VNET GROUP INC-ADR (VNET) Stock Fundamental Analysis
NASDAQ:VNET - Nasdaq - US90138A1034 - ADR - Currency: USD
VNET gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 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
In the past year VNET has reported negative net income.
VNET had a positive operating cash flow 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
The Return On Assets of VNET (0.57%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 2.88%, VNET is in line with its industry, outperforming 53.66% of the companies in the same industry.
VNET's Return On Invested Capital of 2.24% is in line compared to the rest of the industry. VNET outperforms 50.00% of 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's Profit Margin of 2.22% is in line compared to the rest of the industry. VNET outperforms 48.78% of its industry peers.
VNET's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 8.11%, VNET is doing good in the industry, outperforming 62.20% of the companies in the same industry.
In the last couple of years the Operating Margin of VNET has grown nicely.
VNET's Gross Margin of 22.18% is on the low side compared to the rest of the industry. VNET is outperformed by 76.83% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VNET is destroying value.
The number of shares outstanding for VNET has been increased compared to 1 year ago.
The number of shares outstanding for VNET has been increased compared to 5 years ago.
Compared to 1 year ago, VNET has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.07, we must say that VNET is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.07, VNET is not doing good in the industry: 82.93% of the companies in the same industry are doing better.
A Debt/Equity ratio of 1.85 is on the high side and indicates that VNET has dependencies on debt financing.
The Debt to Equity ratio of VNET (1.85) is worse than 79.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.07 |
ROIC/WACC0.53
WACC4.23%
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 89.02% 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.
Looking at the Quick ratio, with a value of 0.73, VNET is doing worse than 87.80% of the companies in the same industry.
| 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 96.96%, which is quite impressive.
VNET shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -42.03% yearly.
VNET shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.68%.
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)96.96%
EPS 3Y-42.03%
EPS 5YN/A
EPS Q2Q%-25%
Revenue 1Y (TTM)14.68%
Revenue growth 3Y10.09%
Revenue growth 5Y16.86%
Sales Q2Q%18.34%
3.2 Future
VNET is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 48.22% yearly.
VNET is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.69% yearly.
EPS Next Y170.59%
EPS Next 2Y74.74%
EPS Next 3Y48.22%
EPS Next 5YN/A
Revenue Next Year15.54%
Revenue Next 2Y17.68%
Revenue Next 3Y18.36%
Revenue Next 5Y14.69%
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.
A Price/Forward Earnings ratio of 142.51 indicates a quite expensive valuation of VNET.
VNET's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.76. VNET is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 142.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VNET is valued a bit cheaper than 74.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.89 |
4.3 Compensation for Growth
VNET's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
VNET's earnings are expected to grow with 48.22% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y74.74%
EPS Next 3Y48.22%
5. Dividend
5.1 Amount
No dividends for VNET!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.95
+0.98 (+14.06%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners54.37%
Inst Owner Change0%
Ins Owners2.12%
Ins Owner ChangeN/A
Market Cap2.12B
Analysts85.26
Price Target13.05 (64.15%)
Short Float %57.1%
Short Ratio4.36
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%
PT rev (3m)-20.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)53.74%
EPS NY rev (1m)322.49%
EPS NY rev (3m)1588.4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.4%
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 142.51 | ||
| P/S | 1.84 | ||
| P/FCF | N/A | ||
| P/OCF | 7.59 | ||
| P/B | 2.39 | ||
| P/tB | 3.07 | ||
| EV/EBITDA | 10.89 |
EPS(TTM)-0.08
EYN/A
EPS(NY)0.06
Fwd EY0.7%
FCF(TTM)-1.63
FCFYN/A
OCF(TTM)1.05
OCFY13.17%
SpS4.31
BVpS3.32
TBVpS2.59
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 | 320.88% | ||
| Cap/Sales | 62.09% | ||
| Interest Coverage | 1.54 | ||
| Cash Conversion | 88.43% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 0.07 |
F-Score6
WACC4.23%
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)96.96%
EPS 3Y-42.03%
EPS 5YN/A
EPS Q2Q%-25%
EPS Next Y170.59%
EPS Next 2Y74.74%
EPS Next 3Y48.22%
EPS Next 5YN/A
Revenue 1Y (TTM)14.68%
Revenue growth 3Y10.09%
Revenue growth 5Y16.86%
Sales Q2Q%18.34%
Revenue Next Year15.54%
Revenue Next 2Y17.68%
Revenue Next 3Y18.36%
Revenue Next 5Y14.69%
EBIT growth 1Y769.36%
EBIT growth 3Y71.21%
EBIT growth 5Y29.73%
EBIT Next Year342.5%
EBIT Next 3Y94.24%
EBIT Next 5Y57.11%
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%