VNET GROUP INC-ADR (VNET) Stock Fundamental Analysis
NASDAQ:VNET - US90138A1034 - ADR
8.0338 USD
+0.19 (+2.47%)
Taking everything into account, VNET scores 2 out of 10 in our fundamental rating. VNET was compared to 83 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.
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
VNET has a Return On Assets (0.14%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 0.92%, VNET is in line with its industry, outperforming 50.60% of the companies in the same industry.
VNET's Return On Invested Capital of 2.22% is in line compared to the rest of the industry. VNET outperforms 51.81% 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 has a Profit Margin (0.63%) which is in line with its industry peers.
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 66.27% of its industry peers.
VNET's Operating Margin has improved in the last couple of years.
VNET's Gross Margin of 23.32% is on the low side compared to the rest of the industry. VNET is outperformed by 77.11% of its industry peers.
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
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.
Compared to 1 year ago, VNET has an improved debt to assets ratio.
2.2 Solvency
VNET has an Altman-Z score of 0.17. This is a bad value and indicates that VNET is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of VNET (0.17) is worse than 80.72% 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.
Looking at the Debt to Equity ratio, with a value of 2.78, VNET is doing worse than 83.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.78 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.17 |
ROIC/WACC0.53
WACC4.21%
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 Current ratio of 0.97. This is amonst the worse of the industry: VNET underperforms 80.72% of its industry peers.
A Quick Ratio of 0.97 indicates that VNET may have some problems paying its short term obligations.
The Quick ratio of VNET (0.97) is worse than 79.52% 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 97.80%, which is quite impressive.
Measured over the past years, VNET shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -42.03% on average per year.
Looking at the last year, VNET shows a quite strong growth in Revenue. The Revenue has grown by 17.85% in the last 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)97.8%
EPS 3Y-42.03%
EPS 5YN/A
EPS Q2Q%-118.55%
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 72.43% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 13.23% on average over the next years. This is quite good.
EPS Next Y84.05%
EPS Next 2Y74.54%
EPS Next 3Y72.43%
EPS Next 5YN/A
Revenue Next Year15.56%
Revenue Next 2Y17.93%
Revenue Next 3Y18.32%
Revenue Next 5Y13.23%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
VNET reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
VNET is valuated quite expensively with a Price/Forward Earnings ratio of 144.58.
The rest of the industry has a similar Price/Forward Earnings ratio as VNET.
VNET is valuated expensively when we compare the Price/Forward Earnings ratio to 22.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 144.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VNET is valued a bit cheaper than 71.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.37 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
VNET's earnings are expected to grow with 72.43% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y74.54%
EPS Next 3Y72.43%
5. Dividend
5.1 Amount
No dividends for VNET!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:VNET (8/26/2025, 9:35:04 AM)
8.0338
+0.19 (+2.47%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners54.56%
Inst Owner Change-11.62%
Ins Owners2.12%
Ins Owner ChangeN/A
Market Cap2.14B
Analysts85.26
Price Target13.87 (72.65%)
Short Float %56.17%
Short Ratio3.96
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)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
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)4.08%
PT rev (3m)-14.61%
EPS NQ rev (1m)54.39%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-351.08%
EPS NY rev (3m)-195.47%
Revenue NQ rev (1m)0.21%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.46%
Revenue NY rev (3m)0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 144.58 | ||
| P/S | 1.7 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.49 | ||
| P/tB | 3.63 | ||
| EV/EBITDA | 11.37 |
EPS(TTM)-0.05
EYN/A
EPS(NY)0.06
Fwd EY0.69%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS4.74
BVpS3.23
TBVpS2.21
PEG (NY)N/A
PEG (5Y)N/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
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-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 | 0.17 |
F-ScoreN/A
WACC4.21%
ROIC/WACC0.53
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)97.8%
EPS 3Y-42.03%
EPS 5YN/A
EPS Q2Q%-118.55%
EPS Next Y84.05%
EPS Next 2Y74.54%
EPS Next 3Y72.43%
EPS Next 5YN/A
Revenue 1Y (TTM)17.85%
Revenue growth 3Y10.09%
Revenue growth 5Y16.86%
Sales Q2Q%22.09%
Revenue Next Year15.56%
Revenue Next 2Y17.93%
Revenue Next 3Y18.32%
Revenue Next 5Y13.23%
EBIT growth 1Y1359.68%
EBIT growth 3Y71.21%
EBIT growth 5Y29.73%
EBIT Next Year345.94%
EBIT Next 3Y94.99%
EBIT Next 5Y57.19%
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%