NYSE:VMW

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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. More Details


Snowflake Analysis

Good value with limited growth.


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: VMW is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: VMW's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-1.3%

VMW

0.2%

US Software

1.5%

US Market


1 Year Return

-4.7%

VMW

46.5%

US Software

22.3%

US Market

Return vs Industry: VMW underperformed the US Software industry which returned 46.4% over the past year.

Return vs Market: VMW underperformed the US Market which returned 22.1% over the past year.


Shareholder returns

VMWIndustryMarket
7 Day-1.3%0.2%1.5%
30 Day4.9%3.9%8.8%
90 Day2.0%6.2%10.8%
1 Year-4.7%-4.7%47.4%46.5%25.1%22.3%
3 Year41.2%17.3%142.1%134.3%49.5%39.6%
5 Year185.9%137.5%235.6%217.9%105.8%83.3%

Long-Term 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

Valuation

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

30.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VMW ($140.23) is trading below our estimate of fair value ($202.3)

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


Price To Earnings Ratio

PE vs Industry: VMW is good value based on its PE Ratio (37x) compared to the US Software industry average (56x).

PE vs Market: VMW is poor value based on its PE Ratio (37x) compared to the US market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: VMW is poor value based on its PEG Ratio (6.2x)


Price to Book Ratio

PB vs Industry: VMW is good value based on its PB Ratio (7x) compared to the US Software industry average (8.1x).


Next Steps

Future Growth

How is VMware forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?

5.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VMW's forecast earnings growth (5.9% per year) is above the savings rate (2.2%).

Earnings vs Market: VMW's earnings (5.9% per year) are forecast to grow slower than the US market (21.9% per year).

High Growth Earnings: VMW's earnings are forecast to grow, but not significantly.

Revenue vs Market: VMW's revenue (8.6% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: VMW's revenue (8.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VMW's Return on Equity is forecast to be high in 3 years time (27.2%)


Next Steps

Past Performance

How has VMware performed over the past 5 years?

34.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VMW has high quality earnings.

Growing Profit Margin: VMW's current net profit margins (13.8%) are lower than last year (56%).


Past Earnings Growth Analysis

Earnings Trend: VMW's earnings have grown significantly by 34.7% per year over the past 5 years.

Accelerating Growth: VMW's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: VMW had negative earnings growth (-73.7%) over the past year, making it difficult to compare to the Software industry average (8%).


Return on Equity

High ROE: VMW's Return on Equity (18.7%) is considered low.


Next Steps

Financial Health

How is VMware's financial position?


Financial Position Analysis

Short Term Liabilities: VMW's short term assets ($6.8B) do not cover its short term liabilities ($7.6B).

Long Term Liabilities: VMW's short term assets ($6.8B) do not cover its long term liabilities ($11.2B).


Debt to Equity History and Analysis

Debt Level: VMW's debt to equity ratio (57.4%) is considered high.

Reducing Debt: VMW's debt to equity ratio has increased from 19.6% to 57.4% over the past 5 years.

Debt Coverage: VMW's debt is well covered by operating cash flow (85.6%).

Interest Coverage: VMW's interest payments on its debt are well covered by EBIT (10.4x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate VMW'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 VMW's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if VMW'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 VMW's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

4.2yrs

Average management tenure


CEO

Pat Gelsinger (59 yo)

8.25yrs

Tenure

US$42,549,725

Compensation

Mr. Patrick P. Gelsinger, also known as Pat, serves as Chief Executive Officer of Carbon Black, Inc. He has been the Chief Executive Officer of VMware, Inc. since September 1, 2012. As Chief Executive Offi...


CEO Compensation Analysis

Compensation vs Market: Pat's total compensation ($USD42.55M) is above average for companies of similar size in the US market ($USD10.98M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Patrick Gelsinger
CEO & Director8.25yrsUS$42.55m0.14%
$ 82.0m
Zane Rowe
CFO & Executive VP4.75yrsUS$19.46m0.020%
$ 11.9m
Rangarajan Raghuram
Chief Operating Officer of Products & Cloud Services11yrsUS$14.02m0.055%
$ 32.3m
Sanjay Poonen
Chief Operating Officer of Customer Operations7.33yrsUS$13.41m0.053%
$ 31.3m
Rajiv Ramaswami
Chief Operating Officer of Products & Cloud Services4.17yrsUS$12.95m0.018%
$ 10.5m
Scott Devine
Co-Founder & Principal Engineer22.92yrsno datano data
Andrew Munk
Principal Accounting Officer & VP of Corporate Controller1yrno data0.0035%
$ 2.0m
Greg Lavender
Senior VP & CTO1.92yrsno datano data
Paul Ziots
Vice President of Investor Relationsno datano datano data
Amy Olli
Senior VP3.33yrsno data0.0095%
$ 5.6m
Joan Stone
Senior VP & Chief Communications Officer1.92yrsno datano data
Jean-Pierre Brulard
Executive Vice President of Worldwide Sales0.83yrno data0.010%
$ 6.2m

4.2yrs

Average Tenure

55.5yo

Average Age

Experienced Management: VMW's management team is considered experienced (4.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Patrick Gelsinger
CEO & Director8.25yrsUS$42.55m0.14%
$ 82.0m
Egon Durban
Director4.25yrsno datano data
Donald Carty
Independent Director5yrsUS$313.97k0.0035%
$ 2.1m
Paul Sagan
Independent Lead Director5.83yrsUS$672.68k0.0043%
$ 2.6m
Michael Dell
Chairman4.25yrsno datano data
Michael Brown
Independent Director13.67yrsUS$602.68k0.0049%
$ 2.9m
Karen Dykstra
Independent Director4.75yrsUS$637.35k0.0035%
$ 2.1m
Anthony Bates
Independent Director4.83yrsUS$352.61k0.0034%
$ 2.0m
Marianne Brown
Independent Director1.17yrsUS$210.28k0.00071%
$ 418.3k

4.8yrs

Average Tenure

61yo

Average Age

Experienced Board: VMW's board of directors are considered experienced (4.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.5%.


Top Shareholders

Company Information

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


Key Information

  • Name: VMware, Inc.
  • Ticker: VMW
  • Exchange: NYSE
  • Founded: 1998
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: US$58.914b
  • Shares outstanding: 420.13m
  • 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 pr...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/05 00:10
End of Day Share Price2020/12/04 00:00
Earnings2020/10/30
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.