VNET GROUP INC-ADR (VNET)
US90138A1034 - ADR
We assign a fundamental rating of 1 out of 10 to VNET. VNET was compared to 86 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.
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.
In the past 5 years VNET reported 4 times negative net income.
In the past 5 years VNET always reported a positive cash flow from operatings.
1.2 Ratios
VNET's Return On Assets of -8.70% is on the low side compared to the rest of the industry. VNET is outperformed by 63.10% of its industry peers.
VNET's Return On Equity of -43.96% is on the low side compared to the rest of the industry. VNET is outperformed by 69.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.7% | ||
| ROE | -43.96% | ||
| ROIC | 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
1.3 Margins
With a Gross Margin value of 17.44%, VNET is not doing good in the industry: 86.90% of the companies in the same industry are doing better.
VNET's Gross Margin has declined in the last couple of years.
The Profit Margin and Operating Margin are not available for VNET so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 17.44% |
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
VNET does not have a ROIC to compare to the WACC, probably because it is not profitable.
VNET has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, VNET has more shares outstanding
VNET has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.26, we must say that VNET is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of VNET (-0.26) is worse than 73.81% of its industry peers.
A Debt/Equity ratio of 1.34 is on the high side and indicates that VNET has dependencies on debt financing.
VNET has a Debt to Equity ratio of 1.34. This is in the lower half of the industry: VNET underperforms 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.26 |
ROIC/WACCN/A
WACC6.01%
2.3 Liquidity
VNET has a Current Ratio of 0.86. 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 Current ratio value of 0.86, VNET is not doing good in the industry: 82.14% of the companies in the same industry are doing better.
A Quick Ratio of 0.86 indicates that VNET may have some problems paying its short term obligations.
With a Quick ratio value of 0.86, VNET is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
VNET shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -203.51%.
The Revenue has been growing slightly by 4.92% in the past year.
Measured over the past years, VNET shows a quite strong growth in Revenue. The Revenue has been growing by 16.86% on average per year.
EPS 1Y (TTM)-203.51%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-3680.95%
Revenue 1Y (TTM)4.92%
Revenue growth 3Y15.36%
Revenue growth 5Y16.86%
Revenue growth Q2Q0.95%
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 40.88% on average per year.
VNET is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.60% yearly.
EPS Next Y94.93%
EPS Next 2Y40.88%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.08%
Revenue Next 2Y7.05%
Revenue Next 3Y8.64%
Revenue Next 5Y6.6%
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less 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
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VNET indicates a rather cheap valuation: VNET is cheaper than 82.14% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.66 |
4.3 Compensation for Growth
VNET's earnings are expected to grow with 40.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y40.88%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for VNET!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
VNET GROUP INC-ADR
NASDAQ:VNET (4/26/2024, 7:22:54 PM)
After market: 1.53 -0.05 (-3.16%)1.58
-0.08 (-4.82%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap406.64M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.7% | ||
| ROE | -43.96% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 17.44% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-203.51%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y94.93%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.92%
Revenue growth 3Y15.36%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y