DB:BZF1

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Executive Summary

VMware, Inc. provides software in the areas of hybrid cloud, multi-cloud, modern applications, networking and security, and digital workspaces in the United States and internationally.


Snowflake Analysis

Solid track record and good value.


Similar Companies

Share Price & News

How has VMware's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BZF1's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.8%

BZF1

0.06%

DE Software

2.2%

DE Market


1 Year Return

-29.9%

BZF1

-3.6%

DE Software

-3.9%

DE Market

Return vs Industry: BZF1 underperformed the German Software industry which returned -3.6% over the past year.

Return vs Market: BZF1 underperformed the German Market which returned -4.6% over the past year.


Shareholder returns

BZF1IndustryMarket
7 Day-0.8%0.06%2.2%
30 Day3.7%1.5%8.0%
90 Day-10.9%-7.2%-9.6%
1 Year-29.9%-29.9%-2.3%-3.6%-2.3%-3.9%
3 Year71.6%41.5%21.2%16.3%-7.6%-14.8%
5 Year87.5%54.6%78.1%65.8%-0.3%-12.9%

Price Volatility Vs. Market

How volatile is VMware's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is VMware undervalued compared to its fair value and its price relative to the market?

28.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BZF1 (€122.98) is trading below our estimate of fair value (€170.69)

Significantly Below Fair Value: BZF1 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BZF1 is good value based on its PE Ratio (8.8x) compared to the Software industry average (27.7x).

PE vs Market: BZF1 is good value based on its PE Ratio (8.8x) compared to the German market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: BZF1's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: BZF1 is overvalued based on its PB Ratio (8x) compared to the DE Software industry average (3x).


Next Steps

Future Growth

How is VMware forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?

-43.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BZF1's earnings are forecast to decline over the next 3 years (-43.7% per year).

Earnings vs Market: BZF1's earnings are forecast to decline over the next 3 years (-43.7% per year).

High Growth Earnings: BZF1's earnings are forecast to decline over the next 3 years.

Revenue vs Market: BZF1's revenue (7.9% per year) is forecast to grow faster than the German market (5.7% per year).

High Growth Revenue: BZF1's revenue (7.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BZF1's Return on Equity is forecast to be high in 3 years time (26.1%)


Next Steps

Past Performance

How has VMware performed over the past 5 years?

43.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BZF1 has a high level of non-cash earnings.

Growing Profit Margin: BZF1's current net profit margins (59.3%) are higher than last year (17.2%).


Past Earnings Growth Analysis

Earnings Trend: BZF1's earnings have grown significantly by 43.7% per year over the past 5 years.

Accelerating Growth: BZF1's earnings growth over the past year (288.9%) exceeds its 5-year average (43.7% per year).

Earnings vs Industry: BZF1 earnings growth over the past year (288.9%) exceeded the Software industry 35.2%.


Return on Equity

High ROE: BZF1's Return on Equity (90.7%) is considered outstanding.


Next Steps

Financial Health

How is VMware's financial position?


Financial Position Analysis

Short Term Liabilities: BZF1's short term assets ($6.7B) do not cover its short term liabilities ($10.3B).

Long Term Liabilities: BZF1's short term assets ($6.7B) do not cover its long term liabilities ($9.0B).


Debt to Equity History and Analysis

Debt Level: BZF1's debt to equity ratio (82%) is considered high.

Reducing Debt: BZF1's debt to equity ratio has increased from 19.9% to 82% over the past 5 years.

Debt Coverage: BZF1's debt is well covered by operating cash flow (67.4%).

Interest Coverage: BZF1's interest payments on its debt are well covered by EBIT (17.1x coverage).


Balance Sheet


Next Steps

Dividend

What is VMware's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate BZF1's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate BZF1's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BZF1's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BZF1's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BZF1's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.2yrs

Average management tenure


CEO

Pat Gelsinger (58yo)

7.67yrs

Tenure

US$23,569,191

Compensation

Mr. Patrick P. Gelsinger, also known as Pat, has been the Chief Executive Officer of VMware, Inc. since September 1, 2012. Mr. Gelsinger has more than 30 years of experience in general management and produ ...


CEO Compensation Analysis

Compensation vs Market: Pat's total compensation ($USD23.57M) is above average for companies of similar size in the German market ($USD5.19M).

