Vianet Group plc (VNET) AI Stock Analysis

• Market Cap: £20.04M
• Dividend Yield: 2.14%
• Average Volume (3M): 36.46K
• Price to Earnings (P/E): 18.4
• Beta (1Y): 0.51
• Revenue Growth: -5.27%
• EPS Growth: 8.93%
• Country: UK
• Employees: 129
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): <0.01
• Shares Outstanding: 28,425,163
• 10 Day Avg. Volume: 82,891
• 30 Day Avg. Volume: 36,459
• PEG Ratio: 2.70
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 1.13
• P/FCF Ratio: 7.32
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.04
• Revenue Forecast (FY): £16.20M

• Rating: 66 Neutral
• Price Target: 76.00p ▲(4.11% Upside)
• Action: Reiterated Date: 12/07/25
• Date: Action: Reiterated 12/07/25

Vianet Group plc's overall stock score reflects a blend of strong financial performance and positive corporate events, offset by bearish technical indicators. The company's robust cash flow and strategic initiatives are significant strengths, while the current technical analysis suggests caution due to bearish momentum. The valuation is reasonable, providing moderate income to investors.

Positive Factors

Strong cash generation

Vianet's robust cash conversion (15.8% FCF growth; OCF/Net Income 5.38; FCF/Net Income 2.71) provides durable funding for capex, tech upgrades, dividends and deleveraging. Reliable operational cash supports strategic flexibility and resilience through industry cycles.

Conservative balance sheet

A low D/E of 0.12 and 79.8% equity ratio indicate strong solvency and low financial risk, enabling investment in growth initiatives without heavy refinancing. This long-term capital strength increases resilience to downturns and preserves strategic optionality.

High and improving margins

Sustained high gross margin (69.3%) and healthy EBITDA (27.7%) reflect strong unit economics and pricing/technology advantages. Margin durability supports reinvestment in analytics and connectivity offerings and cushions profit through modest revenue variability.

Negative Factors

Recent revenue decline

Reported revenue contraction (~5.3% YoY) signals challenges retaining or expanding customer spend. Persistent top-line weakness can limit operating leverage, constrain reinvestment and pressure margins unless offset by new product adoption or improved retention over coming quarters.

Decline in total assets

A drop in total assets suggests reduced capacity to scale device deployments or services and may reflect lower capital investment or asset turnover. Over the medium term this can slow revenue expansion and limit ability to capture market share in core hospitality/retail segments.

Modest returns on capital

ROE near 3.2% and net margin ~5.7% indicate limited efficiency converting equity and sales into shareholder returns. Even with solid margins and cash, low capital returns constrain long-term value creation unless revenue growth or margin expansion accelerates.

Vianet Group plc Business Overview & Revenue Model

Company Description

Vianet Group plc provides data services, actionable management information, and business insights in the United Kingdom, rest of Europe, the United States, and Canada. It operates through Smart Zones and Smart Machines segments. The company offers SmartContact, a contactless payment solution for vending machines, self-service, and unattended retail markets; SmartVend, a vending management software system; iDraught, a draught beer quality and waste management system; SmartInsight, which provides actionable data and insights through interactive reporting; SmartAcademy which offers a range of e-learning videos and face to face training courses to support the business; and SmartMetrics, a telemetry solution that offers data capture and machine management services. It also rents fluid monitoring, machine monitoring, and contactless payment equipment. The company was founded in 1995 and is based in Stockton-on-Tees, the United Kingdom.

How the Company Makes Money

Vianet generates revenue through multiple streams, primarily from its Smart Machines and Smart Payment Solutions divisions. The Smart Machines segment earns money by offering data collection services and analytics to businesses, which helps them optimize their operations and reduce costs. This is often achieved through a subscription-based model, where clients pay for ongoing access to software and analytics tools. In the Smart Payment Solutions division, Vianet earns fees from payment processing services and transaction commissions on the sales made through its payment systems. The company also benefits from strategic partnerships with various businesses in the hospitality and leisure industries, which expand its customer base and enhance its service offerings. Additionally, Vianet may receive revenue from software licensing and installation services, contributing to its overall earnings.

Vianet Group plc Financial Statement Overview

Summary

Vianet Group plc exhibits a positive financial trajectory with improvements across income, balance sheet, and cash flow statements. The company has shown resilience with steady profitability and robust cash flow generation. While the income statement reflects growth and improved margins, the balance sheet highlights financial stability and low leverage. Cash flow indicators suggest strong operational cash generation. Future challenges may include revenue retention and asset management to sustain growth.

Income Statement

Vianet Group plc shows a commendable recovery trajectory, with revenue growth from 2021 to 2025. Gross Profit Margin improved significantly over the years, reaching a robust 69.3% in 2025. Net Profit Margin has also stabilized from previous losses, with a noticeable increase to 5.7% in 2025. The firm's EBIT and EBITDA margins reflect operational efficiency gains, with 2025 EBIT and EBITDA margins at 6.9% and 27.7%, respectively. However, revenue in 2025 is slightly lower than in 2024, indicating a need for revenue retention strategies.

Balance Sheet

The balance sheet reflects a stable financial position, underpinned by a low Debt-to-Equity ratio of 0.12 in 2025, indicating prudent debt management. The Return on Equity improved to 3.2% in 2025, showcasing enhanced profit generation from equity. The Equity Ratio stands solidly at 79.8%, signifying a strong equity base relative to assets. However, a potential concern is the decrease in total assets from 2024 to 2025, which may impact future growth.

