$Nexstar Media Group (NXST.US)$🎯 2023.12.5 The current pric...

New data: 2023Q2, Q3, revenue continued to decline, operating profit fell sharply for 3 quarters, and net profit fell sharply for 4 quarters

Revenue shrank by 2.6% in the first three quarters of 2023, operating profit shrank by 52.1% due to the sharp increase in costs and expenses, especially depreciation expenses, and net profit shrank by 78%. Among them, interest expenses accounted for 66% of operating profit, and the interest burden was extremely heavy. If there was no equity income in Q3, interest would have been crushed into a loss by interest.

The balance sheet shows that long-term loans reached 6.742 billion yuan, which is 2.9 times the net assets of 2,346 billion yuan. If we consider that there is still a goodwill of 2,965 billion dollars, the leverage ratio is extremely high.

Even in the face of imminent losses, stocks are still being repurchased. Treasury stocks have increased from 1,607 million at the beginning of the year to 2,084 billion. Can't the company really find a place where it can use cash rationally?

Net cash flow is significantly higher than net investment. This may be the source of confidence in repurchasing stocks, but in a high-interest rate environment, instead of reducing debt but increasing repurchases, the risk has clearly increased.

The current position is not heavy. No adjustments will be made for the time being to see if management decisions can be proven by performance.