(VNET) VNET DRC - Overview
Sector: Technology | Industry: Information Technology Services | Exchange: NASDAQ (USA) | Market Cap: 2.716m USD | Total Return: 58% in 12m
Avg Turnover: 62.0M
Qual. Beats: 0
Rev. Trend: 96.9%
Qual. Beats: 0
Warnings
High Debt/EBITDA (9.4) with thin interest coverage (0.9)
High Debt while negative Cash Flow
Interest Coverage Ratio 0.9 is critical
Altman Z'' -1.18 < 1.0 - financial distress zone
Volatile Below Avwap Earnings
Tailwinds
Confidence
VNET Group, Inc. is a Beijing-based provider of carrier-neutral data center hosting and infrastructure services in China. The company operates an investment holding structure that delivers managed retail services, including colocation, interconnectivity, and managed IT solutions such as disaster recovery and server administration.
The business model relies on high-density data center deployments to support diverse sectors including e-commerce, gaming, and financial services. As a carrier-neutral provider, VNET allows clients to connect across multiple telecommunications networks, a critical feature for reducing latency in the Chinese digital infrastructure market.
Beyond physical hosting, the company offers virtual private networks (VPN) and cloud computing services to facilitate secure remote operations. This infrastructure-heavy model requires significant capital expenditure to maintain the power density and cooling requirements essential for modern high-performance computing.
Consulting ValueRay can provide further clarity on the specific financial metrics driving this companys valuation.
- Hyperscale data center capacity expansion drives recurring hosting revenue growth
- High capital expenditure requirements pressure free cash flow and leverage ratios
- Chinese regulatory environment impacts cloud service demand and operational licensing
- Rising power costs and energy efficiency mandates affect gross profit margins
- Strategic partnership with Microsoft Azure secures premium enterprise cloud service income
| Net Income: 272.3m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.16 > 0.02 and ΔFCF/TA -8.06 > 1.0 |
| NWC/Revenue: -9.67% < 20% (prev 12.01%; Δ -21.68% < -1%) |
| CFO/TA 0.06 > 3% & CFO 2.46b > Net Income 272.3m |
| Net Debt (27.3b) to EBITDA (2.91b): 9.39 < 3 |
| Current Ratio: 0.92 > 1.5 & < 3 |
| Outstanding Shares: last quarter (293.8m) vs 12m ago 10.61% < -2% |
| Gross Margin: 20.87% > 18% (prev 0.23%; Δ 2.06k% > 0.5%) |
| Asset Turnover: 24.67% > 50% (prev 22.01%; Δ 2.66% > 0%) |
| Interest Coverage Ratio: 0.93 > 6 (EBITDA TTM 2.91b / Interest Expense TTM 682.2m) |
| A: -0.02 (Total Current Assets 11.5b - Total Current Liabilities 12.5b) / Total Assets 44.6b |
| B: -0.25 (Retained Earnings -11.1b / Total Assets 44.6b) |
| C: 0.02 (EBIT TTM 637.8m / Avg Total Assets 41.8b) |
| D: -0.31 (Book Value of Equity -11.0b / Total Liabilities 35.8b) |
| Altman-Z'' = -1.18 = CCC |
| DSRI: 1.32 (Receivables 3.83b/2.41b, Revenue 10.3b/8.56b) |
| GMI: 1.11 (GM 20.87% / 23.08%) |
| AQI: 1.11 (AQ_t 0.12 / AQ_t-1 0.11) |
| SGI: 1.20 (Revenue 10.3b / 8.56b) |
| TATA: -0.05 (NI 272.3m - CFO 2.46b) / TA 44.6b) |
| Beneish M = -2.51 (Cap -4..+1) = A |
As of May 25, 2026, the stock is trading at USD 9.54 with a total of 12,242,009 shares traded.
Over the past week, the price has changed by -5.45%,
over one month by +3.47%,
over three months by -20.37% and
over the past year by +57.95%.
