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Shenandoah Telecommunications Co (SHEN)
NASDAQ:SHEN

Shenandoah Telecommunications Co (SHEN) AI Stock Analysis

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Shenandoah Telecommunications Co

(NASDAQ:SHEN)

Rating:64Neutral
Price Target:
$14.50
▲(1.40%Upside)
Shenandoah Telecommunications' stock score is primarily influenced by strong technical indicators and positive earnings call insights, highlighting growth in Glo Fiber expansions and commercial sales. However, the company's financial performance and valuation present challenges, with profitability and cash flow management needing improvement. Corporate events provided additional positive sentiment, albeit with a minor impact on the overall score.
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
Revenue Estimate Miss
SHEN changed the recognition of $2.6 million in commercial revenue resulting in the Company missing the revenue estimate.

Shenandoah Telecommunications Co (SHEN) vs. SPDR S&P 500 ETF (SPY)

Shenandoah Telecommunications Co Business Overview & Revenue Model

Company DescriptionShenandoah 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 MoneyShenandoah 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 Earnings Call Summary

Earnings Call Date:Apr 30, 2025
(Q1-2025)
|
% Change Since: 9.83%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
The earnings call revealed strong growth in Glo Fiber expansions and a record in commercial sales bookings. Adjusted EBITDA also showed impressive growth, indicating positive financial health. However, there were challenges in the Incumbent Broadband Markets with declining revenues and increased debt levels. Despite these challenges, the positive aspects significantly outweighed the negatives.
Q1-2025 Updates
Positive Updates
Glo Fiber Expansion Success
5,400 new subscribers added and 16,600 new passings with a 52% revenue increase over the same period in 2024.
Commercial Sales Record
Record quarter for sales bookings with nearly $200,000 in monthly recurring revenues.
Adjusted EBITDA Growth
Adjusted EBITDA grew 43% to $27.6 million, with margins increasing from 28% to 31% year-over-year.
Liquidity Position
Liquidity stood at $335 million, with $88 million in cash and $143 million in revolver capacity.
Glo Fiber Subscriber Growth
51% year-over-year growth, reaching 71,000 subscribers and 84,000 total revenue-generating units.
Negative Updates
Incumbent Broadband Revenue Decline
Revenue from Incumbent Broadband Markets declined by $2.2 million due to a 14% decline in video RGUs.
Increased Debt
Outstanding debt was $516 million as of March 31, 2025.
Commercial Fiber Churn
Average monthly compression and disconnect churn rose slightly year-over-year to 1.3%.
Company Guidance
During the Shenandoah Telecommunications First Quarter 2025 Earnings Conference Call, the company provided detailed guidance on its growth and financial metrics. Shentel reported a 27% increase in revenues to $87.9 million, with the former Horizon markets contributing $15.2 million. Excluding Horizon, revenues grew by 5% over Q1 2024. The Glo Fiber Expansion Markets saw significant growth, adding 5,400 new subscribers and 16,600 new passings, which increased revenues by 52% compared to the same period in 2024. The company also highlighted a decline in churn by 31 basis points to 1.36% in its Incumbent Broadband business, which returned to positive data RGU growth. Additionally, commercial sales achieved record bookings of nearly $200,000 in monthly recurring revenues, signaling potential future revenue growth. Shentel's liquidity stood at $335 million, including $88 million in cash, with plans to refinance its credit facilities to lower debt costs. The company aims to complete its Glo Fiber Expansion and government grant projects by the end of 2026, with expectations of a 300 to 400 basis point annual increase in EBITDA margins.

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
45
Neutral
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
60
Neutral
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
50
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue346.71M328.06M287.38M267.37M245.24M220.78M
Gross Profit185.97M199.95M181.28M159.82M142.94M132.57M
EBITDA84.02M76.32M78.27M67.43M60.91M46.44M
Net Income-31.65M190.39M8.04M-8.38M7.93M2.63M
Balance Sheet
Total Assets1.83B1.74B1.21B977.72M890.73M2.03B
Cash, Cash Equivalents and Short-Term Investments87.55M46.27M139.25M44.06M84.34M195.40M
Total Debt528.55M432.30M352.73M128.26M56.62M738.02M
Total Liabilities831.04M739.23M561.56M339.71M248.46M1.45B
Stockholders Equity910.47M918.58M652.67M638.01M642.27M582.39M
Cash Flow
Free Cash Flow-268.71M-256.50M-142.78M-114.71M-411.04M166.30M
Operating Cash Flow63.54M62.57M113.77M74.89M-250.93M302.87M
Investing Cash Flow-654.15M-339.41M-236.69M-184.18M1.78B-155.59M
Financing Cash Flow284.03M183.86M218.11M69.00M-1.64B-53.53M

Shenandoah Telecommunications Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price14.30
Price Trends
50DMA
12.75
Positive
100DMA
12.43
Positive
200DMA
12.80
Positive
Market Momentum
MACD
0.38
Positive
RSI
62.68
Neutral
STOCH
64.17
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 14.3 is above the 20-day moving average (MA) of 13.84, above the 50-day MA of 12.75, and above the 200-day MA of 12.80, indicating a bullish trend. The MACD of 0.38 indicates Positive momentum. The RSI at 62.68 is Neutral, neither overbought nor oversold. The STOCH value of 64.17 is Neutral, 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 31 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

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$2.05B76.11-6.47%41.51%-103.22%
66
Neutral
$359.08M-5.81%7.01%-84.41%
66
Neutral
¥376.80B13.682.32%2.50%5.41%-19.08%
64
Neutral
$784.46M-4.30%0.70%21.68%-1010.29%
57
Neutral
$730.89M-12.42%1.91%15.71%
52
Neutral
$471.70M-7.16%43.90%-24.87%
WOWOW
46
Neutral
$351.31M-26.19%-8.37%78.45%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SHEN
Shenandoah Telecommunications Co
14.30
-2.14
-13.02%
RBBN
Ribbon Communications
4.14
0.88
26.99%
GOGO
Gogo
15.48
5.65
57.48%
ATEX
Anterix
25.08
-13.47
-34.94%
OOMA
Ooma
13.26
4.34
48.65%
WOW
Wideopenwest
4.11
-1.06
-20.50%

Shenandoah Telecommunications Co Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Shentel Waives Standstill Provisions for ECP Investment
Neutral
May 22, 2025

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.

Executive/Board ChangesShareholder Meetings
Shenandoah Telecommunications Appoints New Accounting Officer
Positive
Apr 24, 2025

On April 22, 2025, Shenandoah Telecommunications Co appointed Tracy L. Willis as the principal accounting officer, following her tenure at The Walt Disney Company. The company also held its annual shareholder meeting, electing new directors and ratifying the selection of RSM US LLP as its independent auditor. These developments are expected to strengthen Shentel’s leadership and financial oversight, potentially impacting its strategic direction and stakeholder confidence.

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.Date of analysis: Jun 10, 2025