NXST

Nexstar Broadcasting Group Inc.

TMT, Event Driven/Special Sit


Presented:05/30/2013
Price:$27.24
Cap:$0.80B
Current Price:$167.50
Cap:$5.40B

Presented

Date05/30/2013
Price$27.24
Market Cap$0.80B
Ent Value$1.71B
P/E Ratio27.89x
Book Value$1.69
Div Yield1.4%
Shares O/S29.36M
Ave Daily Vol560,000
Short Int2.31%

Current

Price$167.50
Market Cap$5.40B
Nexstar Broadcasting Group, Inc., a television broadcasting and digital media company, focuses on the acquisition, development, and operation of television stations and interactive community Websites in medium-sized markets in the United States. It provides free over-the-air programming to television viewing audiences. The company, through various local service agreements, also offers sales, programming, and other services to stations and digital multi-cast channels owned and/or operated by independent third parties. As of March 15, 2013, it owned, operated, programmed, or provided sales and other services to 72 television stations and 15 related digital multicast signals in 41 markets; and 43 community portal Websites that offered hyper-local content and verticals for consumers and advertisers. The company primarily operates in the states of Illinois, Indiana, Maryland, Missouri, Montana, Tennessee, Texas, Pennsylvania, Louisiana, Arkansas, Alabama, New York, Florida, Wisconsin, Michigan, and Utah. Its stations reach approximately 12.7 million viewers. Nexstar Broadcasting Group, Inc. was founded in 1996 and is based in Irving, Texas.

Highlights

There have been a number of M&A deals announced over the past six months in the broadcasting industry, and the presenter expects the consolidation cycle to extend for the next 18-24 months. He is bullish on NXST, and believes the M&A activity will have a positive impact on the company’s ability to generate free cash flow (FCF); however, he noted its share have traded at relatively constant FCF multiples since the 4th quarter of 2012.

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Idea Discussion

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