VMW

VMwareNYSE:VMW Stock Report

Market Cap

US$58.6b

7D

-3.9%

1Y

-1.1%

Updated

16 Sep, 2021

Data

Company Financials +
VMW fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance6/6
Financial Health3/6
Dividends0/6

VMW Overview

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.


Market Performance


7 Day Return

-3.9%

VMW

1.5%

US Software

-0.6%

US Market


1 Year Return

-1.1%

VMW

43.5%

US Software

33.6%

US Market

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.


Shareholder returns

VMWIndustryMarket
7 Day-3.9%1.5%-0.6%
30 Day-10.0%5.5%1.3%
90 Day-9.5%13.8%5.3%
1 Year-1.1%-1.1%44.2%43.5%35.6%33.6%
3 Year10.1%-8.6%144.5%138.2%60.9%51.0%
5 Year128.1%89.5%372.7%349.5%123.4%99.1%

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

VMware Fundamentals Summary

How do VMware's earnings and revenue compare to its market cap?
VMW fundamental statistics
Market CapUS$58.58b
Earnings (TTM)US$2.06b
Revenue (TTM)US$12.29b

28.4x

P/E Ratio

4.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
VMW income statement (TTM)
RevenueUS$12.29b
Cost of RevenueUS$2.16b
Gross ProfitUS$10.13b
ExpensesUS$8.07b
EarningsUS$2.06b

Last Reported Earnings

Jul 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)4.91
Gross Margin82.40%
Net Profit Margin16.77%
Debt/Equity Ratio51.9%

How did VMW perform over the long term?

See historical performance and comparison

Valuation

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

45.1%

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).


Future Growth

How is VMware forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

11.9%

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%)


Past Performance

How has VMware performed over the past 5 years?

23.3%

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.


Financial Health

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).


Balance Sheet


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?

1.8yrs

Average management tenure


CEO

Raghu Raghuram (58 yo)

0.25

Tenure

US$13,985,782

Compensation

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.


Leadership Team

Experienced Management: VMW's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: VMW's board of directors are considered experienced (5.3 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully 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: 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


Location

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

Listings


Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/16 22:49
End of Day Share Price2021/09/16 00:00
Earnings2021/07/30
Annual Earnings2021/01/29


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.