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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 : 9/10

vs
industry
vs
history
Cash to Debt 4.43
VMW's Cash to Debt is ranked higher than
58% of the 1700 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 19.19 vs. VMW: 4.43 )
VMW' s 10-Year Cash to Debt Range
Min: 0.22   Max: No Debt
Current: 4.43

Equity to Asset 0.50
VMW's Equity to Asset is ranked higher than
55% of the 1653 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 0.59 vs. VMW: 0.50 )
VMW' s 10-Year Equity to Asset Range
Min: -0.2   Max: 0.58
Current: 0.5

-0.2
0.58
Interest Coverage 273.25
VMW's Interest Coverage is ranked higher than
63% of the 1081 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 554.09 vs. VMW: 273.25 )
VMW' s 10-Year Interest Coverage Range
Min: 13.25   Max: 9999.99
Current: 273.25

13.25
9999.99
F-Score: 6
Z-Score: 5.05
M-Score: -2.85
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 : 8/10

vs
industry
vs
history
Operating margin (%) 20.99
VMW's Operating margin (%) is ranked higher than
92% of the 1664 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 5.60 vs. VMW: 20.99 )
VMW' s 10-Year Operating margin (%) Range
Min: 10.84   Max: 24.18
Current: 20.99

10.84
24.18
Net-margin (%) 19.47
VMW's Net-margin (%) is ranked higher than
94% of the 1663 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 3.69 vs. VMW: 19.47 )
VMW' s 10-Year Net-margin (%) Range
Min: 7.67   Max: 19.47
Current: 19.47

7.67
19.47
ROE (%) 14.88
VMW's ROE (%) is ranked higher than
87% of the 1622 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 6.80 vs. VMW: 14.88 )
VMW' s 10-Year ROE (%) Range
Min: 7.19   Max: 16.27
Current: 14.88

7.19
16.27
ROA (%) 8.23
VMW's ROA (%) is ranked higher than
85% of the 1683 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 3.56 vs. VMW: 8.23 )
VMW' s 10-Year ROA (%) Range
Min: 3.89   Max: 8.35
Current: 8.23

3.89
8.35
ROC (Joel Greenblatt) (%) 129.35
VMW's ROC (Joel Greenblatt) (%) is ranked higher than
88% of the 1665 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 30.29 vs. VMW: 129.35 )
VMW' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 54.5   Max: 483.92
Current: 129.35

54.5
483.92
Revenue Growth (%) 21.20
VMW's Revenue Growth (%) is ranked higher than
91% of the 1399 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 5.80 vs. VMW: 21.20 )
VMW' s 10-Year Revenue Growth (%) Range
Min: 21.2   Max: 77.5
Current: 21.2

21.2
77.5
EBITDA Growth (%) 28.70
VMW's EBITDA Growth (%) is ranked higher than
90% of the 1147 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 6.90 vs. VMW: 28.70 )
VMW' s 10-Year EBITDA Growth (%) Range
Min: 0   Max: 46.2
Current: 28.7

0
46.2
EPS Growth (%) 40.70
VMW's EPS Growth (%) is ranked higher than
90% of the 1069 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 7.60 vs. VMW: 40.70 )
VMW' s 10-Year EPS Growth (%) Range
Min: 11.3   Max: 130.2
Current: 40.7

11.3
130.2
» VMW's 10-Y Financials

Financials


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

» Details

Guru Trades

Q3 2013

VMW Guru Trades in Q3 2013

Jim Simons 194,400 sh (+606.91%)
Ray Dalio 12,100 sh (+146.94%)
PRIMECAP Management 11,800 sh (unchged)
Steven Cohen 60,000 sh (unchged)
Paul Tudor Jones Sold Out
Jeremy Grantham Sold Out
Lee Ainslie Sold Out
Steven Cohen 29,777 sh (-94.86%)
» More
Q4 2013

VMW Guru Trades in Q4 2013

Pioneer Investments 90,770 sh (New)
RS Investment Management 113,200 sh (New)
PRIMECAP Management 286,300 sh (+2326.27%)
Jim Simons 432,700 sh (+122.58%)
Steven Cohen 37,841 sh (+27.08%)
Ray Dalio Sold Out
» More
Q1 2014

