Shenandoah Telecommunications Co (SHEN) AI Stock Analysis

• Market Cap: $844.80M
• Dividend Yield: 0.65%
• Average Volume (3M): 303.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.10
• Revenue Growth: 21.68%
• EPS Growth: -1010.29%
• Country: US
• Employees: 1,089
• Sector: Communication Services
• Sector Strength: 82
• Industry: Telecommunications Services
• EPS (TTM): -0.19
• Shares Outstanding: 54,857,143
• 10 Day Avg. Volume: 334,438
• 30 Day Avg. Volume: 303,727
• PEG Ratio: 0.89
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.00
• Enterprise Value/Market Cap: 1.46
• Enterprise Value/Revenue: 0.96
• Enterprise Value/Gross Profit: 6.62
• Enterprise Value/Ebitda: 4.11
• 1Y Price Target: $26.00
• Price Target Upside: 68.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 62 Neutral
• Price Target: $16.50 ▲(7.14%Upside)

The overall stock score of 61.9 reflects a mix of strong technical momentum and positive earnings call highlights, offset by challenges in valuation and financial performance. While the company shows promise with its growth initiatives, profitability and cash flow issues need addressing. The recent corporate changes are a positive development, potentially strengthening future performance.

Positive Factors

Network Expansion

SHEN has built out its network to add subscribers on a steady basis.

Subscriber Growth

SHEN added approximately 5,900 Glo Fiber subscribers in the fourth quarter to surpass 65,000 total subscribers.

Negative Factors

Debt Exposure

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.

Revenue Recognition

SHEN changed the recognition of $2.6 million in commercial revenue resulting in the Company missing the revenue estimate.

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 makes money through several key revenue streams. The primary source of income is its broadband services, which include providing high-speed internet access to residential and business customers. A significant portion of revenue also comes from video services, offering cable television and streaming solutions. Additionally, the company earns from voice communication services, including traditional landline and VoIP services. Shentel's strategic investment in fiber optic networks allows it to generate income by leasing fiber capacity to other telecommunications providers and businesses. The company's earnings are further supported by partnerships with regional and national carriers, enhancing its service offerings and expanding its market reach.

Shenandoah Telecommunications Co Financial Statement Overview

Summary

Shenandoah Telecommunications faces mixed financial performance with challenges in profitability and cash flow management. While the balance sheet remains relatively strong, the income statement and cash flow metrics suggest areas in need of improvement, particularly in operational efficiency and cost management.

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

Shenandoah Telecommunications Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.40
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 15.4 is above the 20-day moving average (MA) of 14.62, above the 50-day MA of 13.56, and above the 200-day MA of 12.81, indicating a bullish trend. The MACD of 0.47 indicates Negative momentum. The RSI at 63.94 is Neutral, neither overbought nor oversold. The STOCH value of 73.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SHEN.

Shenandoah Telecommunications Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GOGO	68 Neutral	$2.19B	76.11	-6.47%	―	41.51%	-103.22%
OOMA	65 Neutral	$340.86M	―	-5.81%	―	7.01%	-84.41%
SHEN	62 Neutral	$844.80M	―	-4.30%	0.65%	21.68%	-1010.29%
Sector *	62 Neutral	$42.18B	-1.51	-12.07%	2.79%	2.09%	-71.01%
RBBN	60 Neutral	$750.31M	―	-11.45%	―	7.68%	18.65%
ATEX	48 Neutral	$401.40M	―	-7.16%	―	43.90%	-24.87%
WOW	46 Neutral	$329.94M	―	-26.19%	―	-8.37%	78.45%

Shenandoah Telecommunications Co Corporate Events

Shentel Waives Standstill Provisions for ECP Investment

On May 21, 2025, Shentel waived certain standstill provisions in its Investment Agreement with ECP Fiber Holdings, allowing ECP to acquire up to 2,250,000 additional shares of Shentel’s common stock. This waiver, effective until May 21, 2026, potentially impacts Shentel’s stock ownership dynamics and reflects strategic flexibility in its investment relations.

The most recent analyst rating on (SHEN) stock is a Buy with a $26.00 price target. To see the full list of analyst forecasts on Shenandoah Telecommunications Co stock, see the SHEN Stock Forecast page.