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.

Rewards

Revenue is forecast to grow 20.28% per year

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months



Snowflake Analysis

Excellent balance sheet with limited growth.


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

8.6%

VNET

2.0%

US IT

0.5%

US Market


1 Year Return

66.6%

VNET

39.2%

US IT

20.3%

US Market

Return vs Industry: VNET exceeded the US IT industry which returned 39.2% over the past year.

Return vs Market: VNET exceeded the US Market which returned 20.3% over the past year.


Shareholder returns

VNETIndustryMarket
7 Day8.6%2.0%0.5%
30 Day41.2%5.3%2.0%
90 Day94.8%16.6%9.4%
1 Year66.6%66.6%40.7%39.2%22.8%20.3%
3 Year102.4%102.4%112.1%102.9%50.1%40.4%
5 Year-17.1%-17.1%151.0%128.7%73.1%54.1%

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?

2.36x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

Significantly Below Fair Value: 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

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 (2.4x) 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?

16.2%

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 (20.3% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: VNET's revenue (20.3% per year) is forecast to grow faster 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 (3.4%).


Next Steps

Past Performance

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

0.5%

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 0.5% 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 (12%).


Return on Equity

High ROE: VNET has a negative Return on Equity (-4.86%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is 21Vianet Group's financial position?


Financial Position Analysis

Short Term Liabilities: VNET's short term assets (CN¥5.6B) exceed its short term liabilities (CN¥3.2B).

Long Term Liabilities: VNET's short term assets (CN¥5.6B) exceed its long term liabilities (CN¥5.1B).


Debt to Equity History and Analysis

Debt Level: VNET's debt to equity ratio (63.6%) is considered high.

Reducing Debt: VNET's debt to equity ratio has reduced from 110.4% to 63.6% 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 1.7x 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.

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

Forecast Cash Runway: VNET has sufficient cash runway for 2.6 years if free cash flow continues to grow at historical rates of 43% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Years0%

Current dividend yield vs market & industry

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.


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?

1.9yrs

Average management tenure


CEO

Shiqi Wang (43yo)

1.7yrs

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Sheng Chen
Co-Founder & Executive Chairman21.1yrsno data7.15% CN¥117.6m
Shiqi Wang
CEO & President1.7yrsno datano data
Xiao Liu
Chief Financial Officer2.1yrsno datano data
Rene Jiang
Investor Relations Director0yrsno datano data
Feng Liu
VP and GM of Marketing & Infrastructure Operation1.1yrsno datano data
Ke Wenda
President of Lanyun Business Unit0yrsno datano data
Shilian Wang
2.1yrsno datano data
Zhenqing Zhang
1.7yrsno datano data

1.9yrs

Average Tenure

48.5yo

Average Age

Experienced Management: VNET's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Sheng Chen
Co-Founder & Executive Chairman21.1yrsno data7.15% CN¥117.6m
Yoshihisa Ueno
Independent Director9.3yrsno data0.33% CN¥5.4m
Chung-Hou Tai
Independent Director7.3yrsno datano data
Sean S. Shao
Independent Director4.5yrsno datano data
Tao Zou
Independent Director3.2yrsno datano data
Wenbin Chen
Director2.4yrsno datano data
Erhfei Liu
Independent Director4.8yrsno datano data
Yao Li
Chairman of Strategic Advisory Board & Independent Director1.8yrsno datano data

4.6yrs

Average Tenure

53yo

Average Age

Experienced Board: VNET's board of directors are considered experienced (4.6 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.


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$1.644b
  • 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)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. It offers hosting and related services to house servers and networking equipment in its data centers, and connects them through a data transmission network. Its 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, 2018, it operated 20 self-built and 38 partnered data centers located in approximately 20 cities with 30,654 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 Analysis2020/02/20 01:16
End of Day Share Price2020/02/19 00:00
Earnings2019/09/30
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.