(SHEN) Shenandoah - Overview
Sector: Communication Services | Industry: Telecom Services | Exchange: NASDAQ (USA) | Market Cap: 892m USD | Total Return: 30.7% in 12m
Avg Turnover: 5.20M
Qual. Beats: -1
Rev. Trend: 95.5%
Qual. Beats: 0
Warnings
High Debt/EBITDA (5.5) with thin interest coverage (-0.6)
High Debt while negative Cash Flow
Interest Coverage Ratio -0.6 is critical
Tailwinds
No distinct edge detected
Shenandoah Telecommunications Company (SHEN) is a regional telecommunications provider serving residential, commercial, and wholesale customers across the Mid-Atlantic and parts of the Midwest. The company operates primarily through two distinct network architectures: fiber-to-the-home (FTTH) under the Glo Fiber brand and hybrid fiber-coaxial (HFC) systems under the Shentel brand. Its service portfolio includes high-speed internet, dark fiber leasing, and Ethernet services.
The business model relies on capital-intensive infrastructure deployment to establish localized monopolies or duopolies in underserved rural and suburban markets. In the telecommunications sector, fiber-optic networks are increasingly prioritized over legacy DSL and coaxial systems due to their superior symmetrical upload and download speeds and lower long-term maintenance costs. For a deeper look into the companys valuation metrics, consider reviewing the data on ValueRay.
Founded in 1902 and headquartered in Edinburg, Virginia, the company has transitioned from a traditional telephone utility into a diversified broadband provider. Its current strategy focuses on expanding its fiber footprint to compete with national cable and satellite incumbents by offering high-bandwidth managed network services to enterprise and wholesale clients.
- Glo Fiber expansion accelerates fiber-to-the-home subscriber and revenue growth
- Legacy cable and copper customer churn impacts total broadband net additions
- Capital expenditure intensity for fiber builds pressures short-term free cash flow
- Competitive pricing from wireless fixed access providers limits residential market share
- Regional economic health in the Appalachian corridor dictates service adoption rates
| Net Income: -44.6m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.13 > 0.02 and ΔFCF/TA 1.83 > 1.0 |
| NWC/Revenue: 3.50% < 20% (prev 6.48%; Δ -2.98% < -1%) |
| CFO/TA 0.05 > 3% & CFO 104.4m > Net Income -44.6m |
| Net Debt (648.7m) to EBITDA (118.0m): 5.50 < 3 |
| Current Ratio: 1.12 > 1.5 & < 3 |
| Outstanding Shares: last quarter (55.6m) vs 12m ago 1.08% < -2% |
| Gross Margin: 45.05% > 18% (prev 0.61%; Δ 4.44k% > 0.5%) |
| Asset Turnover: 19.17% > 50% (prev 18.99%; Δ 0.17% > 0%) |
| Interest Coverage Ratio: -0.64 > 6 (EBITDA TTM 118.0m / Interest Expense TTM 29.9m) |
| A: 0.01 (Total Current Assets 114.2m - Total Current Liabilities 101.6m) / Total Assets 1.95b |
| B: 0.36 (Retained Earnings 706.2m / Total Assets 1.95b) |
| C: -0.01 (EBIT TTM -19.2m / Avg Total Assets 1.89b) |
| D: 0.71 (Book Value of Equity 706.2m / Total Liabilities 995.9m) |
| Altman-Z'' = 1.90 = BBB |
| DSRI: 0.85 (Receivables 27.3m/30.8m, Revenue 362.1m/346.7m) |
| GMI: 1.35 (GM 45.05% / 61.02%) |
| AQI: 0.95 (AQ_t 0.10 / AQ_t-1 0.10) |
| SGI: 1.04 (Revenue 362.1m / 346.7m) |
| TATA: -0.08 (NI -44.6m - CFO 104.4m) / TA 1.95b) |
| Beneish M = -2.91 (Cap -4..+1) = A |
As of May 25, 2026, the stock is trading at USD 15.88 with a total of 206,473 shares traded.
Over the past week, the price has changed by -0.19%,
over one month by -0.94%,
over three months by +18.33% and
over the past year by +30.70%.
