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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 : 8/10

vs
industry
vs
history
Cash to Debt 4.66
VMW's Cash to Debt is ranked lower than
59% of the 1781 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 20.60 vs. VMW: 4.66 )
Ranked among companies with meaningful Cash to Debt only.
VMW' s 10-Year Cash to Debt Range
Min: 0.22  Med: 6.32 Max: No Debt
Current: 4.66
Equity to Asset 0.49
VMW's Equity to Asset is ranked lower than
68% of the 1579 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 0.61 vs. VMW: 0.49 )
Ranked among companies with meaningful Equity to Asset only.
VMW' s 10-Year Equity to Asset Range
Min: -0.2  Med: 0.55 Max: 0.58
Current: 0.49
-0.2
0.58
Interest Coverage 42.79
VMW's Interest Coverage is ranked lower than
71% of the 1164 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 10000.00 vs. VMW: 42.79 )
Ranked among companies with meaningful Interest Coverage only.
VMW' s 10-Year Interest Coverage Range
Min: 13.25  Med: 139.79 Max: 9999.99
Current: 42.79
13.25
9999.99
F-Score: 5
Z-Score: 4.07
M-Score: -2.77
WACC vs ROIC
9.24%
46.25%
WACC
ROIC
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 (%) 16.16
VMW's Operating margin (%) is ranked higher than
81% of the 1748 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 5.11 vs. VMW: 16.16 )
Ranked among companies with meaningful Operating margin (%) only.
VMW' s 10-Year Operating margin (%) Range
Min: 10.84  Med: 17.45 Max: 24.18
Current: 16.16
10.84
24.18
Net-margin (%) 14.21
VMW's Net-margin (%) is ranked higher than
83% of the 1748 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 3.20 vs. VMW: 14.21 )
Ranked among companies with meaningful Net-margin (%) only.
VMW' s 10-Year Net-margin (%) Range
Min: 7.67  Med: 15.42 Max: 19.47
Current: 14.21
7.67
19.47
ROE (%) 12.04
VMW's ROE (%) is ranked higher than
67% of the 1703 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 6.27 vs. VMW: 12.04 )
Ranked among companies with meaningful ROE (%) only.
VMW' s 10-Year ROE (%) Range
Min: 8.19  Med: 16.52 Max: 77.03
Current: 12.04
8.19
77.03
ROA (%) 6.04
VMW's ROA (%) is ranked higher than
64% of the 1788 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 3.29 vs. VMW: 6.04 )
Ranked among companies with meaningful ROA (%) only.
VMW' s 10-Year ROA (%) Range
Min: 4.43  Med: 8.84 Max: 16.7
Current: 6.04
4.43
16.7
ROC (Joel Greenblatt) (%) 103.89
VMW's ROC (Joel Greenblatt) (%) is ranked higher than
73% of the 1761 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 24.35 vs. VMW: 103.89 )
Ranked among companies with meaningful ROC (Joel Greenblatt) (%) only.
VMW' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 56.16  Med: 151.66 Max: 967.84
Current: 103.89
56.16
967.84
Revenue Growth (3Y)(%) 16.70
VMW's Revenue Growth (3Y)(%) is ranked higher than
81% of the 1315 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 5.30 vs. VMW: 16.70 )
Ranked among companies with meaningful Revenue Growth (3Y)(%) only.
VMW' s 10-Year Revenue Growth (3Y)(%) Range
Min: 16.7  Med: 25.30 Max: 77.5
Current: 16.7
16.7
77.5
EBITDA Growth (3Y)(%) 8.10
VMW's EBITDA Growth (3Y)(%) is ranked higher than
53% of the 1053 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 6.80 vs. VMW: 8.10 )
Ranked among companies with meaningful EBITDA Growth (3Y)(%) only.
VMW' s 10-Year EBITDA Growth (3Y)(%) Range
Min: 0  Med: 25.70 Max: 46.2
Current: 8.1
0
46.2
EPS Growth (3Y)(%) 6.70
VMW's EPS Growth (3Y)(%) is ranked higher than
50% of the 975 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 6.70 vs. VMW: 6.70 )
Ranked among companies with meaningful EPS Growth (3Y)(%) only.
VMW' s 10-Year EPS Growth (3Y)(%) Range
Min: 6.7  Med: 36.35 Max: 130.2
Current: 6.7
6.7
130.2
» VMW's 10-Y Financials