VMW Guru Trades in Q1 2014

Ray Dalio 34,600 sh (New)
Ron Baron 20,617 sh (New)
PRIMECAP Management 369,100 sh (+28.92%)
RS Investment Management 122,100 sh (+7.86%)
Pioneer Investments 88,340 sh (-2.68%)
Steven Cohen 2,975 sh (-92.14%)
Jim Simons 30,500 sh (-92.95%)
» More
Q2 2014

VMW Guru Trades in Q2 2014

John Hussman 50,000 sh (New)
Ray Dalio 51,500 sh (+48.84%)
PRIMECAP Management 526,300 sh (+42.59%)
Ron Baron 28,878 sh (+40.07%)
Paul Singer 750,000 sh (unchged)
Jim Simons Sold Out
Pioneer Investments 84,298 sh (-4.58%)
RS Investment Management 54,130 sh (-55.67%)
» More
» Details

Insider Trades

Latest Guru Trades with VMW

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
John Hussman 2014-06-30 New Buy0.37%$90 - $111.8 $ 102.696%50000
PRIMECAP Management 2014-06-30 Add 42.59%0.02%$90 - $111.8 $ 102.696%526300
Ray Dalio 2014-06-30 Add 48.84%0.01%$90 - $111.8 $ 102.696%51500
Ron Baron 2014-06-30 Add 40.07%$90 - $111.8 $ 102.696%28878
Ray Dalio 2014-03-31 New Buy0.03%$87.1 - $110.67 $ 102.695%34600
PRIMECAP Management 2014-03-31 Add 28.92%0.01%$87.1 - $110.67 $ 102.695%369100
Ron Baron 2014-03-31 New Buy0.01%$87.1 - $110.67 $ 102.695%20617
PRIMECAP Management 2013-12-31 Add 2326.27%0.03%$77.24 - $90.18 $ 102.6924%286300
Ray Dalio 2013-12-31 Sold Out 0.01%$77.24 - $90.18 $ 102.6924%0
Lee Ainslie 2013-09-30 Sold Out 2%$65.58 - $89.16 $ 102.6927%0
Ray Dalio 2013-09-30 Add 146.94%$65.58 - $89.16 $ 102.6927%12100
Premium More recent guru trades are included for Premium Members only!!
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Peter Lynch Chart ( What is Peter Lynch Charts )

Guru Investment Theses on VMWare Inc

Baron Funds Comments on VMware - May 29, 2014

We initiated a small size position in VMware, Inc. (VMW) A creator and a leader in the rapidly maturing software virtualization market, the company continues to innovate and grow its addressable market. We were intrigued by the acquisition of Nicira, an early leader in the Software Defined Networking (SDN) space, which we've been following for a while. As the SDN market begins to emerge, we believe VMWare's growth will re- invigorate and its position as an innovator and a thought leader will be re- established.





From Baron Funds' first quarter 2014 commentary.



Check out Ron Baron latest stock trades

Baron Funds Comments on VMware - May 29, 2014

Over the last two years, VMware, Inc. (VMW), a virtualization software vendor, has transitioned its business, preparing itself for the next phase of growth as its core market (server virtualization) matured. Shares rose on reports of strong fourth quarter results across management tools and end user results, as investors gained confidence in the company's ability to find new growth engines. We see VMware as a best-of-breed software company with a large customer base and multiple sales opportunities that should allow it to grow faster than the market.





From Baron Funds' first quarter 2014 commentary.