Shenandoah has received a consensus analysts rating of 3.50. Therefore, it is recommended to hold SHEN.
- StrongBuy: 0
- Buy: 1
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 27.5 | 73.2% |
P/E Forward = 3.6036
P/S = 2.4643
P/B = 1.0286
P/EG = 0.8658
Revenue TTM = 362.1m USD
EBIT TTM = -19.2m USD
EBITDA TTM = 118.0m USD
Long Term Debt = 693.9m USD (from longTermDebt, last quarter)
Short Term Debt = 2.85m USD (from shortTermDebt, last quarter)
Debt = 719.8m USD (from shortLongTermDebtTotal, last quarter) + Leases 12.9m
Net Debt = 648.7m USD (calculated: Debt 719.8m - CCE 71.1m)
Enterprise Value = 1.54b USD (892.3m + Debt 719.8m - CCE 71.1m)
Interest Coverage Ratio = -0.64 (Ebit TTM -19.2m / Interest Expense TTM 29.9m)
EV/FCF = -6.24x (Enterprise Value 1.54b / FCF TTM -247.1m)
FCF Yield = -16.03% (FCF TTM -247.1m / Enterprise Value 1.54b)
FCF Margin = -68.23% (FCF TTM -247.1m / Revenue TTM 362.1m)
Net Margin = -12.31% (Net Income TTM -44.6m / Revenue TTM 362.1m)
Gross Margin = 45.05% ((Revenue TTM 362.1m - Cost of Revenue TTM 199.0m) / Revenue TTM)
Gross Margin QoQ = 27.52% (prev 64.98%)
Tobins Q-Ratio = 0.79 (Enterprise Value 1.54b / Total Assets 1.95b)
Interest Expense / Debt = 4.16% (Interest Expense 29.9m / Debt 719.8m)
Taxrate = 21.0% (US default 21%)
NOPAT = -15.1m (EBIT -19.2m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 1.12 (Total Current Assets 114.2m / Total Current Liabilities 101.6m)
Debt / Equity = 0.83 (Debt 719.8m / totalStockholderEquity, last quarter 867.0m)
Debt / EBITDA = 5.50 (Net Debt 648.7m / EBITDA 118.0m)
Debt / FCF = -2.63 (negative FCF - burning cash) (Net Debt 648.7m / FCF TTM -247.1m)
Total Stockholder Equity = 885.6m (last 4 quarters mean from totalStockholderEquity)
RoA = -2.36% (Net Income -44.6m / Total Assets 1.95b)
RoE = -5.04% (Net Income TTM -44.6m / Total Stockholder Equity 885.6m)
RoCE = -1.21% (EBIT -19.2m / Capital Employed (Equity 885.6m + L.T.Debt 693.9m))
RoIC = -0.85% (negative operating profit) (NOPAT -15.1m / Invested Capital 1.78b)
WACC = 6.15% (E(892.3m)/V(1.61b) * Re(8.47%) + D(719.8m)/V(1.61b) * Rd(4.16%) * (1-Tc(0.21)))
Discount Rate = 8.47% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 100.00 | Cagr: 3.90%
[DCF] Fair Price = unknown (Cash Flow -247.1m)
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -2.02 | # QB: -1
Revenue Correlation: 95.51 | Revenue CAGR: 13.37% | SUE: 0.47 | # QB: 0
EPS current Quarter (2026-06-30): EPS=-0.24 | Chg30d=-1.46% | Revisions=-20% | Analysts=2
EPS next Quarter (2026-09-30): EPS=-0.23 | Chg30d=-13.68% | Revisions=-20% | Analysts=2
EPS current Year (2026-12-31): EPS=-0.97 | Chg30d=-12.94% | Revisions=-20% | GrowthEPS=-37.1% | GrowthRev=+4.5%
EPS next Year (2027-12-31): EPS=-0.77 | Chg30d=N/A | Revisions=N/A | GrowthEPS=+21.1% | GrowthRev=+5.5%
[Analyst] Revisions Ratio: -20%