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Nexstar Media Group, Inc. (NXST) is the largest local television broadcasting company in the United States. It owns and operates hundreds of local stations and the CW Network.
Investment Thesis
Nexstar is a masterclass in operational scale and strategic consolidation. By owning the largest network of local stations, Nexstar possesses immense bargaining power when negotiating retransmission fees with cable and satellite providers. These fees provide a steady, high-margin revenue floor that is largely insulated from the decline in national TV advertising. Furthermore, Nexstar is the primary beneficiary of the exploding political ad market. In every election cycle, Nexstar prints staggering amounts of cash, which management has ruthlessly used to buy back stock and pay a growing dividend. It is a cash flow compounder masquerading as a legacy media company.
Key Growth Drivers
Retransmission Pricing Power
NXST's massive scale allows it to extract premium fees from pay-TV providers, ensuring that its core cash flows grow even as subscriber counts fluctuate.
Political Advertising Windfall
Local TV remains the highest-impact medium for political campaigning; Nexstar's footprint covers the most contested districts, guaranteeing record revenue every two years.
Disciplined Capital Allocation
Management is famous for their focus on Free Cash Flow per Share, prioritizing buybacks and dividends over dilutive vanity acquisitions.
Valuation & Financial Modeling
NXST trades at a mid-single-digit P/E multiple on normalized free cash flow. The market's fear of 'cord-cutting' has created a permanent valuation discount that Nexstar is exploiting via aggressive buybacks. We believe the stock is one of the most undervalued large-cap-lite assets in the market.
Risk Factors & Bear Case
An acceleration in the decline of the traditional pay-TV bundle is the primary long-term threat. Additionally, any major regulatory shift regarding local media ownership limits could cap Nexstar's future acquisition-driven growth.
Conclusion
Nexstar Media is a premier value compounder. It offers defensive cash flows, massive cyclical upside, and a management team that is obsessed with shareholder value. Rated 'Strong Buy'.
Upcoming Catalysts
No upcoming catalysts identified.
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Relative to Communication Services Sector Median (N=134)
Metric
NXST
Benchmark
P/E Ratio
13.2x
-49%
EV/EBITDA
8.5x
+71%
Price / Book
2.8x
+50%
Implied Value Audit
OVERVALUED
Implied Fair Value (vs Sector)
-41.2%
$108.18Spot: $183.92
Spot
Implied
-50% Delta+50% Delta
Relative valuation derived from Communication Services sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
21.2%
Sector: 1.0%
Dividend Analysis audit
INCOME
3.68%
Trailing Yield
$3.68
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
49%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, NEXSTAR MEDIA GROUP, INC. (NXST) receives a "Hold" rating with a composite score of 47.2/100, ranked #1953 out of 4446 stocks. Key factor scores: Quality 50/100, Value 65/100, Momentum 49/100. This is quantitative analysis only — not investment advice.
NEXSTAR MEDIA GROUP, INC. (NXST) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does NEXSTAR MEDIA GROUP, INC. Do?
Nexstar 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. As of December 31, 2020, it provided sales, programming, and other services through various local service agreements to 37 power television stations owned by independent third parties; and owned, operated, programmed, or provided sales and other services to 198 television stations. The company also offers video and display advertising platforms that are delivered locally or nationally through its own and various third party websites and mobile applications, as well as owns WGN America, a national general entertainment cable network. 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. NEXSTAR MEDIA GROUP, INC. (NXST) is classified as a mid-cap stock in the Communication Services sector, specifically within the Communication industry. The company is led by CEO Perry A. Sook and employs approximately 13,000 people, headquartered in IRVING, Texas. With a market capitalization of $5.4B, NXST is one of the notable companies in the Communication Services sector.
NEXSTAR MEDIA GROUP, INC. (NXST) Stock Rating — Hold (April 2026)
As of April 2026, NEXSTAR MEDIA GROUP, INC. receives a Hold rating with a composite score of 47.2/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.NXST ranks #1,953 out of 4,446 stocks in our coverage universe. Within the Communication Services sector, NEXSTAR MEDIA GROUP, INC. ranks #58 of 134 stocks, placing it in the upper half of its Communication Services peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
NXST Stock Price and 52-Week Range
NEXSTAR MEDIA GROUP, INC. (NXST) currently trades at $183.92. The stock gained $5.10 (2.9%) in the most recent trading session. The 52-week high for NXST is $254.30, which means the stock is currently trading -27.7% from its annual peak. The 52-week low is $141.66, putting the stock 29.8% above its annual trough. Recent trading volume was 506K shares, suggesting relatively thin trading activity.
Is NXST Overvalued or Undervalued? — Valuation Analysis
NEXSTAR MEDIA GROUP, INC. (NXST) carries a value factor score of 65/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 13.23x, compared to the Communication Services sector average of 26.08x — a discount of 49%. The price-to-book ratio stands at 2.80x, versus the sector average of 1.87x. The price-to-sales ratio is 1.14x, compared to 0.55x for the average Communication Services stock. On an enterprise value basis, NXST trades at 8.52x EV/EBITDA, versus 4.98x for the sector.
