Shenandoah Telecommunications Co (SHEN) AI Stock Analysis

• Market Cap: $635.17M
• Dividend Yield: 1.01%
• Average Volume (3M): 301.68K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.24
• 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: 259,537
• 30 Day Avg. Volume: 301,677
• 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: 2.10
• Enterprise Value/Revenue: 5.09
• Enterprise Value/Gross Profit: 13.96
• Enterprise Value/Ebitda: 14.46
• 1Y Price Target: $26.00
• Price Target Upside: 138.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $10.50 ▼(-3.67% Downside)

Shenandoah Telecommunications Co's overall stock score is primarily impacted by its financial challenges and bearish technical indicators. While the earnings call provided some positive guidance, the company's profitability and cash flow issues, along with negative market momentum, weigh heavily on the stock's outlook.

Positive Factors

Glo Fiber Revenue Growth

Strong growth in Glo Fiber revenues indicates successful market penetration and demand for high-speed internet, supporting long-term revenue expansion.

Fiber Network Expansion

Expanding fiber network enhances infrastructure capabilities, positioning the company to better serve customers and capture market share in underserved areas.

Low Churn and High ARPU

Low churn and high ARPU reflect customer satisfaction and pricing power, contributing to stable revenue streams and long-term profitability.

Negative Factors

Negative Profitability Metrics

Negative profitability metrics indicate operational inefficiencies, which could hinder the company's ability to reinvest and grow sustainably.

Declining Cash Flow

Negative cash flow challenges the company's ability to fund operations and investments, potentially impacting long-term financial health.

Incumbent Broadband Revenue Decline

Declining revenue in incumbent broadband markets suggests competitive pressures and shifts in consumer preferences, impacting future growth.

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 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 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	261.88M	328.06M	287.38M	267.37M	245.24M	220.78M
Gross Profit	95.57M	199.95M	181.28M	159.82M	142.94M	132.57M
EBITDA	92.26M	76.32M	78.27M	67.43M	60.91M	46.44M
Net Income	-33.33M	190.39M	8.04M	-8.38M	7.93M	2.63M
Balance Sheet
Total Assets	1.85B	1.74B	1.21B	977.72M	890.73M	2.03B
Cash, Cash Equivalents and Short-Term Investments	22.62M	46.27M	139.25M	44.06M	84.34M	195.40M
Total Debt	546.84M	432.30M	352.73M	128.26M	56.62M	738.02M
Total Liabilities	957.75M	739.23M	561.56M	339.71M	248.46M	1.45B
Stockholders Equity	892.68M	918.58M	652.67M	638.01M	642.27M	582.39M
Cash Flow
Free Cash Flow	-249.11M	-256.50M	-142.78M	-114.71M	-411.04M	166.30M
Operating Cash Flow	95.06M	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: 10.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 10.9 is below the 20-day moving average (MA) of 12.48, below the 50-day MA of 12.99, and below the 200-day MA of 12.69, indicating a bearish trend. The MACD of -0.51 indicates Positive momentum. The RSI at 24.19 is Positive, neither overbought nor oversold. The STOCH value of 0.04 is Positive, 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
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
ATEX	54 Neutral	$337.88M	11.54	17.59%	―	15.97%	―
CABO	52 Neutral	$810.69M	―	-27.38%	8.97%	-4.94%	-335.70%
SIFY	50 Neutral	$779.27M	―	-8.89%	―	5.81%	―
WOW	49 Neutral	$440.52M	―	-42.79%	―	-8.70%	16.20%
SHEN	47 Neutral	$635.17M	-15.91	-4.41%	1.01%	11.59%	-106.83%
RBBN	46 Neutral	$559.82M	-12.94	-11.40%	―	7.38%	20.81%

Shenandoah Telecommunications Co Corporate Events

Shenandoah Telecom’s Earnings Call: Growth Amid Challenges

The recent earnings call of Shenandoah Telecommunications showcased a mixed sentiment, with notable achievements in Glo Fiber revenues and passings, alongside improvements in consolidated revenue and EBITDA. However, these positive developments were tempered by declines in incumbent broadband, commercial fiber, and RLEC revenues, highlighting the challenges the company faces in adapting to market shifts and increasing competition.

Shentel’s Q3 2025: Fiber Growth Amid Challenges

Shenandoah Telecommunications Company, commonly known as Shentel, provides broadband services through its extensive fiber optic and cable networks to residential and commercial customers across eight states in the eastern United States. The company offers a range of services including broadband internet, video, voice, and managed network services.