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Shenandoah Telecommunications Co
(NASDAQ:SHEN)
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Rating:49Neutral
Price Target:
$10.00
▼(-19.74% Downside)
Action:Reiterated
Date:10/28/26
Overall score reflects weak current financial performance (revenue decline, losses, and persistent negative free cash flow) and bearish technicals (below key moving averages with negative MACD). These are partially offset by a relatively positive earnings outlook focused on fiber-driven EBITDA growth and improving margins, while valuation is only modestly supported by a small dividend and limited by loss-making results.
Positive Factors
Fiber Revenue Growth
Fiber revenue grew 21.4% year over year and reached 51% of consolidated revenue, showing the business is shifting toward a faster-growing connectivity platform. A majority fiber mix can support more durable customer economics and reduce dependence on declining legacy services as network utilization expands.
Negative Factors
Persistent Free Cash Flow Burn
The business remains heavily cash consumptive through 2026 because network expansion requires substantial capital investment, with positive free cash flow deferred until 2027. This delays internally funded growth, increases reliance on financing, and leaves less flexibility if operating improvements take longer.
Read all positive and negative factors
Positive Factors
Negative Factors
Fiber Revenue Growth
Fiber revenue grew 21.4% year over year and reached 51% of consolidated revenue, showing the business is shifting toward a faster-growing connectivity platform. A majority fiber mix can support more durable customer economics and reduce dependence on declining legacy services as network utilization expands.
Read all positive factors
Shenandoah Telecommunications Co (SHEN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$555.31M
Dividend Yield1.1%
Average Volume (3M)1.06M
Price to Earnings (P/E)―
Beta (1Y)0.26
Revenue Growth5.01%
EPS Growth-23.53%
CountryUS
Employees1,041
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)-0.80
Shares Outstanding55,364,680
10 Day Avg. Volume736,163
30 Day Avg. Volume1,064,483
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 Cap2.89
Enterprise Value/Revenue8.65
Enterprise Value/Gross Profit76.05
Enterprise Value/Ebitda16.35
Forecast
1Y Price Target
$27.50Price Target Upside120.71% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.88
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
SHEN makes money primarily by selling recurring connectivity services to customers over its network infrastructure. Its key revenue stream is monthly subscription revenue from broadband internet access delivered over fiber and other network assets...
Shenandoah Telecommunications Co Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 25, 2027
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
52
Neutral
Cash Flow
26
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 185.62M | 357.85M | 328.06M | 287.38M | 248.91M | 245.24M |
| Gross Profit | 21.12M | 96.12M | 199.95M | 181.28M | 146.63M | 142.94M |
| EBITDA | 98.22M | 115.13M | 76.32M | 75.54M | 62.92M | 60.49M |
| Net Income | -43.17M | -39.39M | 190.39M | 8.04M | -8.38M | 998.83M |
Balance Sheet | ||||||
| Total Assets | 2.01B | 1.91B | 1.74B | 1.21B | 977.72M | 890.73M |
| Cash, Cash Equivalents and Short-Term Investments | 45.66M | 27.26M | 46.27M | 139.25M | 44.06M | 85.14M |
| Total Debt | 759.88M | 641.69M | 432.30M | 352.73M | 129.76M | 56.62M |
| Total Liabilities | 1.16B | 941.47M | 739.23M | 561.56M | 339.71M | 248.46M |
| Stockholders Equity | 850.65M | 880.78M | 918.58M | 652.67M | 638.01M | 642.27M |
Cash Flow | ||||||
| Free Cash Flow | -216.95M | -257.92M | -256.50M | -141.30M | -114.09M | -411.04M |
| Operating Cash Flow | 105.44M | 101.00M | 62.57M | 113.77M | 74.89M | -250.93M |
| Investing Cash Flow | -276.87M | -294.66M | -339.41M | -236.69M | -184.18M | 1.78B |
| Financing Cash Flow | 194.47M | 195.60M | 183.86M | 218.11M | 69.00M | -1.64B |
Shenandoah Telecommunications Co Technical Analysis
Negative
12.46
Price Trends
11.49
Negative
12.51
Negative
13.47
Negative
Market Momentum
-0.44
Positive
36.57
Neutral
56.79
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 12.46 is above the 20-day moving average (MA) of 10.63, above the 50-day MA of 11.49, and below the 200-day MA of 13.47, indicating a bearish trend. The MACD of -0.44 indicates Positive momentum. The RSI at 36.57 is Neutral, neither overbought nor oversold. The STOCH value of 56.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | $399.72M | 2.48 | 34.33% | 4.35% | 2.02% | ― | |
54 Neutral | $3.84B | 8.40 | 8.65% | 29.17% | -73.81% | ― | |
50 Neutral | $4.84B | -4.59 | -52.11% | 9.72% | -7.74% | 13.54% | |
49 Neutral | $555.31M | -12.38 | -4.77% | 1.10% | 5.01% | -23.53% | |
42 Neutral | $28.88M | -0.03 | -89.91% | 4.07% | -6.54% | -108.97% | |
42 Neutral | $231.72M | -0.06 | 127.36% | 11.54% | -4.36% | -1695.11% |
* Communication Services Sector Average
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Shenandoah Telecommunications Co Corporate Events
Executive/Board Changes
Shenandoah Telecommunications Announces Chairman Role Transition
Neutral
Oct 22, 2026
On October 20, 2026, Shenandoah Telecommunications Company’s Board of Directors approved a leadership change affecting its chairman role. The Board decided that Executive Chairman Christopher E. French will shift to the position of non-execu...
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.