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1. Company Snapshot

1.a. Company Description

Shenandoah Telecommunications Company, together with its subsidiaries, provides a range of broadband communication services and cell tower colocation space in the Mid-Atlantic portion of the United States.Its Broadband segment offers broadband, video, and voice services to residential and commercial customers in Virginia, West Virginia, Maryland, Pennsylvania, and Kentucky, via hybrid fiber coaxial cable under the Shentel brand, fiber optic services under the Glo Fiber brand, and fixed wireless network services under the Beam brand name.This segment leases fiber and provides Ethernet and wavelength fiber optic services.


In addition, the company offers voice and digital subscriber line telephone services.The company's Tower segment owns 220 cell towers and leases colocation space on the towers.Shenandoah Telecommunications Company was founded in 1902 and is based in Edinburg, Virginia.

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1.b. Last Insights on SHEN

Shenandoah Telecommunications Company's recent performance was negatively driven by a Q3 loss of $0.13 per share, exceeding the Zacks Consensus Estimate of a loss of $0.07. This compares to earnings of $0.03 per share a year ago. The company's weak earnings and low return on invested capital, as highlighted by a recent DCF analysis, indicate a challenging business environment. Additionally, the company's inability to survive on its own, as mentioned in a recent article, suggests that it may require significant growth to justify its current share price.

1.c. Company Highlights

2. Shenandoah Telecommunications' Q3 2025 Earnings: A Strong Performance

Shenandoah Telecommunications reported a revenue growth of 2.5% to $89.8 million, driven by the expansion of its Glo Fiber business, which grew 41.1% to $21.3 million. Adjusted EBITDA increased by 11.7% to $29.7 million, resulting in a margin expansion of 300 basis points to 33%. The company's EPS was $-0.2, beating estimates of $-0.22. The strong performance was largely driven by the growth in Glo Fiber data revenue-generating units, which increased to 83,000, representing a year-over-year growth of 39.5%.

Publication Date: Nov -16

📋 Highlights
  • Glo Fiber Expansion: Achieved 400,000 passings with 21,000 homes released, driving 83,000 data revenue units (+39.5% YoY).
  • Revenue Growth: Consolidated revenues rose to $89.8 million (+2.5% YoY), with Glo Fiber contributing $21.3 million (+41.1% YoY).
  • Margin Expansion: Adjusted EBITDA reached $29.7 million (+11.7% YoY), with margins up 300 bps to 33%.
  • Refinancing Strategy: Planning hybrid asset-backed securitization and new credit facility to reduce debt costs and enhance flexibility.
  • Penetration Rate: Achieved 8% in newly launched neighborhoods, with 1.17% monthly broadband churn and $77 average revenue per user.

Glo Fiber Expansion Driving Growth

The Glo Fiber expansion continues to be a key driver of growth for Shenandoah Telecommunications. The company reached a milestone of 400,000 total Glo Fiber passings, driven by 21,000 homes released to sales in the third quarter. The company's focus on driving penetration rates in Glo Fiber markets is evident, with an 8% penetration rate for communities introduced in the third quarter. As stated by the company, "We're pleased with our sales and marketing team's ability to quickly engage customers when launching new neighborhoods."

Operational Efficiencies and Refinancing Plans

Shenandoah Telecommunications is focused on driving operational efficiencies, with plans to refinance its credit facilities through a hybrid structure. The company expects this approach to lower its cost of debt, strengthen its credit profile, and increase financial flexibility. The refinancing is expected to be completed in the coming months, positioning the company to capitalize on opportunities in a consolidating industry.

Valuation and Outlook

With a P/S Ratio of 2.17 and an EV/EBITDA of 10.32, Shenandoah Telecommunications' valuation appears reasonable. Analysts estimate revenue growth of 5.0% next year, indicating a positive outlook. The company's plans to drive efficiencies and expand its footprint are expected to drive long-term growth. As the Glo Fiber expansion is expected to come to an end in 2026, the company anticipates a positive free cash flow inflection point, with significant free cash flow generation expected in 2028 and beyond.

