One-glance verdict
Undervalued
$94.45 our estimate vs market $9.65
Wall Street consensus: $27.50 (-70.9% lower than our fair-value estimate)
90% below our estimate, below the bear case
Fundamentals snapshot
Shenandoah Telecommunications Company
SHEN · NMS · Communication Services · Telecom Services
Current price
$9.65
52-week range
$9.13 - $17.35
Market cap
$534.28M
Balance sheet
Distressed
-0.87x Concerning
Net debt $746.97M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 3.7% last year.
- Reward Free cash flow was positive in 4/10 years.
- Risk Net debt grew 617.0% over 3 years.
- Risk Insider ownership is only 5.0% (peer median: 21.3%).
What this company does
Shenandoah Telecommunications Company
Shenandoah Telecommunications Company, or SHEN, is like your internet and cable provider, selling internet, TV, and phone services to homes and businesses across several states. Most of their money comes from these services, which is important because it shows how much people are willing to pay for their internet and TV offerings, affecting their profitability (the money they have left after paying their bills). SHEN also leases out parts of their fiber optic network, which is like renting out empty phone lines, to other companies, giving them another way to make money.
How the company got here
Shenandoah Telecommunications Company, or Shentel, started in 1902 as the Farmers' Mutual Telephone System of Shenandoah County. Its original mission was to bring telephone service to rural residents who were largely farmers and lacked access to this new technology. Over the decades, the company expanded its services, venturing into cable TV in the 1980s and launching cellular service in 1990, becoming the first in Virginia to offer it in rural areas. Shentel continued to grow through acquisitions, notably purchasing Ntelos in 2016, and more recently expanding its fiber optic network into Ohio. The company has evolved from a small rural telephone provider into a diversified telecommunications company serving multiple states.
What it actually does
Shentel provides a range of communication services to both homes and businesses. This includes high-speed internet access, television (video) services, and phone (voice) services. They deliver these services using different technologies, primarily through their fiber optic networks, which offer very fast speeds, and also through hybrid fiber coaxial cable networks. Shentel operates under different brand names, such as Glo Fiber for its fiber optic services and the Shentel brand for its cable and other services.
Glo Fiber
Glo Fiber is Shentel's brand focused on delivering high-speed internet, video, and voice services using advanced fiber optic technology. This means that instead of using older copper wires, they run thin strands of glass or plastic that transmit data as light signals, allowing for much faster and more reliable connections. Glo Fiber targets both residential customers and businesses, aiming to provide a superior internet experience. This segment has been a significant area of growth for Shentel, with substantial increases in revenue and customer connections in recent years, and it's becoming an increasingly larger part of the company's overall business.
Incumbent Broadband Markets
This segment represents Shentel's more traditional broadband services, delivered primarily over hybrid fiber coaxial cable networks. These are the established services that have been provided to customers for a longer time, often in areas where Shentel has been the primary provider. While this segment still contributes a significant portion of Shentel's revenue, it has seen some decline in revenue from video and data services. It includes internet, video, and voice services offered to residential and small to medium-sized businesses (SMBs) in these established markets.
Commercial Fiber
The Commercial Fiber segment focuses on providing high-speed data and connectivity solutions to businesses and wholesale customers. This includes services like high-speed Ethernet, which is a way to connect computers and networks within a business or between different business locations, and dark fiber leasing. Dark fiber refers to unused fiber optic cables that a company can lease to create its own private network. This segment is a key area of growth for Shentel, contributing a substantial and growing portion of the company's overall revenue.
Wireless
Shentel also operates a wireless segment, which provides mobile phone and data services. This part of the business offers both postpaid and prepaid wireless plans, along with phones and accessories. While not the largest segment by revenue, it represents a distinct line of business for Shentel, serving customers who prefer or require mobile communication services.
