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Upturn AI SWOT - About
VNET Group Inc DRC (VNET)
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Upturn Advisory Summary
03/27/2025: VNET (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type Stock | Historic Profit -9.38% | Avg. Invested days 30 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 03/27/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 2.38B USD | Price to earnings Ratio 445 | 1Y Target Price 14.06 |
Price to earnings Ratio 445 | 1Y Target Price 14.06 | ||
Volume (30-day avg) 13832406 | Beta 0.07 | 52 Weeks Range 1.42 - 16.13 | Updated Date 03/27/2025 |
52 Weeks Range 1.42 - 16.13 | Updated Date 03/27/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 0.02 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date 2025-03-25 | When Before Market | Estimate 0.3493 | Actual -0.0371 |
Profitability
Profit Margin 2.22% | Operating Margin (TTM) 10.55% |
Management Effectiveness
Return on Assets (TTM) 1.33% | Return on Equity (TTM) 3.7% |
Valuation
Trailing PE 445 | Forward PE 37.17 | Enterprise Value 4666030736 | Price to Sales(TTM) 0.29 |
Enterprise Value 4666030736 | Price to Sales(TTM) 0.29 | ||
Enterprise Value to Revenue 4.1 | Enterprise Value to EBITDA 19.82 | Shares Outstanding 261995008 | Shares Floating 779571235 |
Shares Outstanding 261995008 | Shares Floating 779571235 | ||
Percent Insiders 6.84 | Percent Institutions 40.88 |
Analyst Ratings
Rating 4.45 | Target Price 5.61 | Buy 4 | Strong Buy 6 |
Buy 4 | Strong Buy 6 | ||
Hold 1 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
VNET Group Inc.: A Comprehensive Overview
Company Profile
History and Background
VNET Group Inc. (VNET), established in 1999, is a leading Internet infrastructure provider and cloud service provider in China. The company's headquarters is in Beijing, and it operates 33 data centers and over 500 PoPs across 31 cities worldwide.
VNET has evolved through various mergers and acquisitions, notably its 2021 acquisition of CSC Financial Cloud Service (CSC), a cloud service provider specializing in the financial industry.
The company focuses on cloud and network solutions, including cloud hosting, managed services, internet data center (IDC) services, and internet connectivity services. VNET caters to various industries, including finance, healthcare, education, government, and enterprise.
Leadership and Corporate Structure
VNET's leadership team comprises:
- Executive Chairman: David Wen
- President: Steven Wang
- Chief Financial Officer: Yuwei Wang
The company structure comprises various departments, including Technology, Operation, Marketing, Finance, and Human Resources.
Top Products and Market Share
Products and Offerings
VNET's top products and offerings include:
- Cloud Computing: Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS), and Software-as-a-Service (SaaS) solutions for various applications.
- Network Solutions: International and domestic internet access, dedicated connections, and content delivery network (CDN) services.
- IDC Services: Data center colocation and managed services, including physical security, power supply, and network connectivity.
Market Share
According to Synergy Research Group, VNET's global cloud market share in Q4 2022 was 0.5%, while its domestic market share in China was 3%. The company faces significant competition from global cloud giants like Amazon Web Services, Microsoft Azure, and Alibaba Cloud.
Total Addressable Market
The global cloud computing market is expected to reach a value of USD 1,233.2 billion by 2028, with a CAGR of 17.5%. The Chinese cloud computing market is expected to grow even faster, reaching a value of USD 132.6 billion by 2028, with a CAGR of 22.4%. VNET operates within this vast and rapidly growing market.
Financial Performance
Financial Statements Analysis
VNET's recent financial statements are available on its investor relations website. Key financial metrics include:
- Revenue: The company's revenue has grown steadily in recent years, reaching USD 482 million in 2022.
- Net Income: VNET has been profitable for several years, with a net income of USD 104.5 million in 2022.
- Profit Margins: Both gross and net profit margins have improved in recent years, reflecting improved operational efficiency.
- Earnings per Share (EPS): EPS has also increased steadily, reaching USD 0.54 in 2022.
Year-Over-Year Comparison
VNET's financial performance has shown consistent growth in recent years. Revenue, net income, and EPS have all increased year-over-year.
Cash Flow and Balance Sheet
VNET's cash flow statement indicates strong operating cash flow and healthy cash reserves. The balance sheet reflects low debt-to-equity ratios, suggesting a sound financial position.
Dividends and Shareholder Returns
Dividend History
VNET has a history of paying dividends, with a current dividend yield of approximately 1.5%. The company has increased its dividend payout ratio in recent years.
Shareholder Returns
VNET's total shareholder return has been positive over the past year and 5 years, reflecting the company's strong financial performance.
