# Shenandoah Telecommunications (SHEN.US)

Canonical: https://gigainvestors.com/s/SHEN

Analysis as of: 2026-10-16T07:31:53.244Z. Financial observations: FY1996–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $10.23 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 1 revenue decline in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 3

- Operating margin variation: 13.09×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.04×

- FY2017: 0.08×

- FY2018: 0.15×

- FY2019: -0.01×

- FY2020: -0.01×

- FY2021: -0.01×

- FY2022: -0.07×

- FY2023: 0.03×

- FY2024: -0.09×

- FY2025: -0.06×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 32.6pp below the typical margin (limit 4pp)

- ROIC, median of available years: -0.2%

- ROIC, second-lowest year: -1.8%

- Typical minus recent gross margin: 32.6 pp

- Typical gross margin (annual median): 59.5%

- Recent gross margin (lower of latest and 3-year median): 26.9%

- Years with nonpositive capital: 0

- Capital spending / revenue: 70.2%

- ROIC including acquisitions, ten-year median: 3.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 1.6%

- FY2017: 4.9%

- FY2018: 7.1%

- FY2019: -0.1%

- FY2020: -0.2%

- FY2021: -0.4%

- FY2022: -1.9%

- FY2023: 0.8%

- FY2024: -1.8%

- FY2025: -1.2%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.61×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $703M

- Net income, five-year total: $1.1B

- Return on incremental invested capital: -6.8%

- Working capital / revenue, annual change: -5.7 pp

- Working capital / revenue, change between three-year averages: -13.9 pp

- Working capital / revenue, final three-year average: -7.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.96×

- FY2022: 15.34×

- FY2023: -6.99×

- FY2024: 0.50×

- FY2025: 4.10×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 4.9% vs -1.2%

- Per-share earnings: 0.83 to 0.16 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- acquisition spending exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 1.2%

- Ordinary dilution, 5-year annual growth: 2.0%

- Market cap gain: -$701M

- Cumulative retained earnings: $480M

- Diluted shares, 10-year annual growth: 1.2%

- Diluted shares, 5-year annual growth: 2.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -18.7%

- Per-share value change: -$0.68

- Per-share value, starting three-year median: $0.83

- Per-share value, ending three-year median: $0.16

- Buybacks concentrated in cheaper years (correlation): -0.22

- Average buyback yield: 0.2%

- Buyback history: 9 years

- Debt-funded buybacks: No

- Acquisition spending: $1.0B

- Cumulative net income, 10 years: $1.4B

- ROIC, first three-year median: 4.9%

- ROIC, last three-year median: -1.2%

Chart: Earnings per share; fiscal year observations.

- FY2016: -$0.02

- FY2017: $1.33

- FY2018: $0.93

- FY2019: $1.11

- FY2020: $2.51

- FY2021: $19.92

- FY2022: -$0.17

- FY2023: $0.16

- FY2024: $3.54

- FY2025: -$0.71

### accounting: pass

- restructuring or one-time charges in at least three of five years

- Sloan accruals: -7.3%

- Receivables to sales index (DSRI): 1.01×

- Restructuring years, last five: 5

- Stock compensation / operating cash flow: 9.5%

- Earnings backed by cash: Yes

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.18×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -10.9%

- FY2017: -11.1%

- FY2018: -14.8%

- FY2019: -10.9%

- FY2020: -8.8%

- FY2021: 140.3%

- FY2022: -8.5%

- FY2023: -8.7%

- FY2024: 7.3%

- FY2025: -7.3%

## Holders

- [Mason Hawkins](https://gigainvestors.com/SE): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 63% since Oct 2021 · sales +9.1%

Story as of 2026-10-16T09:59:34.658Z; price observation 2026-10-15.

- 2025-07-31: Shentel Q2 2025 slides: EBITDA jumps 22% as fiber strategy advances ([investing.com](https://www.investing.com/news/company-news/shentel-q2-2025-slides-ebitda-jumps-22-as-fiber-strategy-advances-93CH-4164511))

### Sales · FY2024–2025

sales +9.1%; source https://www.sec.gov/Archives/edgar/data/354963/000035496326000125/shen-20251231.htm; observed 2026-02-26.

- FY2016: $535M 

- FY2017: $612M 

- FY2018: $631M 

- FY2019: $207M 

- FY2020: $221M 

- FY2021: $245M 

- FY2022: $249M 

- FY2023: $287M 

- FY2024: $328M 

- FY2025: $358M 

### Gross margin · FY2025

gross margin 26.9%; source https://www.sec.gov/Archives/edgar/data/354963/000035496326000125/shen-20251231.htm; observed 2026-02-26.