What management is betting on now
Shentel's main strategic focus is on expanding its fiber optic network, particularly under the Glo Fiber brand. Management is prioritizing investments in fiber because it offers higher speeds and better reliability, which are increasingly important for both consumers and businesses. The company aims to complete its major fiber network build-out and then shift its focus to optimizing returns from these investments. They are also working on cost reductions and strengthening their financial position, with a goal of achieving positive free cash flow (the cash a company has left after paying for its operations and investments) in the near future.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$-72.02M
FY2025 Q1
$-62.71M
FY2025 Q2
$-65.25M
FY2025 Q3
$-51.38M
FY2025 Q4
$-78.58M
FY2026 Q1
$-51.45M
FY2026 Q2
$-45.94M
FY2026 Q3
$-40.98M
Revenue
$93.93M
Net income
$-9.18M
Diluted EPS
-0.19
Operating cash flow
$27.84M
Free cash flow
$-40.98M
Fetching…
Sources
Revenue
$93.46M
Net income
$-7.70M
Diluted EPS
-0.17
Operating cash flow
$24.43M
Free cash flow
$-45.94M
Fetching…
Sources
Revenue
$92.15M
Net income
$-15.75M
Diluted EPS
-0.31
Operating cash flow
$24.37M
Free cash flow
$-51.45M
Fetching…
Sources
Revenue
$91.59M
Net income
$-5.37M
Diluted EPS
-0.13
Operating cash flow
$28.79M
Free cash flow
$-78.58M
Fetching…
Sources
Revenue
$89.80M
Net income
$-9.39M
Diluted EPS
-0.20
Operating cash flow
$30.74M
Free cash flow
$-51.38M
Fetching…
Sources
Revenue
$88.57M
Net income
$-9.05M
Diluted EPS
-0.19
Operating cash flow
$20.95M
Free cash flow
$-65.25M
Fetching…
Sources
Revenue
$87.90M
Net income
$-9.13M
Diluted EPS
-0.19
Operating cash flow
$20.52M
Free cash flow
$-62.71M
Fetching…
Sources
Revenue
$85.41M
Net income
$10.13M
Diluted EPS
-0.30
Operating cash flow
$20.60M
Free cash flow
$-72.02M
Fetching…
Sources
Is it cheap or expensive?
Fair value $94.45 vs current price $9.65
Wall Street consensus is the average analyst price target: $27.50 (-70.9% lower than our fair-value estimate).
Our most-likely fair value is $94.45 a share — about 878.7% above today's price of $9.65, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $747.0M. Interest coverage -0.9x.
Net debt
$746.97M
Interest coverage
-0.87x
Shenandoah Telecommunications Company's profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
SHEN
BASELINE
Shenandoah Telecommunications Company
Total debt $765.62M Interest coverage -0.87x This is the baseline the peer rows are being compared against.
Total debt $674.07M Interest coverage 0.91x This peer still has a real interest-payment cushion, while SHEN does not.
Total debt $1.24B Interest coverage -0.55x Neither company has much profit cushion over interest right now.
What you should know
The case for and against SHEN
3 Rewards
3 Risks
Rewards
-
Revenue grew 3.7% last year.
-
Free cash flow was positive in 4/10 years.
-
Dividend yield is 1.2% with 26-year payout history.
Risks
-
Net debt grew 617.0% over 3 years.
-
Insider ownership is only 5.0% (peer median: 21.3%).
-
Return on equity was -4.0% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
—
Forward P/E
-9.55x
P/B
0.63x
P/S
1.44x
EV/EBITDA
11.42x
PEG ratio
0.87x
Profitability
How much profit each dollar creates
Gross margin
65.1%
Operating margin
-1.9%
Net margin
-12.1%
ROE
-4.0%
ROA
-0.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.81x
Current ratio
0.71x
Quick ratio
0.36x
Total debt
$765.62M
Total cash
$18.65M
Growth
How the business has been compounding
Revenue TTM
$371.14M
Revenue 5Y CAGR
9.9%
EPS TTM
-0.77
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$105.44M
Free CF TTM
$-257.92M
FCF margin
-69.5%
Dividend
Shareholder payout
Yield
1.2%
Payout ratio
450.0%
Last ex-div date
2026-11-02