NXST - Embedded Expectations Analysis - 2021 04 15
Nexstar Media Group, Inc. (NXST:USA) currently trades near corporate averages relative to UAFRS-based (Uniform) earnings, with a 20.5x Uniform P/E. At these levels, the market is pricing in bearish expectations for the firm, and management may have concerns about growth across various categories, asset sales, and advertising revenueSpecifically, management may lack confidence in their ability to continue to outperform their internal performance expectations and maintain growth across auto, retail, and sports betting categories. In addition, they may be exaggerating their opportunities to develop new businesses, the benefits of the asset sale to FOX, and potential growth opportunities stemming from their large sub renewal cycle at the end of 2022. Furthermore, they may lack confidence in their ability to maintain their liquidity position and sustain total TV advertising revenue, particularly the distributions from the Food Network
Nexstar Media Group is a television broadcasting and digital media company focused on the acquisition, development and operation of television stations and interactive community websites and digital media services. The stations provide over-the-air programming. This programming includes programs produced by networks with which the stations are affiliated; programs that the stations produce; and first-run and rerun syndicated programs that the stations acquire. The company's digital media businesses provide digital publishing and content management platform, digital video advertising platform, social media advertising platform and other digital media solutions to media publishers and advertisers.
In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:
- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.
- Corporate credit ratings remain years behind the fundamental underpinnings of company performance
- Stock analysts continue to make recommendations with deeply inherent biases
- Research firms have failed to break down the walls between credit, equity, and macroeconomic research
- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.