NXST

Nexstar is the largest owner of local television stations in the US, with a high-margin, dual-revenue model — advertising plus growing retransmission/distribution fees — that throws off substantial cash. FY2025 was a classic off-cycle year: with no presidential-election political advertising, revenue fell 8.5% to $4.95B and net income dropped 84.9% to $109M. The drop is exaggerated by the company's political-cycle cadence (net income was $722M in the FY2024 election year and the high-margin political dollars largely vanish in odd years). Operating income held up far better, down 33.0% to $849M, preserving a 17.2% operating margin, and operating cash flow remained strong at $891M.

That cash flow comfortably funds a growing dividend ($226M, +3.2%) and buybacks ($125M), and the company built cash 94.4% to $280M. The catch is leverage: $6.22B of long-term debt and 4.26x liabilities/equity, typical of a roll-up broadcaster but a real constraint, with a 5.3% ROE in the off year. The market-cap-to-sales ratio of 1.0 is cheap, but the P/E of 54.7 is meaningless on depressed odd-year earnings.