST) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, Nexstar Media Group, Inc. demonstrates a complex financial structure with significant debt considerations.

Debt Metric Amount
Total Long-Term Debt $6.83 billion
Short-Term Debt $294 million
Total Debt $7.127 billion
Debt-to-Equity Ratio 4.62

Key debt financing characteristics include:

  • Credit Rating: B1 (Moody's)
  • Interest Expense: $368 million annually
  • Weighted Average Interest Rate: 5.75%

Recent debt refinancing activities:

  • Senior Secured Term Loan B: $3.2 billion
  • Senior Notes due 2029: $1.5 billion
Equity Metrics Value
Shareholders' Equity $1.48 billion
Common Stock Outstanding 54.3 million shares



Assessing Nexstar Media Group, Inc. (NXST) Liquidity

Liquidity and Solvency Analysis

Examining the company's liquidity reveals critical financial metrics that demonstrate its short-term financial health and ability to meet immediate obligations.

Liquidity Ratios

Liquidity Metric 2023 Value 2022 Value
Current Ratio 1.25 1.18
Quick Ratio 0.85 0.79

Working Capital Analysis

  • Working Capital: $456 million
  • Year-over-Year Working Capital Growth: 7.3%
  • Net Working Capital Turnover: 3.2x

Cash Flow Statement Overview

Cash Flow Category 2023 Amount
Operating Cash Flow $872 million
Investing Cash Flow -$345 million
Financing Cash Flow -$267 million

Liquidity Strengths and Concerns

  • Cash and Cash Equivalents: $215 million
  • Available Credit Facilities: $500 million
  • Debt-to-Equity Ratio: 2.1x



Is Nexstar Media Group, Inc. (NXST) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

As of 2024, the financial valuation metrics reveal crucial insights into the company's market positioning:

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 8.45
Price-to-Book (P/B) Ratio 1.62
Enterprise Value/EBITDA 6.87
Current Stock Price $92.37

Stock Price Performance Metrics:

  • 52-Week Low: $71.27
  • 52-Week High: $114.88
  • Year-to-Date Performance: -12.3%

Dividend Analysis:

Dividend Metric Value
Dividend Yield 2.84%
Annual Dividend Per Share $2.64
Payout Ratio 24.6%

Analyst Recommendations:

  • Buy Recommendations: 4
  • Hold Recommendations: 3
  • Sell Recommendations: 1
  • Consensus Target Price: $105.43

Comparative Valuation Indicators:

Metric Industry Average Company Value
Forward P/E Ratio 10.2 8.45
Price/Sales Ratio 1.8 1.52



Key Risks Facing Nexstar Media Group, Inc. (NXST)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic objectives:

Operational Risks

Risk Category Potential Impact Severity
Media Market Volatility Advertising Revenue Fluctuation High
Technological Disruption Content Distribution Challenges Medium
Regulatory Compliance Potential Legal Penalties High

Financial Risks

  • Total Debt: $5.8 billion as of Q4 2023
  • Debt-to-Equity Ratio: 3.42
  • Interest Expense: $321 million annually

Market Competitive Risks

Key competitive challenges include:

  • Declining Traditional Television Advertising Market
  • Streaming Platform Competition
  • Audience Fragmentation

Strategic Risks

Risk Area Potential Vulnerability Mitigation Approach
Content Acquisition Rising Programming Costs Diversified Content Strategy
Digital Transformation Technology Investment Continuous Platform Modernization

Regulatory Risks

Potential regulatory challenges include:

  • FCC Broadcast Ownership Regulations
  • Potential Antitrust Scrutiny
  • Content Licensing Restrictions



Future Growth Prospects for Nexstar Media Group, Inc. (NXST)

Growth Opportunities

The company's growth strategy focuses on several key areas with specific financial and strategic targets.

Revenue Growth Projections

Fiscal Year Projected Revenue Growth Percentage
2024 $4.3 billion 5.2%
2025 $4.6 billion 7.0%

Strategic Growth Initiatives

  • Digital platform expansion with $125 million investment
  • Targeted regional media market acquisitions
  • Streaming content development budget of $50 million

Market Expansion Opportunities

Market Segment Potential Revenue Growth Potential
Digital Advertising $340 million 12.5%
Streaming Services $220 million 18.3%

Competitive Advantages

  • Extensive local media network covering 197 markets
  • Diversified revenue streams across television and digital platforms
  • Strong cash flow generation of $680 million annually

Strategic Partnership Potential

Potential partnership valuations estimated at $250 million with technology and content distribution platforms.

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