VNET GROUP INC-ADR (VNET) Stock Fundamental Analysis
USA - NASDAQ:VNET - US90138A1034 - ADR
9.62 USD
+0.23 (+2.45%)
9.68 USD
+0.06 (+0.62%)
VNET gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 85 industry peers in the IT Services industry. VNET may be in some trouble as it scores bad on both profitability and health. 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.
The reported net income has been mixed in the past 5 years: VNET reported negative net income in multiple years.
VNET had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VNET's Return On Assets of 0.14% is in line compared to the rest of the industry. VNET outperforms 43.53% of its industry peers.
The Return On Equity of VNET (0.92%) is comparable to the rest of the industry.
VNET's Return On Invested Capital of 2.22% is in line compared to the rest of the industry. VNET outperforms 50.59% of its industry peers.
| 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
VNET's Profit Margin of 0.63% is in line compared to the rest of the industry. VNET outperforms 45.88% of its industry peers.
In the last couple of years the Profit Margin of VNET has declined.
VNET has a better Operating Margin (9.39%) than 67.06% of its industry peers.
VNET's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 23.32%, VNET is not doing good in the industry: 77.65% of the companies in the same industry are doing better.
VNET's Gross Margin has declined in the last couple of years.
| 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.
Compared to 5 years ago, VNET has more shares outstanding
Compared to 1 year ago, VNET has an improved debt to assets ratio.
2.2 Solvency
VNET has an Altman-Z score of 0.23. This is a bad value and indicates that VNET is not financially healthy and even has some risk of bankruptcy.
VNET has a worse Altman-Z score (0.23) than 78.82% of its industry peers.
VNET has a Debt/Equity ratio of 2.78. This is a high value indicating a heavy dependency on external financing.
VNET has a worse Debt to Equity ratio (2.78) than 82.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.78 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.23 |
ROIC/WACC0.49
WACC4.52%
2.3 Liquidity
VNET has a Current 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 worse Current ratio (0.97) than 80.00% of its industry peers.
A Quick Ratio of 0.97 indicates that VNET may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.97, VNET is doing worse than 78.82% of the companies in the same industry.
| 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.
The earnings per share for VNET have been decreasing by -42.03% on average. This is quite bad
VNET shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.85%.
The Revenue has been growing by 16.86% on average over the past years. This is quite good.
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
VNET is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 55.81% yearly.
Based on estimates for the next years, VNET will show a quite strong growth in Revenue. The Revenue will grow by 15.89% on average per year.
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 5Y15.89%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VNET indicates a somewhat cheap valuation: VNET is cheaper than 68.24% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.73 |
4.3 Compensation for Growth
A more expensive valuation may be justified as VNET's earnings are expected to grow with 55.81% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y37.98%
EPS Next 3Y55.81%
5. Dividend
5.1 Amount
VNET does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.62
+0.23 (+2.45%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners51.48%
Inst Owner Change-0.27%
Ins Owners2.12%
Ins Owner ChangeN/A
Market Cap2.57B
Revenue(TTM)9.05B
Net Income(TTM)56.99M
Analysts85.26
Price Target14.72 (53.01%)
Short Float %65.82%
Short Ratio4.15
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)4.28%
PT rev (3m)10.46%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-242.1%
EPS NY rev (1m)-49.28%
EPS NY rev (3m)110.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.45%
Revenue NY rev (1m)-0.6%
Revenue NY rev (3m)3.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 2.02 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.96 | ||
| P/tB | 4.32 | ||
| EV/EBITDA | 12.73 |
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
SpS4.76
BVpS3.24
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 | 0.23 |
F-ScoreN/A
WACC4.52%
ROIC/WACC0.49
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 5Y15.89%
EBIT growth 1Y1359.68%
EBIT growth 3Y71.21%
EBIT growth 5Y29.73%
EBIT Next Year360.33%
EBIT Next 3Y96.11%
EBIT Next 5Y57.5%
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.