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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 5/10

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GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 3/10

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» BMC's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q4 2012

BMC Guru Trades in Q4 2012

Paul Tudor Jones 5,200 sh (New)
Ray Dalio 303,712 sh (+259.63%)
John Hussman 1,250,000 sh (+66.67%)
Paul Singer 13,390,000 sh (+6.27%)
Jim Simons 3,382,300 sh (+3.98%)
Jeremy Grantham 142,895 sh (unchged)
Joel Greenblatt Sold Out
Larry Robbins 5,210,579 sh (-1.94%)
Dodge & Cox 12,687,878 sh (-4.2%)
Steven Cohen 24,680 sh (-88.88%)
» More
Q1 2013

BMC Guru Trades in Q1 2013

George Soros 657,704 sh (New)
David Dreman 71,800 sh (New)
Louis Moore Bacon 173,479 sh (New)
Steven Cohen 536,107 sh (+2072.23%)
Paul Singer 13,697,300 sh (+2.29%)
Paul Tudor Jones Sold Out
Dodge & Cox 12,543,695 sh (-1.14%)
Jeremy Grantham 127,495 sh (-10.78%)
Larry Robbins 3,955,914 sh (-24.08%)
Jim Simons 2,478,500 sh (-26.72%)
Ray Dalio 165,612 sh (-45.47%)
John Hussman 650,000 sh (-48%)
» More
Q2 2013

BMC Guru Trades in Q2 2013

Jean-Marie Eveillard 112,460 sh (New)
Paul Tudor Jones 6,800 sh (New)
Mario Gabelli 98,200 sh (New)
Joel Greenblatt 34,608 sh (New)
Jeremy Grantham 614,016 sh (+381.6%)
Louis Moore Bacon 200,000 sh (+15.29%)
Paul Singer 13,697,300 sh (unchged)
Ray Dalio Sold Out
George Soros Sold Out
Steven Cohen Sold Out
Larry Robbins Sold Out
David Dreman 68,675 sh (-4.35%)
John Hussman 500,000 sh (-23.08%)
Jim Simons 867,400 sh (-65%)
Dodge & Cox 261,667 sh (-97.91%)
» More
Q3 2013

BMC Guru Trades in Q3 2013

Mario Gabelli Sold Out
Jeremy Grantham Sold Out
David Dreman Sold Out
Joel Greenblatt Sold Out
Paul Tudor Jones Sold Out
Paul Singer Sold Out
John Hussman Sold Out
Jim Simons Sold Out
Jean-Marie Eveillard Sold Out
Louis Moore Bacon Sold Out
Dodge & Cox Sold Out
» More
» Details

Insider Trades

Latest Guru Trades with BMC

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
John Hussman 2013-09-30 Sold Out 1%$45.2 - $46.3 $ 46.311%0
David Dreman 2013-09-30 Sold Out 0.09%$45.2 - $46.3 $ 46.311%0
Joel Greenblatt 2013-09-30 Sold Out 0.07%$45.2 - $46.3 $ 46.311%0
Mario Gabelli 2013-09-30 Sold Out 0.03%$45.2 - $46.3 $ 46.311%0
Jean-Marie Eveillard 2013-09-30 Sold Out 0.02%$45.2 - $46.3 $ 46.311%0
Dodge & Cox 2013-09-30 Sold Out 0.01%$45.2 - $46.3 $ 46.311%0
Dodge & Cox 2013-06-30 Reduce -97.91%0.7%$43.75 - $46.06 $ 46.313%261667
George Soros 2013-06-30 Sold Out 0.36%$43.75 - $46.06 $ 46.313%0
John Hussman 2013-06-30 Reduce -23.08%0.25%$43.75 - $46.06 $ 46.313%500000
Ray Dalio 2013-06-30 Sold Out 0.07%$43.75 - $46.06 $ 46.313%0
Joel Greenblatt 2013-06-30 New Buy0.07%$43.75 - $46.06 $ 46.313%34608
Mario Gabelli 2013-06-30 New Buy0.03%$43.75 - $46.06 $ 46.313%98200
Jean-Marie Eveillard 2013-06-30 New Buy0.02%$43.75 - $46.06 $ 46.313%112460
John Hussman 2013-03-31 Reduce -48%0.62%$39.62 - $46.33 $ 46.319%650000
George Soros 2013-03-31 New Buy0.36%$39.62 - $46.33 $ 46.319%657704
David Dreman 2013-03-31 New Buy0.09%$39.62 - $46.33 $ 46.319%71800
Ray Dalio 2013-03-31 Reduce -45.47%0.05%$39.62 - $46.33 $ 46.319%165612
Premium More recent guru trades are included for Premium Members only!!
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Guru Investment Theses on BMC Software, Inc.

