Latest news with #BloombergIndices
Forbes
17-04-2025
- Business
- Forbes
Nexstar Media's Cash Flow Increases The Safety Of Its Dividend Yield
Businessman holding virtual download icon progress for increasing value added to business product ... More and service concept. With so many cross currents in the stock market, what can you trust? Who can you trust? The short answer is that you can trust high-quality fundamentals to guide your investment process through good markets and bad. Look no farther than Warren Buffet – the greatest investor of all time. He's not a MOMO, FOMO or crypto bro. Not at all, he's always been about deep fundamental analysis, reading annual reports and doing real diligence. I take the Warren Buffet approach one step further by adding technology. Specifically, the Robo-Analyst AI is proven to deliver superior fundamental research and stock ratings. This technology gives me an edge and is a big part of why my stock picks and Bloomberg Indices beat the market. I use the same technology to build all of my model portfolios, including the Safest Dividend Yields Model Portfolio. This portfolio only includes stocks that earn an attractive or very attractive rating, have positive free cash flow (FCF) and economic earnings, and offer a dividend yield greater than 3%. Dividend paying stocks can provide a safe-haven, but only if the underlying companies generate enough cash to cover the dividends. This portfolio only holds stocks for companies that generate enough FCF to support the dividend. I think the stocks in this portfolio can outperform in the current market and beyond. This stock pick provides a summary of how I pick stocks for the Safest Dividend Yields Model Portfolio. Nexstar Media Group Inc (NXST) is the featured stock in March's Safest Dividend Yields Model Portfolio. Nexstar Media Group has grown revenue and net operating profit after tax (NOPAT) by 12% and 17% compounded annually, respectively, since 2019. The company's NOPAT margin improved from 15% in 2019 to 18% in 2024, while invested capital turns rose from 0.4 to 0.5 over the same time. Rising NOPAT margins and invested capital turns drive the company's return on invested capital (ROIC) from 6% in 2019 to 9% in 2024. Figure 1: Nexstar Media Group's Revenue & NOPAT Since 2019 NXST Revenue and NOPAT - 2019-2024 Nexstar Media Group has increased its regular dividend from $0.56/share in 1Q20 to $1.86/share in 1Q25. The current quarterly dividend, when annualized provides a 4.1% dividend yield. The company's free cash flow (FCF) easily exceeds its regular dividend payments. From 2020 through 2024, the company generated $6.3 billion (46% of current enterprise value) in FCF while paying $771 million in regular dividends. See Figure 2. Figure 2: Nexstar Media Group's FCF Vs. Regular Dividends Since 2020 NXST FCF and Dividends: 2020-2024 As Figure 2 shows, this company's dividends are backed by a history of reliable cash flows. Dividends from companies with low or negative FCF are less dependable since the company might not be able to sustain paying dividends. At its current price of $183/share, NXST has a price-to-economic book value (PEBV) ratio of 0.8. This ratio means the market expects the company's NOPAT to permanently fall 20% from 2024 levels. This expectation seems overly pessimistic given that the company has grown NOPAT 17% compounded annually over the last five years and 25% compounded annually over the past decade. Even if the company's: the stock would be worth $228/share today – a 25% upside. In this scenario, the company's NOPAT would grow just 2% compounded annually through 2034. Should the company's NOPAT grow more in line with historical growth rates, the stock has even more upside. Below are specifics on the adjustments I make based on Robo-Analyst findings in this featured stock's 10-K: Income Statement: I made over $700 million in adjustments with a net effect of removing just over $250 million in non-operating expenses. Balance Sheet: I made over $1 billion in adjustments to calculate invested capital with a net increase of just under $1 billion. The most notable adjustment was for asset write downs. Valuation: I made over $8 billion in adjustments to shareholder value, with a net decrease of around $8 billion. Other than total debt, the most notable adjustment to shareholder value was for deferred tax liability. Disclosure: David Trainer, Kyle Guske II, and Hakan Salt receive no compensation to write about any specific stock, style, or theme.
