Nexstar Media Group, Inc. (NXST) stock analysis

P/E above its 5-year median

Nexstar Media's P/E of 18.8 is above its own 5-year median of 9.4.

P/E above the industry

Nexstar Media's P/E of 18.8 is above the Communications median of 15.2.

EV/EBITDA above its 5-year median

Nexstar Media's EV/EBITDA of 8.9 is above its 5-year median of 8.3.

P/B above the industry

Nexstar Media's price-to-book of 2.59 is above the Communications median of 2.30.

Trading above fair value

The share price of $207.94 is above our fair value estimate of $193.92.

Margin of safety under 20%

The price is 7.2% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -1.7% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -50.1% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -27.9% over the last twelve months, against a 5-year average of -33.1% a year.

Growing faster than the industry

Revenue grew 32.3% over the last twelve months; the Communications median is 1.2%.

Guidance issued

The latest outlook (full year 2026 Adjusted EBITDA, Feb 26, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin trend

This company does not report gross profit.

Return on equity over 15%

Return on equity was 15.7% over the last twelve months and averaged 23.3% over five years.

Return on capital under 10%

Return on invested capital was 9.9%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Nexstar Media's return on equity of 15.7% is above the Communications median of 7.6%.

Earnings shrank over 5 years

Net income shrank 33.1% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 5.5% over the last twelve months, against a 5-year average of 11.8%.

Net margin above the industry

Nexstar Media's net margin of 5.5% is above the Communications median of -1.9%.

High debt

Debt is 462% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 304% five years ago to 462%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 12.8% of total debt; we look for at least 20%.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 1.26 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.23; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Nexstar Media paid dividends worth 3.6% of the share price over the last twelve months.

Yield below Treasuries

The 3.6% yield is below the 4.7% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Nexstar Media yields 3.6%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 61.1% of net income.

Covered by free cash flow

Dividends take 17.7% of free cash flow.