Overall, NXST's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
NEXSTAR MEDIA GROUP, INC. Profitability — ROE, Margins, and Quality Score
NEXSTAR MEDIA GROUP, INC. (NXST) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 21.2%, compared to the Communication Services sector average of 1.0%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 4.0% versus the sector average of -0.0%.
On a margin basis, NEXSTAR MEDIA GROUP, INC. reports gross margins of 55.5%, compared to 56.4% for the sector. The operating margin is 18.6% (sector: 0.4%). Net profit margin stands at 8.5%, versus -0.9% for the average Communication Services stock. Revenue growth is running at -5.6% on a trailing basis, compared to 3.0% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
NXST Debt, Balance Sheet, and Financial Health
NEXSTAR MEDIA GROUP, INC. has a debt-to-equity ratio of 310.0%, compared to the Communication Services sector average of 82.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 2.07x, indicating strong short-term liquidity. Total debt on the balance sheet is $6.33B. Cash and equivalents stand at $236M.
NXST has a beta of 0.87, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for NEXSTAR MEDIA GROUP, INC. is 60/100, reflecting average volatility within the normal range for its sector.
NEXSTAR MEDIA GROUP, INC. Revenue and Earnings History — Quarterly Trend
In TTM 2026, NEXSTAR MEDIA GROUP, INC. reported revenue of $5.03B and earnings per share (EPS) of $3.04. Net income for the quarter was $433M. Gross margin was 55.5%. Operating income came in at $943M.
In FY 2025, NEXSTAR MEDIA GROUP, INC. reported revenue of $4.95B and earnings per share (EPS) of $3.04. Net income for the quarter was $83M. Gross margin was 54.8%. Revenue grew -8.5% year-over-year compared to FY 2024. Operating income came in at $849M.
In Q3 2025, NEXSTAR MEDIA GROUP, INC. reported revenue of $1.20B and earnings per share (EPS) of $2.16. Net income for the quarter was $65M. Gross margin was 53.1%. Revenue grew -12.3% year-over-year compared to Q3 2024. Operating income came in at $175M.
In Q2 2025, NEXSTAR MEDIA GROUP, INC. reported revenue of $1.23B and earnings per share (EPS) of $3.09. Net income for the quarter was $91M. Gross margin was 54.7%. Revenue grew -3.2% year-over-year compared to Q2 2024. Operating income came in at $213M.
Over the past 8 quarters, NEXSTAR MEDIA GROUP, INC. has demonstrated a growth trajectory, with revenue expanding from $1.27B to $5.03B. Investors analyzing NXST stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
NXST Dividend Yield and Income Analysis
NEXSTAR MEDIA GROUP, INC. (NXST) currently pays a dividend yield of 3.7%. At this yield, a $10,000 investment in NXST stock would generate approximately $$368.00 in annual dividend income. The net margin of 8.5% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
NXST Momentum and Technical Analysis Profile
NEXSTAR MEDIA GROUP, INC. (NXST) has a momentum factor score of 49/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 35/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 8/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
NXST vs Competitors — Communication Services Sector Ranking and Peer Comparison
Comparing NXST against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full NXST vs S&P 500 (SPY) comparison to assess how NEXSTAR MEDIA GROUP, INC. stacks up against the broader market across all factor dimensions.
NXST Next Earnings Date
No upcoming earnings date has been announced for NEXSTAR MEDIA GROUP, INC. (NXST) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy NXST? — Investment Thesis Summary
NEXSTAR MEDIA GROUP, INC. presents a balanced picture with arguments on both sides. The value score of 65/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 60/100) reduces downside risk.
In summary, NEXSTAR MEDIA GROUP, INC. (NXST) earns a Hold rating with a composite score of 47.2/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on NXST stock.
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Execution Benchmarks audit
Revenue Growth
YOY expansion rate
-5.6%
Sector: 3.0%
-289% VS SCTR
Gross Margin
Core pricing power
55.5%
Governance Analysis
BCR Integrity Index48/100 — WEAK
WeakModerateStrong
Executive Leadership
Perry A. Sook
Chief Executive Officer
Corporate Intelligence
Debt/Equity
310%/ 82
Div. Yield
3.68%/ 0.00
Price / Sales
1.1x
+107%
NEXSTAR MEDIA GROUP, INC. exhibits a 45% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
4.0%
Sector: -0.0%
Gross Margin
Pricing power and cost efficiency
55.5%
Sector: 56.4%
Operating Margin
Core business profitability
18.6%
Sector: 0.4%
Net Margin
Bottom-line profitability
8.5%
Sector: -0.9%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.00%
Yield Delta—
Income Projection audit
A $10,000 investment would generate approximately $368 annually in dividends at the current trailing rate.