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VNET GROUP INC-ADR (VNET) Stock Fundamental Analysis

NASDAQ:VNET - Nasdaq - US90138A1034 - ADR - Currency: USD

11.73  -0.18 (-1.51%)

After market: 11.8 +0.07 (+0.6%)

Fundamental Rating

2

Taking everything into account, VNET scores 2 out of 10 in our fundamental rating. VNET was compared to 82 industry peers in the IT Services industry. Both the profitability and financial health of VNET have multiple concerns. While showing a medium growth rate, VNET is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

VNET had negative earnings in the past year.
VNET had a positive operating cash flow in the past year.
In the past 5 years VNET reported 4 times negative net income.
VNET had a positive operating cash flow in each of the past 5 years.
VNET Yearly Net Income VS EBIT VS OCF VS FCFVNET Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B -1B 2B -2B

1.2 Ratios

VNET has a worse Return On Assets (-7.51%) than 66.67% of its industry peers.
Looking at the Return On Equity, with a value of -35.48%, VNET is doing worse than 65.38% of the companies in the same industry.
VNET has a Return On Invested Capital (0.33%) which is in line with its industry peers.
Industry RankSector 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
VNET Yearly ROA, ROE, ROICVNET Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -10 -20 -30 -40

1.3 Margins

VNET's Operating Margin of 1.16% is in line compared to the rest of the industry. VNET outperforms 46.15% of its industry peers.
The Gross Margin of VNET (20.45%) is worse than 78.21% of its industry peers.
In the last couple of years the Gross Margin of VNET has declined.
Industry RankSector 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%
VNET Yearly Profit, Operating, Gross MarginsVNET Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 -40

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VNET is destroying value.
The number of shares outstanding for VNET has been increased compared to 1 year ago.
Compared to 5 years ago, VNET has more shares outstanding
The debt/assets ratio for VNET is higher compared to a year ago.
VNET Yearly Shares OutstandingVNET Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M
VNET Yearly Total Debt VS Total AssetsVNET Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 10B 20B 30B

2.2 Solvency

VNET has an Altman-Z score of 0.29. This is a bad value and indicates that VNET is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.29, VNET is doing worse than 79.49% of the companies in the same industry.
A Debt/Equity ratio of 1.67 is on the high side and indicates that VNET has dependencies on debt financing.
VNET's Debt to Equity ratio of 1.67 is on the low side compared to the rest of the industry. VNET is outperformed by 74.36% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.67
Debt/FCF N/A
Altman-Z 0.29
ROIC/WACC0.04
WACC8.65%
VNET Yearly LT Debt VS Equity VS FCFVNET Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B 4B 6B 8B

2.3 Liquidity

VNET has a Current 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 has a Current ratio of 0.83. This is amonst the worse of the industry: VNET underperforms 85.90% 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 has a Quick ratio of 0.83. This is amonst the worse of the industry: VNET underperforms 85.90% of its industry peers.
Industry RankSector Rank
Current Ratio 0.83
Quick Ratio 0.83
VNET Yearly Current Assets VS Current LiabilitesVNET Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

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4

3. Growth

3.1 Past

The earnings per share for VNET have decreased strongly by -780.43% in the last year.
VNET shows a small growth in Revenue. In the last year, the Revenue has grown by 6.98%.
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

Based on estimates for the next years, VNET will show a very strong growth in Earnings Per Share. The EPS will grow by 26.22% on average per year.
The Revenue is expected to grow by 9.99% on average over the next years. This is quite good.
EPS Next Y105.05%
EPS Next 2Y41.98%
EPS Next 3Y26.22%
EPS Next 5YN/A
Revenue Next Year7.36%
Revenue Next 2Y9.36%
Revenue Next 3Y10.76%
Revenue Next 5Y9.99%

3.3 Evolution

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
VNET Yearly Revenue VS EstimatesVNET Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5B 10B
VNET Yearly EPS VS EstimatesVNET Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 0 -5 -10 -15

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1

4. Valuation

4.1 Price/Earnings Ratio

VNET reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
A Price/Forward Earnings ratio of 309.31 indicates a quite expensive valuation of VNET.
Based on the Price/Forward Earnings ratio, VNET is valued a bit more expensive than 62.82% of the companies in the same industry.
VNET's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.67.
Industry RankSector Rank
PE N/A
Fwd PE 309.31
VNET Price Earnings VS Forward Price EarningsVNET Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 100 200 300

4.2 Price Multiples

61.54% of the companies in the same industry are more expensive than VNET, based on the Enterprise Value to EBITDA ratio.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 18.88
VNET Per share dataVNET EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates VNET does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as VNET's earnings are expected to grow with 26.22% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y41.98%
EPS Next 3Y26.22%

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0

5. Dividend

5.1 Amount

No dividends for VNET!.
Industry RankSector Rank
Dividend Yield N/A

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VNET GROUP INC-ADR

NASDAQ:VNET (2/28/2025, 8:21:02 PM)

After market: 11.8 +0.07 (+0.6%)

11.73

-0.18 (-1.51%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)11-20 2024-11-20/amc
Earnings (Next)03-25 2025-03-25/amc
Inst Owners40.47%
Inst Owner Change20.74%
Ins Owners2.17%
Ins Owner ChangeN/A
Market Cap3.13B
Analysts85
Price Target10.14 (-13.55%)
Short Float %34.46%
Short Ratio2.76
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/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)62.9%
PT rev (3m)109.42%
EPS NQ rev (1m)-9.09%
EPS NQ rev (3m)314.29%
EPS NY rev (1m)5.12%
EPS NY rev (3m)160.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)0.72%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 309.31
P/S 2.88
P/FCF N/A
P/OCF 10.53
P/B 3.6
P/tB 4.57
EV/EBITDA 18.88
EPS(TTM)-2.23
EYN/A
EPS(NY)0.04
Fwd EY0.32%
FCF(TTM)-1.23
FCFYN/A
OCF(TTM)1.11
OCFY9.49%
SpS4.07
BVpS3.26
TBVpS2.57
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 0.29
F-Score5
WACC8.65%
ROIC/WACC0.04
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 Y105.05%
EPS Next 2Y41.98%
EPS Next 3Y26.22%
EPS Next 5YN/A
Revenue 1Y (TTM)6.98%
Revenue growth 3Y15.36%
Revenue growth 5Y16.86%
Sales Q2Q%12.39%
Revenue Next Year7.36%
Revenue Next 2Y9.36%
Revenue Next 3Y10.76%
Revenue Next 5Y9.99%
EBIT growth 1Y-58.92%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year903.29%
EBIT Next 3Y141.68%
EBIT Next 5Y87.35%
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%