Check out Ron Baron latest stock trades

Top Ranked Articles about VMWare Inc

Baron Funds Comments on VMware
Over the last two years, VMware, Inc. (VMW), a virtualization software vendor, has transitioned its business, preparing itself for the next phase of growth as its core market (server virtualization) matured. Shares rose on reports of strong fourth quarter results across management tools and end user results, as investors gained confidence in the company's ability to find new growth engines. We see VMware as a best-of-breed software company with a large customer base and multiple sales opportunities that should allow it to grow faster than the market. Read more...
Baron Funds Comments on VMware
We initiated a small size position in VMware, Inc. (VMW) A creator and a leader in the rapidly maturing software virtualization market, the company continues to innovate and grow its addressable market. We were intrigued by the acquisition of Nicira, an early leader in the Software Defined Networking (SDN) space, which we've been following for a while. As the SDN market begins to emerge, we believe VMWare's growth will re- invigorate and its position as an innovator and a thought leader will be re- established. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 46.50
VMW's P/E(ttm) is ranked higher than
63% of the 1830 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 47.80 vs. VMW: 46.50 )
VMW' s 10-Year P/E(ttm) Range
Min: 24.86   Max: 251.33
Current: 46.5

24.86
251.33
P/B 6.10
VMW's P/B is ranked lower than
58% of the 1830 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 2.90 vs. VMW: 6.10 )
VMW' s 10-Year P/B Range
Min: 3.55   Max: 36.37
Current: 6.1

3.55
36.37
P/S 8.00
VMW's P/S is ranked lower than
76% of the 1830 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 2.25 vs. VMW: 8.00 )
VMW' s 10-Year P/S Range
Min: 4.12   Max: 36.37
Current: 8

4.12
36.37
PFCF 20.60
VMW's PFCF is ranked higher than
79% of the 1830 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 104.07 vs. VMW: 20.60 )
VMW' s 10-Year PFCF Range
Min: 12.43   Max: 145
Current: 20.6

12.43
145
EV-to-EBIT 34.41
VMW's EV-to-EBIT is ranked higher than
69% of the 1830 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 33.95 vs. VMW: 34.41 )
VMW' s 10-Year EV-to-EBIT Range
Min: 17.7   Max: 267.4
Current: 34.41

17.7
267.4
PEG 1.34
VMW's PEG is ranked higher than
89% of the 1830 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 9999.00 vs. VMW: 1.34 )
VMW' s 10-Year PEG Range
Min: 1.25   Max: 2.37
Current: 1.34

1.25
2.37
Shiller P/E 70.10
VMW's Shiller P/E is ranked higher than
76% of the 1830 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 9999.00 vs. VMW: 70.10 )
VMW' s 10-Year Shiller P/E Range
Min: 55.89   Max: 164.92
Current: 70.1

55.89
164.92
Current Ratio 2.24
VMW's Current Ratio is ranked higher than
70% of the 1130 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 1.98 vs. VMW: 2.24 )
VMW' s 10-Year Current Ratio Range
Min: 0.55   Max: 2.97
Current: 2.24

0.55
2.97
Quick Ratio 2.24
VMW's Quick Ratio is ranked higher than
73% of the 1130 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 1.85 vs. VMW: 2.24 )
VMW' s 10-Year Quick Ratio Range
Min: 0.55   Max: 2.97
Current: 2.24

0.55
2.97

Valuation & Return

vs
industry
vs
history
Price/Net Current Asset Value 101.70
VMW's Price/Net Current Asset Value is ranked higher than
69% of the 1830 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 9999.00 vs. VMW: 101.70 )
VMW' s 10-Year Price/Net Current Asset Value Range
Min: 16.04   Max: 4250
Current: 101.7

16.04
4250
Price/Tangible Book 18.50
VMW's Price/Tangible Book is ranked lower than
61% of the 1830 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 7.00 vs. VMW: 18.50 )
VMW' s 10-Year Price/Tangible Book Range
Min: 6.77   Max: 57.43
Current: 18.5

6.77
57.43
Price/DCF (Projected) 1.70
VMW's Price/DCF (Projected) is ranked higher than
80% of the 1830 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 9999.00 vs. VMW: 1.70 )
VMW' s 10-Year Price/DCF (Projected) Range
Min: 1.34   Max: 3.69
Current: 1.7

1.34
3.69
Price/Median PS Value 0.90
VMW's Price/Median PS Value is ranked higher than
88% of the 1830 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 1.20 vs. VMW: 0.90 )
VMW' s 10-Year Price/Median PS Value Range
Min: 0.53   Max: 2.84
Current: 0.9

