Founder, BWS Financial Inc

Hamed Khorsand

Founder

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Equity Bottom-Up

Shenandoah Telecommunications Company / Equity Bottom-Up

<ul>
<li>SHEN grew the number of Glo Fiber subscribers by approximately 6 thousand in Q3. Glo Fiber subscribers have routinely opted for faster speed tiers resulting in ARPU rising.   </li>
<li>The growth SHEN should continue to experience within Glo Fiber remains the underlying reason why we moved back to a Buy Rating. </li>
<li>An optimized operation in the second half of 2025 along with continued Glo Fiber subscriber additions should lead to adjusted EBITDA being higher than the current run rate.</li>
</ul>


SHEN grew the number of Glo Fiber subscribers by approximately 6 thousand in Q3. Glo Fiber subscribers have routinely opted for faster speed tiers resulting in ARPU rising.   
The growth SHEN should continue to experience within Glo Fiber remains the underlying reason why we moved back to a Buy Rating. 
An optimized operation in the second half of 2025 along with continued Glo Fiber subscriber additions should lead to adjusted EBITDA being higher than the current run rate.


<ul>
<li>SHEN added a record number of Glo Fiber subscribers in the first quarter as growing number of markets served begins to run through the subscriber and revenue figures</li>
<li>SHEN’s ability to add over 5,000 Glo Fiber customers in Q1 sets our expectations for approximately 5,500 in Q3 when net adds are seasonally the highest of the year</li>
<li>Our timing to flip to a Buy after four years of negative bias has been anything but perfect. Our focus is on SHEN’s growth rate as Glo Fiber customers rise.</li>
</ul>


SHEN added a record number of Glo Fiber subscribers in the first quarter as growing number of markets served begins to run through the subscriber and revenue figures
SHEN’s ability to add over 5,000 Glo Fiber customers in Q1 sets our expectations for approximately 5,500 in Q3 when net adds are seasonally the highest of the year
Our timing to flip to a Buy after four years of negative bias has been anything but perfect. Our focus is on SHEN’s growth rate as Glo Fiber customers rise.


<ul>
<li>SHEN announced the sale of its tower assets for a price that would equivalently pay for the purchase of Horizon Telecom, effectively creating an asset trade that creates considerably value.</li>
<li>SHEN has unlocked value by selling assets that are expected to experience a decline in revenue after this year for assets that should realize revenue and adjusted EBITDA growth</li>
<li>The growth SHEN is purchasing without the need of cash financing should have a positive impact on SHEN’s valuation.</li>
</ul>


SHEN announced the sale of its tower assets for a price that would equivalently pay for the purchase of Horizon Telecom, effectively creating an asset trade that creates considerably value.
SHEN has unlocked value by selling assets that are expected to experience a decline in revenue after this year for assets that should realize revenue and adjusted EBITDA growth
The growth SHEN is purchasing without the need of cash financing should have a positive impact on SHEN’s valuation.


<ul>
<li>SHEN continued to add Glo Fiber subscribers in the fourth quarter as the Company expanded the service’s network footprint. Glo Fiber now passes approximately 237 thousand homes</li>
<li>The network expansion is expected to continue in 2024 with SHEN remaining on target to 600 thousand passings in the next two years</li>
<li>SHEN ended 2023 with $299.9 million in debt and is likely to incur additional debt for the current capital expenditure plan</li>
</ul>


SHEN continued to add Glo Fiber subscribers in the fourth quarter as the Company expanded the service’s network footprint. Glo Fiber now passes approximately 237 thousand homes
The network expansion is expected to continue in 2024 with SHEN remaining on target to 600 thousand passings in the next two years
SHEN ended 2023 with $299.9 million in debt and is likely to incur additional debt for the current capital expenditure plan


<ul>
<li>SHEN is expanding its network footprint with the acquisition of Horizon Telecom for $385 million in cash and stock.</li>
<li>SHEN is purchasing Horizon for the network footprint and the sales ability to capture commercial customers compared to the majority of SHEN’s customers being residential</li>
<li>The valuation becomes financially reasonable to understand when considering SHEN is paying approximately $51 thousand per fiber miles</li>
</ul>


SHEN is expanding its network footprint with the acquisition of Horizon Telecom for $385 million in cash and stock.
SHEN is purchasing Horizon for the network footprint and the sales ability to capture commercial customers compared to the majority of SHEN’s customers being residential
The valuation becomes financially reasonable to understand when considering SHEN is paying approximately $51 thousand per fiber miles


United States

Shenandoah Telecommunications Company provides telecommunications services through its subsidiaries.  The Company offers integrated, full service telecommunications products and services in the Northern Shenandoah Valley and surrounding areas.  Shenandoah Telecommunications also holds paging and other radio telecommunications licenses.

Shenandoah Telecommunications Company (SHEN US)

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Shenandoah Telecommunications Company (SHEN US)

SHEN: Fiber of Growth

SHEN added approximately 6 thousand Glo Fiber subscribers in the quarter and has completed several of the difficult integrations with Horizon Telecom.

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SHEN: Glo-Ing Adds

The record number of Glo Fiber adds in the quarter put SHEN on pace for higher-than-expected adjusted EBITDA this year, which we do not believe is...

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SHEN: Winning Trade, Upgrade to Buy

We are upgrading to Buy Rating from Neutral after SHEN announced the sale of its tower assets for cash that would more than cover the cash...

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SHEN: The Wait for Free Cash Flow

The Glo Fiber network expansion continues and has generated incremental subscribers, which is lifting quarterly revenue. However, in 2024, SHEN...

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SHEN: On the Horizon

The purchase price on TTM adjusted EBITDA basis is materially higher than we think anyone should be spending when interest rates are rising....

BWS Financial Inc

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