NasdaqGS:SHEN

Stock Analysis Report

Shenandoah Telecommunications

Executive Summary

Shenandoah Telecommunications Company, through its subsidiaries, primarily provides wireless, cable, and wireline telecommunications services to customers and other telecommunications providers.

Snowflake

Fundamentals

Acceptable track record with moderate growth potential.


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


Market Performance


7 Day Return

1.1%

SHEN

2.4%

US Wireless Telecom

1.0%

US Market


1 Year Return

-16.5%

SHEN

4.8%

US Wireless Telecom

6.7%

US Market

Return vs Industry: SHEN underperformed the US Wireless Telecom industry which returned 4.8% over the past year.

Return vs Market: SHEN underperformed the US Market which returned 6.7% over the past year.


Share holder returns

SHENIndustryMarket
7 Day1.1%2.4%1.0%
30 Day-6.7%-2.3%-1.8%
90 Day-19.4%-6.2%-1.8%
1 Year-16.0%-16.5%6.1%4.8%9.1%6.7%
3 Year24.5%21.6%31.2%26.5%46.0%36.6%
5 Year162.0%149.4%52.9%39.0%66.9%48.6%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: SHEN ($31.14) is trading below our estimate of fair value ($141.22)

Significantly Undervalued: SHEN is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: SHEN is poor value based on its PE Ratio (26.9x) compared to the Wireless Telecom industry average (21.8x).

PE vs Market: SHEN is poor value based on its PE Ratio (26.9x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: SHEN is poor value based on its PEG Ratio (1.3x)


Price Based on Value of Assets

PB vs Industry: SHEN is overvalued based on its PB Ratio (3.4x) compared to the US Wireless Telecom industry average (1.9x).


Next Steps

Future Growth

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

20.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: SHEN's forecast earnings growth (20.8% per year) is above the savings rate (2.7%).

Earnings vs Market: SHEN's earnings (20.8% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: SHEN's revenue (6% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: SHEN's revenue (6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: SHEN's Return on Equity is forecast to be low in 3 years time (12.5%).


Next Steps

Past Performance

How has Shenandoah Telecommunications performed over the past 5 years?

17.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SHEN's earnings have grown by 17% 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 (-28.5%) over the past year, making it difficult to compare to the Wireless Telecom industry average (7.7%).


Return on Equity

High ROE: SHEN's Return on Equity (12.4%) is considered low.


Return on Assets

ROA vs Industry: SHEN has a higher Return on Assets than the Wireless Telecom industry average last year.


Return on Capital Employed

ROCE Improving: SHEN has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Shenandoah Telecommunications's financial position?


Financial Position Analysis

Short Term Liabilities: SHEN's short term assets ($222.1M) exceeds its short term liabilities ($127.8M)

Long Term Liabilities: SHEN's short term assets ($222.1M) do not cover its long term liabilities ($1.2B)


Debt to Equity History and Analysis

Debt Level: SHEN's debt to equity ratio (161.7%) is considered high

Reducing Debt: SHEN's debt to equity ratio has increased from 92% to 161.7% over the past 5 years.

Debt Coverage: SHEN's debt is well covered by operating cash flow (35.9%).

Interest Coverage: SHEN's interest payments on its debt are well covered by EBIT (3.2x coverage).


Balance Sheet

Inventory Level: SHEN has a high level of physical assets or inventory.

Debt Coverage by Assets: SHEN's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

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

0.61%

Expected Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%1.5%markettop25%3.8%industryaverage5.0%forecastin3Years0.6%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: SHEN's dividend (0.87%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: SHEN's dividend (0.87%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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 low payout ratio (23.4%), SHEN's dividend payments are 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

What is the CEO of Shenandoah Telecommunications's salary, the management and board of directors tenure and is there insider trading?

0.7yrs

Average management tenure


CEO

Chris French (61yo)

31.5yrs

Tenure

US$1,842,707

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 ($USD0.00) is too low to compare against companies of similar size in the US market ($USD4.08M).