0.53
2.84
Price/Peter Lynch Fair Value 1.90
VMW's Price/Peter Lynch Fair Value is ranked higher than
89% of the 1830 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 9999.00 vs. VMW: 1.90 )
VMW' s 10-Year Price/Peter Lynch Fair Value Range
Min: 1.49   Max: 4.79
Current: 1.9

1.49
4.79
Price/Graham Number 6.10
VMW's Price/Graham Number is ranked higher than
58% of the 1830 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 7.90 vs. VMW: 6.10 )
VMW' s 10-Year Price/Graham Number Range
Min: 2.96   Max: 22.67
Current: 6.1

2.96
22.67
Earnings Yield (Greenblatt) 2.90
VMW's Earnings Yield (Greenblatt) is ranked higher than
50% of the 1440 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 5.60 vs. VMW: 2.90 )
VMW' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.4   Max: 5.7
Current: 2.9

0.4
5.7
Forward Rate of Return (Yacktman) 32.37
VMW's Forward Rate of Return (Yacktman) is ranked higher than
94% of the 1246 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 6.02 vs. VMW: 32.37 )
VMW' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 26.5   Max: 75.9
Current: 32.37

26.5
75.9

Business Description

Industry: Application Software » Software - Infrastructure
Compare:MSFT, ORCL, CTXS, CA, TIBX » details
Traded in other countries:BZF1.Germany
VMWare, Inc., was incorporated as a Delaware corporation in 1998. It is a provider of virtualization solutions from the desktop to the data center. The Company provides virtualization and virtualization-based cloud infrastructure solutions utilized by businesses to help them transform the way they build, deliver and consume information technology resources in a manner that is evolutionary and based on their specific needs. Its virtualization solutions reflect a pioneering approach to computing that separates application software from the underlying hardware to achieve significant improvements in efficiency, agility, availability, flexibility and manageability. Its solutions are based upon its core virtualization technology and are organized into three main product groups: Cloud Infrastructure and Management; Cloud Application Platform; and End-User Computing. Cloud Infrastructure and Management Products and Technology includes VMware vSphere, which is its flagship data center platform. Other components of its various VMware vSphere offerings include key capabilities such as: vSphere vMotion and Storage vMotion enables the live migration of actively running virtual machines across servers or storage locations without disruption or downtime. vSphere High Availability enables cost-effective high availability for all applications against hardware and operating system failures. vSphere Storage DRS automatically manages the placement and balancing of a virtual machine across storage resources. vSphere vNetwork Distributed Switch enables centralized point of control for cluster-level networking. VMware Cloud Application Platform solutions help organizations build, run and manage enterprise applications in public, private or hybrid clouds optimized for vSphere. Its Cloud Application Platform provides open source application frameworks, application run-time and data management solutions and an open platform as a service, or PaaS. Its End-User Computing solutions provide the ability to manage software as a service ('SaaS'), Windows, Mobile or enterprise applications. Additional VMware offerings are designed to enhance seamless communication and collaboration between end users. It works with more than 2,100 technology partners, including server, microprocessor, storage, networking, software and security vendors. It derives a majority of its revenues from its large indirect sales channel, which includes distributors, resellers, system vendors and systems integrators. It competes with large and small vendors in different segments of the cloud computing, end-user computing and virtualization markets. Its main competitors include Microsoft and Citrix.
» More Articles for VMW

Headlines

Articles On GuruFocus.com
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VMware Is a Solid Play to Benefit From Growth in the Cloud Jun 23 2014 
Baron Funds Comments on VMware May 29 2014 
Baron Funds Comments on VMware May 29 2014 
Why Cisco Might be a Bad Decision for your Portfolio! May 10 2014 
EMC: A Cloud Play For Your Portfolio Apr 30 2014 
Weekly 52-Week Highs Highlight: PFE, DOV, VMW, OMC, KEP Mar 10 2014 
Betting on IBM's Shares Jan 24 2014 

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