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Shenandoah Telecommunications Co
(NASDAQ:SHEN)
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Rating:49Neutral
Price Target:
$13.50
▲(18.21% Upside)
Action:Reiterated
Date:07/31/26
The score is held down primarily by weak financial performance (sharp TTM revenue decline, ongoing losses, and deeply negative free cash flow alongside rising leverage) and a poor technical setup (price below major moving averages). These are partially offset by constructive earnings-call signals around fiber-driven EBITDA improvement and reiterated guidance, plus the very high dividend yield in the provided data, though the negative P/E reflects loss-making results.
Positive Factors
Fiber network scale
A large, growing fiber footprint materially expands the company’s addressable market and supports long-term revenue growth. Scale across 8 states enables operational efficiencies, lowers unit costs over time, and builds a durable competitive moat versus smaller local providers.
Negative Factors
Heavy near‑term capex and negative FCF
Sustained, large capital spending delays internal free cash generation and increases dependence on external financing. Persistent negative FCF impairs the company’s ability to deleverage, limits discretionary investment, and extends the timeline for shareholder returns until capex intensity declines.
Read all positive and negative factors
Positive Factors
Negative Factors
Fiber network scale
A large, growing fiber footprint materially expands the company’s addressable market and supports long-term revenue growth. Scale across 8 states enables operational efficiencies, lowers unit costs over time, and builds a durable competitive moat versus smaller local providers.
Read all positive factors
Shenandoah Telecommunications Co (SHEN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$663.82M
Dividend Yield0.92%
Average Volume (3M)313.03K
Price to Earnings (P/E)―
Beta (1Y)0.15
Revenue Growth5.01%
EPS Growth-23.53%
CountryUS
Employees1,041
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)-0.81
Shares Outstanding55,364,680
10 Day Avg. Volume321,799
30 Day Avg. Volume313,027
Financial Highlights & Ratios
PEG Ratio0.14
Price to Book (P/B)0.72
Price to Sales (P/S)1.78
P/FCF Ratio-2.47
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$27.50Price Target Upside140.81% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.97
Revenue Forecast (FY)$373.94M
Shenandoah Telecommunications Co Business Overview & Revenue Model
Company Description
Shenandoah Telecommunications Company, or Shentel, delivers a comprehensive array of broadband communication services and manages cell tower facilities throughout the Mid-Atlantic United States. Its operations span Virginia, West Virginia, Marylan...
How the Company Makes Money
Shenandoah Telecommunications Co. primarily makes money by selling connectivity services to customers in the areas covered by its network. The company’s core revenue stream is recurring service revenue from broadband internet subscriptions deliver...
Shenandoah Telecommunications Co Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational momentum driven by fiber expansion: record Glo Fiber net adds, >31% YoY data subscriber growth, 21.4% fiber revenue growth, and improving margins (adjusted EBITDA +12.9%, margin +200 bps). Management reiterated 2026 guidance, outlined a path to positive free cash flow in 2027 and targets for higher EBITDA margins. Offsetting these positives are continued declines in incumbent and RLEC revenues (video and DSL erosion), ARPU pressure from competitive pricing and rural rate adjustments, modestly higher churn in incumbent markets, substantial near-term CapEx and material net debt with limited immediate liquidity availability. Overall, the company appears to be transitioning successfully to a fiber-first, higher-margin model, but still faces near-term headwinds from legacy declines, ARPU pressure and elevated capital requirements.Positive Updates
Record Glo Fiber Net Additions and Subscriber Growth
Glo Fiber achieved a record 6,200 net additions in Q2 and surpassed 100,000 Glo Fiber data customers, representing 31.3% year-over-year growth. Over the past 12 months the company added ~24,000 new data customers and ~26,000 total RGUs.
Negative Updates
Incumbent Broadband and RLEC Revenue Declines
Incumbent broadband revenue declined by $2.5 million in Q2, driven by a 14.1% decline in video RGUs and lower data revenue. RLEC revenue declined ~$1.0 million, largely due to a 31% decline in DSL RGUs and lower government grant support.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Glo Fiber Net Additions and Subscriber Growth
Glo Fiber achieved a record 6,200 net additions in Q2 and surpassed 100,000 Glo Fiber data customers, representing 31.3% year-over-year growth. Over the past 12 months the company added ~24,000 new data customers and ~26,000 total RGUs.
