VNET GROUP INC-ADR (VNET) Stock Fundamental Analysis
USA - NASDAQ:VNET - US90138A1034 - ADR
8.705 USD
+0.13 (+1.46%)
We assign a fundamental rating of 2 out of 10 to VNET. VNET was compared to 85 industry peers in the IT Services industry. VNET has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, VNET is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year VNET has reported negative net income.
The reported net income has been mixed in the past 5 years: VNET reported negative net income in multiple years.
In the past 5 years VNET always reported a positive cash flow from operatings.
1.2 Ratios
VNET has a Return On Assets (0.14%) which is in line with its industry peers.
VNET's Return On Equity of 0.92% is in line compared to the rest of the industry. VNET outperforms 50.59% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.22%, VNET is in line with its industry, outperforming 50.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.14% | ||
| ROE | 0.92% | ||
| ROIC | 2.22% |
ROA(3y)-3.67%
ROA(5y)-4.57%
ROE(3y)-17.61%
ROE(5y)-17.45%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of VNET (0.63%) is comparable to the rest of the industry.
VNET's Profit Margin has declined in the last couple of years.
VNET has a Operating Margin of 9.39%. This is in the better half of the industry: VNET outperforms 67.06% of its industry peers.
VNET's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 23.32%, VNET is doing worse than 75.29% of the companies in the same industry.
In the last couple of years the Gross Margin of VNET has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.39% | ||
| PM (TTM) | 0.63% | ||
| GM | 23.32% |
OM growth 3Y55.51%
OM growth 5Y11.01%
PM growth 3Y-34.75%
PM growth 5YN/A
GM growth 3Y-1.53%
GM growth 5Y-2.2%
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.
VNET has more shares outstanding than it did 5 years ago.
The debt/assets ratio for VNET has been reduced compared to a year ago.
2.2 Solvency
VNET has an Altman-Z score of 0.19. 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 0.19, VNET is doing worse than 75.29% of the companies in the same industry.
VNET has a Debt/Equity ratio of 2.78. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.78, VNET is not doing good in the industry: 81.18% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.78 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.19 |
ROIC/WACC0.51
WACC4.34%
2.3 Liquidity
A Current Ratio of 0.97 indicates that VNET may have some problems paying its short term obligations.
VNET has a worse Current ratio (0.97) than 77.65% of its industry peers.
VNET has a Quick Ratio of 0.97. 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 0.97. This is in the lower half of the industry: VNET underperforms 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
VNET shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 94.83%, which is quite impressive.
VNET shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -42.03% yearly.
Looking at the last year, VNET shows a quite strong growth in Revenue. The Revenue has grown by 17.85% in the last year.
VNET shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.86% yearly.
EPS 1Y (TTM)94.83%
EPS 3Y-42.03%
EPS 5YN/A
EPS Q2Q%-125%
Revenue 1Y (TTM)17.85%
Revenue growth 3Y10.09%
Revenue growth 5Y16.86%
Sales Q2Q%22.09%
3.2 Future
The Earnings Per Share is expected to grow by 55.81% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 16.01% on average over the next years. This is quite good.
