NasdaqGS:VNET

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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 Analysis

Reasonable growth potential with adequate balance sheet.


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

Stable Share Price: VNET's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.1%

VNET

4.3%

US IT

4.0%

US Market


1 Year Return

223.9%

VNET

15.3%

US IT

5.0%

US Market

Return vs Industry: VNET exceeded the US IT industry which returned 15.3% over the past year.

Return vs Market: VNET exceeded the US Market which returned 5% over the past year.


Shareholder returns

VNETIndustryMarket
7 Day6.1%4.3%4.0%
30 Day88.4%2.8%0.9%
90 Day96.9%42.1%29.5%
1 Year223.9%223.9%16.4%15.3%7.2%5.0%
3 Year464.3%464.3%100.9%92.7%36.2%27.3%
5 Year33.7%33.7%148.9%127.9%65.4%47.0%

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

Valuation

Is 21Vianet Group undervalued compared to its fair value and its price relative to the market?

4.24x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: VNET ($26.07) is trading above our estimate of fair value ($24.19)

Significantly Below Fair Value: VNET is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: VNET is unprofitable, so we can't compare its PE Ratio to the IT industry average.

PE vs Market: VNET is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate VNET's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: VNET is overvalued based on its PB Ratio (4.2x) compared to the US IT industry average (3.5x).


Next Steps

Future Growth

How is 21Vianet Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

66.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VNET is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: VNET is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: VNET's is expected to become profitable in the next 3 years.

Revenue vs Market: VNET's revenue (17.9% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: VNET's revenue (17.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VNET's Return on Equity is forecast to be low in 3 years time (6.2%).


Next Steps

Past Performance

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

10.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VNET is currently unprofitable.

Growing Profit Margin: VNET is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: VNET is unprofitable, but has reduced losses over the past 5 years at a rate of 10.3% per year.

Accelerating Growth: Unable to compare VNET's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: VNET is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (14.5%).


Return on Equity

High ROE: VNET has a negative Return on Equity (-6.34%), as it is currently unprofitable.


Next Steps

Financial Health

How is 21Vianet Group's financial position?


Financial Position Analysis

Short Term Liabilities: VNET's short term assets (CN¥6.2B) exceed its short term liabilities (CN¥4.7B).

Long Term Liabilities: VNET's short term assets (CN¥6.2B) exceed its long term liabilities (CN¥5.6B).


Debt to Equity History and Analysis

Debt Level: VNET's debt to equity ratio (86.9%) is considered high.

Reducing Debt: VNET's debt to equity ratio has reduced from 95.1% to 86.9% over the past 5 years.


Balance Sheet


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.

Stable Cash Runway: VNET has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if VNET has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate VNET's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate VNET's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if VNET's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if VNET's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of VNET's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.6yrs

Average management tenure


CEO

Shiqi Wang (44yo)

2.08yrs

Tenure

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Sheng Chen
Co-Founder & Executive Chairman21.5yrsno data7.1% CN¥209.0m
Shiqi Wang
CEO & President2.08yrsno datano data
Xiao Liu
Chief Financial Officer2.5yrsno datano data
Chunfeng Cai
Chief Operating Officer0.67yrno datano data
Rene Jiang
Investor Relations Directorno datano datano data
Wing-Dar Ker
Senior Vice President0.42yrno datano data
Ke Wenda
President of Lanyun Business Unitno datano datano data
Chenggang Shen
Senior VP and GM of East & South China Business0.50yrno datano data
Liang Zhao
Senior VP and GM of North China Business0.58yrno datano data
Qihang Liu
President of Cloud Business Unit0.33yrno datano data

0.6yrs

Average Tenure

44yo

Average Age

Experienced Management: VNET's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Sheng Chen
Co-Founder & Executive Chairman21.5yrsno data7.1% CN¥209.0m
Yoshihisa Ueno
Independent Director9.75yrsno data0.32% CN¥9.5m
Chung-Hou Tai
Independent Director7.75yrsno datano data
Sean S. Shao
Independent Director4.92yrsno datano data
Tao Zou
Director3.58yrsno datano data
Wenbin Chen
Director2.83yrsno datano data
Erhfei Liu
Independent Director5.17yrsno datano data
Yao Li
Chairman of Strategic Advisory Board & Independent Director2.17yrsno datano data

5.0yrs

Average Tenure

56.5yo

Average Age

Experienced Board: VNET's board of directors are considered experienced (5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$2.945b
  • Shares outstanding: 112.96m
  • 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)YesSPONSORED ADS AUSUSDApr 2011
217ADB (Deutsche Boerse AG)YesSPONSORED ADS ADEEURApr 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 Republic of China. The company operates in two segments, Hosting and Related Services, and Managed Network Services. It offers hosting and related services to house servers and networking equipment in its data centers, and connects them through a data transmission network. The company’s hosting and related services include managed hosting services that offer data center space to house its customers’ servers and networking equipment, and provide tailored server administration services; and interconnectivity services that enable customers to connect their servers with Internet backbones and other networks through its border gateway protocol network or single-line, dual-line, or multiple-line network. Its hosting and related services also comprise cloud services that enable businesses to run their applications over the Internet using its IT infrastructure; virtual private network services; Hybrid IT Services, which provide customers with a complete package of infrastructure service offerings; and other value-added services, such as firewall, server load balancing, data backup and recovery, data center management, server management, and backup server services. In addition, the company provides traffic charts and analysis, gateway monitoring for servers, domain name system setup, defense mechanism against distributed denial of service attacks, basic setting of switches and routers, and virus protections; and managed network service. As of December 31, 2019, it operated 26 self-built and 51 partnered data centers located in approximately 20 cities with 36,291 cabinets. It has a strategic partnership with Microsoft Corporation. 21Vianet Group, Inc. was founded in 1999 and is headquartered in Beijing, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/04 00:09
End of Day Share Price2020/07/02 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.