Yahoo
08-04-2025
- Business
- Yahoo
Bloomberg Launches New Multi-Asset Index for Fixed Indexed Annuities
The New Bloomberg Versa 10 Index targets diversified, volatility-targeted exposure dynamically across U.S. Equities, Treasuries, Gold, and the U.S. Dollar NEW YORK, April 8, 2025 /PRNewswire/ -- Bloomberg Indices announced the launch of the Bloomberg Versa 10 Index (BVERSA10), a new multi-asset benchmark developed in response to the evolving needs of the fixed indexed annuity markets. The index is designed to target a 10% volatility level and dynamically allocates across four well-known asset classes—U.S. equities, U.S. Treasuries, Gold, and the U.S. dollar—each represented through a dedicated volatility-targeted sub-index. The index has been licensed by SILAC Insurance Company® (SILAC) for use in its fixed indexed annuity offerings. Developed in collaboration with RBC Capital Markets and Salt Financial LLC, BVERSA10 provides a rules-based framework incorporating dynamic long and short exposure, efficient trading and enhanced risk management. U.S. Large Cap Equities are represented by the Bloomberg Dynamic US 500 10% Index, based on the Bloomberg US Large Cap Index (B500T). Additional subindices include the Bloomberg Dynamic US Treasury 10% Index to adjust for interest rate trends, the Bloomberg US Dollar G10 10% Index to increase exposure during elevated global uncertainty, and the Bloomberg Gold 10% Index, which incorporates gold as a momentum-based diversifier during periods of inflation or systemic stress. "It's important that our annuity offerings include tools designed to address market concerns such as volatility, inflation, and interest rate shifts," said Dan Acker, President and Chief Marketing Officer, SILAC Insurance Co. "Bloomberg Indices provides a transparent, rules-based benchmark that aligns with our product objectives and helps us deliver thoughtful solutions to the market." Bloomberg Indices supports insurance carriers with objective, rules-based benchmarks tailored for retirement and life insurance products. With over $30 billion in assets under management tracking Bloomberg indices across annuity and life platforms, Bloomberg provides end-to-end support—from index design and implementation to marketing and distribution. "Current market conditions and geopolitical uncertainties are driving the marketplace to seek specialized solutions that target stability and growth potential. Bloomberg Indices is committed to developing customized indices that help insurers remain competitive and offer differentiated products to their client base that can meet those requirements through varied market environments" said Emanuele Di Stefano, Head of Index Product Development, Bloomberg Index Services Limited. "We're proud SILAC has chosen the BVERSA10 Index for use in their fixed-index annuities offerings." Bloomberg provides an independent, transparent approach to indexing for customers across the globe. Bloomberg clients can access the new index on the Bloomberg Terminal at {BVERSA10 INDEX } and all research and methodology for the indices are available on the Bloomberg Indices Documentation page. About Bloomberg Index Services LimitedBloomberg's index team has a proven track record in creating industry-leading and bespoke indices across asset classes, including their flagship fixed income, commodity and equity indices. Bloomberg Index Services Limited (BISL) takes an innovative approach to delivering strategic benchmarks that help market participants address their evolving investment needs. The indices, which are seamlessly integrated with other Bloomberg solutions, draw on a comprehensive range of trusted data and reliable technology for calculations, analytics and workflow automation, along with distribution capabilities that can help amplify the visibility of our customers' products. For more information, visit About BloombergBloomberg is a global leader in business and financial information, delivering trusted data, news, and insights that bring transparency, efficiency, and fairness to markets. The company helps connect influential communities across the global financial ecosystem via reliable technology solutions that enable our customers to make more informed decisions and foster better collaboration. For more information, visit or request a demo. View original content to download multimedia: SOURCE Bloomberg L.P. Sign in to access your portfolio
Bloomberg
18-03-2025
- Business
- Bloomberg
Footnote Season: Uncovering Hidden Value in Company Financials
Understanding a company's financial position requires more than just analyzing revenue growth, profitability, and cash flow. While these traditional metrics offer a snapshot, they often overlook critical insights buried in footnotes and disclosures. To gain a true financial perspective, investors must look beyond the income statement and uncover the hidden details that impact real earnings. Join Bloomberg and New Constructs for an exclusive webinar exploring how AI-driven financial analysis enhances accounting transparency to reveal underestimated earnings. Discover how Bloomberg Indices integrates New Constructs' proprietary data to develop systematic strategies that identify companies whose true financial strength is often overlooked—creating a unique opportunity for accounting alpha. CEO of New Constructs David Trainer, CEO of New Constructs, is a Wall Street veteran and corporate finance expert specializing in AI-driven financial analysis. With a career spanning equity research at Credit Suisse First Boston and Epoch Partners (later acquired by Goldman Sachs), he has pioneered AI-powered stock ratings, financial analytics, and valuation models that uncover hidden insights in company filings. His firm's Robo-Analyst technology, validated by research from the Journal of Financial Economics, Ernst & Young, and Harvard Business School, has been proven superior in predicting earnings and stock performance. A former FASB Investors Advisory Committee member and author of Modern Tools for Valuation (Wiley Finance, 2010), Trainer frequently appears in media to share insights on AI, financial markets, and investment strategies. Mike Pruzinsky Senior Global Equity Product Manager Bloomberg Indices Michael Pruzinsky is a senior global equity product manager for Bloomberg Indices. Based in New York, Michael has over 15 years of experience working with the buy-side, and is responsible for overseeing index development, go-to-market, and product strategy. He has created and launched hundreds of indices including the Bloomberg Magnificent 7 Index. Previously, he worked in several client facing roles including Bloomberg's portfolio analytics & risk team that supported the transition from Barclays POINT to Bloomberg PORT. Michael holds a B.A. in Business Economics from Brown University. Steve Hou Index & ESG Research Bloomberg Steve Hou is a researcher on Bloomberg's Index & Portfolio Research team. His research covers systematic equity and multi-asset investment strategies, which he applies in close collaboration with the Multi-Asset Index Product team to produce investable index products. Prior to joining Bloomberg, Steve was a quantitative researcher at AQR Capital Management LLC, where he worked on systematic stock selection and tax efficient investment strategies. Steve graduated with a PhD in Financial Economics from the University of Michigan in 2018. He previously completed graduate and undergraduate studies from ETH Zurich and the University of Virginia.
