$Nexstar Media Group (NXST.US)$🎯 As of December 5, 2023, th...

New data: In 2023 Q2 and Q3, revenue continues to decline, operating profit decreases significantly for 3 quarters, and net income drops significantly for 4 quarters.

In the first three quarters of 2023, revenue shrank by 2.6%, operating profit contracted by 52.1% due to increased costs and expenses, especially depreciation expenses, and net income shrank by 78%. Interest expenses accounted for 66% of operating profit, with a heavy interest burden. If there were no equity gains in Q3, it would already have been pushed to a loss by interest payments.

The balance sheet shows long-term borrowings reaching 6.742 billion, which is 2.9 times the 2.346 billion in net assets. If considering the goodwill of 2.965 billion, the leverage ratio is extremely high.

Even in the face of imminent losses, the company is still repurchasing stocks. The treasury stocks have increased from 1.607 billion at the beginning of the year to 2.084 billion. Can the company really not find a reasonable place to use the cash?

Operating net cash flow significantly exceeds investment net cash flow, which may be the confidence behind stock repurchases. However, increasing repurchases in a high-interest environment without reducing debt but instead increasing repurchases clearly increases risks.

Currently, the positions are not heavy, no adjustments will be made for now. Let's see if the management's decisions can be proven by performance.