Skip to Content

VNET Group Inc ADR VNET

Morningstar Rating
$1.55 +0.11 (7.64%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

VNET Building a Valuable Data Center Portfolio in China

We expect VNET Group to continue to purchase and build data centers in and around its focus Tier 1 Chinese cities of Shanghai, Beijing, Shenzhen, and Guangzhou. As its network of interconnected data centers grows it can more easily cater to the demand from its key cloud service provider customers allowing them to expand in a flexible way in their key markets. This also enables key enterprise customers to deploy their hybrid clouds in close proximity to the networked nodes of leading public clouds. We also expect VNET to compliment its basic data center offerings with value added services such as managed hosting, cloud, and VPN services. In the near term, demand for its services may be somewhat affected by increased cost focus from large internet company customers, macro conditions, chip shortages, and COVID-19 shutdowns. However, we remain confident on the longer-term demand for data centers in China as the country continues to revolutionize its operations in a digital fashion across government and private sectors.

Price vs Fair Value

VNET is trading at a 65% discount.
Price
$1.44
Fair Value
$3.27
Uncertainty
Very High
1-Star Price
$3.49
5-Star Price
$9.49
Economic Moat
Ymlx
Capital Allocation
Sflkshtz

Bulls Say, Bears Say

Bulls

VNET’s rapid expansion leaves it well positioned to capitalize on the huge demand for data centers brought on by cloud usage and a more data-dependent world.

Bears

VNET's data centers are not significantly differentiated from those that others, including its biggest customers, could supply.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if VNET is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$1.44
Day Range
$1.441.62
52-Week Range
$1.394.80
Bid/Ask
$1.53 / $1.60
Market Cap
$398.91 Mil
Volume/Avg
2.6 Mil / 2.1 Mil

Key Statistics

Price/Earnings (Normalized)
Price/Sales
0.22
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield

Company Profile

VNET started as AsiaCloud in 1999 and moved to the data center business with its first self-developed data center opening in 2010. The firm listed (as 21Vianet) on the Nasdaq in April 2011, subsequently changing its name to VNET Group in 2021. It originally focused on providing data center services such as colocation and cloud services to retail clients in China, but added hyperscale customers in 2019 and now counts large Chinese hyperscalers such as Alibaba Cloud, Tencent Cloud, and Huawei Cloud as customers. At end-September 2023 it had 84,608 self-built cabinets with the majority in Beijing, Shanghai, and the Greater Bay area. It also operated partnered data centers with around 4,314 cabinets and had 476 MW of wholesale capacity contracted or under a memorandum of understanding.
Sector
Technology
Industry
Information Technology Services
Stock Style Box
Total Number of Employees
3,293

Competitors

Valuation

Metric
VNET
DLR
AJBU
Price/Earnings (Normalized)
205.0717.37
Price/Book Value
0.262.471.26
Price/Sales
0.228.1810.66
Price/Cash Flow
0.7122.7715.67
Price/Earnings
VNET
DLR
AJBU

Financial Strength

Metric
VNET
DLR
AJBU
Quick Ratio
0.450.561.63
Current Ratio
0.710.561.66
Interest Coverage
0.323.237.19
Quick Ratio
VNET
DLR
AJBU

Profitability

Metric
VNET
DLR
AJBU
Return on Assets (Normalized)
−0.71%2.85%5.69%
Return on Equity (Normalized)
−3.08%7.03%9.58%
Return on Invested Capital (Normalized)
0.29%4.16%6.57%
Return on Assets
VNET
DLR
AJBU
See how this stock stacks up to its competitors with Morningstar Investor

Information Technology Services Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
ACN
Accenture PLC Class ABlnv$232.8 Bil
IBM
International Business Machines CorpKdtxd$168.2 Bil
FI
Fiserv IncZhcxfx$90.1 Bil
INFY
Infosys Ltd ADRFyqzxbc$82.7 Bil
CTSH
Cognizant Technology Solutions Corp Class ANxkrmn$39.5 Bil
FIS
Fidelity National Information Services IncGtksmbc$37.6 Bil
WIT
Wipro Ltd ADRQvtjxh$32.8 Bil
GIB
CGI Inc Class AWnlpf$25.9 Bil
BR
Broadridge Financial Solutions IncHfvnthy$23.2 Bil
EPAM
EPAM Systems IncQbzfxs$17.3 Bil

Sponsor Center