SHENANDOAH TELECOMMUNICATION (SHEN) Stock Fundamental Analysis
NASDAQ:SHEN - US82312B1061 - Common Stock
13.18 USD
+0.44 (+3.45%)
13.18 USD
0 (0%)
We assign a fundamental rating of 2 out of 10 to SHEN. SHEN was compared to 35 industry peers in the Diversified Telecommunication Services industry. SHEN has a bad profitability rating. Also its financial health evaluation is rather negative. SHEN is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SHEN has reported negative net income.
In the past year SHEN had a positive cash flow from operations.
SHEN had positive earnings in 4 of the past 5 years.
Of the past 5 years SHEN 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SHEN (-1.80%) is worse than 60.00% of its industry peers.
SHEN's Return On Equity of -3.61% is in line compared to the rest of the industry. SHEN outperforms 45.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.8% | ||
| ROE | -3.61% | ||
| ROIC | N/A |
ROA(3y)3.58%
ROA(5y)25.82%
ROE(3y)6.88%
ROE(5y)39.59%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
SHEN's Profit Margin has improved in the last couple of years.
With a decent Gross Margin value of 61.87%, SHEN is doing good in the industry, outperforming 65.71% of the companies in the same industry.
In the last couple of years the Gross Margin of SHEN has remained more or less at the same level.
The Profit Margin and Operating Margin are not available for SHEN so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 61.87% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-47.77%
PM growth 5Y16.48%
GM growth 3Y1.5%
GM growth 5Y0.35%
2. Health
2.1 Basic Checks
SHEN does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for SHEN has been increased compared to 1 year ago.
Compared to 5 years ago, SHEN has more shares outstanding
Compared to 1 year ago, SHEN has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.17, we must say that SHEN is in the distress zone and has some risk of bankruptcy.
SHEN has a better Altman-Z score (1.17) than 74.29% of its industry peers.
SHEN has a Debt/Equity ratio of 0.56. This is a neutral value indicating SHEN is somewhat dependend on debt financing.
SHEN's Debt to Equity ratio of 0.56 is fine compared to the rest of the industry. SHEN outperforms 74.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.17 |
ROIC/WACCN/A
WACC6.69%
2.3 Liquidity
A Current Ratio of 0.73 indicates that SHEN may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.73, SHEN is doing worse than 80.00% of the companies in the same industry.
SHEN has a Quick Ratio of 0.73. This is a bad value and indicates that SHEN is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.73, SHEN is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
SHEN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -5100.00%.
The Earnings Per Share has been growing by 26.11% on average over the past years. This is a very strong growth
SHEN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.74%.
The Revenue has been growing by 9.66% on average over the past years. This is quite good.
EPS 1Y (TTM)-5100%
EPS 3Y-43.79%
EPS 5Y26.11%
EPS Q2Q%-2000%
Revenue 1Y (TTM)16.74%
Revenue growth 3Y10.19%
Revenue growth 5Y9.66%
Sales Q2Q%3.23%
3.2 Future
Based on estimates for the next years, SHEN will show a very negative growth in Earnings Per Share. The EPS will decrease by -91.06% on average per year.
Based on estimates for the next years, SHEN will show a quite strong growth in Revenue. The Revenue will grow by 8.75% on average per year.
EPS Next Y-251.36%
EPS Next 2Y-91.06%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.74%
Revenue Next 2Y8.75%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for SHEN. In the last year negative earnings were reported.
Also next year SHEN is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SHEN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.99 |
4.3 Compensation for Growth
A cheap valuation may be justified as SHEN's earnings are expected to decrease with -91.06% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-91.06%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SHEN has a yearly dividend return of 0.78%, which is pretty low.
SHEN's Dividend Yield is a higher than the industry average which is at 1803.82.
With a Dividend Yield of 0.78, SHEN pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
5.2 History
The dividend of SHEN decreases each year by -16.94%.
SHEN has paid a dividend for at least 10 years, which is a reliable track record.
SHEN has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-16.94%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
The earnings of SHEN are negative and hence is the payout ratio. SHEN will probably not be able to sustain this dividend level.
SHEN's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP-17.81%
EPS Next 2Y-91.06%
EPS Next 3YN/A
13.18
+0.44 (+3.45%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners71.05%
Inst Owner Change4.1%
Ins Owners4.51%
Ins Owner Change5.62%
Market Cap723.58M
Analysts80
Price Target26.52 (101.21%)
Short Float %4.31%
Short Ratio6.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
Yearly Dividend0.11
Dividend Growth(5Y)-16.94%
DP-17.81%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-16.74%
Min EPS beat(2)-36.97%
Max EPS beat(2)3.48%
EPS beat(4)3
Avg EPS beat(4)8.75%
Min EPS beat(4)-36.97%
Max EPS beat(4)66.54%
EPS beat(8)5
Avg EPS beat(8)75.57%
EPS beat(12)7
Avg EPS beat(12)46.56%
EPS beat(16)9
Avg EPS beat(16)27.32%
Revenue beat(2)0
Avg Revenue beat(2)-3.79%
Min Revenue beat(2)-4.07%
Max Revenue beat(2)-3.51%
Revenue beat(4)0
Avg Revenue beat(4)-4.37%
Min Revenue beat(4)-6.59%
Max Revenue beat(4)-3.29%
Revenue beat(8)0
Avg Revenue beat(8)-3.46%
Revenue beat(12)2
Avg Revenue beat(12)-2.25%
Revenue beat(16)4
Avg Revenue beat(16)-1.83%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-11.41%
EPS NQ rev (3m)-53.94%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-1.77%
Revenue NQ rev (3m)-4.64%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 2.07 | ||
| P/FCF | N/A | ||
| P/OCF | 8.37 | ||
| P/B | 0.8 | ||
| P/tB | 0.97 | ||
| EV/EBITDA | 11.99 |
EPS(TTM)-0.5
EYN/A
EPS(NY)-0.69
Fwd EYN/A
FCF(TTM)-4.58
FCFYN/A
OCF(TTM)1.57
OCFY11.94%
SpS6.37
BVpS16.44
TBVpS13.58
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.8% | ||
| ROE | -3.61% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 61.87% | ||
| FCFM | N/A |
ROA(3y)3.58%
ROA(5y)25.82%
ROE(3y)6.88%
ROE(5y)39.59%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-47.77%
PM growth 5Y16.48%
GM growth 3Y1.5%
GM growth 5Y0.35%
F-Score3
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.09 | ||
| Cap/Depr | 281.34% | ||
| Cap/Sales | 96.6% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 87.63% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 1.17 |
F-Score3
WACC6.69%
ROIC/WACCN/A
Cap/Depr(3y)330.37%
Cap/Depr(5y)305.72%
Cap/Sales(3y)87.83%
Cap/Sales(5y)76.67%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-5100%
EPS 3Y-43.79%
EPS 5Y26.11%
EPS Q2Q%-2000%
EPS Next Y-251.36%
EPS Next 2Y-91.06%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)16.74%
Revenue growth 3Y10.19%
Revenue growth 5Y9.66%
Sales Q2Q%3.23%
Revenue Next Year9.74%
Revenue Next 2Y8.75%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-1556.33%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year534.2%
EBIT Next 3Y110.22%
EBIT Next 5Y60.17%
FCF growth 1Y-91.65%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-18.55%
OCF growth 3YN/A
OCF growth 5Y-24.74%