Shenandoah Telecommunications Co (SHEN)
NASDAQ:SHEN
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Shenandoah Telecommunications Co
(NASDAQ:SHEN)
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Rating:56Neutral
Price Target:
$17.00
▲(4.42% Upside)
Action:ReiteratedDate:05/03/26
The score is held back primarily by weak financial quality—net losses and large negative free cash flow despite strong revenue growth and EBITDA. Offsetting this are supportive technical momentum and a constructive earnings call (reiterated guidance, fiber build progress, and a stated path to positive free cash flow), while valuation is mixed due to losses but supported by a very high dividend yield.
Positive Factors
Fiber expansion and network scale
A near-complete fiber build creates durable competitive scale: finishing ~510k passings expands addressable market, raises long-term RGU potential, and supports better unit economics. Scale also enables cross-sell, lowers per-customer opex, and underpins multi-year revenue and margin improvement.
Negative Factors
Persistent negative free cash flow and high capex
Large, persistent negative free cash flow from heavy fiber build creates structural financing risk. Until operating cash conversion outpaces remaining capex, the company must rely on liquidity and refinancing; prolonged negative FCF reduces flexibility for dividends, M&A, or debt paydown over the next 2–4 years.
Read all positive and negative factors
Positive Factors
Negative Factors
Fiber expansion and network scale
A near-complete fiber build creates durable competitive scale: finishing ~510k passings expands addressable market, raises long-term RGU potential, and supports better unit economics. Scale also enables cross-sell, lowers per-customer opex, and underpins multi-year revenue and margin improvement.
Read all positive factors
Shenandoah Telecommunications Co (SHEN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$869.39M
Dividend Yield0.97%
Average Volume (3M)313.03K
Price to Earnings (P/E)―
Beta (1Y)0.23
Revenue Growth4.44%
EPS Growth-19.31%
CountryUS
Employees1,089
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)-0.83
Shares Outstanding55,322,002
10 Day Avg. Volume321,799
30 Day Avg. Volume313,027
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)0.72
Price to Sales (P/S)1.78
P/FCF Ratio-2.47
Enterprise Value/Market Cap1.73
Enterprise Value/Revenue5.56
Enterprise Value/Gross Profit21.04
Enterprise Value/Ebitda12.76
Forecast
1Y Price Target
$27.50Price Target Upside68.92% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.7
Revenue Forecast (FY)$373.01M
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, v...
How the Company Makes Money
SHEN primarily makes money by charging customers recurring service fees for broadband internet access delivered over its network (including fiber-to-the-premises where available). Revenue is generated from monthly subscriptions, tiered internet sp...
Shenandoah Telecommunications Co Earnings Call Summary
Earnings Call Date:May 01, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call highlighted strong execution on fiber expansion and subscriber growth, solid near-term financial results (revenues +4.8%, adjusted EBITDA +15% with margin expansion), healthy network scale, and early traction on higher-speed upsells — all supporting the company’s trajectory toward positive free cash flow in 2027. Offsetting items include softness in incumbent markets (video declines and modest ARPU pressure), competitive pressure from satellite in select rural areas, ongoing DSL erosion, and continued high absolute CapEx and leverage. Overall, positives around fiber growth, profitability improvement and liquidity stance materially outweigh the site-specific and legacy-business challenges.Positive Updates
Glo Fiber Expansion Progress
Added ~22,000 passings in Q1 bringing total Glo Fiber expansion passings to 449,000 (88% of target completed as of 3/31). Company remains on track to complete expansion to ~510,000 passings by end of 2026.
Negative Updates
Revenue Pressure in Incumbent Markets
Incumbent broadband revenues declined ~$2.2M in Q1. Total incumbent RGUs declined ~4% YoY, with video RGUs down 14.6% due to cord-cutting and customers shifting to streaming services.
Read all updates
Q1-2026 Updates
Positive
Negative
Glo Fiber Expansion Progress
Added ~22,000 passings in Q1 bringing total Glo Fiber expansion passings to 449,000 (88% of target completed as of 3/31). Company remains on track to complete expansion to ~510,000 passings by end of 2026.