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


Management Age and Tenure

0.7yrs

Average Tenure

56.5yo

Average Age

Experienced Management: SHEN's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Age and Tenure

7.3yrs

Average Tenure

58yo

Average Age

Experienced Board: SHEN's board of directors are considered experienced (7.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$457,59212 Mar 19
Raymond Ostroski
EntityIndividual
Role
Chief Legal Officer
VP of Legal
Shares10,000
Max PriceUS$45.76
BuyUS$2,24604 Mar 19
Leigh Schultz
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares49
Max PriceUS$45.89
SellUS$300,00028 Nov 18
Richard Koontz
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,000
Max PriceUS$50.00
SellUS$109,23626 Nov 18
James Zerkel
EntityIndividual
Shares2,244
Max PriceUS$48.68
SellUS$95,60021 Nov 18
Edward McKay
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Engineering & Operations
Shares2,000
Max PriceUS$47.80
BuyUS$1,37021 Nov 18
Leigh Schultz
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares29
Max PriceUS$47.25
SellUS$143,85019 Nov 18
Thomas Whitaker
EntityIndividual
Role
Head of Corporate Development
Senior Vice President of Corporate Development
Shares3,000
Max PriceUS$47.95
SellUS$928,53816 Nov 18
William Pirtle
EntityIndividual
Role
Head of Sales
Senior Vice President of Sales & Marketing
Shares20,000
Max PriceUS$46.43
SellUS$224,25014 Nov 18
Raymond Ostroski
EntityIndividual
Role
Chief Legal Officer
VP of Legal
Shares5,000
Max PriceUS$44.85
SellUS$127,80008 Nov 18
Thomas Whitaker
EntityIndividual
Role
Head of Corporate Development
Senior Vice President of Corporate Development
Shares3,000
Max PriceUS$42.60

Ownership Breakdown


Management Team

  • Chris French (61yo)

    Chairman

    • Tenure: 31.5yrs
    • Compensation: US$1.84m
  • Willy Pirtle (59yo)

    Senior Vice President of Sales & Marketing

    • Tenure: 0.8yrs
    • Compensation: US$624.09k
  • Jim Volk (55yo)

    Senior VP & CFO

    • Tenure: 0.3yrs
  • Tom Whitaker (58yo)

    Senior Vice President of Corporate Development

    • Tenure: 0.2yrs
    • Compensation: US$565.36k
  • Raymond Ostroski (64yo)

    VP of Legal

    • Tenure: 6.8yrs
    • Compensation: US$567.56k
  • Edward McKay (46yo)

    Senior Vice President of Engineering & Operations

    • Tenure: 4.1yrs
    • Compensation: US$351.59k
  • Dave Heimbach (43yo)

    Executive VP & COO

    • Tenure: 1.4yrs
    • Compensation: US$966.07k
  • Heather Banks

    VP & Chief Human Resources Officer

    • Tenure: 0.3yrs
  • Elaine Cheng

    VP & Chief Information Officer

    • Tenure: 0.6yrs
  • Chase Stobbe (35yo)

    Principal Accounting Officer

    • Tenure: 0.5yrs

Board Members

  • Dale Lam (56yo)

    Independent Director

    • Tenure: 15.8yrs
    • Compensation: US$143.06k
  • Chris French (61yo)

    Chairman

    • Tenure: 31.5yrs
    • Compensation: US$1.84m
  • Tracy Fitzsimmons (52yo)

    Lead Independent Director

    • Tenure: 3.1yrs
    • Compensation: US$140.27k
  • Ken Quaglio (60yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$124.37k
  • Rick Koontz (61yo)

    Independent Director

    • Tenure: 13.4yrs
    • Compensation: US$125.01k
  • John Flora (64yo)

    Independent Director

    • Tenure: 11.4yrs
    • Compensation: US$126.41k
  • Tom Beckett (51yo)

    Independent Director

    • Tenure: 1.4yrs
  • Leigh Schultz (45yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$132.33k

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$1.553b
  • Shares outstanding: 49.86m
  • Website: https://www.shentel.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SHENNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 1995
SH9DB (Deutsche Boerse AG)YesCommon StockDEEURAug 1995

Biography

Shenandoah Telecommunications Company, through its subsidiaries, primarily provides wireless, cable, and wireline telecommunications services to customers and other telecommunications providers. The compan ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 01:35
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.

© 2018 SIMPLY WALL STREET PTY LTD, COMMUNITY DESIGN 2845206, US DESIGN PATENT #29/544/281, EUROPEAN DESIGN REGISTRATION #2845206, STANDARD & POOR’S FINANCIAL SERVICES LLC. ALL RIGHTS RESERVED.

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.

Copyright © 2018, Standard & Poor’s Financial Services LLC. Reproduction of S&P Capital IQ in any form is prohibited except with the prior written permission of S&P. S&P does not guarantee the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions, regardless of the cause or for the results obtained from the use of such information. S&P DISCLAIMS ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. In no event shall S&P be liable for any direct, indirect, special or consequential damages, costs, expenses, legal fees, or losses (including lost income or lost profit and opportunity costs) in connection with subscriber’s or others’ use of S&P Capital IQ. (2018)