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

• Market Cap: $3.21B
• Dividend Yield: N/A
• Average Volume (3M): 3.85M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.70
• Revenue Growth: 20.09%
• EPS Growth: 86.04%
• 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: 5,886,759
• 30 Day Avg. Volume: 3,847,048
• 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: 13.37
• Enterprise Value/Revenue: 4.52
• Enterprise Value/Gross Profit: 19.91
• Enterprise Value/Ebitda: 17.76
• 1Y Price Target: $13.80
• Price Target Upside: 20.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.06
• Revenue Forecast (FY): $1.69B

• Rating: 63 Neutral
• Price Target: $11.00 ▼(-4.26% Downside)

The score is led by strong earnings-call momentum (raised guidance and robust wholesale IDC growth) and supportive technical trend signals, but capped by weaker financial quality (leverage, losses, and negative free cash flow) and an unfavorable valuation signal from a negative P/E and no dividend.

Positive Factors

Wholesale Capacity Expansion

A 16.1% QoQ increase to 783 MW materially expands VNET's scalable supply footprint, strengthening its ability to win long-term wholesale leases. Larger capacity with 74.3% utilization supports recurring revenue, economies of scale and competitive positioning versus smaller local providers.

Wholesale Revenue Surge

An 82.7% YoY jump in wholesale revenue signals durable demand from hyperscalers and enterprise cloud customers. This shift toward long-term wholesale contracts reduces revenue volatility, anchors cash flows, and helps diversify away from lower-margin retail services over the medium term.

Adjusted EBITDA Growth

Sustained adjusted EBITDA growth indicates operational leverage as capacity scales. Strong EBITDA expansion despite net losses suggests efficient core operations and pricing power, providing a foundation to reinvest in capacity and AI-focused infrastructure while working toward net profitability.

Negative Factors

High Leverage

Very elevated debt metrics create refinancing and interest-rate risks that can constrain strategic flexibility. High leverage limits the company's ability to fund capex organically, increases vulnerability during demand slowdowns, and raises the urgency of converting EBITDA gains into deleveraging cash flows.

Negative Free Cash Flow and Net Losses

Persistent negative free cash flow and a negative net profit margin mean earnings aren't yet converting to surplus cash. This pressures liquidity for capex and debt reduction, likely necessitating external financing until operating cash conversion improves or net profits are achieved.

Margin Volatility from Power Costs

Data centers are power-intensive; seasonally higher electricity costs cause EBITDA margin swings. Structural exposure to utility price volatility can erode long-term margins unless mitigated by pricing clauses, efficiency investments, or hedging, complicating margin predictability.

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 customers' servers and networking equipment, as well as allow customers to lease partial or entire cabinets for their servers; server administration services; interconnectivity services that allow customers to connect their servers; value-added services, including hybrid IT, bare metal, firewall, server load balancing, data backup and recovery, data center management, server management, and backup server services; cloud services that allow customers to run applications over the internet using IT infrastructure; VPN Services that extend customers' private networks by setting up connections through the public internet. The company also provides operating system support and assistance with updates, server monitoring, server backup and restoration, server security evaluation, firewall services, and disaster recovery services; site selection, planning, design, and construction services for wholesale and retail data centers. It serves information technology and cloud services, communications and social networking, gaming and entertainment, e-commerce, automobile, financial services, and blue-chip and small-to-mid-sized enterprises; government agencies; individuals; and telecommunication carriers. As of December 31, 2021, it operated 40 self-built data centers and 64 partnered data centers with 78,540 cabinets under management. The company was formerly known as 21Vianet Group, Inc. and changed its name to VNET Group, Inc. in October 2021. VNET Group, Inc. was founded in 1999 and is headquartered in Beijing, the People's Republic of China.

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 Group shows strong revenue growth and operational efficiency, but faces challenges with profitability and high leverage. Negative net income and free cash flow pose risks to long-term sustainability.

Income Statement

VNET Group has shown a consistent revenue growth trajectory with a 5.1% increase in the latest TTM period. Gross profit margins have improved slightly over time, indicating better cost management. However, the company struggles with profitability, as evidenced by a negative net profit margin in the TTM period, despite a positive EBIT margin. The EBITDA margin remains strong, suggesting good operational efficiency.

Balance Sheet

The balance sheet reflects high leverage with a debt-to-equity ratio of 3.94 in the TTM period, indicating potential financial risk. Return on equity is low, reflecting challenges in generating returns for shareholders. The equity ratio is moderate, suggesting a balanced asset structure but with significant reliance on debt financing.

Cash Flow

Cash flow analysis shows a concerning trend with negative free cash flow, despite growth in operating cash flow. The free cash flow to net income ratio is negative, indicating cash flow challenges. The operating cash flow to net income ratio is positive, suggesting that operational activities are generating cash, but not enough to cover net losses.

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: Positive
• Last Price: 11.49
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VNET, the sentiment is Positive. The current price of 11.49 is above the 20-day moving average (MA) of 9.48, above the 50-day MA of 9.21, and above the 200-day MA of 8.03, indicating a bullish trend. The MACD of 0.64 indicates Negative momentum. The RSI at 70.87 is Negative, neither overbought nor oversold. The STOCH value of 80.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
INFY	80 Outperform	$73.50B	24.93	32.85%	2.58%	4.62%	1.06%
IBM	79 Outperform	$288.86B	36.96	30.25%	2.21%	4.51%	21.89%
VNET	63 Neutral	$3.21B	-39.26	-9.19%	―	20.09%	86.04%
DXC	62 Neutral	$2.67B	7.33	12.33%	―	-4.13%	2143.48%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
GDS	59 Neutral	$8.85B	75.95	5.25%	―	1.95%	―
BBAI	46 Neutral	$2.73B	-4.34	-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.

The most recent analyst rating on (VNET) stock is a Hold with a $9.00 price target. To see the full list of analyst forecasts on VNET Group, Inc. Sponsored ADR stock, see the VNET Stock Forecast page.