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VMW

VMware NYSE:VMW Stock Report

Last Price

US$114.06

Market Cap

US$48.1b

7D

-3.1%

1Y

-27.7%

Updated

04 Jul, 2022

Data

Company Financials +
VMW fundamental analysis
Snowflake Score
Valuation5/6
Future Growth3/6
Past Performance2/6
Financial Health2/6
Dividends0/6

VMW Stock Overview

VMware, Inc. provides software solutions in the areas of modern applications, cloud management and infrastructure, networking, security, and digital workspaces in the United States and internationally.

VMware Competitors

Price History & Performance

Summary of all time highs, changes and price drops for VMware
Historical stock prices
Current Share PriceUS$114.06
52 Week HighUS$167.83
52 Week LowUS$91.53
Beta0.81
1 Month Change-13.58%
3 Month Change-1.27%
1 Year Change-27.66%
3 Year Change-30.93%
5 Year Change29.12%
Change since IPO123.65%

Recent News & Updates

Shareholder Returns

VMWUS SoftwareUS Market
7D-3.1%-3.1%-2.2%
1Y-27.7%-23.6%-19.1%

Return vs Industry: VMW underperformed the US Software industry which returned -23.6% over the past year.

Return vs Market: VMW underperformed the US Market which returned -21.2% over the past year.

Price Volatility

Is VMW's price volatile compared to industry and market?
VMW volatility
VMW Average Weekly Movement8.7%
Software Industry Average Movement11.0%
Market Average Movement8.1%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.3%

Stable Share Price: VMW is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: VMW's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199837,500Raghu Raghuramhttps://www.vmware.com

VMware, Inc. provides software solutions in the areas of modern applications, cloud management and infrastructure, networking, security, and digital workspaces in the United States and internationally. It offers VMware multi-cloud solutions, including VMware vSphere, a data center infrastructure that provides the fundamental compute layer; vSAN and VxRail, which offers holistic data storage and protection options to applications running on vSphere; and vRealize Cloud Management solutions that manages hybrid and multi-cloud environments running in virtual machines and containers, as well as VMware Cloud Foundation, a cloud platform that combines its vSphere, vSAN, and NSX with vRealize Cloud Management into an integrated stack and delivers enterprise-ready cloud infrastructure for private and public clouds. The company also provides networking solutions, such as VMware NSX, NSX Distributed and Gateway Firewalls, NSX Network Detection and Response Engine, NSX Advanced Load Balancer, Tanzu Service Mesh, and VMware SASE; security solutions consisting of VMware Carbon Black Endpoint, Workload, and Container; and digital workspace solutions comprising Workspace ONE Unified Endpoint Management, Access, Intelligent Hub, and Horizon.

VMware Fundamentals Summary

How do VMware's earnings and revenue compare to its market cap?
VMW fundamental statistics
Market CapUS$48.07b
Earnings (TTM)US$1.64b
Revenue (TTM)US$12.95b

29.4x

P/E Ratio

3.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
VMW income statement (TTM)
RevenueUS$12.95b
Cost of RevenueUS$2.34b
Gross ProfitUS$10.60b
Other ExpensesUS$8.97b
EarningsUS$1.64b

Last Reported Earnings

Apr 29, 2022

Next Earnings Date

Aug 25, 2022

Earnings per share (EPS)3.88
Gross Margin81.91%
Net Profit Margin12.65%
Debt/Equity Ratio-2,901.7%

How did VMW perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is VMW undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for VMW?

Other financial metrics that can be useful for relative valuation.

VMW key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue4.4x
Enterprise Value/EBITDA19.8x
PEG Ratio1.7x

Price to Earnings Ratio vs Peers

How does VMW's PE Ratio compare to its peers?

VMW PE Ratio vs Peers
The above table shows the PE ratio for VMW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average135.6x
FTNT Fortinet
72.2x20.7%US$46.0b
NOW ServiceNow
435.4x38.0%US$97.1b
CHKP Check Point Software Technologies
19.8x4.0%US$15.9b
NLOK NortonLifeLock
15.2x8.7%US$12.7b
VMW VMware
29.4x16.9%US$48.1b

Price-To-Earnings vs Peers: VMW is good value based on its Price-To-Earnings Ratio (29.4x) compared to the peer average (135.6x).


Price to Earnings Ratio vs Industry

How does VMW's PE Ratio compare vs other companies in the US Software Industry?

Price-To-Earnings vs Industry: VMW is good value based on its Price-To-Earnings Ratio (29.4x) compared to the US Software industry average (38.2x)


Price to Earnings Ratio vs Fair Ratio

What is VMW's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

VMW PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio29.4x
Fair PE Ratio39.6x

Price-To-Earnings vs Fair Ratio: VMW is good value based on its Price-To-Earnings Ratio (29.4x) compared to the estimated Fair Price-To-Earnings Ratio (39.6x).


Share Price vs Fair Value

What is the Fair Price of VMW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: VMW ($114.06) is trading below our estimate of fair value ($249.99)

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


Price to Earnings Growth Ratio

PEG Ratio: VMW is poor value based on its PEG Ratio (1.7x)


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Future Growth

How is VMware forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


16.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VMW's forecast earnings growth (16.9% per year) is above the savings rate (1.9%).

Earnings vs Market: VMW's earnings (16.9% per year) are forecast to grow faster than the US market (13.6% per year).

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

Revenue vs Market: VMW's revenue (7.8% per year) is forecast to grow slower than the US market (8.2% per year).

High Growth Revenue: VMW's revenue (7.8% 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 very high in 3 years time (70.5%).


Discover growth companies

Past Performance

How has VMware performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


2.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: VMW has high quality earnings.

Growing Profit Margin: VMW's current net profit margins (12.6%) are lower than last year (17.4%).


Past Earnings Growth Analysis

Earnings Trend: VMW's earnings have grown by 2.5% 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 (-21.9%) over the past year, making it difficult to compare to the Software industry average (26.8%).


Return on Equity

High ROE: VMW's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Discover strong past performing companies

Financial Health

How is VMware's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: VMW has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: VMW has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: VMW has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: VMW's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: VMW's debt is well covered by operating cash flow (34.3%).

Interest Coverage: VMW's interest payments on its debt are well covered by EBIT (8.5x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

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.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as VMW has not reported any payouts.


Discover strong dividend paying companies

Management

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

1.8yrs

Average management tenure


CEO

Raghu Raghuram (59 yo)

1.08yrs

Tenure

US$32,344,107

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 served as Chief Executive Officer of VMware at Dell Technolo...


CEO Compensation Analysis

Compensation vs Market: Raghu's total compensation ($USD32.34M) is above average for companies of similar size in the US market ($USD13.34M).

Compensation vs Earnings: Raghu's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in 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 (5.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: VMW insiders have only sold shares 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 employee growth, exchange listings and data sources


Key Information

  • Name: VMware, Inc.
  • Ticker: VMW
  • Exchange: NYSE
  • Founded: 1998
  • Industry: Systems Software
  • Sector: Software
  • Implied Market Cap: US$48.070b
  • Shares outstanding: 421.45m
  • Website: https://www.vmware.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/04 00:00
End of Day Share Price2022/07/01 00:00
Earnings2022/04/29
Annual Earnings2022/01/28


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.