VNET Group, Inc. (VNET) stock analysis
Close on Nov 11, 2026Market cap $944.01MP/E –Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Weak1 of 30 checks passed
VNET passes 1 of the 30 checks behind our score; 21 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 0/6
- Growth
- 0/6
- Past performance
- 0/6
- Financial health
- 1/6
- Dividend
- 0/6
What stands out
Debt covered by cash flow
Operating cash flow over the last twelve months equals 59.4% of total debt.
What to watch
Return on equity under 15%
Return on equity was -4.0% over the last twelve months and averaged -9.4% over five years; we look for 15% on both.
Return on capital under 10%
Return on invested capital was 7.5%, below the 10% that usually covers the cost of capital.
High debt
Debt is 52.0% of shareholders' equity, above the 40% we consider low.
Interest not well covered
Operating income covers interest expense 1.3 times; we look for at least 5.
Valuation0/6
P/E against its history
Not enough price and earnings history to compare.
P/E against the industry
Needs positive earnings and enough profitable companies in the industry.
EV/EBITDA against its history
Needs positive EBITDA and price history.
P/B against the industry
Needs positive book value.
Price against fair value
We could not estimate a fair value: it needs at least two valuation methods with positive inputs.
Margin of safety
Depends on the fair value estimate.
Growth0/6
Revenue growth over 3 years
Needs three years of positive revenue.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growth against the industry
Needs revenue for this year and last.
Guidance issued
The latest outlook (full year of 2026 total net revenues, Mar 16, 2026) was issued for the first time, so it neither adds nor takes away points.
Gross margin trend
This company does not report gross profit.
Past performance0/6
Return on equity under 15%
Return on equity was -4.0% over the last twelve months and averaged -9.4% over five years; we look for 15% on both.
Return on capital under 10%
Return on invested capital was 7.5%, below the 10% that usually covers the cost of capital.
Return on equity below the industry
VNET's return on equity of -4.0% is below the Computer Programming, Data Processing, and Other Computer Related Services median of -1.2%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin against its history
Needs five years of revenue and net income.
Net margin against the industry
Needs revenue and net income.
Financial health1/6
High debt
Debt is 52.0% of shareholders' equity, above the 40% we consider low.
Debt rising against equity
Debt to equity rose from 3.8% five years ago to 52.0%.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 59.4% of total debt.
Interest not well covered
Operating income covers interest expense 1.3 times; we look for at least 5.
Short-term assets don't cover short-term debts
Current assets are 0.92 times current liabilities.
Bankruptcy risk (Altman Z)
Needs market value, working capital and retained earnings.
Dividend0/6
No dividend
VNET has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itWe don't publish a fair value for VNET. It needs a US-dollar share price, at least two valuation methods with positive inputs (earnings, EBITDA, book value or sales) and, for companies with several share classes, classes that trade at the same price.
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $26.19M
- Value traded per 1% price move
- $6.00M
Downside
High risk
- Typical loss in a bad month
- 43.0%
- Volatility (annualized)
- 82%
- Sharpe ratio, 1 year
- -0.83
- Beta to the S&P 500 (5Y)
- 1.17
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2011 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Gross profit | +19.7% | +17.3% | +15.3% | +9.9% | |
| Operating income | +16.6% | +86.1% | +46.3% | – |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | -12.5% | -47.0% | -4.0% | |
| Return on assets | -5.4% | -16.1% | -0.7% | |
| Current ratio | 1.18 | 0.99 | 0.92 | |
| Interest coverage | -4.2× | 0.3× | 1.3× | |
| Inventory turnover | 326.1× | – | – | |
| Capex to revenue | 15.8% | – | – | |
| Diluted shares | 617M | 717M | 1.61B |
Where the cash went
Fiscal 2021 to 2025, five years combined
VNET generated CN¥9.82B from operations and spent CN¥22.95B on capital expenditure, dividends and share buybacks. 93% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2019 | -4.8% | 0.30× | 2.53× | -3.6% |
| FY2018 | -6.0% | 0.32× | 2.08× | -4.0% |
| FY2017 | -22.8% | 0.30× | 2.00× | -13.8% |
| FY2016 | -17.4% | 0.31× | 2.29× | -12.5% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero-CN¥251.84M
- Cash generatingOperating cash flow above zeroCN¥1.92B
- Return on assets improvedROA up on the prior year0.6% → -0.8%
- Earnings backed by cashOperating cash flow above net incomeCN¥1.92B vs -CN¥251.84M
- Less leverageLong-term debt to assets fell– → –
- Better liquidityCurrent ratio rose0.73 → 0.92
- No dilutionShare count did not rise1.74B → 1.61B
- Gross margin improvedGross margin up on the prior year– → –
- More efficientAsset turnover rose– → –
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