VNET Group, Inc. Sponsored ADR (VNET) AI Stock Analysis

• Market Cap: $2.39B
• Dividend Yield: N/A
• Average Volume (3M): 4.69M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.63
• Revenue Growth: 18.13%
• EPS Growth: 85.94%
• Country: US
• Employees: 2,581
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): <0.01
• Shares Outstanding: 263,895,600
• 10 Day Avg. Volume: 5,652,783
• 30 Day Avg. Volume: 4,690,873
• PEG Ratio: -0.48
• Price to Book (P/B): 1.44
• Price to Sales (P/S): 1.11
• P/FCF Ratio: -2.94
• Enterprise Value/Market Cap: 2.53
• Enterprise Value/Revenue: 0.64
• Enterprise Value/Gross Profit: 2.80
• Enterprise Value/Ebitda: 2.50
• 1Y Price Target: $13.25
• Price Target Upside: 57.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: $9.00 ▲(7.27% Upside)

VNET's overall score is driven by strong earnings call performance and revenue growth, offset by financial challenges such as high leverage and negative profitability. Technical indicators and valuation metrics further weigh down the score.

Positive Factors

Revenue Growth

VNET's strong revenue growth reflects its expanding market presence and effective business strategies, enhancing its competitive position in the data center industry.

Wholesale IDC Business Expansion

The expansion of wholesale IDC capacity signifies VNET's ability to scale operations efficiently, meeting rising demand and reinforcing its market leadership.

Strategic Initiatives

The Hyperscale 2.0 framework positions VNET to capitalize on AI-driven opportunities, promising sustainable long-term growth and industry leadership.

Negative Factors

High Debt Ratios

High debt ratios indicate financial leverage risks, potentially limiting VNET's ability to invest in growth and affecting long-term financial stability.

Cash Flow Concerns

Negative free cash flow growth suggests liquidity issues, which could hinder VNET's capacity to fund operations and strategic initiatives sustainably.

Profitability Challenges

Low profitability margins highlight operational inefficiencies, which may impact VNET's ability to generate sustainable profits and shareholder value.

VNET Group, Inc. Sponsored ADR Business Overview & Revenue Model

Company Description

VNET Group, Inc. is a leading provider of internet services and data center solutions in China. The company operates in the technology sector, focusing on cloud computing, data center services, and internet infrastructure. VNET offers a range of services including cloud hosting, dedicated servers, and managed services, catering to a diverse clientele that includes enterprises and small businesses seeking reliable and scalable solutions to support their digital operations.

How the Company Makes Money

VNET generates revenue primarily through its data center and cloud services, which encompass leasing data center space, providing cloud computing resources, and offering managed IT services. The company has established key partnerships with major technology firms, enhancing its service offerings and expanding its market reach. Additionally, VNET benefits from a growing demand for cloud solutions and digital transformation among businesses in China, driving consistent revenue growth. The company's revenue model includes long-term contracts with clients, which provide recurring revenue streams, and it often leverages economies of scale to optimize its operational costs.

VNET Group, Inc. Sponsored ADR Financial Statement Overview

Summary

VNET shows positive revenue growth and improved operational efficiency, but profitability remains a challenge due to high expenses and leverage. The balance sheet is heavily leveraged, increasing financial risk, while cash flow issues highlight potential liquidity concerns. Overall, the company needs to focus on improving profitability and managing its debt levels to enhance financial stability.

Income Statement

VNET has shown consistent revenue growth over the years, with a TTM growth rate of 5.12%. The gross profit margin has improved slightly to 23.32% in the TTM, indicating better cost management. However, the net profit margin remains low at 0.63%, suggesting challenges in converting revenue into profit. The EBIT and EBITDA margins have improved, reflecting operational efficiency gains, but the overall profitability is still constrained by high expenses.

Balance Sheet

The company's debt-to-equity ratio has increased to 3.94 in the TTM, indicating a high level of leverage, which could pose financial risks. The return on equity is low at 0.91%, reflecting limited profitability relative to shareholder equity. The equity ratio is stable, but the high debt levels overshadow the balance sheet's strength.

Cash Flow

VNET's cash flow situation is concerning, with negative free cash flow growth and a free cash flow to net income ratio of -1.30, indicating that the company is not generating sufficient cash to cover its net income. The operating cash flow to net income ratio is low, suggesting potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.51B	8.26B	7.41B	7.07B	6.19B	4.83B
Gross Profit	2.16B	1.83B	1.29B	1.36B	1.44B	1.08B
EBITDA	2.42B	2.22B	-366.56M	1.24B	2.27B	-1.21B
Net Income	-567.70M	183.20M	-2.64B	-775.95M	500.10M	-2.71B
Balance Sheet
Total Assets	43.35B	32.36B	30.35B	26.56B	23.07B	19.33B
Cash, Cash Equivalents and Short-Term Investments	4.75B	2.04B	5.45B	2.95B	1.70B	3.26B
Total Debt	26.66B	18.45B	17.51B	14.55B	11.32B	8.23B
Total Liabilities	35.76B	25.16B	23.70B	19.68B	15.47B	12.44B
Stockholders Equity	5.75B	6.37B	6.01B	6.51B	7.23B	6.55B
Cash Flow
Free Cash Flow	-3.86B	-3.12B	-997.15M	-450.61M	-1.35B	-1.79B
Operating Cash Flow	2.42B	2.01B	2.06B	2.60B	1.39B	714.24M
Investing Cash Flow	-8.63B	-4.39B	-3.91B	-3.56B	-3.77B	-3.89B
Financing Cash Flow	1.57B	-627.65M	3.94B	2.30B	967.58M	4.16B

VNET Group, Inc. Sponsored ADR Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 8.39
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VNET, the sentiment is Neutral. The current price of 8.39 is below the 20-day moving average (MA) of 9.09, below the 50-day MA of 9.60, and above the 200-day MA of 8.31, indicating a neutral trend. The MACD of -0.22 indicates Negative momentum. The RSI at 47.44 is Neutral, neither overbought nor oversold. The STOCH value of 81.82 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VNET.

VNET Group, Inc. Sponsored ADR Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IBM	77 Outperform	$285.72B	36.56	30.25%	2.20%	4.51%	21.89%
INFY	76 Outperform	$72.52B	22.15	29.15%	2.74%	4.62%	1.06%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
GDS	58 Neutral	$6.93B	60.59	5.27%	―	1.95%	―
DXC	58 Neutral	$2.34B	6.64	12.33%	―	-4.13%	2143.48%
VNET	57 Neutral	$2.39B	―	-9.25%	―	18.13%	85.94%
BBAI	44 Neutral	$2.64B	―	-111.83%	―	-6.95%	-53.69%

VNET Group, Inc. Sponsored ADR Corporate Events

VNET Group Reports Strong Q3 2025 Financial Results with Significant Revenue Growth

On November 20, 2025, VNET Group, Inc. announced its unaudited financial results for the third quarter of 2025, showcasing significant growth and profitability. The company reported a 21.7% increase in total net revenues year over year, reaching RMB2.58 billion, with wholesale IDC business revenues surging by 82.7%. The strong performance was attributed to rapid delivery capabilities and a solid order momentum, including new wholesale orders totaling 63MW. VNET’s strategic focus on AI-driven demand and operational efficiency has led to an increase in full-year revenue and adjusted EBITDA guidance, emphasizing its commitment to long-term value creation for stakeholders.