EPS Next Y113.34%
EPS Next 2Y37.98%
EPS Next 3Y55.81%
EPS Next 5YN/A
Revenue Next Year19.04%
Revenue Next 2Y19.24%
Revenue Next 3Y19.19%
Revenue Next 5Y16.01%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
VNET reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for VNET. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VNET is valued a bit cheaper than 70.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.91 |
4.3 Compensation for Growth
VNET's earnings are expected to grow with 55.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y37.98%
EPS Next 3Y55.81%
5. Dividend
5.1 Amount
No dividends for VNET!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:VNET (11/18/2025, 3:28:09 PM)
8.705
+0.13 (+1.46%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners51.48%
Inst Owner Change8.18%
Ins Owners2.12%
Ins Owner ChangeN/A
Market Cap2.32B
Revenue(TTM)9.05B
Net Income(TTM)56.99M
Analysts85.26
Price Target14.88 (70.94%)
Short Float %64.6%
Short Ratio4.45
Dividend
| Industry Rank | Sector 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)0
Avg EPS beat(2)-469.49%
Min EPS beat(2)-678.57%
Max EPS beat(2)-260.41%
EPS beat(4)1
Avg EPS beat(4)-59.3%
Min EPS beat(4)-678.57%
Max EPS beat(4)840.99%
EPS beat(8)3
Avg EPS beat(8)-193.3%
EPS beat(12)5
Avg EPS beat(12)-164.94%
EPS beat(16)8
Avg EPS beat(16)95.01%
Revenue beat(2)1
Avg Revenue beat(2)1.51%
Min Revenue beat(2)-0.92%
Max Revenue beat(2)3.94%
Revenue beat(4)3
Avg Revenue beat(4)3.08%
Min Revenue beat(4)-0.92%
Max Revenue beat(4)6.11%
Revenue beat(8)4
Avg Revenue beat(8)0.26%
Revenue beat(12)4
Avg Revenue beat(12)-1.06%
Revenue beat(16)4
Avg Revenue beat(16)-1.61%
PT rev (1m)1.12%
PT rev (3m)7.65%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-650.06%
EPS NY rev (1m)-49.28%
EPS NY rev (3m)110.01%
Revenue NQ rev (1m)-1.24%
Revenue NQ rev (3m)2.95%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 1.83 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.68 | ||
| P/tB | 3.9 | ||
| EV/EBITDA | 11.91 |
EPS(TTM)-0.12
EYN/A
EPS(NY)-0.01
Fwd EYN/A
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS4.77
BVpS3.25
TBVpS2.23
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.14% | ||
| ROE | 0.92% | ||
| ROCE | 2.9% | ||
| ROIC | 2.22% | ||
| ROICexc | 2.58% | ||
| ROICexgc | 2.79% | ||
| OM | 9.39% | ||
| PM (TTM) | 0.63% | ||
| GM | 23.32% | ||
| FCFM | N/A |
ROA(3y)-3.67%
ROA(5y)-4.57%
ROE(3y)-17.61%
ROE(5y)-17.45%
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
ROICexgc growth 3Y51.34%
ROICexgc growth 5Y2.79%
ROICexc growth 3Y55.43%
ROICexc growth 5Y5.51%
OM growth 3Y55.51%
OM growth 5Y11.01%
PM growth 3Y-34.75%
PM growth 5YN/A
GM growth 3Y-1.53%
GM growth 5Y-2.2%
F-ScoreN/A
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.78 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.01 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 0.19 |
F-ScoreN/A
WACC4.34%
ROIC/WACC0.51
Cap/Depr(3y)228.17%
Cap/Depr(5y)232.11%
Cap/Sales(3y)49.09%
Cap/Sales(5y)48.95%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)94.83%
EPS 3Y-42.03%
EPS 5YN/A
EPS Q2Q%-125%
EPS Next Y113.34%
EPS Next 2Y37.98%
EPS Next 3Y55.81%
EPS Next 5YN/A
Revenue 1Y (TTM)17.85%
Revenue growth 3Y10.09%
Revenue growth 5Y16.86%
Sales Q2Q%22.09%
Revenue Next Year19.04%
Revenue Next 2Y19.24%
Revenue Next 3Y19.19%
Revenue Next 5Y16.01%
EBIT growth 1Y1359.68%
EBIT growth 3Y71.21%
EBIT growth 5Y29.73%
EBIT Next Year360.33%
EBIT Next 3Y96.11%
EBIT Next 5Y57.81%
FCF growth 1Y-213.2%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-2.81%
OCF growth 3Y13.05%
OCF growth 5Y20.09%
VNET GROUP INC-ADR / VNET FAQ
What is the ChartMill fundamental rating of VNET GROUP INC-ADR (VNET) stock?
ChartMill assigns a fundamental rating of 2 / 10 to VNET.
Can you provide the valuation status for VNET GROUP INC-ADR?
ChartMill assigns a valuation rating of 1 / 10 to VNET GROUP INC-ADR (VNET). This can be considered as Overvalued.
What is the profitability of VNET stock?
VNET GROUP INC-ADR (VNET) has a profitability rating of 3 / 10.
Can you provide the financial health for VNET stock?
The financial health rating of VNET GROUP INC-ADR (VNET) is 0 / 10.