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New Coverage of TV Station Owners

Sinclair and Nexstar are the two biggest U.S. operators.

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We are launching coverage of Sinclair Broadcast Group (SBGI) and Nexstar Media Group (NXST) with no-moat and stable moat trend ratings for both companies. Our $46 fair value estimate for Sinclair implies 2019 adjusted price/earnings of 22 times, and our $128 fair value estimate for Nexstar implies 2019 adjusted price/earnings of 24 times. These companies are the two largest local broadcast station owners in the United States.

Nexstar is the largest television station owner/operator in the U.S., with 197 stations in 115 markets. Of its 197 full-power stations, 158 are affiliated with the four national broadcasters: CBS (50), Fox (43), NBC (35), and ABC (30). The 2019 merger with Tribune made Nexstar the top broadcast affiliate for Fox and CBS as well as the number-two partner for NBC and number three for ABC. Nexstar now has networks in 15 of the top 20 television markets and reaches 69 million television households. Nexstar also owns WGN, a nationwide pay-television network, and a 31% stake in Food Network and Cooking Channel.

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Neil Macker does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.