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.


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

21.5%

VNET

3.5%

US IT

3.4%

US Market


1 Year Return

-11.9%

VNET

22.1%

US IT

5.4%

US Market

Return vs Industry: VNET underperformed the US IT industry which returned 22.1% over the past year.

Return vs Market: VNET underperformed the US Market which returned 5.4% over the past year.


Shareholder returns

VNETIndustryMarket
7 Day21.5%3.5%3.4%
30 Day0.8%0.5%-1.0%
90 Day23.0%-1.5%-0.4%
1 Year-11.9%-11.9%23.4%22.1%7.7%5.4%
3 Year24.4%24.4%99.6%91.3%46.2%36.8%
5 Year-53.9%-53.9%155.4%132.0%65.6%47.5%

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?

1.39x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate VNET's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate VNET's fair value to establish if it is undervalued.


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

Low 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 good value based on its PB Ratio (1.4x) compared to the US IT industry average (4.3x).


Next Steps

Future Growth

How is 21Vianet Group forecast 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 Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VNET is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: VNET is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: VNET is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: VNET's revenue (18.8% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: VNET's revenue (18.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: VNET's Return on Equity is forecast to be low in 3 years time (3.8%).


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

Earnings Trend: VNET is unprofitable, and losses have increased over the past 5 years at a rate of -6.1% 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 (8.4%).


Return on Equity

High ROE: VNET has a negative Return on Equity (-4.12%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: VNET is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: VNET is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is 21Vianet Group's financial position?


Financial Position Analysis

Short Term Liabilities: VNET's short term assets (CN¥5.4B) exceeds its short term liabilities (CN¥2.4B)

Long Term Liabilities: VNET's short term assets (5.4B) exceeds its long term liabilities (5.2B)


Debt to Equity History and Analysis

Debt Level: VNET's debt to equity ratio (61.1%) is considered high

Reducing Debt: VNET's debt to equity ratio has reduced from 108.3% to 61.1% over the past 5 years.


Balance Sheet

Inventory Level: VNET has a high level of physical assets or inventory.

Debt Coverage by Assets: VNET's debt is covered by short term assets (assets are 1.671750x 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.

Stable Cash Runway: Whilst unprofitable VNET has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: VNET is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 113% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.3%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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

1.8yrs

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

1.8yrs

Average Tenure

50yo

Average Age

Experienced Management: VNET's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

4.3yrs

Average Tenure

53yo

Average Age

Experienced Board: VNET's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Josh Chen (50yo)

    Co-Founder & Executive Chairman

    • Tenure: 20.8yrs
  • Feng Liu (47yo)

    VP and GM of Marketing & Infrastructure Operation

    • Tenure: 0.8yrs
  • Terry Wang (59yo)

    • Tenure: 1.8yrs
  • Steve Zhang (55yo)

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

    President of Microsoft Cloud Business Unit

    • Tenure: 6yrs
  • Sharon Liu (38yo)

    Chief Financial Officer

    • Tenure: 1.8yrs
  • Shiqi Wang (43yo)

    CEO & President

    • Tenure: 1.3yrs
  • Rene Jiang

    Investor Relations Director

    • Tenure: 0yrs

Board Members

  • Yoshihisa Ueno (56yo)

    Independent Director

    • Tenure: 9yrs
  • Kenneth Tai (68yo)

    Independent Director

    • Tenure: 7yrs
  • Josh Chen (50yo)

    Co-Founder & Executive Chairman

    • Tenure: 20.8yrs
  • Sean S. Shao (62yo)

    Independent Director

    • Tenure: 4.2yrs
  • Tao Zou (44yo)

    Independent Director

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

    Director

    • Tenure: 2.1yrs
  • Erhfei Liu (61yo)

    Independent Director

    • Tenure: 4.4yrs
  • Yao Li (50yo)

    Chairman of Strategic Advisory Board & Independent Director

    • Tenure: 1.4yrs

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$984.560m
  • 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 Analysis2019/10/16 00:01
End of Day Share Price2019/10/15 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.