VNET Group, Inc. Sponsored ADR (VNET)
NASDAQ:VNET
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VNET Group, Inc. Sponsored ADR
(NASDAQ:VNET)
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Rating:58Neutral
Price Target:
$12.00
▲(43.88% Upside)
Action:ReiteratedDate:01/21/26
The score is primarily held back by weaker financial durability (losses, high leverage, and negative free cash flow). This is partly offset by a constructive earnings call with raised guidance and strong wholesale IDC-driven growth, while technicals are neutral and valuation remains challenged due to ongoing losses and no dividend support.
Positive Factors
Consistent Revenue Growth
Sustained 21.7% YoY revenue growth indicates durable end-market demand for VNET's cloud and data center services. Recurring contracts and rising MRR per cabinet support predictable top-line expansion, strengthening long-term cash generation and market position in China’s cloud infrastructure market.
Negative Factors
High Leverage
Very high debt-to-equity constrains financial flexibility and increases refinancing and interest-rate risk. With capital-intensive expansion needs, elevated leverage can pressure credit metrics, limit ability to fund opportunistic investments, and amplify downside during demand slowdowns.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent Revenue Growth
Sustained 21.7% YoY revenue growth indicates durable end-market demand for VNET's cloud and data center services. Recurring contracts and rising MRR per cabinet support predictable top-line expansion, strengthening long-term cash generation and market position in China’s cloud infrastructure market.
Read all positive factors
VNET Group, Inc. Sponsored ADR (VNET) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.24B
Dividend YieldN/A
Average Volume (3M)6.45M
Price to Earnings (P/E)―
Beta (1Y)1.81
Revenue Growth20.09%
EPS Growth86.04%
CountryUS
Employees2,581
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding263,895,600
10 Day Avg. Volume4,050,792
30 Day Avg. Volume6,445,527
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 Cap16.08
Enterprise Value/Revenue3.80
Enterprise Value/Gross Profit16.75
Enterprise Value/Ebitda12.82
Forecast
1Y Price Target
$16.10Price Target Upside93.05% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.25
Revenue Forecast (FY)$11.66B
VNET Group, Inc. Sponsored ADR Business Overview & Revenue Model
Company Description
VNET Group, Inc., an investment holding company, provides hosting and related services in China. It offers managed hosting services consisting of managed retail services, such as colocation services that dedicate data center space to house custome...
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 ...
VNET Group, Inc. Sponsored ADR Earnings Call Summary
Earnings Call Date:Nov 20, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 26, 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.Positive Updates
Significant Revenue Growth
Total net revenues increased by 21.7% year over year to RMB 2.58 billion for the third quarter.
Negative Updates
Seasonal EBITDA Margin Fluctuation
Sequential decline in EBITDA margin due to seasonal factors like increased electricity tariffs.
Read all updates
Q3-2025 Updates
Positive
Negative
Significant Revenue Growth
Total net revenues increased by 21.7% year over year to RMB 2.58 billion for the third quarter.
Read all positive updates
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
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.50B | 8.26B | 7.41B | 7.19B | 6.19B | 4.83B |
| Gross Profit | 2.15B | 1.83B | 1.29B | 1.31B | 1.44B | 1.08B |
| EBITDA | 2.81B | 2.22B | -366.56M | 1.68B | 2.27B | -1.21B |
| Net Income | -567.70M | 183.20M | -2.64B | -789.58M | 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
Negative
8.34
Price Trends
10.44
Negative
9.86
Negative
9.28
Negative
Market Momentum
-0.66
Positive
40.20
Neutral
30.89
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 8.34 is below the 20-day moving average (MA) of 9.01, below the 50-day MA of 10.44, and below the 200-day MA of 9.28, indicating a bearish trend. The MACD of -0.66 indicates Positive momentum. The RSI at 40.20 is Neutral, neither overbought nor oversold. The STOCH value of 30.89 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 Risk Analysis
VNET Group, Inc. Sponsored ADR disclosed 85 risk factors in its most recent earnings report. VNET Group, Inc. Sponsored ADR reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
VNET Group, Inc. Sponsored ADR Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $58.96B | 24.55 | 29.68% | 2.58% | 4.62% | 1.06% | |
70 Outperform | $226.76B | 26.07 | 36.86% | 2.21% | 4.51% | 21.89% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $2.15B | 6.07 | 13.41% | ― | -4.13% | 2143.48% | |
58 Neutral | $2.24B | -63.64 | -4.29% | ― | 20.09% | 86.04% | |
57 Neutral | $8.54B | 50.21 | 3.70% | ― | 1.95% | ― | |
49 Neutral | $1.66B | -83.08 | -69.72% | ― | -6.95% | -53.69% |
* Technology Sector Average
VNET
VNET Group, Inc. Sponsored ADR
8.34
2.44
41.36%
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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 R...
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.