VNET Stock Analysis: VNET DRC | NASDAQ
Information Technology Services | NASDAQ, USA | Market Cap: 2.255m USD | 12M Return: 10.2% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 42.6M
Qual. Beats: -1
Rev. Trend: 96.8%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 10.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
VNET Group, Inc. is a Beijing-headquartered investment holding company founded in 1996 (formerly 21Vianet Group, Inc., renamed in October 2021) that provides data center hosting and related services in China. Its offerings span managed hosting (including colocation, interconnectivity, and value-added services such as hybrid IT, bare metal, and disaster recovery), cloud services, VPN services, and server administration. The company serves a diverse customer base across IT and cloud services, communications and social networking, gaming and entertainment, e-commerce, automobile, financial services, blue-chip and small-to-mid-sized enterprises, government agencies, individuals, and telecommunication carriers.
Operating within the Internet Services & Infrastructure sub-industry (GICS Information Technology), VNET is part of Chinas data center sector, where carriers-neutral colocation providers compete by offering cabinet-level and partial-cage leasing alongside connectivity and managed services. The business model relies on recurring hosting revenue from long-term enterprise and carrier customers, complemented by cloud and value-added services that layer additional utility on top of physical data center capacity.
- AI-driven data center capacity expansion boosts wholesale revenue
- Power costs and heavy capex pressure EBITDA margins
- China data sovereignty rules favor domestic hosting providers
| Net Income: -2.25b TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.12 > 0.02 and ΔFCF/TA -3.72 > 1.0 |
| NWC/Revenue: -1.60% < 20% (prev 11.99%; Δ -13.59% < -1%) |
| CFO/TA 0.04 > 3% & CFO 1.90b > Net Income -2.25b |
| Net Debt (28.1b) to EBITDA (3.66b): 7.68 < 3 |
| Current Ratio: 0.99 > 1.5 & < 3 |
| Outstanding Shares: last quarter (274.1m) vs 12m ago 3.21% < -2% |
| Gross Margin: 21.59% > 18% (prev 23.08%; Δ -1.50% > 0.5%) |
| Asset Turnover: 23.52% > 50% (prev 22.04%; Δ 1.48% > 0%) |
| Interest Coverage Ratio: 1.87 > 6 (EBIT TTM 1.34b / Interest Expense TTM 716.4m) |
| A: -0.00 (Total Current Assets 14.5b - Total Current Liabilities 14.7b) / Total Assets 49.1b |
| B: -0.27 (Retained Earnings -13.4b / Total Assets 49.1b) |
| C: 0.03 (EBIT TTM 1.34b / Avg Total Assets 44.0b) |
| D: 0.11 (Book Value of Equity 4.23b / Total Liabilities 39.1b) |
| Altman-Z'' = -0.59 = B |
| DSRI: 1.07 (Receivables 3.11b/2.41b, Revenue 10.3b/8.56b) |
| GMI: 1.07 (GM 23.08% / 21.59%) |
| AQI: 0.99 (AQ_t 0.11 / AQ_t-1 0.11) |
| SGI: 1.21 (Revenue 10.3b / 8.56b) |
| TATA: -0.08 (NI -2.25b - CFO 1.90b) / TA 49.1b) |
| Beneish M = -2.77 (Cap -4..+1) = A |
As of July 09, 2026, the stock is trading at USD 8.33 with a total of 5,278,216 shares traded. Over the past week, the price has changed by +3.61%, over one month by -6.09%, over three months by -0.12% and over the past year by +10.19%.
Current recommended Stop Loss: 7.10 (which is 14.8% or 2 ATR below the current price).
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 | 88.6% |
Market Cap CNY = 15.3b (2.25b USD * 6.7942 USD.CNY)
P/E Forward = 23.0947
P/S = 0.2169
P/B = 4.0267
P/EG = 0.4471
Revenue TTM = 10.3b CNY
EBIT TTM = 1.34b CNY
EBITDA TTM = 3.66b CNY
Long Term Debt = 17.8b CNY (from longTermDebt, last quarter)
Short Term Debt = 6.50b CNY (from shortTermDebt, last quarter)
Debt = 36.6b CNY (from shortLongTermDebtTotal, last quarter) + Leases 6.83b
Net Debt = 28.1b CNY (calculated: Debt 36.6b - CCE 8.49b)
Enterprise Value = 43.4b CNY (15.3b + Debt 36.6b - CCE 8.49b)
Interest Coverage Ratio = 1.87 (Ebit TTM 1.34b / Interest Expense TTM 716.4m)
EV/FCF = -7.31x (Enterprise Value 43.4b / FCF TTM -5.94b)
FCF Yield = -13.68% (FCF TTM -5.94b / Enterprise Value 43.4b)
FCF Margin = -57.42% (FCF TTM -5.94b / Revenue TTM 10.3b)
Net Margin = -21.78% (Net Income TTM -2.25b / Revenue TTM 10.3b)
Gross Margin = 21.59% ((Revenue TTM 10.3b - Cost of Revenue TTM 8.11b) / Revenue TTM)
Gross Margin QoQ = 22.89% (prev 20.11%)
Tobins Q-Ratio = 0.88 (Enterprise Value 43.4b / Total Assets 49.1b)
Interest Expense / Debt = 1.96% (Interest Expense 716.4m / Debt 36.6b)
Taxrate = 21.0% (US federal default 21%)
NOPAT = 1.06b (EBIT 1.34b * (1 - 21.00%))
Current Ratio = 0.99 (Total Current Assets 14.5b / Total Current Liabilities 14.7b)
Debt / Equity = 8.65 (Debt 36.6b / totalStockholderEquity, last quarter 4.23b)
Debt / EBITDA = 7.68 (Net Debt 28.1b / EBITDA 3.66b)
Debt / FCF = -4.73 (negative FCF - burning cash) (Net Debt 28.1b / FCF TTM -5.94b)
Total Stockholder Equity = 5.59b (last 4 quarters mean from totalStockholderEquity)
RoA = -5.12% (Net Income -2.25b / Total Assets 49.1b)
RoE = -40.29% (Net Income TTM -2.25b / Total Stockholder Equity 5.59b)
RoCE = 5.73% (EBIT 1.34b / Capital Employed (Equity 5.59b + L.T.Debt 17.8b))
RoIC = 2.61% (NOPAT 1.06b / Invested Capital 40.4b)
WACC = 5.29% (E(15.3b)/V(51.9b) * Re(14.22%) + D(36.6b)/V(51.9b) * Rd(1.96%) * (1-Tc(0.21)))
Discount Rate = 14.22% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: 62.93 | Cagr: 126.5%
[DCF] Fair Price = unknown (Cash Flow -5.94b)
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -4.0 | # QB: -1
Revenue Correlation: 96.84 | Revenue CAGR: 14.11% | SUE: 0.01 | # QB: 0
EPS current Quarter (2026-06-30): EPS=-0.38 | Chg30d=N/A | Revisions=+0% | Analysts=1
EPS next Quarter (2026-09-30): EPS=-0.16 | Chg30d=N/A | Revisions=+0% | Analysts=1
EPS current Year (2026-12-31): EPS=-8.39 | Chg30d=-1479.97% | Revisions=+0% | GrowthEPS=-906.0% | GrowthRev=+17.9%
EPS next Year (2027-12-31): EPS=1.36 | Chg30d=-7.40% | Revisions=+0% | GrowthEPS=+116.2% | GrowthRev=+21.6%