Financials


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

» Details

Guru Trades

Q3 2014

VMW Guru Trades in Q3 2014

Paul Singer 1,255,000 sh (New)
Paul Tudor Jones 7,094 sh (New)
Jim Simons 16,400 sh (New)
John Hussman 75,000 sh (+50.00%)
PRIMECAP Management 555,650 sh (+5.58%)
Ron Baron 30,126 sh (+4.32%)
Paul Singer 1,430,000 sh (unchged)
Pioneer Investments 81,869 sh (unchged)
RS Investment Management Sold Out
Ray Dalio 31,891 sh (-38.08%)
» More
Q4 2014

VMW Guru Trades in Q4 2014

Steven Cohen 1,516,900 sh (New)
Jim Simons 642,400 sh (+3817.07%)
Ray Dalio 195,123 sh (+511.84%)
Paul Tudor Jones 30,778 sh (+333.86%)
PRIMECAP Management 981,900 sh (+76.71%)
Paul Singer 1,430,000 sh (unchged)
Pioneer Investments Sold Out
Paul Singer Sold Out
Ron Baron 28,883 sh (-4.13%)
John Hussman 44,000 sh (-41.33%)
» More
Q1 2015

VMW Guru Trades in Q1 2015

Louis Moore Bacon 25,000 sh (New)
PRIMECAP Management 1,361,150 sh (+38.62%)
Ron Baron 33,793 sh (+17.00%)
John Hussman Sold Out
Ray Dalio 124,642 sh (-36.12%)
Jim Simons 343,700 sh (-46.50%)
Paul Tudor Jones 14,485 sh (-52.94%)
Steven Cohen 173,400 sh (-88.57%)
» More
Q2 2015

VMW Guru Trades in Q2 2015

Ron Baron 40,401 sh (+19.55%)
Jim Simons 395,800 sh (+15.16%)
PRIMECAP Management 1,513,462 sh (+11.19%)
Louis Moore Bacon Sold Out
Paul Tudor Jones 11,627 sh (-19.73%)
Steven Cohen 42,300 sh (-75.61%)
Ray Dalio 12,226 sh (-90.19%)
» More
» Details

Insider Trades

Latest Guru Trades with VMW

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Guru Investment Theses on VMWare Inc

Baron Funds Comments on VMware - May 29, 2014

We initiated a small size position in VMware, Inc. (NYSE: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. (NYSE: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

