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 35 industry peers in the Diversified Telecommunication Services industry. Both the profitability and financial health of SHEN have multiple concerns. While showing a medium growth rate, SHEN is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
SHEN had negative earnings in the past year.
SHEN had a positive operating cash flow in the past year.
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's Return On Assets of -1.91% is on the low side compared to the rest of the industry. SHEN is outperformed by 60.00% 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.
SHEN's Gross Margin of 61.02% is fine compared to the rest of the industry. SHEN outperforms 65.71% of its industry peers.
SHEN's Gross Margin has been stable in the last couple of years.
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
SHEN has more shares outstanding than it did 5 years ago.
SHEN has a better debt/assets ratio than last year.
2.2 Solvency
SHEN has an Altman-Z score of 1.23. This is a bad value and indicates that SHEN is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of SHEN (1.23) is better than 77.14% of its industry peers.
SHEN has a Debt/Equity ratio of 0.55. This is a neutral value indicating SHEN is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.55, SHEN is in the better half of the industry, outperforming 74.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.23 |
ROIC/WACCN/A
WACC6.68%
2.3 Liquidity
A Current Ratio of 1.20 indicates that SHEN should not have too much problems paying its short term obligations.
SHEN's Current ratio of 1.20 is fine compared to the rest of the industry. SHEN outperforms 62.86% of its industry peers.
SHEN has a Quick 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.
Looking at the Quick ratio, with a value of 1.20, SHEN is in the better half of the industry, outperforming 68.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The earnings per share for SHEN have decreased strongly by -5100.00% in the last year.
Measured over the past years, SHEN shows a very strong growth in Earnings Per Share. The EPS has been growing by 26.11% on average per year.
SHEN shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.90%.
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)21.9%
Revenue growth 3Y10.19%
Revenue growth 5Y9.66%
Sales Q2Q%3.23%
3.2 Future
The Earnings Per Share is expected to decrease by -91.06% on average over the next years. This is quite bad
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.
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
SHEN reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
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
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 | 12.36 |
4.3 Compensation for Growth
SHEN's earnings are expected to decrease with -91.06% in the coming years. This may justify a cheaper valuation.
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 0.68%, which is pretty low.
SHEN's Dividend Yield is comparable with the industry average which is at 5.12.
With a Dividend Yield of 0.68, SHEN pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
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-16.63%
EPS Next 2Y-91.06%
EPS Next 3YN/A
13.245
-1.44 (-9.78%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners71.2%
Inst Owner Change-0.68%
Ins Owners4.51%
Ins Owner Change7.79%
Market Cap726.62M
Analysts80
Price Target26.52 (100.23%)
Short Float %4.73%
Short Ratio7.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
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)0%
EPS NQ rev (3m)-44.03%
EPS NY rev (1m)0%
EPS NY rev (3m)-52.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 2.1 | ||
| P/FCF | N/A | ||
| P/OCF | 10.7 | ||
| P/B | 0.8 | ||
| P/tB | 0.96 | ||
| EV/EBITDA | 12.36 |
EPS(TTM)-0.5
EYN/A
EPS(NY)-0.69
Fwd EYN/A
FCF(TTM)-4.82
FCFYN/A
OCF(TTM)1.24
OCFY9.35%
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 | 1.23 |
F-Score2
WACC6.68%
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)21.9%
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-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%