3. NewsRoom

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Shentel Launches Fiber-to-the-Home Internet in Radford, VA

Dec -04

Source: globenewswire.com

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Shenandoah Telecommunications Will Participate in 2025 Raymond James TMT and Consumer Conference and 2025 UBS Global Media and Communications Conference

Dec -01

Source: globenewswire.com

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Shenandoah Telecommunications Co $SHEN Shares Purchased by Creative Planning

Dec -01

Source: defenseworld.net

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Shenandoah Telecommunications Company Announces Pricing of $567.4 million Inaugural Fiber Network Asset Securitization Offering

Nov -20

Source: globenewswire.com

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Shenandoah Telecommunications Company Announces Launch of Inaugural Fiber Network Asset Securitization Offering

Nov -17

Source: globenewswire.com

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Alberta Investment Management Corp Has $2.41 Million Stake in Shenandoah Telecommunications Co $SHEN

Nov -17

Source: defenseworld.net

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Glo Fiber Launches Lightning-Fast Fiber Internet in Greenfield, Ohio

Nov -13

Source: globenewswire.com

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Shenandoah Telecommunications (NASDAQ:SHEN) & Rogers Communication (NYSE:RCI) Head to Head Comparison

Oct -31

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Broadband

Expected Growth: 4.5%

Growing demand for high-speed internet, increasing adoption of online services, and affordable pricing drive the growth of Shentel's broadband internet segment.

Tower

Expected Growth: 4.5%

Growing demand for telecommunications and broadcasting services, increasing adoption of 5G technology, and strategic location of The Tower in Virginia drive growth in the market.

7. Detailed Products

Shentel Home Internet

High-speed internet services for residential customers, offering speeds up to 1 Gbps

Shentel Business Internet

Reliable and secure internet solutions for businesses, with speeds up to 10 Gbps

Shentel Phone

Residential and business phone services with advanced features and competitive rates

Shentel TV

Digital TV services with a range of channels, on-demand content, and DVR capabilities

Shentel Fiber

Fiber-optic network services for high-speed data transmission and internet connectivity

Shentel Managed Wi-Fi

Secure and reliable Wi-Fi solutions for businesses, with network management and support

Shentel Cybersecurity

Comprehensive cybersecurity solutions for businesses, including threat detection and response

8. Shenandoah Telecommunications Company's Porter Forces

Forces Ranking

Threat Of Substitutes

Shenandoah Telecommunications Company faces moderate threat from substitutes, as customers have limited alternatives for internet and phone services in rural areas, but may consider alternative providers for TV services.

Bargaining Power Of Customers

Shenandoah Telecommunications Company has a low bargaining power of customers, as customers have limited alternatives and the company has a strong presence in rural areas.

Bargaining Power Of Suppliers

Shenandoah Telecommunications Company has a moderate bargaining power of suppliers, as it relies on a few major suppliers for network equipment and services, but has some negotiating power due to its size and presence in the market.

Threat Of New Entrants

Shenandoah Telecommunications Company faces a low threat of new entrants, as entering the market requires significant investment in infrastructure and regulatory compliance, making it a barrier to entry for new competitors.

Intensity Of Rivalry

Shenandoah Telecommunications Company operates in a highly competitive market, with several rivals competing for market share, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 35.08%
Debt Cost 3.95%
Equity Weight 64.92%
Equity Cost 6.74%
WACC 5.76%
Leverage 54.04%

11. Quality Control: Shenandoah Telecommunications Company passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Shentel

A-Score: 5.3/10

Value: 7.2

Growth: 5.1

Quality: 2.6

Yield: 6.0

Momentum: 6.0

Volatility: 4.7

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ATN International

A-Score: 4.5/10

Value: 8.8

Growth: 4.6

Quality: 2.7

Yield: 7.0

Momentum: 0.0

Volatility: 3.7

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Crexendo

A-Score: 4.4/10

Value: 1.7

Growth: 7.7

Quality: 7.0

Yield: 0.0

Momentum: 7.0

Volatility: 3.0

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Ribbon Communications

A-Score: 4.3/10

Value: 7.0

Growth: 3.9

Quality: 4.5

Yield: 0.0

Momentum: 7.0

Volatility: 3.7

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Cable One

A-Score: 3.6/10

Value: 7.6

Growth: 4.1

Quality: 2.8

Yield: 5.0

Momentum: 0.0

Volatility: 2.3

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Consolidated Communications Holdings

A-Score: 3.2/10

Value: 7.2

Growth: 0.7

Quality: 1.1

Yield: 0.0

Momentum: 5.0

Volatility: 5.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

11.29$

Current Price

11.29$

Potential

-0.00%

Expected Cash-Flows