Weekly Insider Sells Highlight: MSFT, VMW, TWTR, JAH
According to GuruFocus Insider Data, the largest insider sells during the past week were: Microsoft Corp, VMware Inc, Twitter Inc, and Jarden Corp Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 38.54
VMW's P/E(ttm) is ranked lower than
67% of the 1109 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 24.00 vs. VMW: 38.54 )
Ranked among companies with meaningful P/E(ttm) only.
VMW' s 10-Year P/E(ttm) Range
Min: 24.86  Med: 53.02 Max: 251.33
Current: 38.54
24.86
251.33
Forward P/E 17.92
VMW's Forward P/E is ranked higher than
56% of the 528 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 19.16 vs. VMW: 17.92 )
Ranked among companies with meaningful Forward P/E only.
N/A
PE(NRI) 37.60
VMW's PE(NRI) is ranked lower than
67% of the 1101 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 23.80 vs. VMW: 37.60 )
Ranked among companies with meaningful PE(NRI) only.
VMW' s 10-Year PE(NRI) Range
Min: 24.86  Med: 53.17 Max: 249.19
Current: 37.6
24.86
249.19
P/B 4.60
VMW's P/B is ranked lower than
69% of the 1572 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 2.63 vs. VMW: 4.60 )
Ranked among companies with meaningful P/B only.
VMW' s 10-Year P/B Range
Min: 3.55  Med: 6.72 Max: 36.37
Current: 4.6
3.55
36.37
P/S 5.47
VMW's P/S is ranked lower than
77% of the 1715 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 2.00 vs. VMW: 5.47 )
Ranked among companies with meaningful P/S only.
VMW' s 10-Year P/S Range
Min: 4.12  Med: 8.67 Max: 36.37
Current: 5.47
4.12
36.37
PFCF 20.81
VMW's PFCF is ranked higher than
60% of the 815 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 24.41 vs. VMW: 20.81 )
Ranked among companies with meaningful PFCF only.
VMW' s 10-Year PFCF Range
Min: 12.43  Med: 23.05 Max: 292.8
Current: 20.81
12.43
292.8
POCF 16.85
VMW's POCF is ranked higher than
54% of the 1017 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 17.74 vs. VMW: 16.85 )
Ranked among companies with meaningful POCF only.
VMW' s 10-Year POCF Range
Min: 8.46  Med: 18.48 Max: 104.57
Current: 16.85
8.46
104.57
EV-to-EBIT 26.09
VMW's EV-to-EBIT is ranked lower than
67% of the 1149 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 16.13 vs. VMW: 26.09 )
Ranked among companies with meaningful EV-to-EBIT only.
VMW' s 10-Year EV-to-EBIT Range
Min: 17.7  Med: 42.80 Max: 267.4
Current: 26.09
17.7
267.4
PEG 1.47
VMW's PEG is ranked higher than
57% of the 487 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 1.75 vs. VMW: 1.47 )
Ranked among companies with meaningful PEG only.
VMW' s 10-Year PEG Range
Min: 1.25  Med: 1.66 Max: 2.63
Current: 1.47
1.25
2.63
Shiller P/E 47.25
VMW's Shiller P/E is ranked lower than
71% of the 699 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 28.94 vs. VMW: 47.25 )
Ranked among companies with meaningful Shiller P/E only.
VMW' s 10-Year Shiller P/E Range
Min: 46.16  Med: 71.42 Max: 164.92
Current: 47.25
46.16
164.92
Current Ratio 2.20
VMW's Current Ratio is ranked higher than
54% of the 1625 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 2.07 vs. VMW: 2.20 )
Ranked among companies with meaningful Current Ratio only.
VMW' s 10-Year Current Ratio Range
Min: 0.55  Med: 2.37 Max: 2.97
Current: 2.2
0.55
2.97
Quick Ratio 2.20
VMW's Quick Ratio is ranked higher than
57% of the 1625 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 1.92 vs. VMW: 2.20 )
Ranked among companies with meaningful Quick Ratio only.
VMW' s 10-Year Quick Ratio Range
Min: 0.55  Med: 2.37 Max: 2.97
Current: 2.2
0.55
2.97
Days Sales Outstanding 70.91
VMW's Days Sales Outstanding is ranked lower than
52% of the 1511 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 69.32 vs. VMW: 70.91 )
Ranked among companies with meaningful Days Sales Outstanding only.
VMW' s 10-Year Days Sales Outstanding Range
Min: 65.59  Med: 88.26 Max: 100.45
Current: 70.91
65.59
100.45

