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VMware

NYSE:VMW
Snowflake Description

Solid track record with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
VMW
NYSE
$71B
Market Cap
  1. Home
  2. US
  3. Software
Company description

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. The last earnings update was 13 days ago. More info.


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VMW Share Price and Events
7 Day Returns
3%
NYSE:VMW
3.8%
US Software
2.2%
US Market
1 Year Returns
15.6%
NYSE:VMW
28.7%
US Software
3.8%
US Market
VMW Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
VMware (VMW) 3% -12.4% -3.9% 15.6% 196.2% 78.7%
US Software 3.8% 5.7% 10% 28.7% 135% 157.1%
US Market 2.2% 4.2% 4.4% 3.8% 43% 40.9%
1 Year Return vs Industry and Market
  • VMW underperformed the Software industry which returned 28.7% over the past year.
  • VMW outperformed the Market in United States of America which returned 3.8% over the past year.
Price Volatility
VMW
Industry
5yr Volatility vs Market
Related Companies

Value

 Is VMware undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of VMware to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for VMware.

NYSE:VMW Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 29 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:VMW
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Software Unlevered Beta Simply Wall St/ S&P Global 1.14
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.139 (1 + (1- 21%) (6.84%))
1.134
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.13
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.134 * 5.96%)
9.49%

Discounted Cash Flow Calculation for NYSE:VMW using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for VMware is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:VMW DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.49%)
2019 3,303.86 Analyst x14 3,017.48
2020 3,666.97 Analyst x16 3,058.81
2021 3,956.12 Analyst x16 3,013.95
2022 4,295.00 Analyst x3 2,988.49
2023 5,410.00 Analyst x1 3,438.02
2024 5,720.00 Analyst x1 3,319.94
2025 5,990.04 Est @ 4.72% 3,175.31
2026 6,237.05 Est @ 4.12% 3,019.65
2027 6,468.17 Est @ 3.71% 2,860.10
2028 6,688.92 Est @ 3.41% 2,701.34
Present value of next 10 years cash flows $30,593.08
NYSE:VMW DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $6,688.92 × (1 + 2.73%) ÷ (9.49% – 2.73%)
$101,637.37
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $101,637.37 ÷ (1 + 9.49%)10
$41,046.50
NYSE:VMW Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $30,593.08 + $41,046.50
$71,639.58
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $71,639.58 / 409.21
$175.07
NYSE:VMW Discount to Share Price
Calculation Result
Value per share (USD) From above. $175.07
Current discount Discount to share price of $173.39
= -1 x ($173.39 - $175.07) / $175.07
1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price VMware is available for.
Intrinsic value
1%
Share price is $173.39 vs Future cash flow value of $175.07
Current Discount Checks
For VMware to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • VMware's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • VMware's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for VMware's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are VMware's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:VMW PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-05-03) in USD $4.85
NYSE:VMW Share Price ** NYSE (2019-06-21) in USD $173.39
United States of America Software Industry PE Ratio Median Figure of 81 Publicly-Listed Software Companies 51.8x
United States of America Market PE Ratio Median Figure of 3,094 Publicly-Listed Companies 17.87x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of VMware.

NYSE:VMW PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:VMW Share Price ÷ EPS (both in USD)

= 173.39 ÷ 4.85

35.74x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • VMware is good value based on earnings compared to the US Software industry average.
  • VMware is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does VMware's expected growth come at a high price?
Raw Data
NYSE:VMW PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 35.74x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 29 Analysts
7.7%per year
United States of America Software Industry PEG Ratio Median Figure of 67 Publicly-Listed Software Companies 2.96x
United States of America Market PEG Ratio Median Figure of 2,134 Publicly-Listed Companies 1.54x

*Line of best fit is calculated by linear regression .

