Shenandoah Telecommunications Co (SHEN) AI Stock Analysis

• Market Cap: $657.19M
• Dividend Yield: 0.83%
• Average Volume (3M): 331.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.12
• Revenue Growth: 14.16%
• EPS Growth: -443.30%
• Country: US
• Employees: 1,089
• Sector: Communication Services
• Sector Strength: 81
• Industry: Telecommunications Services
• EPS (TTM): -0.55
• Shares Outstanding: 54,857,143
• 10 Day Avg. Volume: 305,136
• 30 Day Avg. Volume: 331,934
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.76
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 5.80
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $26.00
• Price Target Upside: 117.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Shenandoah Telecommunications faces several challenges, notably profitability issues and bearish technical indicators, which weigh on its stock score. While the earnings call highlighted potential growth areas, such as Glo Fiber expansion and commercial sales, these positives are balanced by financial and market challenges. Recent corporate events could offer strategic improvements, but overall, the stock is currently rated at a relatively low score due to these compounding issues.

Positive Factors

Revenue per User

Glo Fiber subscribers have routinely opted for faster speed tiers resulting in average revenue per user increase.

Subscriber Growth

The rate of quarterly adds has been rising as the network has gotten bigger.

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 generates revenue through multiple streams. A significant portion comes from providing wireless services, including voice, text, and data plans to individual and business customers. Additionally, the company earns from its broadband services, offering high-speed internet connectivity to residential and commercial clients. Cable television subscriptions also contribute to the company's income, as it delivers a variety of TV packages and on-demand services. Moreover, Shenandoah Telecommunications benefits from partnerships and agreements with other telecommunications providers, which can include roaming agreements, infrastructure sharing, and network expansion collaborations, further bolstering its revenue streams.

Shenandoah Telecommunications Co Financial Statement Overview

Summary

Shenandoah Telecommunications has faced mixed financial performance. The income statement reveals profitability challenges with a negative net profit margin and operational weaknesses. The balance sheet is relatively stable, with a manageable debt-to-equity ratio, but increased debt and lower return on equity are concerns. Cash flow management issues are evident, with negative free cash flow to net income ratio, although operating cash flow remains positive.

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
	EBIT
-28.59M	9.62M	5.03M	13.00M	-1.15M
	EBITDA
76.32M	78.27M	67.43M	60.91M	46.44M
	Net Income Common Stockholders
190.39M	8.04M	-8.38M	7.93M	2.63M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
46.27M	139.25M	44.06M	84.34M	195.40M
	Total Assets
1.74B	1.21B	977.72M	890.73M	2.03B
	Total Debt
432.30M	352.73M	128.26M	56.62M	738.02M
	Net Debt
386.03M	213.48M	84.20M	-27.72M	542.62M
	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: Negative
• Last Price: 11.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 11.98 is below the 20-day moving average (MA) of 12.56, below the 50-day MA of 12.25, and below the 200-day MA of 13.57, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 44.62 is Neutral, neither overbought nor oversold. The STOCH value of 48.09 is Neutral, 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 *	59 Neutral	$13.76B	7.65	-2.18%	3.85%	2.32%	-36.56%
OOMA	57 Neutral	$345.89M	―	-8.45%	―	8.50%	-743.51%
GOGO	54 Neutral	$1.02B	78.95	24.98%	―	11.85%	-90.54%
SHEN	52 Neutral	$657.19M	―	-4.30%	0.83%	14.16%	-443.30%
RBBN	51 Neutral	$572.00M	―	-12.42%	―	1.91%	15.71%
WOW	46 Neutral	$380.22M	―	-25.18%	―	-8.13%	79.68%
ATEX	42 Neutral	$554.63M	―	-18.92%	―	66.77%	-293.79%

Shenandoah Telecommunications Co Corporate Events

Shenandoah Telecommunications Appoints New Accounting Officer

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.

Spark’s Take on SHEN Stock

According to Spark, TipRanks’ AI Analyst, SHEN is a Neutral.

Shenandoah Telecommunications Co faces significant financial challenges, with declining revenues and financial instability across its statements. Technical analysis also suggests a bearish trend, though with some potential for short-term rally. The valuation metrics reflect unprofitability concerns. While the earnings call provided some positive growth signals, risks remain significant. Overall, the company’s stock receives a relatively low score due to these compounding issues.

To see Spark’s full report on SHEN stock, click here.