1-Star Price
PREMIUM
5-Star Price
PREMIUM
Economic Moat
PREMIUM
Capital Allocation
PREMIUM
Nexstar Media recorded a slightly better-than-anticipated second quarter, as revenue met and adjusted EBITDA came in above FactSet consensus. Same-station core advertising was up 42% as ad spending rebounded from the COVID-19 impact last year. The firm’s online efforts also bounced back as local advertisers returned to the market. We are maintaining our no-moat rating and $146 fair value estimate.
Nexstar is the largest television station owner/operator in the United States, 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 both Fox and CBS as well as the number-two partner for NBC and number three for ABC. The firm 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.