NYSE:VMW PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 35.74x ÷ 7.7%

4.62x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • VMware is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on VMware's assets?
Raw Data
NYSE:VMW PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-05-03) in USD $1.37
NYSE:VMW Share Price * NYSE (2019-06-21) in USD $173.39
United States of America Software Industry PB Ratio Median Figure of 222 Publicly-Listed Software Companies 5.83x
United States of America Market PB Ratio Median Figure of 5,255 Publicly-Listed Companies 1.81x
NYSE:VMW PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:VMW Share Price ÷ Book Value per Share (both in USD)

= 173.39 ÷ 1.37

126.8x

* Primary Listing of VMware.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • VMware is overvalued based on assets compared to the US Software industry average.
X
Value checks
We assess VMware's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. VMware has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is VMware expected to perform in the next 1 to 3 years based on estimates from 29 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is VMware expected to grow at an attractive rate?
  • VMware's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • VMware's earnings growth is positive but not above the United States of America market average.
  • VMware's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:VMW Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:VMW Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 29 Analysts 7.7%
NYSE:VMW Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 29 Analysts 8.3%
United States of America Software Industry Earnings Growth Rate Market Cap Weighted Average 17.5%
United States of America Software Industry Revenue Growth Rate Market Cap Weighted Average 11.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:VMW Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 29 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:VMW Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-01-31 13,857 6,120 2,880 2
2023-01-31 12,945 5,810 2,670 2
2022-01-31 11,951 4,672 2,316 6
2021-01-31 11,038 4,319 2,097 27
2020-01-31 10,048 3,945 2,014 29
NYSE:VMW Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-05-03 9,232 3,841 1,985
2019-02-01 8,974 3,663 2,422
2018-11-02 8,669 3,495 1,445
2018-08-03 8,407 3,695 1,506
2018-05-04 8,105 3,536 1,356
2018-02-02 7,862 3,218 659
2017-02-03 6,144 4,332 -60
2016-12-31 7,073 2,379 1,223
2016-09-30 6,928 2,405 1,119
2016-06-30 6,821 2,197 1,055

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • VMware's earnings are expected to grow by 7.7% yearly, however this is not considered high growth (20% yearly).
  • VMware's revenue is expected to grow by 8.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:VMW Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 29 Analyst Estimates (S&P Global) See Below

All data from VMware Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:VMW Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-01-31
2023-01-31
2022-01-31 5.84 5.95 5.73 2.00
2021-01-31 5.04 6.05 3.98 14.00
2020-01-31 4.79 5.82 3.87 14.00
NYSE:VMW Past Financials Data
Date (Data in USD Millions) EPS *
2019-05-03 4.85
2019-02-01 5.94
2018-11-02 3.56
2018-08-03 3.71
2018-05-04 3.34
2018-02-02 1.62
2017-02-03 -0.15
2016-12-31 2.91
2016-09-30 2.65
2016-06-30 2.49

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • VMware is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess VMware's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
VMware has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has VMware performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare VMware's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • VMware's year on year earnings growth rate has been positive over the past 5 years.
  • VMware's 1-year earnings growth exceeds its 5-year average (47.2% vs 17.4%)
  • VMware's earnings growth has exceeded the US Software industry average in the past year (47.2% vs 22%).
Earnings and Revenue History
VMware's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from VMware Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:VMW Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-05-03 9,232.00 1,985.00 3,773.00 2,055.00
2019-02-01 8,974.00 2,422.00 3,682.00 1,975.00
2018-11-02 8,669.00 1,445.00 3,582.00 1,890.00
2018-08-03 8,407.00 1,506.00 3,495.00 1,840.00
2018-05-04 8,105.00 1,356.00 3,305.00 1,787.00
2018-02-02 7,862.00 659.00 3,160.00 1,755.00
2017-02-03 6,144.00 -60.00 3,732.00 1,800.00
2016-12-31 7,073.00 1,223.00 2,996.00 1,503.00
2016-09-30 6,928.00 1,119.00 2,888.00 1,451.00
2016-06-30 6,821.00 1,055.00 2,903.00 1,393.00
2016-03-31 6,725.00 962.00 2,940.00 1,351.00
2015-12-31 6,647.00 997.00 3,033.00 1,300.00
2015-09-30 6,481.00 949.00 2,871.00 1,261.00
2015-06-30 6,326.00 888.00 2,874.00 1,256.00
2015-03-31 6,186.00 883.00 2,760.00 1,251.00
2014-12-31 6,035.00 886.00 2,695.00 1,239.00
2014-09-30 5,816.00 895.00 2,676.00 1,221.00
2014-06-30 5,589.00 962.00 2,469.00 1,160.00
2014-03-31 5,376.00 1,040.00 2,325.00 1,104.00
2013-12-31 5,207.00 1,014.00 2,234.00 1,082.00
2013-09-30 5,017.00 885.00 2,187.00 1,065.00
2013-06-30 4,861.80 780.80 2,138.00 1,060.00
2013-03-31 4,740.82 727.56 2,083.29 1,047.61
2012-12-31 4,605.00 746.00 2,013.00 999.00
2012-09-30 4,372.30 740.43 1,892.08 947.99
2012-06-30 4,180.37 761.17 1,796.83 887.65

