VNET GROUP INC-ADR (VNET)
US90138A1034 - ADR
We assign a fundamental rating of 2 out of 10 to VNET. VNET was compared to 83 industry peers in the IT Services industry. Both the profitability and financial health of VNET have multiple concerns. VNET is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year VNET has reported negative net income.
VNET had a positive operating cash flow in the past year.
VNET had negative earnings in 4 of the past 5 years.
Each year in the past 5 years VNET had a positive operating cash flow.
1.2 Ratios
VNET's Return On Assets of -7.51% is on the low side compared to the rest of the industry. VNET is outperformed by 67.90% of its industry peers.
The Return On Equity of VNET (-35.48%) is worse than 65.43% of its industry peers.
VNET has a Return On Invested Capital (0.33%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.51% | ||
| ROE | -35.48% | ||
| ROIC | 0.33% |
ROA(3y)-3.15%
ROA(5y)-4.94%
ROE(3y)-16.29%
ROE(5y)-18.76%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Operating Margin of VNET (1.16%) is comparable to the rest of the industry.
VNET has a worse Gross Margin (20.45%) than 80.25% of its industry peers.
In the last couple of years the Gross Margin of VNET has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.16% | ||
| PM (TTM) | N/A | ||
| GM | 20.45% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-7.85%
GM growth 5Y-8.9%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VNET is destroying value.
VNET has more shares outstanding than it did 1 year ago.
VNET has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, VNET has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -0.10, we must say that VNET is in the distress zone and has some risk of bankruptcy.
VNET's Altman-Z score of -0.10 is on the low side compared to the rest of the industry. VNET is outperformed by 81.48% of its industry peers.
A Debt/Equity ratio of 1.67 is on the high side and indicates that VNET has dependencies on debt financing.
VNET has a worse Debt to Equity ratio (1.67) than 75.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.67 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.1 |
ROIC/WACC0.05
WACC6.44%
2.3 Liquidity
A Current Ratio of 0.83 indicates that VNET may have some problems paying its short term obligations.
VNET has a Current ratio of 0.83. This is amonst the worse of the industry: VNET underperforms 82.72% of its industry peers.
VNET has a Quick Ratio of 0.83. This is a bad value and indicates that VNET is not financially healthy enough and could expect problems in meeting its short term obligations.
VNET's Quick ratio of 0.83 is on the low side compared to the rest of the industry. VNET is outperformed by 82.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
VNET shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -780.43%.
The Revenue has been growing slightly by 6.98% in the past year.
The Revenue has been growing by 16.86% on average over the past years. This is quite good.
EPS 1Y (TTM)-780.43%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%157.14%
Revenue 1Y (TTM)6.98%
Revenue growth 3Y15.36%
Revenue growth 5Y16.86%
Sales Q2Q%12.39%
3.2 Future
VNET is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.82% yearly.
The Revenue is expected to grow by 10.05% on average over the next years. This is quite good.
EPS Next Y104.8%
EPS Next 2Y41.7%
EPS Next 3Y25.82%
EPS Next 5YN/A
Revenue Next Year7.19%
Revenue Next 2Y9.32%
Revenue Next 3Y10.76%
Revenue Next 5Y10.05%
3.3 Evolution
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for VNET. In the last year negative earnings were reported.
VNET is valuated quite expensively with a Price/Forward Earnings ratio of 225.66.
Based on the Price/Forward Earnings ratio, VNET is valued a bit more expensive than 61.73% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of VNET to the average of the S&P500 Index (23.99), we can say VNET is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 225.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VNET is valued cheaply inside the industry as 81.48% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.91 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
VNET's earnings are expected to grow with 25.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y41.7%
EPS Next 3Y25.82%
5. Dividend
5.1 Amount
VNET does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
VNET GROUP INC-ADR
NASDAQ:VNET (12/26/2024, 2:46:01 PM)
4.18
+0.46 (+12.37%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners29.5%
Inst Owner Change8.21%
Ins Owners2.17%
Ins Owner ChangeN/A
Market Cap1.12B
Analysts85
Price Target5.88 (40.67%)
Short Float %2.91%
Short Ratio3.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)498.51%
Min EPS beat(2)156.02%
Max EPS beat(2)840.99%
EPS beat(4)2
Avg EPS beat(4)-128.51%
Min EPS beat(4)-1106.87%
Max EPS beat(4)840.99%
EPS beat(8)5
Avg EPS beat(8)-64.28%
EPS beat(12)7
Avg EPS beat(12)184.44%
EPS beat(16)10
Avg EPS beat(16)231.54%
Revenue beat(2)2
Avg Revenue beat(2)2.13%
Min Revenue beat(2)1.05%
Max Revenue beat(2)3.2%
Revenue beat(4)2
Avg Revenue beat(4)-1.45%
Min Revenue beat(4)-7.75%
Max Revenue beat(4)3.2%
Revenue beat(8)2
Avg Revenue beat(8)-2.42%
Revenue beat(12)2
Avg Revenue beat(12)-2.83%
Revenue beat(16)3
Avg Revenue beat(16)-2.12%
PT rev (1m)21.46%
PT rev (3m)71.87%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-275%
EPS NY rev (1m)361.46%
EPS NY rev (3m)256.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.77%
Revenue NY rev (1m)1.02%
Revenue NY rev (3m)-0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 225.66 | ||
| P/S | 1.03 | ||
| P/FCF | N/A | ||
| P/OCF | 3.76 | ||
| P/B | 1.28 | ||
| P/tB | 1.63 | ||
| EV/EBITDA | 9.91 |
EPS(TTM)-2.22
EYN/A
EPS(NY)0.02
Fwd EY0.44%
FCF(TTM)-1.23
FCFYN/A
OCF(TTM)1.11
OCFY26.58%
SpS4.06
BVpS3.25
TBVpS2.56
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.51% | ||
| ROE | -35.48% | ||
| ROCE | 0.43% | ||
| ROIC | 0.33% | ||
| ROICexc | 0.35% | ||
| ROICexgc | 0.38% | ||
| OM | 1.16% | ||
| PM (TTM) | N/A | ||
| GM | 20.45% | ||
| FCFM | N/A |
ROA(3y)-3.15%
ROA(5y)-4.94%
ROE(3y)-16.29%
ROE(5y)-18.76%
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 3YN/A
PM growth 5YN/A
GM growth 3Y-7.85%
GM growth 5Y-8.9%
F-Score5
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.67 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.12 | ||
| Cap/Depr | 277.83% | ||
| Cap/Sales | 57.62% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 124.91% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | -0.1 |
F-Score5
WACC6.44%
ROIC/WACC0.05
Cap/Depr(3y)195.52%
Cap/Depr(5y)201.6%
Cap/Sales(3y)43.61%
Cap/Sales(5y)43.39%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-780.43%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%157.14%
EPS Next Y104.8%
EPS Next 2Y41.7%
EPS Next 3Y25.82%
EPS Next 5YN/A
Revenue 1Y (TTM)6.98%
Revenue growth 3Y15.36%
Revenue growth 5Y16.86%
Sales Q2Q%12.39%
Revenue Next Year7.19%
Revenue Next 2Y9.32%
Revenue Next 3Y10.76%
Revenue Next 5Y10.05%
EBIT growth 1Y-58.92%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year893.34%
EBIT Next 3Y138.61%
EBIT Next 5Y87.44%
FCF growth 1Y-402.14%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-19.76%
OCF growth 3Y42.43%
OCF growth 5Y23.96%