VNET GROUP INC-ADR (VNET) Stock Fundamental Analysis
NASDAQ:VNET - Nasdaq - US90138A1034 - ADR - Currency: USD
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. VNET is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year VNET has reported negative net income.
In the past year VNET had a positive cash flow from operations.
In multiple years VNET reported negative net income over the last 5 years.
Each year in the past 5 years VNET had a positive operating cash flow.
1.2 Ratios
The Return On Assets of VNET (0.57%) is comparable to the rest of the industry.
VNET's Return On Equity of 2.88% is in line compared to the rest of the industry. VNET outperforms 54.88% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.24%, VNET is in line with its industry, outperforming 48.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.57% | ||
| ROE | 2.88% | ||
| ROIC | 2.24% |
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 (2.22%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of VNET has declined.
VNET's Operating Margin of 8.11% is fine compared to the rest of the industry. VNET outperforms 63.41% of its industry peers.
In the last couple of years the Operating Margin of VNET has grown nicely.
VNET has a Gross Margin of 22.18%. This is in the lower half of the industry: VNET underperforms 74.39% of its industry peers.
VNET's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.11% | ||
| PM (TTM) | 2.22% | ||
| GM | 22.18% |
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
VNET has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, VNET has more shares outstanding
VNET has more shares outstanding than it did 5 years ago.
VNET has a better debt/assets ratio than last year.
2.2 Solvency
VNET has an Altman-Z score of 0.05. This is a bad value and indicates that VNET is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.05, VNET is not doing good in the industry: 78.05% of the companies in the same industry are doing better.
VNET has a Debt/Equity ratio of 1.85. This is a high value indicating a heavy dependency on external financing.
VNET has a worse Debt to Equity ratio (1.85) than 74.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.05 |
ROIC/WACC0.29
WACC7.64%
2.3 Liquidity
A Current Ratio of 0.73 indicates that VNET may have some problems paying its short term obligations.
The Current ratio of VNET (0.73) is worse than 84.15% of its industry peers.
VNET has a Quick Ratio of 0.73. This is a bad value and indicates that VNET is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.73, VNET is not doing good in the industry: 84.15% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
VNET shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 97.80%, which is quite impressive.
The earnings per share for VNET have been decreasing by -42.03% on average. This is quite bad
Looking at the last year, VNET shows a quite strong growth in Revenue. The Revenue has grown by 11.42% in the last year.
The Revenue has been growing by 16.86% on average over the past years. This is quite good.
EPS 1Y (TTM)97.8%
EPS 3Y-42.03%
EPS 5YN/A
EPS Q2Q%99.62%
Revenue 1Y (TTM)11.42%
Revenue growth 3Y10.09%
Revenue growth 5Y16.86%
Sales Q2Q%18.33%
3.2 Future
The Earnings Per Share is expected to grow by 53.12% on average over the next years. This is a very strong growth
VNET is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.42% yearly.
EPS Next Y111.34%
EPS Next 2Y46.89%
EPS Next 3Y53.12%
EPS Next 5YN/A
Revenue Next Year15.45%
Revenue Next 2Y18.27%
Revenue Next 3Y18.5%
Revenue Next 5Y16.42%
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.
A Price/Forward Earnings ratio of 1193.70 indicates a quite expensive valuation of VNET.
VNET's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.86, VNET is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 1193.7 |
4.2 Price Multiples
VNET's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. VNET is cheaper than 75.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.36 |
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.
VNET's earnings are expected to grow with 53.12% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y46.89%
EPS Next 3Y53.12%
5. Dividend
5.1 Amount
No dividends for VNET!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.08
+0.81 (+12.92%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners40.47%
Inst Owner Change-0.36%
Ins Owners2.17%
Ins Owner ChangeN/A
Market Cap1.89B
Analysts84.44
Price Target16.65 (135.17%)
Short Float %65.19%
Short Ratio2.27
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)1
Avg EPS beat(2)350.89%
Min EPS beat(2)-139.22%
Max EPS beat(2)840.99%
EPS beat(4)2
Avg EPS beat(4)113.4%
Min EPS beat(4)-404.2%
Max EPS beat(4)840.99%
EPS beat(8)4
Avg EPS beat(8)-92.51%
EPS beat(12)6
Avg EPS beat(12)165.54%
EPS beat(16)9
Avg EPS beat(16)217.22%
Revenue beat(2)2
Avg Revenue beat(2)4.66%
Min Revenue beat(2)3.2%
Max Revenue beat(2)6.11%
Revenue beat(4)3
Avg Revenue beat(4)2.01%
Min Revenue beat(4)-2.31%
Max Revenue beat(4)6.11%
Revenue beat(8)3
Avg Revenue beat(8)-0.92%
Revenue beat(12)3
Avg Revenue beat(12)-2.09%
Revenue beat(16)3
Avg Revenue beat(16)-1.98%
PT rev (1m)2%
PT rev (3m)181.86%
EPS NQ rev (1m)41.5%
EPS NQ rev (3m)N/A
EPS NY rev (1m)339.11%
EPS NY rev (3m)-68.11%
Revenue NQ rev (1m)-0.4%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)2.92%
Revenue NY rev (3m)3.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 1193.7 | ||
| P/S | 1.66 | ||
| P/FCF | N/A | ||
| P/OCF | 6.85 | ||
| P/B | 2.16 | ||
| P/tB | 2.77 | ||
| EV/EBITDA | 10.36 |
EPS(TTM)-0.05
EYN/A
EPS(NY)0.01
Fwd EY0.08%
FCF(TTM)-1.57
FCFYN/A
OCF(TTM)1.03
OCFY14.6%
SpS4.26
BVpS3.28
TBVpS2.56
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.57% | ||
| ROE | 2.88% | ||
| ROCE | 2.91% | ||
| ROIC | 2.24% | ||
| ROICexc | 2.39% | ||
| ROICexgc | 2.55% | ||
| OM | 8.11% | ||
| PM (TTM) | 2.22% | ||
| GM | 22.18% | ||
| 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
ROICexcg growth 3Y51.34%
ROICexcg 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-Score6
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.2 | ||
| Cap/Depr | 316.21% | ||
| Cap/Sales | 61.19% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.43% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 0.05 |
F-Score6
WACC7.64%
ROIC/WACC0.29
Cap/Depr(3y)226.61%
Cap/Depr(5y)231.18%
Cap/Sales(3y)48.79%
Cap/Sales(5y)48.77%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)97.8%
EPS 3Y-42.03%
EPS 5YN/A
EPS Q2Q%99.62%
EPS Next Y111.34%
EPS Next 2Y46.89%
EPS Next 3Y53.12%
EPS Next 5YN/A
Revenue 1Y (TTM)11.42%
Revenue growth 3Y10.09%
Revenue growth 5Y16.86%
Sales Q2Q%18.33%
Revenue Next Year15.45%
Revenue Next 2Y18.27%
Revenue Next 3Y18.5%
Revenue Next 5Y16.42%
EBIT growth 1Y769.36%
EBIT growth 3Y71.21%
EBIT growth 5Y29.73%
EBIT Next Year342.81%
EBIT Next 3Y94.11%
EBIT Next 5Y57.85%
FCF growth 1Y-205.71%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-2.81%
OCF growth 3Y13.05%
OCF growth 5Y20.09%