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Shenandoah Telecommunications

Market Cap

US$120.1b

Last Updated

2021/04/18 22:36 UTC

Data Sources

Company Financials +

Executive Summary

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. More Details


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Shenandoah Telecommunications's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SHEN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: SHEN's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

1.8%

SHEN

2.3%

US Wireless Telecom

1.3%

US Market


1 Year Return

-2.2%

SHEN

21.3%

US Wireless Telecom

53.8%

US Market

Return vs Industry: SHEN underperformed the US Wireless Telecom industry which returned 21.3% over the past year.

Return vs Market: SHEN underperformed the US Market which returned 53.9% over the past year.


Shareholder returns

SHENIndustryMarket
7 Day1.8%2.3%1.3%
30 Day1.8%4.6%5.1%
90 Day15.3%8.5%8.9%
1 Year-1.5%-2.2%21.9%21.3%56.6%53.8%
3 Year31.1%28.2%59.2%56.1%64.4%53.6%
5 Year88.1%81.0%128.4%118.9%120.4%95.7%

Long-Term Price Volatility Vs. Market

How volatile is Shenandoah Telecommunications's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Shenandoah Telecommunications undervalued compared to its fair value and its price relative to the market?

947.86x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SHEN ($49.88) is trading above our estimate of fair value ($8.48)

Significantly Below Fair Value: SHEN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SHEN is poor value based on its PE Ratio (947.9x) compared to the US Wireless Telecom industry average (61x).

PE vs Market: SHEN is poor value based on its PE Ratio (947.9x) compared to the US market (22.5x).


Price to Earnings Growth Ratio

PEG Ratio: SHEN is poor value based on its PEG Ratio (14.2x)


Price to Book Ratio

PB vs Industry: SHEN is overvalued based on its PB Ratio (4.3x) compared to the US Wireless Telecom industry average (1.9x).


Future Growth

How is Shenandoah Telecommunications forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

66.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SHEN's forecast earnings growth (66.9% per year) is above the savings rate (2%).

Earnings vs Market: SHEN's earnings (66.9% per year) are forecast to grow faster than the US market (18% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SHEN's revenue (11% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: SHEN's revenue (11% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SHEN's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Shenandoah Telecommunications performed over the past 5 years?

8.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SHEN has high quality earnings.

Growing Profit Margin: SHEN's current net profit margins (1.2%) are lower than last year (1.4%).


Past Earnings Growth Analysis

Earnings Trend: SHEN's earnings have grown by 8.3% per year over the past 5 years.

Accelerating Growth: SHEN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SHEN had negative earnings growth (-11.2%) over the past year, making it difficult to compare to the Wireless Telecom industry average (-10.9%).


Return on Equity

High ROE: SHEN's Return on Equity (0.5%) is considered low.


Financial Health

How is Shenandoah Telecommunications's financial position?


Financial Position Analysis

Short Term Liabilities: SHEN's short term assets ($1.4B) exceed its short term liabilities ($1.2B).

Long Term Liabilities: SHEN's short term assets ($1.4B) exceed its long term liabilities ($241.3M).


Debt to Equity History and Analysis

Debt Level: SHEN's debt to equity ratio (118.9%) is considered high.

Reducing Debt: SHEN's debt to equity ratio has increased from 68.8% to 118.9% over the past 5 years.

Debt Coverage: SHEN's debt is well covered by operating cash flow (43.7%).

Interest Coverage: Insufficient data to determine if SHEN's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is Shenandoah Telecommunications's current dividend yield, its reliability and sustainability?

0.68%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SHEN's dividend (0.68%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: SHEN's dividend (0.68%) is low compared to the top 25% of dividend payers in the US market (3.46%).


Stability and Growth of Payments

Stable Dividend: SHEN's dividends per share have been stable in the past 10 years.

Growing Dividend: SHEN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (646.1%), SHEN's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Chris French (62 yo)

33yrs

Tenure

US$2,875,067

Compensation

Mr. Christopher E. French, also known as Chris, has been the Chairman of Shenandoah Telecommunications Co. since 1996 and its Chief Executive Officer and President since April 1988. Mr. French serves as th...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD2.88M) is below average for companies of similar size in the US market ($USD11.15M).

Compensation vs Earnings: Chris's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: SHEN's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: SHEN's board of directors are considered experienced (8.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Shenandoah Telecommunications Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shenandoah Telecommunications Company
  • Ticker: SHEN
  • Exchange: NasdaqGS
  • Founded: 1902
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: US$120.115b
  • Shares outstanding: 49.93m
  • Website: https://www.shentel.com

Number of Employees


Location

  • Shenandoah Telecommunications Company
  • 500 Shentel Way
  • Edinburg
  • Virginia
  • 22824
  • United States

Listings


Biography

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....


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/18 22:36
End of Day Share Price2021/04/16 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.