Read all positive updates
Company Guidance
Shentel reiterated 2026 guidance of revenues of $370–377 million, adjusted EBITDA of $131–136 million, and CapEx net of grant reimbursements of $220–250 million, and said it remains on track to complete the Glo Fiber expansion to ~510,000 passings by year‑end (88% complete as of March 31) and to generate positive free cash flow in 2027; management pointed to Q1 results of $92.2M revenue, $31.7M adjusted EBITDA (up 15% y/y) and a 34.4% adjusted EBITDA margin, Q1 CapEx of $75.8M with $11.5M in government grants for net Q1 CapEx of $64.3M, and balance‑sheet liquidity of roughly $195M available (cash $44M, restricted cash $27M, $18M VFN available, $68M RCF available, $38M grant reimbursements available) against $707M of debt outstanding ($636M net debt) with no maturities until 2029, with management citing three catalysts — low double‑digit adjusted EBITDA growth from fiber, declining capital intensity as construction winds down, and lower cost of capital after refinancing — to drive the path to positive FCF.Shenandoah Telecommunications Co Financial Statement Overview
Summary
Income Statement
41
Neutral
Balance Sheet
50
Neutral
Cash Flow
28
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 270.52M | 357.85M | 328.06M | 287.38M | 248.91M | 245.24M |
| Gross Profit | 71.53M | 96.12M | 199.95M | 181.28M | 146.63M | 142.94M |
| EBITDA | 117.97M | 115.13M | 76.32M | 78.27M | 55.52M | 60.91M |
| Net Income | -44.59M | -39.39M | 190.39M | 8.04M | -8.38M | 998.83M |
Balance Sheet | ||||||
| Total Assets | 1.95B | 1.91B | 1.74B | 1.21B | 977.72M | 890.73M |
| Cash, Cash Equivalents and Short-Term Investments | 71.08M | 27.26M | 46.27M | 139.25M | 44.06M | 85.14M |
| Total Debt | 706.83M | 641.69M | 432.30M | 352.73M | 129.76M | 56.62M |
| Total Liabilities | 995.92M | 941.47M | 739.23M | 561.56M | 339.71M | 248.46M |
| Stockholders Equity | 866.96M | 880.78M | 918.58M | 652.67M | 638.01M | 642.27M |
Cash Flow | ||||||
| Free Cash Flow | -264.81M | -257.92M | -256.50M | -141.30M | -114.09M | -411.04M |
| Operating Cash Flow | 86.69M | 101.00M | 62.57M | 113.77M | 74.89M | -250.93M |
| Investing Cash Flow | -282.51M | -294.66M | -339.41M | -236.69M | -184.18M | 1.78B |
| Financing Cash Flow | 179.35M | 195.60M | 183.86M | 218.11M | 69.00M | -1.64B |
Shenandoah Telecommunications Co Technical Analysis
Positive
16.28
Price Trends
14.31
Positive
12.85
Positive
12.95
Positive
Market Momentum
0.41
Negative
70.41
Negative
93.18
Negative
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 16.28 is above the 20-day moving average (MA) of 15.02, above the 50-day MA of 14.31, and above the 200-day MA of 12.95, indicating a bullish trend. The MACD of 0.41 indicates Negative momentum. The RSI at 70.41 is Negative, neither overbought nor oversold. The STOCH value of 93.18 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SHEN.
Shenandoah Telecommunications Co Risk Analysis
Shenandoah Telecommunications Co disclosed 29 risk factors in its most recent earnings report. Shenandoah Telecommunications Co reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Shenandoah Telecommunications Co Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $906.30M | -15.45 | 39.78% | ― | 0.51% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
56 Neutral | $869.39M | -12.36 | -4.06% | 0.97% | 4.44% | -19.31% | |
56 Neutral | $468.61M | -2.70 | 7.85% | ― | -1.15% | ― | |
53 Neutral | $1.06B | -59.01 | -6.79% | ― | 7.56% | ― | |
46 Neutral | $367.54M | 3.62 | -23.85% | 10.11% | -5.27% | -1495.76% |
* Communication Services Sector Average
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Shenandoah Telecommunications Co Corporate Events
Business Operations and StrategyExecutive/Board ChangesFinancial DisclosuresShareholder Meetings
Shentel Shareholders Back Directors, Auditor at 2026 Meeting
Positive
Apr 23, 2026
On April 21, 2026, Shenandoah Telecommunications Company held its 2026 annual meeting of shareholders, where investors elected Matthew S. DeNichilo, Kenneth L. Quaglio and Michael A. Rhymes to three-year board terms expiring in 2029 and ratified R...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.