9.09 USD
-0.43 (-4.52%)
9.1 USD
+0.01 (+0.11%)
We assign a fundamental rating of 2 out of 10 to VNET. VNET was compared to 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
VNET had negative earnings in the past year.
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 (-1.31%) which is in line with its industry peers.
VNET has a Return On Equity of -9.88%. This is comparable to the rest of the industry: VNET outperforms 41.18% of its industry peers.
VNET's Return On Invested Capital of 2.12% is in line compared to the rest of the industry. VNET outperforms 50.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.31% | ||
| ROE | -9.88% | ||
| ROIC | 2.12% |
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 has declined in the last couple of years.
VNET has a Operating Margin of 9.09%. This is in the better half of the industry: VNET outperforms 65.88% of its industry peers.
In the last couple of years the Operating Margin of VNET has grown nicely.
VNET has a worse Gross Margin (22.68%) than 76.47% of its industry peers.
VNET's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.09% | ||
| PM (TTM) | N/A | ||
| GM | 22.68% |
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.
VNET has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, VNET has more shares outstanding
The debt/assets ratio for VNET has been reduced compared to a year ago.
2.2 Solvency
VNET has an Altman-Z score of 0.17. This is a bad value and indicates that VNET is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.17, VNET is doing worse than 78.82% of the companies in the same industry.
VNET has a Debt/Equity ratio of 3.36. This is a high value indicating a heavy dependency on external financing.
VNET has a worse Debt to Equity ratio (3.36) than 83.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.36 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.17 |
ROIC/WACC0.48
WACC4.43%
2.3 Liquidity
A Current Ratio of 0.90 indicates that VNET may have some problems paying its short term obligations.
VNET has a worse Current ratio (0.90) than 84.71% of its industry peers.
VNET has a Quick Ratio of 0.90. This is a bad value and indicates that VNET is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.90, VNET is doing worse than 82.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
VNET shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 86.67%, 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.
The Revenue has grown by 20.19% in the past year. This is a very strong growth!
VNET shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.86% yearly.
EPS 1Y (TTM)86.67%
EPS 3Y-42.03%
EPS 5YN/A
EPS Q2Q%-812.5%
Revenue 1Y (TTM)20.19%
Revenue growth 3Y10.09%
Revenue growth 5Y16.86%
Sales Q2Q%21.73%
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 57.04% on average per year.
The Revenue is expected to grow by 15.88% on average over the next years. This is quite good.
EPS Next Y114.98%
EPS Next 2Y69.18%
EPS Next 3Y57.04%
EPS Next 5YN/A
Revenue Next Year21.46%
Revenue Next 2Y20.19%
Revenue Next 3Y19.81%
Revenue Next 5Y15.88%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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.
A Price/Forward Earnings ratio of 196.02 indicates a quite expensive valuation of VNET.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VNET is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.80, VNET is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 196.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VNET is valued a bit cheaper than the industry average as 68.24% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.19 |
4.3 Compensation for Growth
VNET's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as VNET's earnings are expected to grow with 57.04% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y69.18%
EPS Next 3Y57.04%
5. Dividend
5.1 Amount
VNET does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.09
-0.43 (-4.52%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners55.39%
Inst Owner Change8.33%
Ins Owners2.12%
Ins Owner ChangeN/A
Market Cap2.43B
Revenue(TTM)9.51B
Net Income(TTM)-567.70M
Analysts85.26
Price Target15.39 (69.31%)
Short Float %75.74%
Short Ratio5.77
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)-276.29%
Min EPS beat(2)-292.16%
Max EPS beat(2)-260.41%
EPS beat(4)0
Avg EPS beat(4)-342.59%
Min EPS beat(4)-678.57%
Max EPS beat(4)-139.22%
EPS beat(8)2
Avg EPS beat(8)-235.55%
EPS beat(12)5
Avg EPS beat(12)-157.05%
EPS beat(16)7
Avg EPS beat(16)52.68%
Revenue beat(2)2
Avg Revenue beat(2)4.06%
Min Revenue beat(2)3.94%
Max Revenue beat(2)4.19%
Revenue beat(4)3
Avg Revenue beat(4)3.33%
Min Revenue beat(4)-0.92%
Max Revenue beat(4)6.11%
Revenue beat(8)5
Avg Revenue beat(8)0.94%
Revenue beat(12)5
Avg Revenue beat(12)-0.5%
Revenue beat(16)5
Avg Revenue beat(16)-1.29%
PT rev (1m)3.42%
PT rev (3m)9.05%
EPS NQ rev (1m)-578.12%
EPS NQ rev (3m)-578.12%
EPS NY rev (1m)12.25%
EPS NY rev (3m)193.89%
Revenue NQ rev (1m)1.13%
Revenue NQ rev (3m)1.13%
Revenue NY rev (1m)2.04%
Revenue NY rev (3m)5.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 196.02 | ||
| P/S | 1.8 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.98 | ||
| P/tB | 4.5 | ||
| EV/EBITDA | 13.19 |
EPS(TTM)-0.31
EYN/A
EPS(NY)0.05
Fwd EY0.51%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS5.04
BVpS3.05
TBVpS2.02
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.31% | ||
| ROE | -9.88% | ||
| ROCE | 2.77% | ||
| ROIC | 2.12% | ||
| ROICexc | 2.49% | ||
| ROICexgc | 2.67% | ||
| OM | 9.09% | ||
| PM (TTM) | N/A | ||
| GM | 22.68% | ||
| 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 Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.36 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.83 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 0.17 |
F-ScoreN/A
WACC4.43%
ROIC/WACC0.48
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)86.67%
EPS 3Y-42.03%
EPS 5YN/A
EPS Q2Q%-812.5%
EPS Next Y114.98%
EPS Next 2Y69.18%
EPS Next 3Y57.04%
EPS Next 5YN/A
Revenue 1Y (TTM)20.19%
Revenue growth 3Y10.09%
Revenue growth 5Y16.86%
Sales Q2Q%21.73%
Revenue Next Year21.46%
Revenue Next 2Y20.19%
Revenue Next 3Y19.81%
Revenue Next 5Y15.88%
EBIT growth 1Y842.15%
EBIT growth 3Y71.21%
EBIT growth 5Y29.73%
EBIT Next Year368.31%
EBIT Next 3Y97.42%
EBIT Next 5Y57.7%
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 2 / 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.