Shenandoah Telecommunications Co (SHEN) AI Stock Analysis

• Market Cap: $620.90M
• Dividend Yield: 0.97%
• Average Volume (3M): 313.03K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.22
• Revenue Growth: 11.59%
• EPS Growth: -106.83%
• Country: US
• Employees: 1,089
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): -0.20
• Shares Outstanding: 54,898,140
• 10 Day Avg. Volume: 321,799
• 30 Day Avg. Volume: 313,027
• 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: 2.18
• Enterprise Value/Revenue: 3.84
• Enterprise Value/Gross Profit: 7.29
• Enterprise Value/Ebitda: 12.77
• 1Y Price Target: $26.00
• Price Target Upside: 129.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: $11.50 ▲(1.68% Upside)

Shenandoah Telecommunications Co's overall stock score reflects mixed financial performance with strong revenue growth but significant profitability and cash flow challenges. Technical indicators suggest a bearish trend, and valuation metrics indicate potential overvaluation. The earnings call provided some positive insights, particularly in Glo Fiber growth, but challenges remain in other revenue streams.

Positive Factors

Glo Fiber Revenue Growth

The significant growth in Glo Fiber revenues highlights the company's strong market position in fiber services, supporting long-term revenue expansion.

Credit Refinancing

The refinancing strengthens financial flexibility and reduces interest expenses, supporting future investments and operational stability.

Fiber Network Expansion

Expanding the fiber network enhances service capabilities and market reach, positioning the company for sustained growth in broadband services.

Negative Factors

Profitability Challenges

Negative profitability metrics indicate operational inefficiencies, which could hinder long-term financial health and investment capacity.

Cash Flow Constraints

Negative free cash flow suggests limited cash generation ability, potentially restricting growth investments and increasing reliance on external financing.

Incumbent Broadband Revenue Decline

Declining revenues in traditional broadband markets reflect competitive pressures and customer shifts, challenging the company's revenue stability.

Shenandoah Telecommunications Co Business Overview & Revenue Model

Company Description

Shenandoah Telecommunications Company, together with its subsidiaries, provides a range of broadband communication services and cell tower colocation space in the Mid-Atlantic portion of the United States. Its Broadband segment offers broadband, video, and voice services to residential and commercial customers in Virginia, West Virginia, Maryland, Pennsylvania, and Kentucky, via hybrid fiber coaxial cable under the Shentel brand, fiber optic services under the Glo Fiber brand, and fixed wireless network services under the Beam brand name. This segment leases fiber and provides Ethernet and wavelength fiber optic services. In addition, the company offers voice and digital subscriber line telephone services. The company's Tower segment owns 220 cell towers and leases colocation space on the towers. Shenandoah Telecommunications Company was founded in 1902 and is based in Edinburg, Virginia.

How the Company Makes Money

Shenandoah Telecommunications Co generates revenue primarily through its diverse telecommunications services. The key revenue streams include subscription fees from broadband internet services, cable television services, and voice services. The company also earns income from wireless services and ancillary offerings, such as equipment sales and installation fees. Significant partnerships with content providers and technology firms enhance its service offerings and may contribute to revenue growth. Additionally, SHEN benefits from economies of scale as it expands its network infrastructure, which can reduce operational costs and improve profit margins.

Shenandoah Telecommunications Co Financial Statement Overview

Summary

Shenandoah Telecommunications Co faces financial challenges despite revenue growth. Negative profitability metrics and declining cash flow are concerning, indicating operational inefficiencies and poor cash flow management.

Income Statement

Shenandoah Telecommunications Co shows a mixed performance in its income statement. The company has experienced revenue growth, with a notable increase in the TTM period. However, profitability metrics such as the net profit margin and EBIT margin are negative, indicating operational challenges. The gross profit margin has declined over time, suggesting pressure on cost management.

Balance Sheet

The balance sheet reflects moderate financial stability. The debt-to-equity ratio has increased over the years, indicating rising leverage, but it remains within a manageable range. The return on equity has fluctuated, with recent periods showing negative returns, highlighting profitability issues. The equity ratio is stable, suggesting a solid asset base relative to equity.

Cash Flow

Cash flow analysis reveals significant challenges. Free cash flow is consistently negative, and the free cash flow growth rate is declining. The operating cash flow to net income ratio is below 1, indicating that operating cash flows are not fully covering net income. The company needs to improve cash generation to support its operations and investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	351.67M	328.06M	287.38M	248.91M	245.24M	220.78M
Gross Profit	185.36M	199.95M	181.28M	146.63M	142.94M	131.12M
EBITDA	105.84M	76.32M	78.27M	55.52M	60.91M	46.44M
Net Income	-31.81M	190.39M	8.04M	-8.38M	998.83M	125.67M
Balance Sheet
Total Assets	1.85B	1.74B	1.21B	977.72M	890.73M	2.02B
Cash, Cash Equivalents and Short-Term Investments	22.62M	46.27M	139.25M	44.06M	85.14M	195.40M
Total Debt	546.84M	432.30M	352.73M	129.76M	56.62M	738.02M
Total Liabilities	870.79M	739.23M	561.56M	339.71M	248.46M	1.45B
Stockholders Equity	892.68M	918.58M	652.67M	638.01M	642.27M	577.05M
Cash Flow
Free Cash Flow	-251.36M	-256.50M	-142.78M	-114.09M	-411.04M	166.30M
Operating Cash Flow	92.80M	62.57M	113.77M	74.89M	-250.93M	302.87M
Investing Cash Flow	-294.23M	-339.41M	-236.69M	-184.18M	1.78B	-155.59M
Financing Cash Flow	180.94M	183.86M	218.11M	69.00M	-1.64B	-53.53M

Shenandoah Telecommunications Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 11.31 is above the 20-day moving average (MA) of 11.31, below the 50-day MA of 11.46, and below the 200-day MA of 12.66, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 48.93 is Neutral, neither overbought nor oversold. The STOCH value of 23.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SHEN.

Shenandoah Telecommunications Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATEX	61 Neutral	$411.39M	4.30	50.41%	―	5.67%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
SIFY	57 Neutral	$902.77M	―	-8.89%	―	5.81%	―
CABO	52 Neutral	$658.92M	-1.44	-27.38%	10.11%	-4.94%	-335.70%
SHEN	50 Neutral	$620.90M	-15.55	-4.41%	0.97%	11.59%	-106.83%
RBBN	50 Neutral	$520.97M	-12.04	-11.40%	―	7.38%	20.81%
WOW	50 Neutral	$446.52M	-5.52	-42.79%	―	-8.70%	16.20%

Shenandoah Telecommunications Co Corporate Events

Shenandoah Telecommunications Co Completes Credit Refinancing

On December 5, 2025, Shenandoah Telecommunications Company (Shentel) completed the refinancing of its credit facilities, which included the issuance of $567.4 million in secured fiber network revenue term notes and the establishment of a $175 million variable funding note facility and a new $175 million revolving credit facility. This strategic move is expected to lower the company’s cost of debt by approximately 170 basis points, or $10 million annually, while extending debt maturities to 2030. The refinancing strengthens Shentel’s financial position, providing greater flexibility to support its Glo Fiber expansion and other corporate purposes.

Shenandoah Telecommunications Prices $567.4M Fiber Network Notes

On November 20, 2025, Shenandoah Telecommunications Company announced that its subsidiary, Shentel Issuer, LLC, has priced its inaugural offering of $567.4 million in secured fiber network revenue term notes. The notes, secured by fiber network assets and customer contracts in several states, are expected to close on December 5, 2025, and will be used to repay existing loans and for general corporate purposes.