Nexstar Media Group, Inc.

Valuation Analysis

About the Company

Nexstar Media Group, Inc. operates as a diversified media company that produces and distributes local and national news, sports, and entertainment contents on the television and digital platforms in the United States. It owns, operates, programs, or provides sales and other services to power television and radio stations; and provides television programming services. The company offers video and display advertising platforms through its own and various third party websites, mobile and over-the-top applications, 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. Further, its digital as

Nexstar Media Group, Inc. Stock at a Glance

Nexstar Media Group, Inc. (NXST) is currently trading at $174.50 with a market capitalization of $5.3B. The trailing P/E ratio stands at 37.05x, with a forward P/E of 7.21x. The 52-week range spans from $164.00 to $254.30; the current price is 31.4% below the yearly high. Year-over-year revenue growth stands at +13.1%. The net profit margin stands at 3.23%.

💰 Dividend

Nexstar Media Group, Inc. pays an annual dividend of $7.44 per share, representing a yield of 4.26%. The payout ratio stands at 157.63%. The elevated payout ratio reflects a mature dividend policy.

📊 Analyst Rating

8 analysts rate Nexstar Media Group, Inc. (NXST) on consensus: None. The average price target is $251.62, implying +44.2% from the current price. Analyst price targets range from $205.00 to $290.00.

Nexstar Media Group, Inc.: The Investment Case in Detail

Nexstar Media Group, Inc. (NXST) operates in the Communication Services — specifically Broadcasting — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Revenue is growing at a healthy 13.1% pace year-over-year, suggesting the business model continues to find new customers and pricing power. Earnings growth of 51% is outpacing revenue, a sign of operational leverage — fixed costs are being absorbed across a larger base. The combination of a 55.62% gross margin and 22.21% operating margin shows the business converts revenue into profit efficiently — a hallmark of competitive moat.

The Bear Case

With a net margin of just 3.23%, the business has little room to absorb cost shocks or pricing pressure — a single bad quarter can swing the company to a loss. The debt-to-equity ratio of 576.2% is elevated, meaning the company relies heavily on creditors — refinancing terms will become more important than operational performance in the next economic downturn. Our valuation screen flags the stock as overvalued — current multiples imply the business needs to deliver well above its recent trajectory to justify the price.

Valuation in Context

With a PEG ratio of 0.16, the price-to-earnings multiple is actually below the company's growth rate — classic value-meets-growth territory that Peter Lynch would have called a 'GARP' opportunity.

What to Watch Next

• The forward P/E of 7.21x is meaningfully below the trailing 37.05x — analysts expect earnings to step up; the next earnings release is the test.
• The price sits in the lower quartile of the 52-week range — value hunters often start scaling in around this zone if fundamentals hold.
• The analyst consensus price target implies 44.2% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price is below both the 50- and 200-day moving averages, with 50d below 200d — a bearish picture (death-cross alignment).

Risk Profile

The data points to relatively defensive market behavior, elevated short interest (7.75%), higher leverage relative to equity.

Trading Data

💵 Dividend Info

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