NYSE:VMW

Stock Analysis Report

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.

Snowflake

Fundamentals

Outstanding track record and slightly overvalued.


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


Market Performance


7 Day Return

-0.4%

NYSE:VMW

-0.4%

US Software

0.8%

US Market


1 Year Return

2.0%

NYSE:VMW

13.7%

US Software

1.9%

US Market

VMW underperformed the Software industry which returned 13% over the past year.

VMW matched the United States of America Market (2.1%) over the past year.


Share holder returns

VMWIndustryMarket
7 Day-0.4%-0.4%0.8%
30 Day6.7%-1.1%3.4%
90 Day-13.1%-1.5%2.1%
1 Year22.8%2.0%15.3%13.7%4.2%1.9%
3 Year152.1%109.5%120.0%111.3%46.7%37.2%
5 Year94.0%61.2%165.8%146.3%62.3%44.5%

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

Valuation

Is VMware undervalued based on future cash flows and its price relative to the stock market?

12%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

VMware's share price is below the future cash flow value, but not at a moderate discount (< 20%).

VMware's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

VMware is good value based on earnings compared to the US Software industry average.

VMware is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

VMware earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

VMware is overvalued based on assets compared to the US Software industry average.


Next Steps

Future Growth

How is VMware expected to perform in the next 1 to 3 years based on estimates from 30 analysts?

-33.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

VMware's revenue is expected to grow by 8.4% yearly, however this is not considered high growth (20% yearly).

VMware's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

VMware's revenue growth is expected to exceed the United States of America market average.

VMware's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

VMware's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

VMware is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

How has VMware performed over the past 5 years?

33.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

VMware has delivered over 20% year on year earnings growth in the past 5 years.

VMware's 1-year earnings growth exceeds its 5-year average (293.5% vs 33.9%)

VMware's earnings growth has exceeded the US Software industry average in the past year (293.5% vs 24.7%).


Return on Equity

VMware made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).


Return on Assets

VMware used its assets more efficiently than the US Software industry average last year based on Return on Assets.


Return on Capital Employed

VMware has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is VMware's financial position?


Financial Position Analysis

VMware's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

VMware's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

VMware's level of debt (81.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (20.8% vs 81.7% today).

Debt is well covered by operating cash flow (88.4%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 42.1x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.3x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate VMware's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate VMware's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as VMware has not reported any payouts.

Unable to verify if VMware's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as VMware has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of VMware's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of VMware's salary, the management and board of directors tenure and is there insider trading?

6.1yrs

Average management tenure


CEO

Pat Gelsinger (58yo)

7yrs

Tenure

US$23,569,191

Compensation

Mr. Patrick P. Gelsinger, also known as Pat, has been the Chief Executive Officer of VMware, Inc. since September 1, 2012. Mr. Gelsinger has more than 30 years of experience in general management and produ ...


CEO Compensation Analysis

Pat's remuneration is higher than average for companies of similar size in United States of America.

Pat's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

6.1yrs

Average Tenure

52.5yo

Average Age

The average tenure for the VMware management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

3.7yrs

Average Tenure

59yo

Average Age

The tenure for the VMware board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$523,63305 Apr 19
Kevan Krysler
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer & Senior VP
Shares2,897
Max PriceUS$180.75
SellUS$5,062,40903 Apr 19
Maurizio Carli
EntityIndividual
Role
Head of Sales
Executive Vice President of Worldwide Sales & Services
Shares27,647
Max PriceUS$183.60
SellUS$4,565,00020 Mar 19
Sanjay Poonen
EntityIndividual
Role
Senior Key Executive
Chief Operating Officer of Customer Operations
Shares25,000
Max PriceUS$182.60
SellUS$308,38318 Mar 19
Amy Olli
EntityIndividual
Shares1,723
Max PriceUS$178.98
SellUS$948,96613 Mar 19
Maurizio Carli
EntityIndividual
Role
Head of Sales
Executive Vice President of Worldwide Sales & Services
Shares5,446
Max PriceUS$174.25
SellUS$5,408,74616 Jan 19
Maurizio Carli
EntityIndividual
Role
Head of Sales
Executive Vice President of Worldwide Sales & Services
Shares36,848
Max PriceUS$147.58
SellUS$2,386,10810 Jan 19
Sanjay Poonen
EntityIndividual
Role
Senior Key Executive
Chief Operating Officer of Customer Operations
Shares16,135
Max PriceUS$149.98
SellUS$5,600,00019 Dec 18
Michael Brown
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares35,000
Max PriceUS$160.00
SellUS$1,073,02014 Dec 18
Zane Rowe
EntityIndividual
Role
Chief Financial Officer
CFO & Executive VP
Shares6,500
Max PriceUS$165.08
SellUS$758,96424 Sep 18
Kevan Krysler
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer & Senior VP
Shares4,984
Max PriceUS$152.28
SellUS$229,15524 Sep 18
Amy Olli
EntityIndividual
Shares1,500
Max PriceUS$152.77

Ownership Breakdown


Management Team

  • Pat Gelsinger (58yo)

    CEO & Director

    • Tenure: 7yrs
    • Compensation: US$23.57m
  • Maurizio Carli (60yo)

    Executive Vice President of Worldwide Sales & Services

    • Tenure: 3.4yrs
    • Compensation: US$11.59m
  • Scott Devine

    Co-Founder & Principal Engineer

    • Tenure: 21.7yrs
  • Paul Ziots

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Zane Rowe (48yo)

    CFO & Executive VP

    • Tenure: 3.5yrs
    • Compensation: US$12.13m
  • Sanjay Poonen (49yo)

    Chief Operating Officer of Customer Operations

    • Tenure: 6.1yrs
    • Compensation: US$9.47m
  • Raghu Raghuram (56yo)

    Chief Operating Officer of Products & Cloud Services

    • Tenure: 9.8yrs
    • Compensation: US$10.74m
  • Bask Iyer

    Chief Information Officer & Chief Digital Transformation Officer

    • Tenure: 4.5yrs
  • Kevan Krysler (48yo)

    Chief Accounting Officer & Senior VP

    • Tenure: 6.1yrs
  • Greg Lavender

    Senior VP & CTO

    • Tenure: 0.7yrs

Board Members

  • Egon Durban (46yo)

    Director

    • Tenure: 3yrs
  • Pat Gelsinger (58yo)

    CEO & Director

    • Tenure: 7yrs
    • Compensation: US$23.57m
  • Don Carty (73yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$357.69k
  • Paul Sagan (60yo)

    Lead Director

    • Tenure: 4.6yrs
    • Compensation: US$648.91k
  • Michael Dell (54yo)

    Chairman

    • Tenure: 3yrs
  • Mike Brown (73yo)

    Independent Director

    • Tenure: 12.4yrs
    • Compensation: US$400.41k
  • Karen Dykstra (60yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: US$641.94k
  • Tony Bates (52yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$412.69k

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$62.844b
  • Shares outstanding: 408.63m
  • Website: https://www.vmware.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BZF1DB (Deutsche Boerse AG)YesClass A Common StockDEEURAug 2007
VMWNYSE (New York Stock Exchange)YesClass A Common StockUSUSDAug 2007
0LQOLSE (London Stock Exchange)YesClass A Common StockGBUSDAug 2007
VMW *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNAug 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. The company offers c ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/18 00:26
End of Day Share Price2019/09/17 00:00
Earnings2019/08/02
Annual Earnings2019/02/01


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.