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.

Rewards

Trading at 60.9% below its fair value

Earnings are forecast to grow 24.83% per year

Risk Analysis

Has a high level of debt

Profit margins (8.9%) are lower than last year (14.8%)



Snowflake Analysis

Moderate 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.2%

SHEN

-3.1%

US Wireless Telecom

1.3%

US Market


1 Year Return

-19.1%

SHEN

1.2%

US Wireless Telecom

19.4%

US Market

Return vs Industry: SHEN underperformed the US Wireless Telecom industry which returned 1.2% over the past year.

Return vs Market: SHEN underperformed the US Market which returned 19.4% over the past year.


Shareholder returns

SHENIndustryMarket
7 Day1.2%-3.1%1.3%
30 Day4.3%-4.5%2.6%
90 Day14.3%-8.5%5.0%
1 Year-18.5%-19.1%2.4%1.2%22.0%19.4%
3 Year38.5%35.6%3.7%0.04%46.8%37.3%
5 Year153.8%143.5%73.9%59.7%66.3%48.0%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SHEN ($38.16) is trading below our estimate of fair value ($97.71)

Significantly Below Fair Value: SHEN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SHEN is poor value based on its PE Ratio (33.8x) compared to the Wireless Telecom industry average (21.9x).

PE vs Market: SHEN is poor value based on its PE Ratio (33.8x) compared to the US market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: SHEN is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: SHEN is overvalued based on its PB Ratio (4x) compared to the US Wireless Telecom industry average (2.1x).


Next Steps

Future Growth

How is Shenandoah Telecommunications forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

24.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SHEN's forecast earnings growth (24.8% per year) is above the savings rate (1.7%).

Earnings vs Market: SHEN's earnings (24.8% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: SHEN's revenue (5.4% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: SHEN's revenue (5.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SHEN's Return on Equity is forecast to be low in 3 years time (16.5%).


Next Steps

Past Performance

How has Shenandoah Telecommunications performed over the past 5 years?

18.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SHEN has high quality earnings.

Growing Profit Margin: SHEN's current net profit margins (8.9%) are lower than last year (14.8%).


Past Earnings Growth Analysis

Earnings Trend: SHEN's earnings have grown by 18% 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 (-39.1%) over the past year, making it difficult to compare to the Wireless Telecom industry average (-39.1%).


Return on Equity

High ROE: SHEN's Return on Equity (11.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Shenandoah Telecommunications's financial position?


Financial Position Analysis

Short Term Liabilities: SHEN's short term assets ($221.6M) exceed its short term liabilities ($132.1M).

Long Term Liabilities: SHEN's short term assets ($221.6M) do not cover its long term liabilities ($1.2B).


Debt to Equity History and Analysis

Debt Level: SHEN's debt to equity ratio (153%) is considered high.

Reducing Debt: SHEN's debt to equity ratio has increased from 88.8% to 153% over the past 5 years.

Debt Coverage: SHEN's debt is well covered by operating cash flow (37.1%).

Interest Coverage: SHEN's interest payments on its debt are well covered by EBIT (3.3x 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?

0.76%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%1.4%markettop25%3.7%industryaverage7.5%forecastin3Years0.5%

Current dividend yield vs market & industry

Notable Dividend: SHEN's dividend (0.76%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: SHEN's dividend (0.76%) is low compared to the top 25% of dividend payers in the US market (3.68%).


Stability and Growth of Payments

Stable Dividend: SHEN is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: SHEN is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: SHEN is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SHEN's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

Chris French (61yo)

31.7yrs

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 ($USD0.00) is below average for companies of similar size in the US market ($USD3.89M).

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


Management Age and Tenure

0.8yrs

Average Tenure

56.5yo

Average Age

Experienced Management: SHEN's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

7.5yrs

Average Tenure

58yo

Average Age

Experienced Board: SHEN's board of directors are considered experienced (7.5 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

Ownership Breakdown

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


Management Team

  • Chris French (61yo)

    Chairman

    • Tenure: 31.7yrs
    • Compensation: US$1.84m
  • Willy Pirtle (59yo)

    Senior Vice President of Sales & Marketing

    • Tenure: 0.9yrs
    • Compensation: US$624.09k
  • Jim Volk (55yo)

    Senior VP & CFO

    • Tenure: 0.5yrs
  • Tom Whitaker (58yo)

    Senior Vice President of Corporate Development

    • Tenure: 0.3yrs
    • Compensation: US$565.36k
  • Raymond Ostroski (64yo)

    VP of Legal

    • Tenure: 6.9yrs
    • Compensation: US$567.56k
  • Edward McKay (46yo)

    Senior Vice President of Engineering & Operations

    • Tenure: 4.3yrs
    • Compensation: US$351.59k
  • Dave Heimbach (43yo)

    Executive VP & COO

    • Tenure: 1.6yrs
    • Compensation: US$966.07k
  • Heather Banks

    VP & Chief Human Resources Officer

    • Tenure: 0.4yrs
  • Elaine Cheng

    VP & Chief Information Officer

    • Tenure: 0.8yrs
  • Chase Stobbe (35yo)

    Principal Accounting Officer

    • Tenure: 0.7yrs

Board Members

  • Dale Lam (56yo)

    Independent Director

    • Tenure: 15.9yrs
    • Compensation: US$143.06k
  • Chris French (61yo)

    Chairman

    • Tenure: 31.7yrs
    • Compensation: US$1.84m
  • Tracy Fitzsimmons (52yo)

    Lead Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$140.27k
  • Ken Quaglio (60yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$124.37k
  • Rick Koontz (61yo)

    Independent Director

    • Tenure: 13.6yrs
    • Compensation: US$125.01k
  • John Flora (64yo)

    Independent Director

    • Tenure: 11.6yrs
    • Compensation: US$126.41k
  • Tom Beckett (51yo)

    Independent Director

    • Tenure: 1.6yrs
  • Leigh Schultz (45yo)

    Independent Director

    • Tenure: 3.4yrs
    • 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$1.903b
  • 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 Analysis2019/12/12 23:46
End of Day Share Price2019/12/12 00:00
Earnings2019/09/30
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.