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst VMware made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
  • VMware used its assets more efficiently than the US Software industry average last year based on Return on Assets.
  • VMware has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess VMware's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
VMware has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is VMware's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up VMware's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • VMware's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • VMware's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of VMware's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from VMware Company Filings, last reported 1 month ago.

NYSE:VMW Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-05-03 561.00 4,853.00 3,311.00
2019-02-01 551.00 4,242.00 2,849.00
2018-11-02 10,911.00 4,240.00 13,527.00
2018-08-03 10,392.00 4,238.00 13,300.00
2018-05-04 9,660.00 4,236.00 12,630.00
2018-02-02 8,624.00 4,234.00 11,653.00
2017-02-03 8,216.00 1,500.00 8,393.00
2016-12-31 8,097.00 1,500.00 7,985.00
2016-09-30 8,134.00 1,500.00 8,254.00
2016-06-30 8,636.00 1,500.00 8,665.00
2016-03-31 8,271.00 1,500.00 8,246.00
2015-12-31 7,923.00 1,500.00 7,509.00
2015-09-30 7,534.00 1,500.00 7,222.00
2015-06-30 7,311.00 1,500.00 6,996.00
2015-03-31 7,484.00 1,500.00 7,226.00
2014-12-31 7,586.00 1,500.00 7,075.00
2014-09-30 7,436.00 1,500.00 7,094.00
2014-06-30 7,089.00 1,500.00 6,637.00
2014-03-31 7,070.00 1,500.00 6,616.00
2013-12-31 6,816.00 450.00 6,175.00
2013-09-30 6,527.00 450.00 5,837.00
2013-06-30 6,156.30 450.00 5,323.00
2013-03-31 5,912.93 450.00 4,936.68
2012-12-31 5,740.00 450.00 4,631.00
2012-09-30 5,564.80 450.00 4,394.62
2012-06-30 5,320.69 450.00 5,346.87
  • VMware's level of debt (756.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (21.2% vs 756.5% today).
  • Debt is well covered by operating cash flow (90.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 298.6x coverage).
X
Financial health checks
We assess VMware's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. VMware has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from VMware dividends. Estimated to be 0% next year.
If you bought $2,000 of VMware shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate VMware's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate VMware's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:VMW Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 29 Analyst Estimates (S&P Global) See Below
United States of America Software Industry Average Dividend Yield Market Cap Weighted Average of 22 Stocks 1.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2012 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:VMW Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-01-31
2023-01-31
2022-01-31 0.00 3.00
2021-01-31 0.00 5.00
2020-01-31 0.00 5.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as VMware has not reported any payouts.
  • Unable to verify if VMware's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of VMware's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as VMware has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of VMware's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess VMware's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can VMware afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. VMware has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of VMware's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Pat Gelsinger
COMPENSATION $23,569,191
AGE 57
TENURE AS CEO 6.8 years
CEO Bio