Cash Flow

Vianet Group plc demonstrates robust cash flow management with an impressive Free Cash Flow growth rate of 15.8% from 2024 to 2025. The Operating Cash Flow to Net Income Ratio is strong at 5.38 in 2025, indicating efficient cash generation relative to net income. The Free Cash Flow to Net Income Ratio of 2.71 further underscores healthy cash conversion. This positive cash flow trend supports the company's operational and strategic flexibility.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	14.84M	15.02M	15.18M	14.12M	13.21M	8.37M
Gross Profit	8.25M	10.42M	10.43M	9.38M	8.56M	5.06M
EBITDA	4.43M	4.17M	3.82M	3.46M	2.65M	-539.00K
Net Income	1.07M	857.00K	801.00K	161.00K	187.00K	-1.96M
Balance Sheet
Total Assets	33.73M	34.01M	34.95M	32.78M	33.33M	33.75M
Cash, Cash Equivalents and Short-Term Investments	2.57M	2.78M	1.82M	69.00K	1.58M	1.89M
Total Debt	3.15M	3.32M	3.62M	3.63M	4.61M	4.61M
Total Liabilities	6.87M	6.87M	7.75M	6.81M	7.59M	7.95M
Stockholders Equity	26.86M	27.14M	27.19M	25.97M	25.73M	25.80M
Cash Flow
Free Cash Flow	3.44M	2.33M	2.01M	-317.00K	-55.00K	-1.56M
Operating Cash Flow	4.13M	4.61M	4.32M	2.04M	2.40M	1.05M
Investing Cash Flow	-2.42M	-2.29M	-2.31M	-2.35M	-2.43M	-2.62M
Financing Cash Flow	-1.39M	-1.37M	914.00K	-1.05M	-1.59M	3.08M

Vianet Group plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 73.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:VNET, the sentiment is Positive. The current price of 73 is above the 20-day moving average (MA) of 67.60, above the 50-day MA of 67.97, and below the 200-day MA of 73.91, indicating a neutral trend. The MACD of 0.36 indicates Negative momentum. The RSI at 64.83 is Neutral, neither overbought nor oversold. The STOCH value of 34.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:VNET.

Vianet Group plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WATR	78 Outperform	£58.37M	15.61	6.87%	―	7.16%	-11.00%
MTO	76 Outperform	£2.24B	23.12	20.62%	2.58%	11.42%	-17.18%
RTO	74 Outperform	£11.34B	44.86	5.93%	1.68%	-1.58%	-34.64%
ITRK	74 Outperform	£7.28B	20.95	29.71%	3.44%	1.14%	17.74%
VNET	66 Neutral	£20.04M	18.44	3.96%	2.14%	-5.27%	8.93%
CPI	64 Neutral	£401.71M	23.35	9.00%	―	-4.87%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Vianet Group plc Corporate Events

Vianet CEO James Dickson Increases Stake with Share Purchase

Vianet Group plc reported that its Chairman and Chief Executive Officer, James Dickson, has increased his stake in the company by purchasing 40,000 ordinary shares at 69 pence each through his self-invested personal pension. Following this transaction, Dickson now holds 5,264,259 ordinary shares, representing approximately 18.52% of Vianet’s issued share capital, a move that signals strengthened executive alignment with shareholders and confidence in the company’s prospects.

The most recent analyst rating on (GB:VNET) stock is a Hold with a £74.00 price target. To see the full list of analyst forecasts on Vianet Group plc stock, see the GB:VNET Stock Forecast page.

Vianet Wins Major US Restaurant Contract as Slower Deployments Temper Profit Growth

Vianet Group has secured a long-term, multi-year contract in the United States to roll out its Beverage Metrics inventory solution across multiple locations of a major full-service restaurant brand, reinforcing its strategic push into the US hospitality market alongside recent wins such as World of Beer and a partnership with Fintech. In its trading update, the company reported a 10.5% rise in first-half 2026 EBITDA to £1.88 million and highlighted growing recurring income from expanded customer contracts and new client wins, but warned that full-year profit is expected to be broadly in line with last year due to slower deployment rates, ongoing investment in its Beverage Metrics platform and the loss of ERP platform income, though net debt remains on track and management signals confidence in sustaining dividend growth and delivering higher shareholder returns.

The most recent analyst rating on (GB:VNET) stock is a Hold with a £73.00 price target. To see the full list of analyst forecasts on Vianet Group plc stock, see the GB:VNET Stock Forecast page.

Vianet Group PLC Updates Interim Dividend Schedule

Vianet Group PLC has updated its interim dividend schedule, announcing that shareholders registered by the close of business on 19 December 2025 will receive the dividend of 0.4 pence per ordinary share on 28 January 2026. This announcement reinforces the company’s commitment to its stakeholders and highlights its consistent efforts in delivering shareholder value, with its operations providing critical insights and advanced solutions across various industries.

The most recent analyst rating on (GB:VNET) stock is a Hold with a £64.00 price target. To see the full list of analyst forecasts on Vianet Group plc stock, see the GB:VNET Stock Forecast page.

Vianet Group Announces Interim Dividend for Shareholders

Vianet Group plc has announced an interim dividend of 0.4 pence per ordinary share, to be distributed on 28 January 2026 to shareholders registered by 12 December 2025. This move reflects the company’s ongoing commitment to delivering value to its shareholders, supported by its robust ecosystem of connected devices and data-driven insights, which continue to enhance operational efficiency and profitability across its diverse market segments.

The most recent analyst rating on (GB:VNET) stock is a Hold with a £64.00 price target. To see the full list of analyst forecasts on Vianet Group plc stock, see the GB:VNET Stock Forecast page.