- FY2016: 63.8% 

- FY2017: 65.4% 

- FY2018: 59.1% 

- FY2019: 59.6% 

- FY2020: 59.4% 

- FY2021: 58.3% 

- FY2022: 58.9% 

- FY2023: 63.1% 

- FY2024: 60.9% 

- FY2025: 26.9% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in telecom services; annual sales are USD 357.9 million.

- Source: https://www.sec.gov/Archives/edgar/data/354963/000035496326000125/shen-20251231.htm (filed 2026-02-26); FY2025: revenue 357854000; grossProfit 96123000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-05); SHEN.US: Shenandoah Telecommunications Company, together with its subsidiaries, provides broadband services and video and voice services in the United States. The company offers broadband internet, video, and voice services; high-speed Ethernet and dark fiber leasing services; and managed network services to residential and commercial customers in Virginia, West Virginia, Maryland, Pennsylvania, Kentucky, Delaware, Ohio, and Indiana through fiber optics under the brand name of Glo Fiber and hybrid fiber coaxial cable under the Shentel brand name. It also provides Ethernet and wavelength fiber optic services to enterprise and wholesale customers under the Glo Fiber Business brand names; and DSL telephone services. The company was founded in 1902 and is based in Edinburg, Virginia.

### Why customers stay

Margins ranged from 26.9% to 63.1% during 2023–25; it lost 0.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2023: grossProfit / revenue = 63.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2024: grossProfit / revenue = 60.9%.

- Source: https://www.sec.gov/Archives/edgar/data/354963/000035496326000125/shen-20251231.htm (filed 2026-02-26); FY2025: grossProfit / revenue = 26.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); 10-year return on capital observations [[2016,0.015515253626643778],[2017,0.04900519764867772],[2018,0.07144762726201319],[2019,-0.001364884936719745],[2020,-0.0023297474987236102],[2021,-0.003980278783312313],[2022,-0.019140829079118675],[2023,0.008141686420445757],[2024,-0.018251206410053362],[2025,-0.012209061732580406]]; median -0.0018473162177216776. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2017: growth capex 0; upkeep 146489000; cash acquisitions 6000000; owner earnings 98436000. Growth capex plus acquisitions / owner earnings = 0.06095330976472022.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2018: growth capex 0; upkeep 136641000; cash acquisitions 0; owner earnings 76701000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2020: growth capex 30727826.287093386; upkeep 105840173.71290661; cash acquisitions 1890000; owner earnings 68868826.28709339. Growth capex plus acquisitions / owner earnings = 0.4736225088419468.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2021: growth capex 59830951.18513596; upkeep 100270048.81486404; cash acquisitions 0; owner earnings 954187951.185136. Growth capex plus acquisitions / owner earnings = 0.06270352828373461.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2024: growth capex 125069284.07802486; upkeep 194000715.92197514; cash acquisitions 347411000; owner earnings 94840284.07802486. Growth capex plus acquisitions / owner earnings = 4.98185226532342.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Dividend observations: [[2016,11705000],[2017,12257000],[2018,12866000],[2019,13943000],[2020,16424000],[2021,940256000],[2022,3991000],[2023,4523000],[2024,5805000],[2025,6445000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-05); SHEN.US SharesStats.PercentInsiders = 4.981 percentage points; cache date 2026-10-05.

### What the price says

The price is 1.6 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Closing price 10.23 USD; reporting-to-trading FX 1; FY2025 annual sales per share 6.494627949183303; price multiple 1.5751479653713527. FY2025 cash earnings/share -2.928108903188316. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $26.40 per share