Compensation vs Earnings: Pat's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Patrick Gelsinger
CEO & Director7.67yrsUS$23.57m0.15% $76.4m
Zane Rowe
CFO & Executive VP4.17yrsUS$12.13m0.030% $15.4m
Rangarajan Raghuram
Chief Operating Officer of Products & Cloud Services10.42yrsUS$10.74m0.056% $29.2m
Sanjay Poonen
Chief Operating Officer of Customer Operations6.75yrsUS$9.47m0.055% $28.2m
Scott Devine
Co-Founder & Principal Engineer22.33yrsno datano data
Andrew Munk
Principal Accounting Officer & VP of Corporate Controller0.42yrno data0.0024% $1.2m
Greg Lavender
Senior VP & CTO1.33yrsno datano data
Bask Iyer
Chief Information Officer & Chief Digital Transformation Officer5.17yrsno datano data
Paul Ziots
Vice President of Investor Relationsno datano datano data
Amy Olli
Senior VP0.25yrno data0.0067% $3.5m

5.2yrs

Average Tenure

54.5yo

Average Age

Experienced Management: BZF1's management team is seasoned and experienced (5.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Patrick Gelsinger
CEO & Director7.67yrsUS$23.57m0.15% $76.4m
Amy Olli
Senior VP0.25yrno data0.0067% $3.5m
Egon Durban
Director3.67yrsno datano data
Donald Carty
Independent Director4.42yrsUS$357.69k0.0029% $1.5m
Paul Sagan
Independent Lead Director5.25yrsUS$648.91k0.0037% $1.9m
Michael Dell
Chairman3.67yrsno datano data
Michael Brown
Independent Director13.08yrsUS$400.41k0.0042% $2.2m
Karen Dykstra
Independent Director4.17yrsUS$641.94k0.0020% $1.0m
Anthony Bates
Independent Director4.25yrsUS$412.69k0.0028% $1.4m
Marianne Brown
Director0.58yrno data0.00028% $144.6k

4.2yrs

Average Tenure

59yo

Average Age

Experienced Board: BZF1's board of directors are considered experienced (4.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: BZF1 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Insufficient data to determine if shareholders have been diluted in the past year.


Top Shareholders

Company Information

VMware, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: VMware, Inc.
  • Ticker: BZF1
  • Exchange: DB
  • Founded: 1998
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: US$56.264b
  • Listing Market Cap: US$51.650b
  • Shares outstanding: 418.01m
  • Website: https://www.vmware.com

Number of Employees


Location

  • VMware, Inc.
  • 3401 Hillview Avenue
  • Palo Alto
  • California
  • 94304
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BZF1DB (Deutsche Boerse AG)YesClass A Common StockDEEURAug 2007
VMWNYSE (New York Stock Exchange)YesClass A Common StockUSUSDAug 2007
BZF1XTRA (XETRA Trading Platform)YesClass A Common StockDEEURAug 2007
0LQOLSE (London Stock Exchange)YesClass A Common StockGBUSDAug 2007
VMW *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNAug 2007
VMWAWBAG (Wiener Boerse AG)YesClass A Common StockATEURAug 2007

Biography

VMware, Inc. provides software in the areas of hybrid cloud, multi-cloud, modern applications, networking and security, and digital workspaces in the United States and internationally. It offers compute products, including VMware vSphere, a data center platform, which enables users to deploy hypervisor, a layer of software that resides between the operating system and system hardware to enable compute virtualization; and cloud management products for businesses with automated operation, programmable provisioning, and application monitoring solutions. It also provides networking and security products and services that enable customers to connect and operate their network consistently within and across the data center, cloud, and network edges; and storage and availability products, including data storage and protection options. In addition, it offers VMware Cloud Foundation, a platform that combines its compute, storage, and networking technologies with cloud management into an integrated stack and delivers enterprise-ready cloud infrastructure for private and public clouds. Further, it provides hybrid cloud computing solutions, such as VMware Cloud Provider Program, VMware Cloud Foundation, and VMware Cloud Services; end-user computing solutions, such as Workspace ONE that delivers and manages any application on any device by integrating access control, application management, and multi-platform endpoint management; pivotal cloud foundry, pivotal labs, and heptio, as well as pivotal application and pivotal container services; and VMware Carbon Black Cloud platform, AppDefense, and VMware Workspace ONE platform. The company sells its products through distributors, resellers, system vendors, and systems integrators. VMware, Inc. has strategic alliances with Amazon Web Services to build and deliver an integrated hybrid solution. The company was incorporated in 1998 and is headquartered in Palo Alto, California. VMware, Inc. is a subsidiary of Dell Technologies Inc. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/25 22:04
End of Day Share Price2020/05/25 00:00
Earnings2020/01/31
Annual Earnings2020/01/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.