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 product development positions. He served as the President, Chief Operating Officer and President of Information Infrastructure Product at VMware, Inc. since September 2009. He served as President and Chief Operating Officer, EMC Information Infrastructure Products at EMC from September 2009 to August 2012. He served as a Technical Advisor of Empire Ventures, Inc. He served as Senior Vice President of Intel Corporation since January 2005 until September 2009. He served as Co-General Manager of the Digital Enterprise Group of Intel Corporation from 2005 to September 2009. He joined Intel in 1979, held a variety of research, development and general management positions at Intel Corporation, including responsibility for the Intel 486(TM) and Pentium(R) Pro processor families and management of Intel's Desktop Products Group. He served as Group Vice President of Intel. He served as Head of Intel Labs. Mr. Gelsinger led Intel's Corporate Technology Group, which encompasses many Intel research activities, including leading Intel Labs and Intel Research and driving industry alignment with these technologies and initiatives. He served as the Chief Technology Officer of the Intel Architecture Group from 2002 to 2005. He led the Desktop Products Group, where he was responsible for Intel's desktop processors, chipsets and motherboards for consumer and commercial OEM customers as well as Intel's desktop technology initiatives and the Intel Developer Forum. From 1992 to 1996, he was instrumental in defining and delivering the Intel® ProShare® video conferencing and Internet communications product line. He served as Director of the Platform Architecture Group, Design Manager and Chief Architect of the original i486™ microprocessor, manager of CAD methodologies and key contributor on the original i386™ and i286 chip design teams. He has been a Director of VMware, Inc. since September 1, 2012. He served as a Director of TriVium Systems, Inc. He served as a Director of IP Dynamics Inc. He serves as the Chairman of Trustees at William Jessup University. Mr. Gelsinger holds six patents and six applications in the areas of VLSI design, computer architecture and communications. He has more than 20 publications in these technical fields, including Programming the 80386, published in 1987 by Sybex Inc. He has received numerous Intel and industry recognition awards. In 2008, he was named a Fellow of the IEEE and awarded an Honorary Doctorate of Letters in 2008 from William Jessup University. Mr. Gelsinger received an associate's degree from Lincoln Technical Institute in 1979, a bachelor's degree from Santa Clara University in 1983, Magna Cum Laude and a master's degree from Stanford University in 1985, all degrees are in Electrical Engineering.

CEO Compensation
  • Pat's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Pat's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the VMware management team in years:

5.8
Average Tenure
51.5
Average Age
  • The average tenure for the VMware management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Pat Gelsinger

TITLE
CEO & Director
COMPENSATION
$24M
AGE
57
TENURE
6.8 yrs

Zane Rowe

TITLE
CFO & Executive VP
COMPENSATION
$12M
AGE
47
TENURE
3.3 yrs

Maurizio Carli

TITLE
Executive Vice President of Worldwide Sales & Services
COMPENSATION
$12M
AGE
59
TENURE
3.2 yrs

Raghu Raghuram

TITLE
Chief Operating Officer of Products & Cloud Services
COMPENSATION
$11M
AGE
55
TENURE
9.5 yrs

Sanjay Poonen

TITLE
Chief Operating Officer of Customer Operations
COMPENSATION
$9M
AGE
48
TENURE
5.8 yrs

Scott Devine

TITLE
Co-Founder & Principal Engineer
TENURE
21.4 yrs

Kevan Krysler

TITLE
Chief Accounting Officer & Senior VP
AGE
47
TENURE
5.8 yrs

Ray O’Farrell

TITLE
CTO & Executive VP
TENURE
16.2 yrs

Bask Iyer

TITLE
Chief Information Officer
TENURE
4.3 yrs

Paul Ziots

TITLE
Vice President of Investor Relations
Board of Directors Tenure

Average tenure and age of the VMware board of directors in years:

