VMware, Inc. provides software in the areas of hybrid and multi-cloud, modern applications, networking, security, and digital workspaces in the United States and internationally.
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 +/- 3% a week.
Volatility Over Time: VMW's weekly volatility (3%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: VMW underperformed the US Software industry which returned 42.7% over the past year.
Return vs Market: VMW underperformed the US Market which returned 33.7% over the past year.
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
1 week ago | Simply Wall StThese 4 Measures Indicate That VMware (NYSE:VMW) Is Using Debt Safely
4 weeks ago | Simply Wall StInvesting in VMware (NYSE:VMW) five years ago would have delivered you a 147% gain
1 month ago | Simply Wall StWhat Is VMware, Inc.'s (NYSE:VMW) Share Price Doing?
VMware Fundamentals Summary
|VMW fundamental statistics|
Is VMW overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|VMW income statement (TTM)|
|Cost of Revenue||US$2.16b|
Last Reported Earnings
Jul 30, 2021
Next Earnings Date
|Earnings per share (EPS)||4.91|
|Net Profit Margin||16.77%|
How did VMW perform over the long term?See historical performance and comparison
Is VMware undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: VMW ($139.89) is trading below our estimate of fair value ($254.62)
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 (28.4x) compared to the US Software industry average (55.9x).
PE vs Market: VMW is poor value based on its PE Ratio (28.4x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: VMW is poor value based on its PEG Ratio (2.4x)
Price to Book Ratio
PB vs Industry: VMW is good value based on its PB Ratio (6.1x) compared to the US Software industry average (7.7x).
How is VMware forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: VMW's forecast earnings growth (11.9% per year) is above the savings rate (2%).
Earnings vs Market: VMW's earnings (11.9% per year) are forecast to grow slower than the US market (14.9% per year).
High Growth Earnings: VMW's earnings are forecast to grow, but not significantly.
Revenue vs Market: VMW's revenue (7.3% per year) is forecast to grow slower than the US market (9.7% per year).
High Growth Revenue: VMW's revenue (7.3% 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 (26.5%)
How has VMware performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: VMW has high quality earnings.
Growing Profit Margin: VMW's current net profit margins (16.8%) are higher than last year (14.3%).
Past Earnings Growth Analysis
Earnings Trend: VMW's earnings have grown significantly by 23.3% per year over the past 5 years.
Accelerating Growth: VMW's earnings growth over the past year (27.6%) exceeds its 5-year average (23.3% per year).
Earnings vs Industry: VMW earnings growth over the past year (27.6%) exceeded the Software industry 22.1%.
Return on Equity
High ROE: VMW's Return on Equity (21.4%) is considered high.
How is VMware's financial position?
Financial Position Analysis
Short Term Liabilities: VMW's short term assets ($9.2B) exceed its short term liabilities ($8.3B).
Long Term Liabilities: VMW's short term assets ($9.2B) do not cover its long term liabilities ($11.6B).
Debt to Equity History and Analysis
Debt Level: VMW's debt to equity ratio (51.9%) is considered high.
Reducing Debt: VMW's debt to equity ratio has increased from 17.7% to 51.9% over the past 5 years.
Debt Coverage: VMW's debt is well covered by operating cash flow (89.1%).
Interest Coverage: VMW's interest payments on its debt are well covered by EBIT (11.7x coverage).
What is VMware current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate VMW's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate VMW's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if VMW's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if VMW's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of VMW's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Raghu Raghuram (58 yo)
Mr. Rangarajan Raghuram, also known as Raghu, serves as Chief Executive Officer and serves as a Director at VMware, Inc. since June 01, 2021. He serves as Chief Executive Officer of VMware at Dell Technolo...
CEO Compensation Analysis
Compensation vs Market: Raghu's total compensation ($USD13.99M) is about average for companies of similar size in the US market ($USD11.33M).
Compensation vs Earnings: Raghu's compensation has been consistent with company performance over the past year.
Experienced Management: VMW's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Experienced Board: VMW's board of directors are considered experienced (5.3 years average tenure).
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
VMware, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: VMware, Inc.
- Ticker: VMW
- Exchange: NYSE
- Founded: 1998
- Industry: Systems Software
- Sector: Software
- Market Cap: US$58.579b
- Shares outstanding: 418.75m
- Website: https://www.vmware.com
Number of Employees
- VMware, Inc.
- 3401 Hillview Avenue
- Palo Alto
- United States
VMware, Inc. provides software in the areas of hybrid and multi-cloud, modern applications, networking, security, and digital workspaces in the United States and internationally. It offers VMware multi-clo...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/16 22:49|
|End of Day Share Price||2021/09/16 00:00|
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.