Vingroup JSC

Vingroup's capital structure is highly leveraged, with a debt-to-equity ratio of 1.71, indicating significant reliance on debt financing. The company's liquidity position is medium, with a current ratio of 0.85, suggesting limited short-term liquidity to cover immediate liabilities. Despite a negative net cash position after subtracting total debt, Vingroup reported a positive free cash flow of 2.43 trillion VND, which may be used to service debt or fund operations.

Profitability metrics are weak, with a return on equity (ROE) of -2.72% and a return on assets (ROA) of -0.49%, both significantly below the industry median for real estate developers. The company reported a net loss of 3.53 trillion VND, driven by a sharp decline in operating income to 2.22 trillion VND, down from gross profit of 7.14 trillion VND. These figures suggest operational inefficiencies and cost pressures.

Vingroup's revenue is concentrated in its real estate segment, which dominates its business model. While the company has diversified into retail and technology, the real estate segment remains the primary revenue driver. The geographic exposure is primarily within Vietnam, with limited international presence. This concentration increases vulnerability to domestic economic and regulatory shifts.

The company's growth trajectory is mixed. Revenue for the latest period was 42.33 trillion VND, but the outlook for the current fiscal year is uncertain due to the net loss and negative operating cash flow of -27.32 trillion VND. Analysts have provided a mean price target of 82,050 VND, with a median of the same value, but the mean recommendation of 3.67 suggests a cautious outlook.

Risk factors include liquidity constraints and the potential for further debt accumulation. The company's dilution risk is currently low, but the negative net cash position and high debt-to-equity ratio could lead to future equity issuance if debt servicing becomes challenging. No recent dilutive events have been reported, and the company has not disclosed any immediate plans for share buybacks or new equity offerings.

Recent events include a continued focus on cost management and asset optimization to improve cash flow. The company has also been exploring strategic partnerships to enhance its real estate and technology segments. However, the lack of positive earnings and the high debt burden remain key concerns for investors.

Revenue surged 75.5% year-over-year to 331.8 trillion VND in FY2026, demonstrating strong top-line growth momentum.

The company achieved a 27.5% revenue CAGR over four years, indicating sustained long-term expansion capabilities.

Cash conversion ratio of 7.74 ranks as best-in-class compared to the 0.29 cohort median.

Gross profit expanded significantly to 52.7 trillion VND in FY2026, reflecting improved underlying profitability before operating expenses.

Operating income recovered to 10.3 trillion VND in FY2026, reversing the previous year's operating loss.

Long-term debt ballooned to 338.5 trillion VND in FY2026, creating significant leverage and refinancing risks.

The debt-to-equity ratio of 1.71 places the company in the bottom quartile of its peer cohort.

Net margin of -8.3% and ROE of -2.7% both lag significantly behind cohort medians.

Revenue VND 331.84T, +75,5% YoY; Operating income −17,4% YoY.

• ▍Revenue VND 331.84T, +75,5% YoY
• ▍Operating income −17,4% YoY
• ▍Net income −4,7% YoY
• ▍Free cash flow −75,0% YoY
• ▍Net margin 3.4%

Revenue VND 189.07T, +17,1% YoY; Operating income +353,8% YoY.

• ▍Revenue VND 189.07T, +17,1% YoY
• ▍Operating income +353,8% YoY
• ▍Net income +451,9% YoY
• ▍Free cash flow +42,1% YoY
• ▍Net margin 6.3%

Revenue VND 161.43T, +58,6% YoY; Operating income −161,3% YoY.

• ▍Revenue VND 161.43T, +58,6% YoY
• ▍Operating income −161,3% YoY
• ▍Net income −75,4% YoY
• ▍Free cash flow +35,0% YoY
• ▍Net margin 1.3%

Revenue VND 101.79T, −19,0% YoY; Operating income +3,1% YoY.

• ▍Revenue VND 101.79T, −19,0% YoY
• ▍Operating income +3,1% YoY
• ▍Net income +449,3% YoY
• ▍Free cash flow −72,8% YoY
• ▍Net margin 8.6%

Revenue VND 125.69T; Operating income VND 7.76T.

• ▍Revenue VND 125.69T
• ▍Operating income VND 7.76T
• ▍Net margin -2.0%