Read all positive updates
Company Guidance
Shentel reiterated 2026 guidance calling for revenues of $370–377 million, adjusted EBITDA of $131–136 million and net capital expenditures of $220–250 million, and said second‑half results should be favorably impacted by continued high‑margin Glo Fiber growth and lower operating expenses; the company expects to return to positive free cash flow in 2027. In Q2 it reported adjusted EBITDA of $32.0 million (up 12.9%) with a 34.3% margin (up 200 bps) and a 73% incremental adjusted EBITDA margin, invested $146 million of CapEx in H1 and collected $20 million of grants for net H1 CapEx of $126 million (down 18% YoY). As of June 30 it had $728 million of debt outstanding ($674 million net), no maturities until 2029, 78% fixed‑rate debt, and $159 million of available liquidity (cash $24M, restricted cash $31M, revolver $75M, VFN $2M, $27M grant reimbursements), with $105M of VFN commitments not yet available; construction was 95% complete on subsidized passings and 93% of target Glo Fiber passings, on track to substantially complete 2026 builds (510,000 passings), and management reiterated a path to ~40% EBITDA margins in a few years (50% long term) driven by low‑double‑digit EBITDA growth, declining capital intensity and lower cost of capital.Shenandoah Telecommunications Co Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
56
Neutral
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 275.41M | 357.85M | 328.06M | 287.38M | 248.91M | 245.24M |
| Gross Profit | 111.45M | 96.12M | 199.95M | 181.28M | 146.63M | 142.94M |
| EBITDA | 116.17M | 115.13M | 76.32M | 78.27M | 55.52M | 60.91M |
| Net Income | -41.75M | -39.39M | 190.39M | 8.04M | -8.38M | 998.83M |
Balance Sheet | ||||||
| Total Assets | 1.97B | 1.91B | 1.74B | 1.21B | 977.72M | 890.73M |
| Cash, Cash Equivalents and Short-Term Investments | 23.89M | 27.26M | 46.27M | 139.25M | 44.06M | 85.14M |
| Total Debt | 727.93M | 641.69M | 432.30M | 352.73M | 129.76M | 56.62M |
| Total Liabilities | 1.12B | 941.47M | 739.23M | 561.56M | 339.71M | 248.46M |
| Stockholders Equity | 859.94M | 880.78M | 918.58M | 652.67M | 638.01M | 642.27M |
Cash Flow | ||||||
| Free Cash Flow | -226.89M | -257.92M | -256.50M | -141.30M | -114.09M | -411.04M |
| Operating Cash Flow | 108.79M | 101.00M | 62.57M | 113.77M | 74.89M | -250.93M |
| Investing Cash Flow | -267.58M | -294.66M | -339.41M | -236.69M | -184.18M | 1.78B |
| Financing Cash Flow | 184.97M | 195.60M | 183.86M | 218.11M | 69.00M | -1.64B |
Shenandoah Telecommunications Co Technical Analysis
Neutral
11.42
Price Trends
13.93
Negative
14.75
Negative
13.39
Positive
Market Momentum
-0.23
Negative
55.61
Neutral
85.90
Negative
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 11.42 is below the 20-day moving average (MA) of 12.14, below the 50-day MA of 13.93, and below the 200-day MA of 13.39, indicating a neutral trend. The MACD of -0.23 indicates Negative momentum. The RSI at 55.61 is Neutral, neither overbought nor oversold. The STOCH value of 85.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SHEN.
Shenandoah Telecommunications Co Risk Analysis
Shenandoah Telecommunications Co disclosed 30 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $1.81B | 19.18 | 39.26% | ― | 7.79% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
51 Neutral | $376.94M | 23.41 | 3.85% | ― | -7.62% | ― | |
49 Neutral | $663.82M | -14.80 | -4.77% | 0.96% | 5.01% | -23.53% | |
43 Neutral | $1.06B | -112.44 | -4.87% | ― | 5.88% | ― | |
43 Neutral | $226.86M | -0.70 | -22.76% | ― | -5.27% | -1495.76% |
* Communication Services Sector Average
SHEN
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Shenandoah Telecommunications Co Corporate Events
Executive/Board ChangesRegulatory Filings and Compliance
Shenandoah Telecommunications Announces Key Financial Leadership Transition
Neutral
Jul 22, 2026
On July 20, 2026, Shenandoah Telecommunications Company announced that Vice President and Chief Accounting Officer Tracy Willis had notified the company of her intention to resign, with her departure effective August 6, 2026. Upon her exit, Senior...
Executive/Board Changes
Shenandoah Telecommunications Appoints New Investor-Designated Director
Neutral
Jun 8, 2026
On June 4, 2026, Shenandoah Telecommunications Company disclosed that board member James F. DiMola had decided to resign from the Board of Directors, effective June 8, 2026, with the company noting that his departure did not stem from any disagree...
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.