SHENANDOAH TELECOMMUNICATION (SHEN) Stock Fundamental Analysis
NASDAQ:SHEN - Nasdaq - US82312B1061 - Common Stock - Currency: USD
Overall SHEN gets a fundamental rating of 3 out of 10. We evaluated SHEN against 33 industry peers in the Diversified Telecommunication Services industry. There are concerns on the financial health of SHEN while its profitability can be described as average. While showing a medium growth rate, SHEN is valued expensive at the moment.
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.
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
With an excellent Return On Assets value of 10.94%, SHEN belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
SHEN's Return On Equity of 20.73% is amongst the best of the industry. SHEN outperforms 87.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.94% | ||
| ROE | 20.73% | ||
| 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 of 58.03% is amongst the best of the industry. SHEN outperforms 100.00% of its industry peers.
SHEN's Profit Margin has improved in the last couple of years.
With a decent Gross Margin value of 60.95%, SHEN is doing good in the industry, outperforming 66.67% of the companies in the same industry.
SHEN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 58.03% | ||
| GM | 60.95% |
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.
SHEN has more shares outstanding than it did 5 years ago.
The debt/assets ratio for SHEN has been reduced compared to a year ago.
2.2 Solvency
SHEN has an Altman-Z score of 1.25. This is a bad value and indicates that SHEN is not financially healthy and even has some risk of bankruptcy.
SHEN has a better Altman-Z score (1.25) than 75.76% of its industry peers.
SHEN has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
SHEN's Debt to Equity ratio of 0.45 is fine compared to the rest of the industry. SHEN outperforms 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.25 |
ROIC/WACCN/A
WACC6.59%
2.3 Liquidity
SHEN has a Current Ratio of 0.82. This is a bad value and indicates that SHEN is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of SHEN (0.82) is worse than 69.70% of its industry peers.
SHEN has a Quick Ratio of 0.82. This is a bad value and indicates that SHEN is not financially healthy enough and could expect problems in meeting its short term obligations.
SHEN has a worse Quick ratio (0.82) than 69.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.82 |
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%.
The Earnings Per Share has been growing by 26.11% on average over the past years. This is a very strong growth
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)-850%
EPS 3Y-43.79%
EPS 5Y26.11%
EPS Q2Q%-137.5%
Revenue 1Y (TTM)21.9%
Revenue growth 3Y10.19%
Revenue growth 5Y9.66%
Sales Q2Q%26.94%
3.2 Future
The Earnings Per Share is expected to decrease by -91.06% on average over the next years. This is quite bad
The Revenue is expected to grow by 8.75% on average over the next years. This is quite good.
EPS Next Y-131.11%
EPS Next 2Y-91.06%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.82%
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.
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
SHEN's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. SHEN is more expensive than 60.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.24 |
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 0.83%, which is pretty low.
Compared to an average industry Dividend Yield of 5.12, SHEN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, SHEN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
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
3.05% of the earnings are spent on dividend by SHEN. This is a low number and sustainable payout ratio.
SHEN's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP3.05%
EPS Next 2Y-91.06%
EPS Next 3YN/A
11.98
+0.49 (+4.26%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners70.79%
Inst Owner Change-0.46%
Ins Owners4.24%
Ins Owner Change7.87%
Market Cap657.22M
Analysts80
Price Target26.52 (121.37%)
Short Float %3.99%
Short Ratio6.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
Yearly Dividend0.11
Dividend Growth(5Y)-16.94%
DP3.05%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)34.25%
Min EPS beat(2)1.96%
Max EPS beat(2)66.54%
EPS beat(4)2
Avg EPS beat(4)-62.06%
Min EPS beat(4)-292.16%
Max EPS beat(4)66.54%
EPS beat(8)6
Avg EPS beat(8)138.37%
EPS beat(12)7
Avg EPS beat(12)42.75%
EPS beat(16)10
Avg EPS beat(16)32.9%
Revenue beat(2)0
Avg Revenue beat(2)-4.94%
Min Revenue beat(2)-6.59%
Max Revenue beat(2)-3.29%
Revenue beat(4)0
Avg Revenue beat(4)-4.33%
Min Revenue beat(4)-6.59%
Max Revenue beat(4)-2.32%
Revenue beat(8)1
Avg Revenue beat(8)-2.51%
Revenue beat(12)4
Avg Revenue beat(12)-1.5%
Revenue beat(16)4
Avg Revenue beat(16)-1.48%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8.11%
EPS NY rev (1m)0%
EPS NY rev (3m)11.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.29%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 2 | ||
| P/FCF | N/A | ||
| P/OCF | 10.5 | ||
| P/B | 0.72 | ||
| P/tB | 0.86 | ||
| EV/EBITDA | 12.24 |
EPS(TTM)-0.3
EYN/A
EPS(NY)-0.69
Fwd EYN/A
FCF(TTM)-4.68
FCFYN/A
OCF(TTM)1.14
OCFY9.52%
SpS5.98
BVpS16.74
TBVpS13.87
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.94% | ||
| ROE | 20.73% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 58.03% | ||
| GM | 60.95% | ||
| 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-Score4
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.86 | ||
| Cap/Depr | 324.08% | ||
| Cap/Sales | 97.26% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 74.36% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 1.25 |
F-Score4
WACC6.59%
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-131.11%
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%26.94%
Revenue Next Year9.82%
Revenue Next 2Y8.75%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-219.92%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year525.91%
EBIT Next 3Y110.22%
EBIT Next 5Y60.17%
FCF growth 1Y-79.65%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-45.01%
OCF growth 3YN/A
OCF growth 5Y-24.74%