SHENANDOAH TELECOMMUNICATION (SHEN) Stock Fundamental Analysis
NASDAQ:SHEN - Nasdaq - US82312B1061 - Common Stock - Currency: USD
Taking everything into account, SHEN scores 3 out of 10 in our fundamental rating. SHEN was compared to 33 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.
SHEN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
SHEN has a Return On Assets of -1.91%. This is in the lower half of the industry: SHEN underperforms 66.67% of its industry peers.
The Return On Equity of SHEN (-3.83%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.91% | ||
| ROE | -3.83% | ||
| 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
In the last couple of years the Profit Margin of SHEN has grown nicely.
With a decent Gross Margin value of 61.02%, SHEN is doing good in the industry, outperforming 63.64% 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 | 61.02% |
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.
Compared to 1 year ago, SHEN has more shares outstanding
Compared to 5 years ago, SHEN has more shares outstanding
SHEN has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.21, we must say that SHEN is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of SHEN (1.21) is better than 72.73% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that SHEN is somewhat dependend on debt financing.
SHEN has a better Debt to Equity ratio (0.55) than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.21 |
ROIC/WACCN/A
WACC6.72%
2.3 Liquidity
SHEN has a Current Ratio of 1.20. This is a normal value and indicates that SHEN is financially healthy and should not expect problems in meeting its short term obligations.
SHEN's Current ratio of 1.20 is fine compared to the rest of the industry. SHEN outperforms 60.61% of its industry peers.
A Quick Ratio of 1.20 indicates that SHEN should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.20, SHEN is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
SHEN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -850.00%.
SHEN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 26.11% yearly.
Looking at the last year, SHEN shows a very strong growth in Revenue. The Revenue has grown by 21.71%.
Measured over the past years, SHEN shows a quite strong growth in Revenue. The Revenue has been growing by 9.66% on average per year.
EPS 1Y (TTM)-850%
EPS 3Y-43.79%
EPS 5Y26.11%
EPS Q2Q%-137.5%
Revenue 1Y (TTM)21.71%
Revenue growth 3Y10.19%
Revenue growth 5Y9.66%
Sales Q2Q%26.93%
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.
SHEN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.75% yearly.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
SHEN reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for SHEN. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SHEN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.97 |
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 0.81%, which is pretty low.
Compared to an average industry Dividend Yield of 5.07, SHEN has a dividend in line with its industry peers.
With a Dividend Yield of 0.81, SHEN pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
5.2 History
The dividend of SHEN decreases each year by -16.94%.
SHEN has been paying a dividend for at least 10 years, so it has 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.
The Dividend Rate of SHEN has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP-16.63%
EPS Next 2Y-91.06%
EPS Next 3YN/A
12.58
+0.16 (+1.29%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners70.79%
Inst Owner Change1.96%
Ins Owners4.24%
Ins Owner Change7.79%
Market Cap690.14M
Analysts80
Price Target26.52 (110.81%)
Short Float %3.98%
Short Ratio6.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
Yearly Dividend0.11
Dividend Growth(5Y)-16.94%
DP-16.63%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)14.79%
Min EPS beat(2)-36.97%
Max EPS beat(2)66.54%
EPS beat(4)2
Avg EPS beat(4)1.74%
Min EPS beat(4)-36.97%
Max EPS beat(4)66.54%
EPS beat(8)5
Avg EPS beat(8)101.64%
EPS beat(12)7
Avg EPS beat(12)50.19%
EPS beat(16)9
Avg EPS beat(16)30.58%
Revenue beat(2)0
Avg Revenue beat(2)-5.05%
Min Revenue beat(2)-6.59%
Max Revenue beat(2)-3.51%
Revenue beat(4)0
Avg Revenue beat(4)-3.93%
Min Revenue beat(4)-6.59%
Max Revenue beat(4)-2.32%
Revenue beat(8)0
Avg Revenue beat(8)-2.99%
Revenue beat(12)3
Avg Revenue beat(12)-1.85%
Revenue beat(16)4
Avg Revenue beat(16)-1.64%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-44.03%
EPS NQ rev (3m)-55.65%
EPS NY rev (1m)-52.03%
EPS NY rev (3m)-34.26%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)-3.1%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-3.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 1.99 | ||
| P/FCF | N/A | ||
| P/OCF | 10.16 | ||
| P/B | 0.76 | ||
| P/tB | 0.92 | ||
| EV/EBITDA | 11.97 |
EPS(TTM)-0.3
EYN/A
EPS(NY)-0.69
Fwd EYN/A
FCF(TTM)-4.82
FCFYN/A
OCF(TTM)1.24
OCFY9.84%
SpS6.32
BVpS16.6
TBVpS13.73
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.91% | ||
| ROE | -3.83% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 61.02% | ||
| 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-Score2
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.4 | ||
| Cap/Depr | 300.77% | ||
| Cap/Sales | 95.83% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 72.78% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 1.21 |
F-Score2
WACC6.72%
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)-850%
EPS 3Y-43.79%
EPS 5Y26.11%
EPS Q2Q%-137.5%
EPS Next Y-251.36%
EPS Next 2Y-91.06%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)21.71%
Revenue growth 3Y10.19%
Revenue growth 5Y9.66%
Sales Q2Q%26.93%
Revenue Next Year9.74%
Revenue Next 2Y8.75%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-364.91%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year534.2%
EBIT Next 3Y110.22%
EBIT Next 5Y60.17%
FCF growth 1Y-152.94%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-36.57%
OCF growth 3YN/A
OCF growth 5Y-24.74%