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.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$114.06|
|52 Week High||US$167.83|
|52 Week Low||US$91.53|
|1 Month Change||-13.58%|
|3 Month Change||-1.27%|
|1 Year Change||-27.66%|
|3 Year Change||-30.93%|
|5 Year Change||29.12%|
|Change since IPO||123.65%|
Recent News & Updates
|VMW||US Software||US Market|
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.
|VMW Average Weekly Movement||8.7%|
|Software Industry Average Movement||11.0%|
|Market Average Movement||8.1%|
|10% most volatile stocks in US Market||16.9%|
|10% least volatile stocks in US Market||3.3%|
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
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
|VMW fundamental statistics|
Is VMW overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|VMW income statement (TTM)|
|Cost of Revenue||US$2.34b|
Last Reported Earnings
Apr 29, 2022
Next Earnings Date
Aug 25, 2022
|Earnings per share (EPS)||3.88|
|Net Profit Margin||12.65%|
How did VMW perform over the long term?See historical performance and comparison
Is VMW undervalued compared to its fair value, analyst forecasts and its price relative to the market?
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
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.
|What is VMW's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does VMW's PE Ratio compare to its peers?
|VMW PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
CHKP Check Point Software Technologies
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.
|Current PE Ratio||29.4x|
|Fair PE Ratio||39.6x|
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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How is VMware forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?
Future Growth Score3/6
Future Growth Score 3/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
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%).
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How has VMware performed over the past 5 years?
Past Performance Score2/6
Past Performance Score 2/6
Growing Profit Margin
Earnings vs Industry
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.
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How is VMware's financial position?
Financial Health Score2/6
Financial Health Score 2/6
Short Term Liabilities
Long Term Liabilities
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).
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What is VMware current dividend yield, its reliability and sustainability?
Dividend Score 0/6
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.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Raghu Raghuram (59 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 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.
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 (5.8 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
VMware, Inc.'s employee growth, exchange listings and data sources
- 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
- VMware, Inc.
- 3401 Hillview Avenue
- Palo Alto
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/07/04 00:00|
|End of Day Share Price||2022/07/01 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.