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.
Proven track record and fair value.
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 has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: VMW underperformed the US Software industry which returned 35.3% over the past year.
Return vs Market: VMW underperformed the US Market which returned 5% over the past year.
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
1 week ago | Simply Wall StWhat Does VMware, Inc.'s (NYSE:VMW) Share Price Indicate?
3 weeks ago | Simply Wall StShould You Be Adding VMware (NYSE:VMW) To Your Watchlist Today?
1 month ago | Simply Wall StThese 4 Measures Indicate That VMware (NYSE:VMW) Is Using Debt Reasonably Well
Is VMware undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: VMW ($149.88) is trading below our estimate of fair value ($172)
Significantly Below Fair Value: VMW is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: VMW is good value based on its PE Ratio (9.7x) compared to the Software industry average (53.6x).
PE vs Market: VMW is good value based on its PE Ratio (9.7x) compared to the US market (16.5x).
Price to Earnings Growth Ratio
PEG Ratio: VMW is poor value based on its PEG Ratio (363.8x)
Price to Book Ratio
PB vs Industry: VMW is overvalued based on its PB Ratio (8.5x) compared to the US Software industry average (6.5x).
How is VMware forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: VMW's forecast earnings growth (0.03% per year) is below the savings rate (2.2%).
Earnings vs Market: VMW's earnings (0.03% per year) are forecast to grow slower than the US market (22.8% per year).
High Growth Earnings: VMW's earnings are forecast to grow, but not significantly.
Revenue vs Market: VMW's revenue (9.7% per year) is forecast to grow faster than the US market (9.3% per year).
High Growth Revenue: VMW's revenue (9.7% 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 (29.6%)
How has VMware performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: VMW has a high level of non-cash earnings.
Growing Profit Margin: VMW's current net profit margins (57.8%) are higher than last year (10.9%).
Past Earnings Growth Analysis
Earnings Trend: VMW's earnings have grown significantly by 45.8% per year over the past 5 years.
Accelerating Growth: VMW's earnings growth over the past year (486.6%) exceeds its 5-year average (45.8% per year).
Earnings vs Industry: VMW earnings growth over the past year (486.6%) exceeded the Software industry 7.9%.
Return on Equity
High ROE: Whilst VMW's Return on Equity (85.85%) is outstanding, this metric is skewed due to their high level of debt.
How is VMware's financial position?
Financial Position Analysis
Short Term Liabilities: VMW's short term assets ($8.7B) do not cover its short term liabilities ($10.0B).
Long Term Liabilities: VMW's short term assets ($8.7B) do not cover its long term liabilities ($11.0B).
Debt to Equity History and Analysis
Debt Level: VMW's debt to equity ratio (104.1%) is considered high.
Reducing Debt: VMW's debt to equity ratio has increased from 20.2% to 104.1% over the past 5 years.
Debt Coverage: VMW's debt is well covered by operating cash flow (49.8%).
Interest Coverage: VMW's interest payments on its debt are well covered by EBIT (14.3x coverage).
What is VMware current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate VMW's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate VMW's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if VMW's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if VMW's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of VMW's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Pat Gelsinger (59yo)
Mr. Patrick P. Gelsinger, also known as Pat, has been the Chief Executive Officer of VMware, Inc. since September 1, 2012. As Chief Executive Officer of VMware, Mr. Gelsinger has in-depth knowledge of VMwa ...
CEO Compensation Analysis
Compensation vs Market: Pat's total compensation ($USD42.55M) is above average for companies of similar size in the US market ($USD11.50M).
Compensation vs Earnings: Pat's compensation has increased by more than 20% in the past year.
|CEO & Director||7.83yrs||US$42.55m||0.14% $90.2m|
|CFO & Executive VP||4.33yrs||US$19.46m||0.015% $9.6m|
|Chief Operating Officer of Products & Cloud Services||10.58yrs||US$14.02m||0.056% $35.4m|
|Chief Operating Officer of Customer Operations||6.92yrs||US$13.41m||0.055% $34.2m|
|Chief Operating Officer of Products & Cloud Services||3.75yrs||US$12.95m||0.011% $7.1m|
|Co-Founder & Principal Engineer||22.5yrs||no data||no data|
|Principal Accounting Officer & VP of Corporate Controller||0.58yr||no data||0.0035% $2.2m|
|Senior VP & CTO||1.5yrs||no data||no data|
|Chief Information Officer & Chief Digital Transformation Officer||5.33yrs||no data||no data|
|Vice President of Investor Relations||no data||no data||no data|
Experienced Management: VMW's management team is seasoned and experienced (5.3 years average tenure).
|CEO & Director||7.83yrs||US$42.55m||0.14% $90.2m|
|Senior VP||0.42yr||no data||0.011% $7.0m|
|Director||3.83yrs||no data||no data|
|Independent Director||4.58yrs||US$313.97k||0.0030% $1.9m|
|Independent Lead Director||5.42yrs||US$672.68k||0.0038% $2.4m|
|Chairman||3.83yrs||no data||no data|
|Independent Director||13.25yrs||US$602.68k||0.0043% $2.7m|
|Independent Director||4.33yrs||US$637.35k||0.0027% $1.7m|
|Independent Director||4.42yrs||US$352.61k||0.0029% $1.8m|
|Independent Director||0.75yr||US$210.28k||0.00028% $175.9k|
Experienced Board: VMW's board of directors are considered experienced (4.4 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 been diluted in the past year, with total shares outstanding growing by 2.4%.
VMware, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: VMware, Inc.
- Ticker: VMW
- Exchange: NYSE
- Founded: 1998
- Industry: Systems Software
- Sector: Software
- Market Cap: US$62.807b
- Shares outstanding: 419.05m
- Website: https://www.vmware.com
Number of Employees
- VMware, Inc.
- 3401 Hillview Avenue
- Palo Alto
- United States
|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|
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 products, including VMware vSphere, a data center platform, which enables users to deploy hypervisor, a layer of software that resides between the operating system and system hardware to enable compute virtualization; and cloud management products for businesses with automated operation, programmable provisioning, and application monitoring solutions. It also provides networking and security products and services that enable customers to connect and operate their network consistently within and across the data center, cloud, and network edges; and storage and availability products, including data storage and protection options. In addition, it offers VMware Cloud Foundation, a platform that combines its compute, storage, and networking technologies with cloud management into an integrated stack and delivers enterprise-ready cloud infrastructure for private and public clouds. Further, it provides hybrid cloud computing solutions, such as VMware Cloud Provider Program, VMware Cloud Foundation, and VMware Cloud Services; end-user computing solutions, such as Workspace ONE that delivers and manages any application on any device by integrating access control, application management, and multi-platform endpoint management; pivotal cloud foundry, pivotal labs, and heptio, as well as pivotal application and pivotal container services; and VMware Carbon Black Cloud platform, AppDefense, and VMware Workspace ONE platform. The company sells its products through distributors, resellers, system vendors, and systems integrators. VMware, Inc. has strategic alliances with Amazon Web Services to build and deliver an integrated hybrid solution. The company was incorporated in 1998 and is headquartered in Palo Alto, California. VMware, Inc. is a subsidiary of Dell Technologies Inc.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/07/04 23:47|
|End of Day Share Price||2020/07/02 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.