3.4
Average Tenure
58
Average Age
  • The tenure for the VMware board of directors is about average.
Board of Directors

Michael Dell

TITLE
Chairman
AGE
53
TENURE
2.8 yrs

Pat Gelsinger

TITLE
CEO & Director
COMPENSATION
$24M
AGE
57
TENURE
6.8 yrs

Mike Brown

TITLE
Independent Director
COMPENSATION
$400K
AGE
72
TENURE
12.2 yrs

Paul Sagan

TITLE
Lead Director
COMPENSATION
$649K
AGE
59
TENURE
4.3 yrs

Tony Bates

TITLE
Independent Director
COMPENSATION
$413K
AGE
51
TENURE
3.3 yrs

Karen Dykstra

TITLE
Independent Director
COMPENSATION
$642K
AGE
59
TENURE
3.3 yrs

Egon Durban

TITLE
Director
AGE
45
TENURE
2.8 yrs

Don Carty

TITLE
Independent Director
COMPENSATION
$358K
AGE
72
TENURE
3.5 yrs
Who owns this company?
Recent Insider Trading
  • VMware insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
05. Apr 19 Sell Kevan Krysler Individual 04. Apr 19 04. Apr 19 -2,897 $180.75 $-523,633
03. Apr 19 Sell Maurizio Carli Individual 02. Apr 19 02. Apr 19 -27,647 $183.60 $-5,062,409
20. Mar 19 Sell Sanjay Poonen Individual 18. Mar 19 18. Mar 19 -25,000 $182.60 $-4,565,000
18. Mar 19 Sell Amy Olli Individual 14. Mar 19 14. Mar 19 -1,723 $178.98 $-308,383
13. Mar 19 Sell Maurizio Carli Individual 12. Mar 19 12. Mar 19 -5,446 $174.25 $-948,966
16. Jan 19 Sell Maurizio Carli Individual 11. Jan 19 11. Jan 19 -36,848 $147.58 $-5,408,746
10. Jan 19 Sell Sanjay Poonen Individual 08. Jan 19 09. Jan 19 -16,135 $149.98 $-2,386,108
19. Dec 18 Sell Michael Brown Individual 14. Dec 18 14. Dec 18 -35,000 $160.00 $-5,600,000
14. Dec 18 Sell Zane Rowe Individual 12. Dec 18 12. Dec 18 -6,500 $165.08 $-1,073,020
24. Sep 18 Sell Kevan Krysler Individual 20. Sep 18 20. Sep 18 -4,984 $152.28 $-758,964
24. Sep 18 Sell Amy Olli Individual 20. Sep 18 20. Sep 18 -1,500 $152.77 $-229,155
11. Sep 18 Sell Maurizio Carli Individual 07. Sep 18 07. Sep 18 -3,779 $152.54 $-576,449
11. Jul 18 Sell Zane Rowe Individual 10. Jul 18 10. Jul 18 -7,100 $156.44 $-1,110,724
11. Jul 18 Sell Rangarajan Raghuram Individual 09. Jul 18 11. Jul 18 -38,000 $156.25 $-5,889,263
09. Jul 18 Sell Kevan Krysler Individual 05. Jul 18 05. Jul 18 -11,594 $159.62 $-1,840,433
05. Jul 18 Sell Sanjay Poonen Individual 03. Jul 18 03. Jul 18 -15,000 $160.15 $-2,402,250
X
Management checks
We assess VMware's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. VMware has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is VMware, Inc.'s (NYSE:VMW) CEO Paid At A Competitive Rate?

First, this article will compare CEO compensation with compensation at other large companies. … View our latest analysis for VMware How Does Pat Gelsinger's Compensation Compare With Similar Sized Companies? … If you want to buy a stock that is better than VMware, this free list of high return, low debt companies is a great place to look.

Simply Wall St -

VMware (NYSE:VMW) Shareholders Have Enjoyed An Impressive 168% Share Price Gain

VMware was able to grow its EPS at 29% per year over three years, sending the share price higher. … Investors should note that there's a difference between VMware's total shareholder return (TSR) and its share price change, which we've covered above. … We note that VMware's TSR, at 222% is higher than its share price return of 168%.

Simply Wall St -

At US$198, Is VMware, Inc. (NYSE:VMW) Worth Looking At Closely?

