Nexstar's Interactive Television, M&A, And Why It's A Buy

Kingfisher Research
244 Followers
(14min)

Summary

  • Nexstar Media Group is poised for growth with the adoption of ATSC 3.0, enhancing interactive TV, signal encryption, and data services.
  • Significant investments in new stations, digital tools, and acquisitions, along with strong asset growth, make NXST a compelling buy at 7x earnings.
  • Despite high leverage, NXST's increasing equity, cash flow growth, and strategic acquisitions indicate robust future financial performance and scalability.
  • Risks include reliance on retransmission agreements, potential restrictive covenants, and market competition, but the current valuation presents a significant buying opportunity.

Five stacks of coloured coins with a graph line above

Richard Drury

I think Nexstar Media Group, Inc. (NASDAQ:NXST) could benefit significantly from the new ATSC 3.0 standard, which will bring new interactive television tools, signal encryption, and data transmission services. Growth in the total amount of assets, PP&E, and investments in new digital tools

This article was written by

Kingfisher Research
244 Followers
Like the common kingfisher or Alcedo Atthis searches for small fish, I research small, and medium cap companies in Europe, the United States, and South America. You can find a common kingfisher in my profile.With close to 14 years in the financial industry, I worked for an equity research firm in NY, one investment fund in Mexico, and one investment bank in Ireland. Right now, I am a private investor. I usually cover mature industries such as mining, oil and gas, real estate, and others. I do not invest in business models that I do not understand. I appreciate M&A deals, deep value investments, and dividend investing. My investments usually target an internal rate of return of close to 5%-7%. My purpose for writing on Seeking Alpha is simple. Readers can provide fantastic feedback about stocks I own. Note that I do not provide financial advice. Everything I write is my opinion. My articles could include small mistakes about the future. Like other analysts, I offer my expectations about the future EPS, net revenue, FCF, and other financial figures. They could be wrong. If you want me to revise some of my financial figures, please send me a message. The investments that I offer may not be suitable for all SA readers. If you have any doubts, in my view, you should seek advice from another financial advisor.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of NXST either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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