NasdaqGS:VNET

Stock Analysis Report

Executive Summary

21Vianet Group, Inc. provides carrier and cloud-neutral Internet data center services to Internet companies, government entities, blue-chip enterprises, and small-to mid-sized enterprises in the People’s Republic of China.

Snowflake

Fundamentals

Excellent balance sheet and overvalued.

Risks

  • 21Vianet Group is covered by less than 3 analysts.

Similar Companies

Share Price & News

How has 21Vianet Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-4.8%

VNET

-0.8%

US IT

-0.6%

US Market


1 Year Return

-17.6%

VNET

13.7%

US IT

0.7%

US Market

VNET underperformed the IT industry which returned 13.4% over the past year.

VNET underperformed the Market in United States of America which returned 0.7% over the past year.


Share holder returns

VNETIndustryMarket
7 Day-4.8%-0.8%-0.6%
30 Day8.4%0.1%4.9%
90 Day9.0%1.7%1.7%
1 Year-17.6%-17.6%14.9%13.7%3.0%0.7%
3 Year1.1%1.1%95.0%86.9%44.8%35.4%
5 Year-54.2%-54.2%143.9%119.3%62.0%44.3%

Price Volatility Vs. Market

How volatile is 21Vianet Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

1 month ago | Simply Wall St

21Vianet Group (NASDAQ:VNET) Takes On Some Risk With Its Use Of Debt

Valuation

Is 21Vianet Group undervalued based on future cash flows and its price relative to the stock market?

1.32x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for 21Vianet Group to establish if it is available at moderate discount.

Unable to calculate intrinsic value for 21Vianet Group to establish if it is available at substantial discount.


Price Based on Earnings

21Vianet Group is loss making, we can't compare its value to the US IT industry average.

21Vianet Group is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for 21Vianet Group, we can't assess if its growth is good value.


Price Based on Value of Assets

21Vianet Group is good value based on assets compared to the US IT industry average.


Next Steps

Future Growth

How is 21Vianet Group expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

10.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

21Vianet Group's revenue is expected to grow by 19% yearly, however this is not considered high growth (20% yearly).

21Vianet Group is not considered high growth as it is expected to be loss making for the next 1-3 years.

21Vianet Group's revenue growth is expected to exceed the United States of America market average.

Unable to compare 21Vianet Group's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.

Unable to compare 21Vianet Group's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.


Earnings per Share Growth Estimates


Future Return on Equity

21Vianet Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has 21Vianet Group performed over the past 5 years?

-6.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

21Vianet Group does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare 21Vianet Group's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare 21Vianet Group's 1-year growth to the US IT industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if 21Vianet Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

21Vianet Group used its assets less efficiently than the US IT industry average last year based on Return on Assets.


Return on Capital Employed

It is difficult to establish if 21Vianet Group improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is 21Vianet Group's financial position?


Financial Position Analysis

21Vianet Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

21Vianet Group's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

21Vianet Group's level of debt (61.1%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (108.3% vs 61.1% today).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.7x debt.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Whilst loss making 21Vianet Group has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making 21Vianet Group has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -113% per year.


Next Steps

Dividend

What is 21Vianet Group's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate 21Vianet Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate 21Vianet Group's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as 21Vianet Group has not reported any payouts.

Unable to verify if 21Vianet Group's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as 21Vianet Group has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of 21Vianet Group's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of 21Vianet Group's salary, the management and board of directors tenure and is there insider trading?

1.7yrs

Average management tenure


CEO

Shiqi Wang (43yo)

1.3yrs

Tenure

0

Mr. Shiqi Wang has been President of 21Vianet Group, Inc. since February 5, 2018 and as serves as its CEO since June 30, 2018. Mr. Wang serves as Vice President of TUS Digital Group, a subsidiary of TUS Ho ...


Management Age and Tenure

1.7yrs

Average Tenure

50yo

Average Age

The average tenure for the 21Vianet Group management team is less than 2 years, this suggests a new team.


Board Age and Tenure

4.2yrs

Average Tenure

53yo

Average Age

The tenure for the 21Vianet Group board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Josh Chen (50yo)

    Co-Founder & Executive Chairman

    • Tenure: 20.7yrs
  • Feng Liu (47yo)

    VP and GM of Marketing & Infrastructure Operation

    • Tenure: 0.7yrs
  • Terry Wang (59yo)

    • Tenure: 1.7yrs
  • Steve Zhang (55yo)

    • Tenure: 1.3yrs
  • Wing-Dar Ker (58yo)

    President of Microsoft Cloud Business Unit

    • Tenure: 5.9yrs
  • Sharon Liu (38yo)

    Chief Financial Officer

    • Tenure: 1.7yrs
  • Shiqi Wang (43yo)

    CEO & President

    • Tenure: 1.3yrs
  • Rene Jiang

    Investor Relations Director

    • Tenure: 0yrs

Board Members

  • Yoshihisa Ueno (56yo)

    Independent Director

    • Tenure: 8.9yrs
  • Kenneth Tai (68yo)

    Independent Director

    • Tenure: 6.9yrs
  • Josh Chen (50yo)

    Co-Founder & Executive Chairman

    • Tenure: 20.7yrs
  • Sean S. Shao (62yo)

    Independent Director

    • Tenure: 4.1yrs
  • Tao Zou (44yo)

    Independent Director

    • Tenure: 2.8yrs
  • Wenbin Chen (48yo)

    Director

    • Tenure: 2yrs
  • Erhfei Liu (61yo)

    Independent Director

    • Tenure: 4.3yrs
  • Yao Li (50yo)

    Chairman of Strategic Advisory Board & Independent Director

    • Tenure: 1.3yrs

Company Information

21Vianet Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: 21Vianet Group, Inc.
  • Ticker: VNET
  • Exchange: NasdaqGS
  • Founded: 1999
  • Industry: Internet Services and Infrastructure
  • Sector: Software
  • Market Cap: US$929.488m
  • Shares outstanding: 112.39m
  • Website: https://www.21vianet.com

Number of Employees


Location

  • 21Vianet Group, Inc.
  • Guanjie Building Southeast
  • 1st Floor
  • Beijing
  • 100016
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VNETNasdaqGS (Nasdaq Global Select)YesSPON ADR EA REPR 6 ORD SHSUSUSDApr 2011
217ADB (Deutsche Boerse AG)YesSPON ADR EA REPR 6 ORD SHSDEEURApr 2011

Biography

21Vianet Group, Inc. provides carrier and cloud-neutral Internet data center services to Internet companies, government entities, blue-chip enterprises, and small-to mid-sized enterprises in the People’s R ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/23 00:50
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.