VMware
Market Cap
US$56.6b
Last Updated
2021/01/16 23:39 UTC
Data Sources
Company Financials +
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
Rewards
Risk Analysis
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 +/- 5% a week.
Volatility Over Time: VMW's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
-5.6%
VMW
-2.3%
US Software
-1.0%
US Market
1 Year Return
-10.9%
VMW
38.5%
US Software
19.6%
US Market
Return vs Industry: VMW underperformed the US Software industry which returned 38.5% over the past year.
Return vs Market: VMW underperformed the US Market which returned 19.6% over the past year.
Shareholder returns
| VMW | Industry | Market | |
|---|---|---|---|
| 7 Day | -5.6% | -2.3% | -1.0% |
| 30 Day | -9.0% | -2.4% | 2.2% |
| 90 Day | -11.7% | 1.3% | 11.5% |
| 1 Year | -10.9%-10.9% | 39.4%38.5% | 22.3%19.6% |
| 3 Year | 19.3%-0.9% | 124.9%117.7% | 45.3%35.7% |
| 5 Year | 227.8%172.3% | 251.5%233.2% | 124.8%99.8% |
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
4 days ago | Simply Wall St
Shareholders Of VMware (NYSE:VMW) Must Be Happy With Their 251% Total Return2 weeks ago | Simply Wall St
A Quick Analysis On VMware's (NYSE:VMW) CEO Compensation1 month ago | Simply Wall St
The Trends At VMware (NYSE:VMW) That You Should Know AboutValuation
Is VMware undervalued compared to its fair value and its price relative to the market?
42.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: VMW ($134.81) is trading below our estimate of fair value ($235.15)
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 (35.6x) compared to the US Software industry average (58.9x).
PE vs Market: VMW is poor value based on its PE Ratio (35.6x) compared to the US market (21x).
Price to Earnings Growth Ratio
PEG Ratio: VMW is poor value based on its PEG Ratio (6.4x)
Price to Book Ratio
PB vs Industry: VMW is good value based on its PB Ratio (6.7x) compared to the US Software industry average (9.5x).
Next Steps
Future Growth
How is VMware forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?
5.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: VMW's forecast earnings growth (5.6% per year) is above the savings rate (2%).
Earnings vs Market: VMW's earnings (5.6% per year) are forecast to grow slower than the US market (21.6% per year).
High Growth Earnings: VMW's earnings are forecast to grow, but not significantly.
Revenue vs Market: VMW's revenue (8.5% per year) is forecast to grow slower than the US market (10.2% per year).
High Growth Revenue: VMW's revenue (8.5% 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?
34.6%
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 (53.1%).
Past Earnings Growth Analysis
Earnings Trend: VMW's earnings have grown significantly by 34.6% 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 (-72.7%) over the past year, making it difficult to compare to the Software industry average (14.3%).
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 (58.8%) is considered high.
Reducing Debt: VMW's debt to equity ratio has increased from 19.6% to 58.8% over the past 5 years.
Debt Coverage: VMW's debt is well covered by operating cash flow (83.7%).
Interest Coverage: VMW's interest payments on its debt are well covered by EBIT (10.3x 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?
3.4yrs
Average management tenure
CEO
Pat Gelsinger (59 yo)
8.33yrs
Tenure
US$42,549,725
Compensation
Mr. Patrick P. Gelsinger, also known as Pat, serves as Chief Executive Officer of Carbon Black, Inc. He has been the Chief Executive Officer of VMware, Inc. since September 1, 2012. Mr. Gelsinger has in-de...
CEO Compensation Analysis
Compensation vs Market: Pat's total compensation ($USD42.55M) is above average for companies of similar size in the US market ($USD10.56M).
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 8.33yrs | US$42.55m | 0.15% $ 83.5m | |
| CFO & Executive VP | 4.83yrs | US$19.46m | 0.028% $ 16.1m | |
| Chief Operating Officer of Products & Cloud Services | 11.08yrs | US$14.02m | 0.063% $ 35.7m | |
| Chief Operating Officer of Customer Operations | 7.42yrs | US$13.41m | 0.061% $ 34.8m | |
| Co-Founder & Principal Engineer | 23yrs | no data | no data | |
| Principal Accounting Officer & VP of Corporate Controller | 1.08yrs | no data | 0.0034% $ 1.9m | |
| Senior VP & CTO | 2yrs | no data | no data | |
| Vice President of Investor Relations | no data | no data | no data | |
| Senior VP | 3.42yrs | no data | 0.016% $ 9.1m | |
| Senior VP & Chief Communications Officer | 2yrs | no data | no data | |
| Executive Vice President of Worldwide Sales | 0.92yr | no data | 0.0097% $ 5.5m | |
| Chief Marketing Officer | 0.58yr | no data | no data |
3.4yrs
Average Tenure
55.5yo
Average Age
Experienced Management: VMW's management team is considered experienced (3.4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 8.33yrs | US$42.55m | 0.15% $ 83.5m | |
| Director | 4.33yrs | no data | no data | |
| Independent Director | 5.08yrs | US$313.97k | 0.0035% $ 2.0m | |
| Independent Lead Director | 5.92yrs | US$672.68k | 0.0043% $ 2.5m | |
| Chairman | 4.33yrs | no data | no data | |
| Independent Director | 13.75yrs | US$602.68k | 0.0049% $ 2.8m | |
| Independent Director | 4.83yrs | US$637.35k | 0.0035% $ 2.0m | |
| Independent Director | 4.92yrs | US$352.61k | 0.0034% $ 1.9m | |
| Independent Director | 1.25yrs | US$210.28k | 0.00071% $ 401.8k |
4.9yrs
Average Tenure
61yo
Average Age
Experienced Board: VMW's board of directors are considered experienced (4.9 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 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$56.590b
- Shares outstanding: 419.78m
- Website: https://www.vmware.com
Number of Employees
Location
- VMware, Inc.
- 3401 Hillview Avenue
- Palo Alto
- California
- 94304
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| BZF1 | DB (Deutsche Boerse AG) | Yes | Class A Common Stock | DE | EUR | Aug 2007 |
| VMW | NYSE (New York Stock Exchange) | Yes | Class A Common Stock | US | USD | Aug 2007 |
| BZF1 | XTRA (XETRA Trading Platform) | Yes | Class A Common Stock | DE | EUR | Aug 2007 |
| 0LQO | LSE (London Stock Exchange) | Yes | Class A Common Stock | GB | USD | Aug 2007 |
| VMW * | BMV (Bolsa Mexicana de Valores) | Yes | Class A Common Stock | MX | MXN | Aug 2007 |
| VMWA | WBAG (Wiener Boerse AG) | Yes | Class A Common Stock | AT | EUR | Aug 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/16 23:39 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/10/30 |
| Annual Earnings | 2020/01/31 |
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.