Shenandoah Telecommunications Co (SHEN) AI Stock Analysis

• Market Cap: $710.92M
• Dividend Yield: 0.76%
• Average Volume (3M): 329.71K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.19
• Revenue Growth: 16.73%
• EPS Growth: -237.78%
• Country: US
• Employees: 1,089
• Sector: Communication Services
• Sector Strength: 96
• Industry: Telecommunications Services
• EPS (TTM): -0.19
• Shares Outstanding: 54,897,070
• 10 Day Avg. Volume: 298,687
• 30 Day Avg. Volume: 329,715
• PEG Ratio: <0.01
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 2.06
• P/FCF Ratio: -2.64
• Enterprise Value/Market Cap: 1.88
• Enterprise Value/Revenue: 3.82
• Enterprise Value/Gross Profit: 7.37
• Enterprise Value/Ebitda: 13.15
• 1Y Price Target: $26.00
• Price Target Upside: 98.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 51 Neutral
• Price Target: $13.00 ▼(-0.91% Downside)

Shenandoah Telecommunications Co's overall stock score is primarily impacted by its financial challenges, including negative profitability and cash flow issues. While the earnings call and leadership transition provide some positive outlook, the technical and valuation aspects remain concerning.

Positive Factors

Fiber Expansion

SHEN is now inching closer to generating free cash flow as the number of total homes passed approaches 600 thousand.

Subscriber Growth

The pace of subscriber growth remains on a positive trajectory for SHEN to achieve free cash flow positive.

Negative Factors

Debt Concerns

SHEN’s stock continues to remain exposed to the Company using debt to build its network while ignoring how adjusted EBITDA is rising faster than forecast.

Subscriber Decline

The decline in subscribers has become more impactful to consolidated revenue.

Shenandoah Telecommunications Co Business Overview & Revenue Model

Company Description

Shenandoah Telecommunications Co (SHEN) is a telecommunications company based in the United States, primarily serving rural and suburban communities. The company operates through various segments, including broadband services, wireless communications, and video services. Its core products include high-speed internet, digital television, and voice services, catering to both residential and business customers. SHEN also provides tower leasing and other ancillary services to enhance its telecommunications infrastructure.

How the Company Makes Money

Shenandoah Telecommunications Co generates revenue through multiple streams, primarily from its broadband services, which include internet and voice solutions for residential and business clients. The company charges monthly subscription fees for high-speed internet services, as well as for its digital TV and voice offerings. Additionally, SHEN earns income from its wireless segment, which includes mobile services and related products. A significant portion of its revenue also comes from leasing space on its telecommunications towers to other service providers. Partnerships with content providers and technology firms further enhance SHEN's service offerings, contributing to its earnings through bundled services and promotional deals.

Shenandoah Telecommunications Co Financial Statement Overview

Summary

Shenandoah Telecommunications shows mixed financial performance. While the balance sheet is stable with a manageable debt-to-equity ratio, income and cash flow statements highlight challenges in profitability and cash flow management. The negative net profit margin and poor free cash flow generation are key concerns.

Income Statement

The company's revenue has shown fluctuation, with a recent decline in TTM compared to the previous year. Gross profit margins have been relatively stable, but the net profit margin has turned negative in the latest period, indicating profitability challenges. The EBIT and EBITDA margins show operational weaknesses, exacerbated by recent losses.

Balance Sheet

Shenandoah Telecommunications has maintained a stable equity base and a manageable debt-to-equity ratio, though there is a noticeable increase in total debt. The equity ratio indicates a healthy level of equity. However, the return on equity has been negatively impacted by recent losses, suggesting challenges in generating shareholder returns.

Cash Flow

The cash flow statement reflects challenges in free cash flow generation, with significant capital expenditures outpacing operating cash flow. The free cash flow to net income ratio is negative, highlighting potential cash flow management issues. Operating cash flow remains positive, providing some stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	349.48M	328.06M	287.38M	267.37M	245.24M	220.78M
Gross Profit	181.13M	199.95M	181.28M	159.82M	142.94M	132.57M
EBITDA	101.43M	76.32M	78.27M	67.43M	60.91M	46.44M
Net Income	-29.32M	190.39M	8.04M	-8.38M	7.93M	2.63M
Balance Sheet
Total Assets	1.81B	1.74B	1.21B	977.72M	890.73M	2.03B
Cash, Cash Equivalents and Short-Term Investments	29.08M	46.27M	139.25M	44.06M	84.34M	195.40M
Total Debt	525.13M	432.30M	352.73M	128.26M	56.62M	738.02M
Total Liabilities	827.28M	739.23M	561.56M	339.71M	248.46M	1.45B
Stockholders Equity	901.96M	918.58M	652.67M	638.01M	642.27M	582.39M
Cash Flow
Free Cash Flow	-249.00M	-256.50M	-142.78M	-114.71M	-411.04M	166.30M
Operating Cash Flow	88.59M	62.57M	113.77M	74.89M	-250.93M	302.87M
Investing Cash Flow	-308.18M	-339.41M	-236.69M	-184.18M	1.78B	-155.59M
Financing Cash Flow	207.14M	183.86M	218.11M	69.00M	-1.64B	-53.53M

Shenandoah Telecommunications Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 13.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SHEN, the sentiment is Neutral. The current price of 13.12 is above the 20-day moving average (MA) of 12.81, below the 50-day MA of 13.79, and above the 200-day MA of 12.73, indicating a neutral trend. The MACD of -0.16 indicates Negative momentum. The RSI at 48.45 is Neutral, neither overbought nor oversold. The STOCH value of 35.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SHEN.

Shenandoah Telecommunications Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$46.28B	4.13	-13.12%	4.13%	1.85%	-42.71%
WOW	60 Neutral	$435.70M	―	-30.99%	―	-8.67%	63.35%
RBBN	59 Neutral	$736.66M	―	-11.45%	―	7.68%	18.65%
GOGO	56 Neutral	$1.43B	239.51	9.39%	―	72.74%	-90.17%
OOMA	56 Neutral	$358.80M	―	-1.78%	―	5.42%	69.88%
ATEX	55 Neutral	$417.34M	14.26	17.59%	―	15.97%	―
SHEN	51 Neutral	$710.92M	―	-3.93%	0.76%	16.73%	-237.78%

Shenandoah Telecommunications Co Corporate Events

Shenandoah Telecommunications Announces Leadership Transition

On July 29, 2025, Shenandoah Telecommunications Company announced a leadership transition effective September 1, 2025, with Christopher E. French stepping into the role of Executive Chairman while Edward H. McKay will become the new President and CEO. Mr. McKay, who has been with Shentel since 2004 and has extensive experience in the telecommunications industry, will lead the company forward, focusing on growth and innovation. This strategic leadership change is part of Shentel’s succession planning to ensure continuity and sustained strategic direction, aiming to enhance the company’s growth and value delivery to customers and shareholders.