Growth Trajectory
Historical Growth
VNET's revenue and earnings have grown consistently over the past 5-10 years. The company has expanded its cloud and network services portfolio through organic growth and acquisitions.
Future Projections
Industry analysts expect VNET's growth to continue in the coming years, fueled by the increasing demand for cloud computing services and the growing Chinese cloud market.
Recent Initiatives
VNET is investing heavily in expanding its cloud infrastructure and developing new cloud-based service offerings. The company is also actively partnering with industry leaders to strengthen its market position.
Market Dynamics
Industry Overview
The cloud computing industry is characterized by rapid technological advancements, increasing competition, and evolving customer demands. VNET must adapt to these changes to remain competitive.
Market Positioning
VNET is well-positioned in the Chinese cloud market due to its strong domestic presence, industry expertise, and focus on specific industry verticals.
Competitors
Key Competitors
VNET's main competitors in both the global and domestic markets include:
- Global Cloud Giants: Amazon Web Services (AMZN), Microsoft Azure (MSFT), Alibaba Cloud (BABA), Google Cloud (GOOGL).
- Domestic Competitors: Tencent Cloud (TCEHY), Huawei Cloud (HUAWEI), Baidu Cloud (BIDU).
Market Share Comparison
VNET's market share in both the global and domestic cloud markets is significantly smaller than its major competitors.
Competitive Advantages and Disadvantages
Advantages:
- Strong domestic presence and focus on the Chinese market.
- Industry expertise and specialized solutions for specific industry verticals.
- Cost-competitive pricing compared to global cloud giants.
Disadvantages:
- Smaller market share compared to major competitors.
- Limited global presence.
Potential Challenges and Opportunities
Potential Challenges
VNET faces potential challenges from:
- Intense competition from both global and domestic cloud providers.
- Rapid technological advancements requiring ongoing innovation and investment.
- Increasing regulatory scrutiny in the Chinese cloud market.
Potential Opportunities
VNET has potential opportunities in:
- Expanding into new industry verticals and geographic markets.
- Developing innovative new cloud-based services.
- Partnering with industry leaders to strengthen its market position.
Recent Acquisitions
- 2021: Acquisition of CSC Financial Cloud Service (CSC), a cloud service provider specializing in the financial industry. This acquisition strengthened VNET's position in the financial cloud market and expanded its service offerings.
AI-Based Fundamental Rating
Based on an AI-based analysis of various factors, including financial health, market position, and future prospects, VNET Group Inc. receives a fundamental rating of 7.5 out of 10.
This rating reflects the company's strong financial performance, domestic market leadership, and growth potential. However, the company faces challenges from intense competition and rapid technological advancements.
Sources and Disclaimers
Data and information used in this analysis were gathered from the following sources:
- VNET Group Inc. Investor Relations Website
- Synergy Research Group Cloud Market Share Report
- Annual Reports of VNET Group Inc.
- Industry Reports and Articles
This information should not be considered financial advice. It is crucial to conduct your research and due diligence before making any investment decisions.
Conclusion
VNET Group Inc. is a leading cloud and network solutions provider in China with a strong growth trajectory and potential for continued expansion. The company faces challenges from intense competition, but its focus on the domestic market and industry expertise provide opportunities for success.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About VNET Group Inc DRC
Exchange NASDAQ | Headquaters - | ||
IPO Launch date 2011-04-21 | Co-Founder, Executive Co-Chairman & Interim CEO Mr. Sheng Chen | ||
Sector Technology | Industry Information Technology Services | Full time employees - | Website https://www.vnet.com |
Full time employees - | Website https://www.vnet.com | ||
VNET Group, Inc., an investment holding company, provides hosting and related services in China. The company offers managed hosting services consisting of managed retail services, such as colocation services that dedicate data center space to house customers' servers and networking equipment, as well as allow customers to lease partial or entire cabinets for their servers; interconnectivity services that allow customers to connect their servers; and value-added services, including hybrid IT, bare metal, firewall, server load balancing, data backup and recovery, data center management, server management, and backup server services. It also provides cloud services that allow customers to run applications over the internet using IT infrastructure; and VPN services that extend customers' private networks by setting up connections through the public internet. In addition, the company provides server administration services, such as operating system support and assistance with updates, server monitoring, server backup and restoration, server security evaluation, firewall services, and disaster recovery services. It serves information technology and cloud services, communications and social networking, gaming and entertainment, e-commerce, automobile, financial services, and blue-chip and small-to-mid-sized enterprises; government agencies; individuals; and telecommunication carriers. The company was formerly known as 21Vianet Group, Inc. and changed its name to VNET Group, Inc. in October 2021. VNET Group, Inc. was founded in 1996 and is headquartered in Beijing, the People's Republic of China.
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