Nexstar Media Group, Inc. (NXST) Stock Analysis

Nexstar Media Group’s primary competitive advantage is its unmatched scale in U.S. local television broadcasting. As of mid-2025, Nexstar owns or operates 201 full-power TV stations across 116 markets, reaching nearly 39% of U.S. TV households—more than any peer, including Gray Television, Sinclair, and TEGNA. This scale enables superior negotiating leverage with both content providers and multichannel video distributors, supporting industry-leading distribution revenue growth and margin resilience. In 2024, distribution revenue accounted for 54% of total revenue, a higher proportion than most rivals.

Nexstar’s diversified asset base—spanning local stations, The CW network (majority-owned), NewsNation, and a 31% stake in TV Food Network—provides both national reach and local activation at scale. This dual capability is unique among U.S. broadcasters and underpins strong relationships with over 40,000 advertisers. The company’s local news operations, employing nearly 6,000 journalists, consistently command #1 or #2 ratings in 80% of its markets, supporting customer loyalty and pricing power.

Operational discipline is another edge: Nexstar’s EBITDA margin (41% in 2024) and net profit margin (13%) outpace most peers. The company’s culture emphasizes cost control, cash flow generation, and shareholder returns, as evidenced by aggressive share repurchases and a 25% dividend increase in 2024.

Risks include secular declines in traditional TV viewership and advertising, but Nexstar’s scale, contractual distribution revenues, and local market dominance provide a buffer relative to smaller or less diversified competitors.