According to my valuation model, VMware seems to be fairly priced at around 14.14% above my intrinsic value, which means if you buy VMware today, you’d be paying a relatively reasonable price for it. … And if you believe that the stock is really worth $173.46, then there isn’t really any room for the share price grow beyond what it’s currently trading. … The price seems to be trading at fair value, which means there’s less benefit from mispricing.

Simply Wall St -

A Close Look At VMware, Inc.’s (NYSE:VMW) 23% ROCE

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for VMware: 0.23 = US$2.1b ÷ (US$15b - US$5.7b) (Based on the trailing twelve months to February 2019.) Therefore, VMware has an ROCE of 23%. … VMware's Current Liabilities And Their Impact On Its ROCE Current liabilities include invoices, such as supplier payments, short-term debt, or a tax bill, that need to be paid within 12 months. … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise.

Simply Wall St -

Here's Why I Think VMware (NYSE:VMW) Might Deserve Your Attention Today

Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. … I like to take a look at earnings before interest and (EBIT) tax margins, as well as revenue growth, to get another take on the quality of the company's growth. … VMware maintained stable EBIT margins over the last year, all while growing revenue 14% to US$9.0b.

Simply Wall St -

What Are Analysts Saying About VMware, Inc.'s (NYSE:VMW) Growth?

VMware, Inc.'s (NYSE:VMW) latest earnings update in February 2019a … confirmed … business

Simply Wall St -

Do You Like VMware, Inc. (NYSE:VMW) At This P/E Ratio?

We'll look at VMware, Inc.'s (NYSE:VMW) P/E ratio and reflect on what it tells us about the company's share price. … VMware has a price to earnings ratio of 31.15, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Is VMware, Inc.'s (NYSE:VMW) CEO Paid At A Competitive Rate?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. … How Does Pat Gelsinger's Compensation Compare With Similar Sized Companies. … is worth US$69b, and total annual CEO compensation is US$18m.

Simply Wall St -

Did You Miss VMware's Impressive 238% Share Price Gain?

(NYSE:VMW) share price is 238% higher than it was three years ago. … In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. … One flawed but reasonable way to assess how sentiment around a company has changed, is to compare the earnings per share (EPS) with the share price.

Simply Wall St -

How Did VMware, Inc.'s (NYSE:VMW) 13% ROE Fare Against The Industry?

Our data shows VMware has a return on equity of 13% for the last year. … That means that for every $1 worth of shareholders' equity, it generated $0.13 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Company Info

Description

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. The company 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, secure, 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, the company offers VMware Cloud Foundation, a platform that brings together its compute, storage, and networking technologies into an integrated stack and delivers enterprise-ready cloud infrastructure for private and public clouds; and VMware Pulse IoT Center, an Internet of Things device management and monitoring solution. Further, it provides hybrid cloud computing solutions, such as VMware Cloud Provider Program, VMware Cloud Foundation, and VMware Cloud Services; and 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. The company sells its products through distributors, resellers, system vendors, and systems integrators. VMware, Inc. has a strategic alliance 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.

Details
Name: VMware, Inc.
VMW
Exchange: NYSE
Founded: 1998
$70,952,899,359
409,209,870
Website: http://www.vmware.com
Address: VMware, Inc.
3401 Hillview Avenue,
Palo Alto,
California, 94304,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE VMW Class A Common Stock New York Stock Exchange US USD 14. Aug 2007
DB BZF1 Class A Common Stock Deutsche Boerse AG DE EUR 14. Aug 2007
LSE 0LQO Class A Common Stock London Stock Exchange GB USD 14. Aug 2007
BMV VMW * Class A Common Stock Bolsa Mexicana de Valores MX MXN 14. Aug 2007
Number of employees
Current staff
Staff numbers
22,990
VMware employees.
Industry
Systems Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/23 23:59
End of day share price update: 2019/06/21 00:00
Last estimates confirmation: 2019/06/17
Last earnings filing: 2019/06/10
Last earnings reported: 2019/05/03
Last annual earnings reported: 2019/02/01


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.