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GuruFocus has detected 7 Warning Signs with Nexstar Media Group Inc $NXST.
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Nexstar Media Group Inc (NAS:NXST)
Beneish M-Score
-2.52 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Nexstar Media Group Inc has a M-score of -2.52 suggests that the company is not a manipulator.

NXST' s Beneish M-Score Range Over the Past 10 Years
Min: -3.63   Max: -1.8
Current: -2.52

-3.63
-1.8

During the past 13 years, the highest Beneish M-Score of Nexstar Media Group Inc was -1.80. The lowest was -3.63. And the median was -2.72.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Nexstar Media Group Inc for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.9181+0.528 * 1.0139+0.404 * 1.1001+0.892 * 1.2307+0.115 * 1.0095
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9213+4.679 * -0.0525-0.327 * 0.9682
=-2.52

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Dec16) TTM:Last Year (Dec15) TTM:
Accounts Receivable was $218 Mil.
Revenue was 309.879 + 275.659 + 261.994 + 255.658 = $1,103 Mil.
Gross Profit was 211.684 + 174.915 + 169.059 + 165.535 = $721 Mil.
Total Current Assets was $363 Mil.
Total Assets was $2,966 Mil.
Property, Plant and Equipment(Net PPE) was $276 Mil.
Depreciation, Depletion and Amortization(DDA) was $98 Mil.
Selling, General & Admin. Expense(SGA) was $264 Mil.
Total Current Liabilities was $190 Mil.
Long-Term Debt was $2,314 Mil.
Net Income was 20.482 + 24.799 + 24.529 + 21.727 = $92 Mil.
Non Operating Income was -0.146 + -0.126 + -0.147 + -0.136 = $-1 Mil.
Cash Flow from Operations was 84.763 + 66.785 + 57.778 + 38.431 = $248 Mil.
Accounts Receivable was $193 Mil.
Revenue was 252.262 + 223.031 + 219.349 + 201.735 = $896 Mil.
Gross Profit was 169.623 + 144.48 + 146.311 + 133.706 = $594 Mil.
Total Current Assets was $260 Mil.
Total Assets was $1,835 Mil.
Property, Plant and Equipment(Net PPE) was $267 Mil.
Depreciation, Depletion and Amortization(DDA) was $96 Mil.
Selling, General & Admin. Expense(SGA) was $232 Mil.
Total Current Liabilities was $146 Mil.
Long-Term Debt was $1,454 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(218.058 / 1103.19) / (192.991 / 896.377)
=0.19766133 / 0.21530115
=0.9181

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(594.12 / 896.377) / (721.193 / 1103.19)
=0.66280148 / 0.65373417
=1.0139

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (363.217 + 276.153) / 2966.085) / (1 - (260.028 + 266.583) / 1835.134)
=0.78443976 / 0.71303948
=1.1001

4. SGI = Sales Growth Index

Ratio of sales in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=1103.19 / 896.377
=1.2307

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(95.697 / (95.697 + 266.583)) / (97.872 / (97.872 + 276.153))
=0.26415204 / 0.26167235
=1.0095

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(263.606 / 1103.19) / (232.48 / 896.377)
=0.23894887 / 0.25935516
=0.9213

7. LVGI = Leverage Index

The ratio of total debt to total assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((2314.326 + 189.578) / 2966.085) / ((1454.075 + 146.061) / 1835.134)
=0.8441781 / 0.87194505
=0.9682

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(91.537 - -0.555 - 247.757) / 2966.085
=-0.0525

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Nexstar Media Group Inc has a M-score of -2.52 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Nexstar Media Group Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 1.13330.89991.33630.81231.14760.84671.10640.92981.06290.9181
GMI 1.01150.99581.04580.92461.02250.96821.07321.0041.06081.0139
AQI 0.96940.90220.95320.96321.00841.06211.01240.98761.11981.1001
SGI 1.00621.06790.88441.24360.97811.23541.32671.25681.41991.2307
DEPI 0.95191.2851.03371.1721.00241.04960.88591.29720.7721.0095
SGAI 1.01111.05361.0390.90431.06570.90470.97610.91710.93330.9213
LVGI 1.01951.12561.01740.99681.00230.81881.02160.9330.94720.9682
TATA -0.0801-0.226-0.0874-0.0875-0.08790.11190.0061-0.0717-0.0649-0.0525
M-score -2.75-3.63-2.69-2.86-2.77-1.80-2.03-2.58-2.27-2.52

Nexstar Media Group Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
DSRI 0.88980.92981.18071.1361.10421.06290.89410.93470.98230.9181
GMI 1.03721.0041.01271.01641.03011.06081.05441.05181.041.0139
AQI 0.93480.98761.09791.08031.10071.11981.02571.00511.15181.1001
SGI 1.20041.25681.33451.41671.45141.41991.35911.28681.24931.2307
DEPI 0.98161.29721.37171.21531.12350.7720.77640.80950.87311.0095
SGAI 0.96740.91710.91050.880.88010.93330.93420.96010.95720.9213
LVGI 0.98910.9330.88750.88570.90750.94720.98870.99040.99050.9682
TATA -0.0389-0.0717-0.0529-0.0502-0.0563-0.0649-0.0523-0.0641-0.0414-0.0525
M-score -2.58-2.58-2.12-2.09-2.12-2.27-2.47-2.57-2.39-2.52
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