Valuation & Return

vs
industry
vs
history
Price/Net Current Asset Value 28.87
VMW's Price/Net Current Asset Value is ranked lower than
89% of the 1036 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 6.56 vs. VMW: 28.87 )
Ranked among companies with meaningful Price/Net Current Asset Value only.
VMW' s 10-Year Price/Net Current Asset Value Range
Min: 12.57  Med: 24.68 Max: 160.38
Current: 28.87
12.57
160.38
Price/Tangible Book 12.70
VMW's Price/Tangible Book is ranked lower than
83% of the 1327 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 4.00 vs. VMW: 12.70 )
Ranked among companies with meaningful Price/Tangible Book only.
VMW' s 10-Year Price/Tangible Book Range
Min: 6.77  Med: 15.07 Max: 57.43
Current: 12.7
6.77
57.43
Price/Projected FCF 1.15
VMW's Price/Projected FCF is ranked higher than
71% of the 823 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 1.66 vs. VMW: 1.15 )
Ranked among companies with meaningful Price/Projected FCF only.
VMW' s 10-Year Price/Projected FCF Range
Min: 1.2  Med: 1.79 Max: 4.07
Current: 1.15
1.2
4.07
Price/Median PS Value 0.63
VMW's Price/Median PS Value is ranked higher than
87% of the 1520 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 1.11 vs. VMW: 0.63 )
Ranked among companies with meaningful Price/Median PS Value only.
VMW' s 10-Year Price/Median PS Value Range
Min: 0.56  Med: 1.01 Max: 3.04
Current: 0.63
0.56
3.04
Price/Peter Lynch Fair Value 2.32
VMW's Price/Peter Lynch Fair Value is ranked lower than
69% of the 347 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 1.60 vs. VMW: 2.32 )
Ranked among companies with meaningful Price/Peter Lynch Fair Value only.
VMW' s 10-Year Price/Peter Lynch Fair Value Range
Min: 1.49  Med: 2.04 Max: 4.79
Current: 2.32
1.49
4.79
Price/Graham Number 4.61
VMW's Price/Graham Number is ranked lower than
77% of the 853 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 2.03 vs. VMW: 4.61 )
Ranked among companies with meaningful Price/Graham Number only.
VMW' s 10-Year Price/Graham Number Range
Min: 2.96  Med: 6.00 Max: 22.67
Current: 4.61
2.96
22.67
Earnings Yield (Greenblatt) (%) 3.80
VMW's Earnings Yield (Greenblatt) (%) is ranked higher than
55% of the 1711 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 2.80 vs. VMW: 3.80 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) (%) only.
VMW' s 10-Year Earnings Yield (Greenblatt) (%) Range
Min: 0.4  Med: 2.30 Max: 5.7
Current: 3.8
0.4
5.7
Forward Rate of Return (Yacktman) (%) 21.65
VMW's Forward Rate of Return (Yacktman) (%) is ranked higher than
79% of the 694 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 10.48 vs. VMW: 21.65 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) (%) only.
VMW' s 10-Year Forward Rate of Return (Yacktman) (%) Range
Min: 1.4  Med: 29.60 Max: 41.4
Current: 21.65
1.4
41.4

Analyst Estimate

Dec15 Dec16 Dec17
Revenue(Mil) 6,644 7,376 8,587
EPS($) 4.02 4.42 5.09
EPS without NRI($) 4.02 4.42 5.09

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. The Company provides virtualization infrastructure solutions. The Company develops and market its product and service offerings within three main product groups: SDDC or Software-Defined Data Center, End-User Computing, and Hybrid Cloud Computing. It offers development and application of virtualization technologies with x86 server-based computing, separating application software from the underlying hardware. The SDDC architecture consists of four main product categories: Compute, Storage and Availability, Network and Security, Management and Automation. Its vCloud Hybrid Service, built on the foundation of VMware's vSphere, is an Infrastructure as a Service (IaaS) cloud operated by them, that provides customers with a common platform to seamlessly extend their data center to the cloud. vCloud Hybrid Service enables customers to extend the same skills, tools, networking and security models across both on-premises and off-premises environments. Its VMware vCloud Service Provider Program, which is directed to hosting and cloud computing vendors, enables organizations to choose between running applications in virtual machines on their own "private clouds" inside their data center or on "public clouds" hosted by a service provider. ur VMware vCHS Business Ventures is a program developed to expand vCHS globally, by partnering and co-investing with large in-country telecommunication providers in order to enable a user experience consistent with VMware's owned and operated vCloud Hybrid Service. Services through the VMware vCHS Business Ventures program are expected to become available to users in 2014. The Company competes with large and small vendors in different segments of the cloud computing, end-user computing and virtualization markets, and expect that new entrants will continue to enter the market and develop technologies that, if commercialized, may compete with its products and services.
» More Articles for VMW

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