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Nexxen International

NEXN
57
Advertising Agencies · Communication Services
Price
$10.16
-0.22 (-2.12%)
Market Cap
$566.1M
Exchange
NASDAQ
Winston Score
57
Winston is curious
A decent business — some strong pillars, some weaker.

Share count falling — buybacks

20.0% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 76.4M (2021) → 61.1M (2025)

Nexxen International is a digital advertising technology company. It builds software tools that help advertisers place video and display ads across websites, streaming TV services, and apps. Media buyers, brands, and publishers use Nexxen's platform to buy and sell ad space more efficiently.

Nexxen makes money by taking a percentage of the advertising dollars that flow through its platform, which is a common model in ad tech. The company operates mainly in the United States, United Kingdom, and Israel, and it has grown partly through acquisitions of smaller ad tech firms. Its high gross margin reflects the software nature of the business, but the ad tech industry is crowded, and Nexxen competes against much larger players like The Trade Desk and Google. The key risk is that bigger, better-funded rivals could squeeze Nexxen's market share, while a potential growth driver is the ongoing shift of TV advertising budgets toward streaming and connected TV platforms.

Winston Score History

Score breakdown

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Quality

Gross Margin
68.5%
Premium pricing power — 68.5% gross margin
Operating Margin
12.9%
Healthy — 12.9% operating margin
ROCE
2.7%
Weak — 2.7% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
-0.2%
Shrinking sales (-0.2% YoY)
EPS YoY
-16.5%
Earnings shrinking (-16.5% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion
466%
Turns 466% of profit into real cash
FCF Margin
28.4%
Converts sales into free cash efficiently (28.4%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

Debt / Equity
0.03
Conservative — low debt load (0.03)
Interest Cover
14.75x
Comfortably covers interest (14.7x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
23.7x
Growth-priced — P/E 23.7

P/E above the market average. People are paying up for expected growth.

P/E vs Forward
+16.1
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (23.7 → 7.6)

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Dividends

Not applicable for this business.
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