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VNET Group, Inc. Sponsored ADR (VNET)
NASDAQ:VNET
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VNET Group, Inc. Sponsored ADR
(NASDAQ:VNET)
Select Model
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Rating:57Neutral
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.
VNET Group, Inc. Sponsored ADR (VNET) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.35B
Dividend YieldN/A
Average Volume (3M)4.69M
Price to Earnings (P/E)―
Beta (1Y)1.70
Revenue Growth20.09%
EPS Growth86.04%
CountryUS
Employees2,581
SectorN/A
Sector StrengthN/A
IndustryInformation Technology Services
Share Statistics
EPS (TTM)<0.01
Shares Outstanding263,895,600
10 Day Avg. Volume5,652,783
30 Day Avg. Volume4,690,873
Financial Highlights & Ratios
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 Cap18.24
Enterprise Value/Revenue4.52
Enterprise Value/Gross Profit19.91
Enterprise Value/Ebitda17.76
Forecast
1Y Price Target
$13.25Price Target Upside57.93% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
VNET Group, Inc. Sponsored ADR Business Overview & Revenue Model
Company DescriptionVNET 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 MoneyVNET 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 Earnings Call Summary
Earnings Call Date:Nov 20, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 24, 2026
Earnings Call Sentiment Positive
The earnings call presented a strong quarter with significant growth in revenue and EBITDA, driven by the wholesale IDC business. Despite some seasonal fluctuations in EBITDA margin and high debt ratios, the company's overall performance and increased full-year guidance reflect a positive outlook.Q3-2025 Updates
Positive Updates
Significant Revenue Growth
Total net revenues increased by 21.7% year over year to RMB 2.58 billion for the third quarter.
Wholesale IDC Business Expansion
Wholesale capacity in service grew by 16.1% quarter over quarter to 783 megawatts, with a utilization rate of 74.3%.
Strong Adjusted EBITDA Growth
Adjusted EBITDA increased by 27.5% year over year to RMB 758 million.
Full-Year Guidance Increase
Company increased full-year revenue and adjusted EBITDA guidance due to faster than anticipated move-ins among wholesale IDC customers.
Wholesale Revenue Surge
Wholesale revenues increased by 82.7% year over year to RMB 956 million.
Strong Liquidity Position
Net operating cash flow for the first nine months of 2025 was RMB 1.37 billion, with a solid cash position of RMB 5.33 billion.
ESG Score Improvement
ESG score improved to 73 from 70, ranking among the top 8% of the IT service industry globally.
Negative Updates
Seasonal EBITDA Margin Fluctuation
Sequential decline in EBITDA margin due to seasonal factors like increased electricity tariffs.
High Debt Ratios
Net debt to trailing twelve months adjusted EBITDA ratio at 5.5 and total debt to EBITDA ratio at 6.7.
Company Guidance
During the third quarter of 2025 earnings call, VNET Group, Inc. provided guidance showcasing strong operational and financial performance, driven primarily by their wholesale Internet Data Center (IDC) business. The company reported a 21.7% year-over-year increase in total net revenues, reaching RMB 2.58 billion, with wholesale revenues contributing significantly, growing by 82.7% to RMB 956 million. Adjusted EBITDA also rose by 27.5% year-over-year to RMB 758 million. The company's wholesale capacity in service increased by 16.1% quarter-over-quarter to 783 MW, while the utilization rate was 74.3%. Retail IDC business continued to excel, with monthly recurring revenue (MRR) per cabinet increasing for six consecutive quarters to RMB 8,948. VNET raised its full-year guidance, expecting total net revenues between RMB 9.55 billion and RMB 9.867 billion, and adjusted EBITDA to range from RMB 2.91 billion to RMB 2.945 billion, reflecting anticipated faster customer move-ins and efficiency gains. The company also highlighted ongoing investments in AI and data center capacities, with plans to deliver around 306 MW of capacity over the next twelve months.VNET Group, Inc. Sponsored ADR Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
55
Neutral
Cash Flow
50
Neutral
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Balance Sheet |
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| Cash, Cash Equivalents and Short-Term Investments |
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VNET Group, Inc. Sponsored ADR Technical Analysis
Negative
8.39
Price Trends
9.21
Negative
9.03
Negative
8.06
Positive
Market Momentum
-0.13
Positive
45.78
Neutral
20.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VNET, the sentiment is Negative. The current price of 8.39 is below the 20-day moving average (MA) of 8.91, below the 50-day MA of 9.21, and above the 200-day MA of 8.06, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 45.78 is Neutral, neither overbought nor oversold. The STOCH value of 20.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VNET.
VNET Group, Inc. Sponsored ADR Peers Comparison
UnderperformOutperform
Sector (―)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | ― | ― | ― | ― | ― | ― | |
79 Outperform | $281.34B | 36.00 | 30.25% | 2.22% | 4.51% | 21.89% | |
76 Outperform | $74.19B | 25.62 | 29.15% | 2.37% | 4.62% | 1.06% | |
62 Neutral | $2.69B | 7.57 | 12.33% | ― | -4.13% | 2143.48% | |
58 Neutral | $7.15B | 63.09 | 5.25% | ― | 1.95% | ― | |
57 Neutral | $2.35B | -29.72 | -9.19% | ― | 20.09% | 86.04% | |
49 Neutral | $2.73B | ― | -111.83% | ― | -6.95% | -53.69% |
* Sector Average
VNET
VNET Group, Inc. Sponsored ADR
8.70
4.98
133.87%
INFY
Infosys
19.16
-3.05
-13.73%
IBM
International Business Machines
302.79
84.03
38.41%
GDS
GDS Holdings
36.05
16.40
83.46%
DXC
DXC Technology
15.33
-5.17
-25.22%
BBAI
BigBearai Holdings
6.39
2.66
71.31%
VNET Group, Inc. Sponsored ADR Corporate Events
VNET Group Reports Strong Q3 2025 Financial Results with Significant Revenue Growth
Nov 20, 2025
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.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.