VNET GROUP INC-ADR (VNET) Stock Fundamental Analysis
NASDAQ:VNET - Nasdaq - US90138A1034 - ADR - Currency: USD
We assign a fundamental rating of 2 out of 10 to VNET. VNET was compared to 82 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
VNET had negative earnings in the past year.
In the past year VNET had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: VNET reported negative net income in multiple years.
Each year in the past 5 years VNET had a positive operating cash flow.
1.2 Ratios
VNET's Return On Assets of 0.57% is in line compared to the rest of the industry. VNET outperforms 47.56% of its industry peers.
VNET has a Return On Equity of 2.88%. This is comparable to the rest of the industry: VNET outperforms 53.66% of its industry peers.
VNET has a Return On Invested Capital (2.24%) which is in line with its industry peers.
| 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
VNET has a Profit Margin (2.22%) which is in line with its industry peers.
VNET's Profit Margin has declined in the last couple of years.
The Operating Margin of VNET (8.11%) is better than 63.41% of its industry peers.
VNET's Operating Margin has improved in the last couple of years.
VNET has a worse Gross Margin (22.18%) than 75.61% of its industry peers.
In the last couple of years the Gross Margin of VNET has declined.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VNET is destroying value.
VNET has more shares outstanding than it did 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 0.03. 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 0.03, VNET is not doing good in the industry: 80.49% 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.
With a Debt to Equity ratio value of 1.85, VNET is not doing good in the industry: 75.61% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.03 |
ROIC/WACC0.28
WACC7.94%
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 85.37% 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.
VNET has a Quick ratio of 0.73. This is amonst the worse of the industry: VNET underperforms 85.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 97.80% over the past year.
VNET shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -42.03% yearly.
The Revenue has grown by 11.42% in the past year. This is quite good.
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
VNET is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 54.78% yearly.
Based on estimates for the next years, VNET will show a quite strong growth in Revenue. The Revenue will grow by 16.42% on average per year.
EPS Next Y116.71%
EPS Next 2Y48.82%
EPS Next 3Y54.78%
EPS Next 5YN/A
Revenue Next Year15.52%
Revenue Next 2Y18.34%
Revenue Next 3Y18.52%
Revenue Next 5Y16.42%
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
The Price/Earnings Ratio is negative for VNET. In the last year negative earnings were reported.
The Price/Forward Earnings ratio is 679.67, which means the current valuation is very expensive for VNET.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VNET indicates a slightly more expensive valuation: VNET is more expensive than 60.98% of the companies listed 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 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 679.67 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VNET is valued a bit cheaper than the industry average as 78.05% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.13 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
VNET's earnings are expected to grow with 54.78% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y48.82%
EPS Next 3Y54.78%
5. Dividend
5.1 Amount
No dividends for VNET!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
5.99
-0.06 (-0.99%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners40.47%
Inst Owner Change39.88%
Ins Owners2.17%
Ins Owner ChangeN/A
Market Cap1.60B
Analysts84.44
Price Target16.24 (171.12%)
Short Float %60.21%
Short Ratio2.51
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)-0.5%
PT rev (3m)160.89%
EPS NQ rev (1m)18.6%
EPS NQ rev (3m)N/A
EPS NY rev (1m)47.34%
EPS NY rev (3m)-75.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)3.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 679.67 | ||
| P/S | 1.39 | ||
| P/FCF | N/A | ||
| P/OCF | 5.75 | ||
| P/B | 1.81 | ||
| P/tB | 2.32 | ||
| EV/EBITDA | 10.13 |
EPS(TTM)-0.05
EYN/A
EPS(NY)0.01
Fwd EY0.15%
FCF(TTM)-1.58
FCFYN/A
OCF(TTM)1.04
OCFY17.41%
SpS4.29
BVpS3.31
TBVpS2.58
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 | 0.03 |
F-Score6
WACC7.94%
ROIC/WACC0.28
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 Y116.71%
EPS Next 2Y48.82%
EPS Next 3Y54.78%
EPS Next 5YN/A
Revenue 1Y (TTM)11.42%
Revenue growth 3Y10.09%
Revenue growth 5Y16.86%
Sales Q2Q%18.33%
Revenue Next Year15.52%
Revenue Next 2Y18.34%
Revenue Next 3Y18.52%
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%