Bill Nygren Comments on BMC Software - Oct 08, 2013

We have discussed our thoughts on the Discovery and Dell sales in past letters, but we did receive a worthy update on BMC (BMC) since we sold it in the fourth quarter of 2012. Recall that BMC management conducted a strategic review during the second quarter that we owned the stock and decided to remain an independent company. Given the lack of a compelling purchase offer for BMC during the review, we exited our position because we no longer believed it was selling at a significant discount to private market value. Our opinion has since been validated. On September 10, 2013, BMC management sold the company for $46.25 per share—roughly 12% above our average sale price. During that same time, the Oakmark Select Fund and the S&P 500 returned 25% and 20%, respectively—both well in excess of BMC’s modest price increase.

From Bill Nygren's Oakmark Select Fund third quarter 2013 commentary.
Check out Bill Nygren latest stock trades

Bill Nygren's Oakmark Comments on BMC Software - Jul 10, 2012

From Oakmark's second-quarter letter[/url]:

During the quarter, we eliminated our position in H&R Block and replaced it with BMC Software (BMC). We had owned Block in the Fund since 2000, and its price roughly doubled during a period when the price of the S&P was basically unchanged. Despite a good point-to-point return, we could have made more money had we sold Block after two years. Expectations that one of several new CEOs could eliminate the recurring operational shortfalls in the tax preparation business proved optimistic and losses in sub-prime mortgages prevented business value from growing as we expected.

Our newest addition, BMC Software, is a leading provider of enterprise service management software. The need for BMC’s products, which allow IT programs to function smoothly on a broad array of devices, grows as the number of devices grows. As one BMC manager told us, “The worst day, nowadays, for an IT manager is when his CEO gets a new iPad.” In addition to liking BMC’s products, we liked the company’s aggressive share repurchases and its valuation, which is much lower than the multiple of sales at which many similar companies have been acquired. After our purchase, we were pleased to see a large stake purchased by activist investor Elliott Associates, which shares our view that BMC is undervalued.


Check out Bill Nygren latest stock trades

Top Ranked Articles about BMC Software, Inc.

Bill Nygren Comments on BMC Software
We have discussed our thoughts on the Discovery and Dell sales in past letters, but we did receive a worthy update on BMC (BMC) since we sold it in the fourth quarter of 2012. Recall that BMC management conducted a strategic review during the second quarter that we owned the stock and decided to remain an independent company. Given the lack of a compelling purchase offer for BMC during the review, we exited our position because we no longer believed it was selling at a significant discount to private market value. Our opinion has since been validated. On September 10, 2013, BMC management sold the company for $46.25 per share—roughly 12% above our average sale price. During that same time, the Oakmark Select Fund and the S&P 500 returned 25% and 20%, respectively—both well in excess of BMC’s modest price increase. Read more...

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Valuation & Return

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Business Description

Industry: Application Software » Software - Application
Compare:CRM, SQI, RHT, INTU, ADBE » details
Traded in other countries:BMS.Germany
BMC Software, Inc., was organized as a Texas corporation in 1980 and was reincorporated in Delaware in July 1988. It is a software company which provides IT management solutions for large, mid-sized and small enterprises and public sector organizations around the world. The Company's portfolios of IT management software solutions simplifies and automates the management of IT processes, mainframe, distributed, virtualized and cloud computing environments, as well as applications and databases. It also provides its customers with maintenance and support services for its products and assist customers with software implementation, integration, IT process and organizational transformation, and education services. The Company is organized into two business segments, Enterprise Service Management (ESM) and Mainframe Service Management (MSM). The Company's ESM segment consists of its solutions and related professional services in the following IT management areas: Service Assurance; Service Automation; Service Support; and BMC Atrium. The Company's MSM segment addresses IT requirements for mainframe data and performance management, middleware management, job scheduling and enterprise workload automation. The Company's customers include manufacturers, telecommunication companies, financial service providers, educational institutions, retailers, distributors, hospitals, service providers, government agencies and channel partners including resellers, distributors and system integrators. Its competitors are International Business Machines Corporation (IBM), CA, Inc. (CA) and Hewlett-Packard Company (HP). The Company's solutions are used by some of the largest, demanding IT organizations in the world including over 16,000 companies.

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