VNET DRC has received a consensus analysts rating of 4.46. Therefore, it is recommended to buy VNET.
- StrongBuy: 7
- Buy: 5
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 15.7 | 64% |
Market Cap CNY = 18.5b (2.72b USD * 6.7948 USD.CNY)
P/E Forward = 25.1889
P/S = 0.273
P/B = 2.9711
P/EG = 0.4471
Revenue TTM = 10.3b CNY
EBIT TTM = 637.8m CNY
EBITDA TTM = 2.91b CNY
Long Term Debt = 16.7b CNY (from longTermDebt, last fiscal year)
Short Term Debt = 4.55b CNY (from shortTermDebt, last quarter)
Debt = 33.9b CNY (from shortLongTermDebtTotal, last quarter) + Leases 6.97b
Net Debt = 27.3b CNY (calculated: Debt 33.9b - CCE 6.56b)
Enterprise Value = 45.8b CNY (18.5b + Debt 33.9b - CCE 6.56b)
Interest Coverage Ratio = 0.93 (Ebit TTM 637.8m / Interest Expense TTM 682.2m)
EV/FCF = -6.25x (Enterprise Value 45.8b / FCF TTM -7.33b)
FCF Yield = -16.00% (FCF TTM -7.33b / Enterprise Value 45.8b)
FCF Margin = -71.12% (FCF TTM -7.33b / Revenue TTM 10.3b)
Net Margin = 2.64% (Net Income TTM 272.3m / Revenue TTM 10.3b)
Gross Margin = 20.87% ((Revenue TTM 10.3b - Cost of Revenue TTM 8.15b) / Revenue TTM)
Gross Margin QoQ = 20.11% (prev 20.11%)
Tobins Q-Ratio = 1.03 (Enterprise Value 45.8b / Total Assets 44.6b)
Interest Expense / Debt = 2.01% (Interest Expense 682.2m / Debt 33.9b)
Taxrate = 21.0% (US default 21%)
NOPAT = 503.9m (EBIT 637.8m * (1 - 21.00%))
Current Ratio = 0.92 (Total Current Assets 11.5b / Total Current Liabilities 12.5b)
Debt / Equity = 5.45 (Debt 33.9b / totalStockholderEquity, last quarter 6.22b)
Debt / EBITDA = 9.39 (Net Debt 27.3b / EBITDA 2.91b)
Debt / FCF = -3.73 (negative FCF - burning cash) (Net Debt 27.3b / FCF TTM -7.33b)
Total Stockholder Equity = 6.09b (last 4 quarters mean from totalStockholderEquity)
RoA = 0.65% (Net Income 272.3m / Total Assets 44.6b)
RoE = 1.58% (Net Income TTM 272.3m / Total Stockholder Equity 17.2b)
RoCE = 1.88% (EBIT 637.8m / Capital Employed (Equity 17.2b + L.T.Debt 16.7b))
RoIC = 1.37% (NOPAT 503.9m / Invested Capital 36.7b)
WACC = 5.88% (E(18.5b)/V(52.4b) * Re(13.76%) + D(33.9b)/V(52.4b) * Rd(2.01%) * (1-Tc(0.21)))
Discount Rate = 13.76% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: 70.47 | Cagr: 133.6%
[DCF] Fair Price = unknown (Cash Flow -7.33b)
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.26 | # QB: 0
Revenue Correlation: 96.89 | Revenue CAGR: 14.04% | SUE: -0.05 | # QB: 0
EPS current Quarter (2026-06-30): EPS=-0.26 | Chg30d=+2.69% | Revisions=+33% | Analysts=3
EPS current Year (2026-12-31): EPS=0.61 | Chg30d=+143.77% | Revisions=N/A | GrowthEPS=+172.9% | GrowthRev=+17.5%
EPS next Year (2027-12-31): EPS=1.47 | Chg30d=+0.00% | Revisions=N/A | GrowthEPS=+141.3% | GrowthRev=+20.2%
[Analyst] Revisions Ratio: +33%