SHENANDOAH TELECOMMUNICATION (SHEN)
US82312B1061 - Common Stock
We assign a fundamental rating of 4 out of 10 to SHEN. SHEN was compared to 35 industry peers in the Diversified Telecommunication Services industry. SHEN scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. SHEN is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
SHEN had positive earnings in the past year.
SHEN had a positive operating cash flow in the past year.
Of the past 5 years SHEN 4 years were profitable.
SHEN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
SHEN has a Return On Assets of 0.67%. This is comparable to the rest of the industry: SHEN outperforms 54.29% of its industry peers.
SHEN has a Return On Equity (1.24%) which is in line with its industry peers.
The Return On Invested Capital of SHEN (0.78%) is worse than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.67% | ||
| ROE | 1.24% | ||
| ROIC | 0.78% |
ROA(3y)37.31%
ROA(5y)24.22%
ROE(3y)51.81%
ROE(5y)37.81%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of SHEN (2.82%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of SHEN has declined.
SHEN's Operating Margin of 4.16% is on the low side compared to the rest of the industry. SHEN is outperformed by 60.00% of its industry peers.
With a decent Gross Margin value of 63.10%, SHEN is doing good in the industry, outperforming 71.43% of the companies in the same industry.
In the last couple of years the Gross Margin of SHEN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.16% | ||
| PM (TTM) | 2.82% | ||
| GM | 63.1% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-63.37%
PM growth 5Y-35.04%
GM growth 3Y2.04%
GM growth 5Y1.6%
2. Health
2.1 Basic Checks
SHEN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, SHEN has more shares outstanding
The number of shares outstanding for SHEN has been increased compared to 5 years ago.
Compared to 1 year ago, SHEN has a worse debt to assets ratio.
2.2 Solvency
SHEN has an Altman-Z score of 1.77. This is a bad value and indicates that SHEN is not financially healthy and even has some risk of bankruptcy.
SHEN has a Altman-Z score of 1.77. This is amongst the best in the industry. SHEN outperforms 91.43% of its industry peers.
A Debt/Equity ratio of 0.45 indicates that SHEN is not too dependend on debt financing.
The Debt to Equity ratio of SHEN (0.45) is better than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.77 |
ROIC/WACC0.1
WACC8.11%
2.3 Liquidity
A Current Ratio of 1.79 indicates that SHEN should not have too much problems paying its short term obligations.
With an excellent Current ratio value of 1.79, SHEN belongs to the best of the industry, outperforming 82.86% of the companies in the same industry.
A Quick Ratio of 1.79 indicates that SHEN should not have too much problems paying its short term obligations.
The Quick ratio of SHEN (1.79) is better than 82.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.79 | ||
| Quick Ratio | 1.79 |
3. Growth
3.1 Past
SHEN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 328.57%, which is quite impressive.
Measured over the past years, SHEN shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -28.73% on average per year.
The Revenue has been growing slightly by 7.49% in the past year.
Measured over the past years, SHEN shows a quite strong growth in Revenue. The Revenue has been growing by 8.32% on average per year.
EPS 1Y (TTM)328.57%
EPS 3Y-60.21%
EPS 5Y-28.73%
EPS growth Q2Q225%
Revenue 1Y (TTM)7.49%
Revenue growth 3Y9.18%
Revenue growth 5Y8.32%
Revenue growth Q2Q3.59%
3.2 Future
Based on estimates for the next years, SHEN will show a very strong growth in Earnings Per Share. The EPS will grow by 30.67% on average per year.
The Revenue is expected to grow by 15.02% on average over the next years. This is quite good.
EPS Next Y-134.42%
EPS Next 2Y-64.35%
EPS Next 3Y30.67%
EPS Next 5YN/A
Revenue Next Year14.17%
Revenue Next 2Y17.86%
Revenue Next 3Y15.02%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 82.81 indicates a quite expensive valuation of SHEN.
SHEN's Price/Earnings ratio is in line with the industry average.
SHEN's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.06.
The Forward Price/Earnings Ratio is negative for SHEN. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 82.81 | ||
| Fwd PE | N/A |
4.2 Price Multiples
SHEN's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. SHEN is more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.2 |
4.3 Compensation for Growth
A more expensive valuation may be justified as SHEN's earnings are expected to grow with 30.67% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-64.35%
EPS Next 3Y30.67%
5. Dividend
5.1 Amount
SHEN has a yearly dividend return of 0.65%, which is pretty low.
The stock price of SHEN dropped by -34.63% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 4.99, SHEN has a dividend in line with its industry peers.
With a Dividend Yield of 0.65, SHEN pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
5.2 History
The dividend of SHEN decreases each year by -19.16%.
SHEN has been paying a dividend for at least 10 years, so it has a reliable track record.
SHEN has decreased its dividend recently.
Dividend Growth(5Y)-19.16%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
SHEN pays out 55.92% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP55.92%
EPS Next 2Y-64.35%
EPS Next 3Y30.67%
SHENANDOAH TELECOMMUNICATION
NASDAQ:SHEN (5/2/2024, 7:19:07 PM)
After market: 13.4 +0.15 (+1.13%)13.25
+0.33 (+2.55%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap722.79M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 82.81 | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.67% | ||
| ROE | 1.24% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.16% | ||
| PM (TTM) | 2.82% | ||
| GM | 63.1% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.79 | ||
| Quick Ratio | 1.79 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)328.57%
EPS 3Y-60.21%
EPS 5Y
EPS growth Q2Q
EPS Next Y-134.42%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.49%
Revenue growth 3Y9.18%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y