Stock Analysis

Stock Analysis · Nexstar Broadcasting Group Inc (NXST)

Overview

Nexstar Broadcasting Group Inc is a U.S. media company focused on local television. It owns and operates a large portfolio of local TV stations and related digital properties. Through these stations, Nexstar provides local news, community programming, and network content to viewers, and it sells advertising and distribution rights tied to that content.

In simple terms, Nexstar’s business model is built around two big engines: (1) selling advertising (especially local and political advertising) and (2) getting paid by TV distributors (cable, satellite, and streaming “skinny bundle” providers) for the right to carry its local stations.

Main revenue sources (typical for U.S. local broadcasters; exact mix can vary by year):

Distribution / “retransmission” revenue (fees from cable/satellite/streaming TV providers)
Advertising revenue (local and national ads, including political advertising in election years)
Other revenue (digital activities and assorted services)

One important feature of this type of company is that results often fluctuate based on the political advertising cycle (usually stronger in federal election years) and the pace of changes in the pay-TV ecosystem.

Across the 2021–2024 period shown, revenue moved within a relatively narrow band (roughly mid-$4B to mid-$5B annually), while profitability swung more sharply. Interest expense is consistently meaningful (hundreds of millions of dollars per year), which matters because it can reduce net income when rates rise or debt stays elevated.

Key Figures

Metric	Value	Industry ⓘ
Date	Feb 07, 2026
Context
Sector	Communication Services
Industry	Broadcasting
Market Cap ⓘ	$6.71B
Beta ⓘ	0.81
Fundamental
P/E Ratio ⓘ	13.81
Profit Margin ⓘ	10.05%
Revenue Growth ⓘ	-12.30%
Debt to Equity ⓘ	291.43%
PEG ⓘ	0.58
Free Cash Flow ⓘ	$983.00M

Nexstar’s market capitalization is about $6.7B and the stock’s beta is about 0.81, which indicates it has historically moved somewhat less than the broader market. The latest P/E ratio is about 13.8. Profit margin is about 10.1%, lower than earlier peaks shown later in the margin chart. Year-over-year revenue growth is currently about -12.3%, highlighting the cyclical nature of the business (political advertising can make some years stronger than others). Debt-to-equity is about 291%, showing heavy use of leverage. Free cash flow over the trailing twelve months is about $983M, which is a key support for debt service and shareholder returns. The PEG ratio shown (about 0.58) is a growth-adjusted valuation metric, but it depends heavily on forward growth assumptions that can be uncertain for cyclical media businesses.

Growth (Medium)

Local broadcasting is generally considered a mature industry: TV audiences have been pressured over time by streaming and changing consumer habits. However, local stations still play an outsized role in local news, live events, and community coverage, and they remain important for advertisers that need local reach.

Nexstar’s future growth tends to depend less on “everyone watching more TV” and more on execution in a few areas: maintaining strong local audiences (especially in news), monetizing distribution fees, expanding digital reach, and managing costs and the balance sheet. A structural catalyst for revenue in this industry is the political advertising cycle, where major election years can significantly lift advertising demand across local TV.

The year-over-year revenue trend shown is volatile, ranging from strong positive periods to notable declines. The most recent value (about -12%) stands out as a downswing, consistent with the idea that results can normalize after unusually strong periods (for example, election-driven advertising surges) or soften when ad demand weakens.

Free cash flow has also fluctuated. It was above $1.1B in several periods shown, dipped to about $624M (TTM ending 2024-03-31), and then rebounded to roughly $1.18B (TTM ending 2025-03-31), with the latest listed value near $983M. For a broadcaster with meaningful debt, consistent free cash flow is especially important because it can be used for interest payments, debt reduction, and other corporate uses.