- 2016-11: $28.05 per share

- 2016-12: $27.30 per share

- 2017-01: $27.25 per share

- 2017-02: $28.10 per share

- 2017-03: $28.05 per share

- 2017-04: $32.00 per share

- 2017-05: $30.65 per share

- 2017-06: $30.70 per share

- 2017-07: $30.75 per share

- 2017-08: $36.05 per share

- 2017-09: $37.20 per share

- 2017-10: $38.00 per share

- 2017-11: $38.35 per share

- 2017-12: $33.80 per share

- 2018-01: $34.00 per share

- 2018-02: $32.80 per share

- 2018-03: $36.00 per share

- 2018-04: $37.75 per share

- 2018-05: $31.90 per share

- 2018-06: $32.70 per share

- 2018-07: $33.00 per share

- 2018-08: $38.15 per share

- 2018-09: $38.75 per share

- 2018-10: $38.02 per share

- 2018-11: $49.96 per share

- 2018-12: $44.25 per share

- 2019-01: $47.63 per share

- 2019-02: $44.44 per share

- 2019-03: $44.36 per share

- 2019-04: $41.33 per share

- 2019-05: $40.21 per share

- 2019-06: $38.52 per share

- 2019-07: $39.36 per share

- 2019-08: $31.54 per share

- 2019-09: $31.77 per share

- 2019-10: $32.16 per share

- 2019-11: $37.55 per share

- 2019-12: $41.61 per share

- 2020-01: $40.35 per share

- 2020-02: $44.43 per share

- 2020-03: $49.25 per share

- 2020-04: $53.51 per share

- 2020-05: $52.61 per share

- 2020-06: $49.29 per share

- 2020-07: $50.27 per share

- 2020-08: $55.30 per share

- 2020-09: $44.44 per share

- 2020-10: $43.62 per share

- 2020-11: $44.44 per share

- 2020-12: $43.25 per share

- 2021-01: $38.87 per share

- 2021-02: $44.35 per share

- 2021-03: $48.81 per share

- 2021-04: $47.26 per share

- 2021-05: $49.89 per share

- 2021-06: $48.51 per share

- 2021-07: $52.79 per share

- 2021-08: $29.83 per share

- 2021-09: $31.58 per share

- 2021-10: $27.64 per share

- 2021-11: $25.39 per share

- 2021-12: $25.50 per share

- 2022-01: $22.77 per share

- 2022-02: $22.35 per share

- 2022-03: $23.58 per share

- 2022-04: $20.20 per share

- 2022-05: $22.96 per share

- 2022-06: $22.20 per share

- 2022-07: $22.30 per share

- 2022-08: $22.29 per share

- 2022-09: $17.02 per share

- 2022-10: $22.66 per share

- 2022-11: $19.47 per share

- 2022-12: $15.88 per share

- 2023-01: $19.55 per share

- 2023-02: $19.52 per share

- 2023-03: $19.02 per share

- 2023-04: $20.81 per share

- 2023-05: $18.98 per share

- 2023-06: $19.43 per share

- 2023-07: $18.67 per share

- 2023-08: $22.74 per share

- 2023-09: $20.61 per share

- 2023-10: $23.66 per share

- 2023-11: $22.27 per share

- 2023-12: $21.62 per share

- 2024-01: $20.49 per share

- 2024-02: $18.66 per share

- 2024-03: $17.37 per share

- 2024-04: $12.82 per share

- 2024-05: $18.81 per share

- 2024-06: $16.33 per share

- 2024-07: $21.29 per share

- 2024-08: $15.12 per share

- 2024-09: $14.11 per share

- 2024-10: $13.84 per share

- 2024-11: $13.33 per share

- 2024-12: $12.61 per share

- 2025-01: $10.80 per share

- 2025-02: $10.81 per share

- 2025-03: $12.57 per share

- 2025-04: $11.14 per share

- 2025-05: $12.58 per share

- 2025-06: $13.66 per share

- 2025-07: $14.68 per share

- 2025-08: $13.25 per share

- 2025-09: $13.42 per share

- 2025-10: $12.32 per share

- 2025-11: $10.93 per share

- 2025-12: $11.56 per share

- 2026-01: $11.87 per share

- 2026-02: $13.63 per share

- 2026-03: $15.42 per share

- 2026-04: $15.73 per share

- 2026-05: $15.95 per share

- 2026-06: $15.08 per share

- 2026-07: $11.99 per share

- 2026-08: $12.37 per share

- 2026-09: $11.22 per share

- 2026-10: $10.23 per share

## Annual estimated value (USD per share)

- FY2016: low $7.36 per share, central $8.38 per share, high $9.65 per share

- FY2017: low $17.36 per share, central $22.58 per share, high $26.20 per share

- FY2018: low $20.96 per share, central $27.50 per share, high $31.96 per share

- FY2019: low $7.43 per share, central $8.19 per share, high $9.20 per share

- FY2020: low $9.68 per share, central $10.49 per share, high $11.57 per share

- FY2021: low $10.20 per share, central $11.38 per share, high $12.96 per share

- FY2022: low $7.37 per share, central $8.28 per share, high $9.49 per share

- FY2024: low $20.04 per share, central $22.70 per share, high $26.24 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/354963/000035496326000125/shen-20251231.htm); period 2025-12-31, filed 2026-02-26.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.