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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 4.73
VMW's Cash to Debt is ranked higher than
68% of the 2118 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 4.93 vs. VMW: 4.73 )
VMW' s 10-Year Cash to Debt Range
Min: 0.22   Max: No Debt
Current: 4.73

Equity to Asset 0.51
VMW's Equity to Asset is ranked higher than
60% of the 2048 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 0.60 vs. VMW: 0.51 )
VMW' s 10-Year Equity to Asset Range
Min: -0.2   Max: 0.58
Current: 0.51

-0.2
0.58
Interest Coverage 273.25
VMW's Interest Coverage is ranked higher than
56% of the 1326 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 1176.93 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: 3
Z-Score: 4.23
M-Score: -2.84
WACC vs ROIC
11.26%
49.03%
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 : 7/10

vs
industry
vs
history
Operating margin (%) 17.02
VMW's Operating margin (%) is ranked higher than
90% of the 2100 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 5.37 vs. VMW: 17.02 )
VMW' s 10-Year Operating margin (%) Range
Min: 10.84   Max: 24.18
Current: 17.02

10.84
24.18
Net-margin (%) 14.68
VMW's Net-margin (%) is ranked higher than
91% of the 2100 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 3.67 vs. VMW: 14.68 )
VMW' s 10-Year Net-margin (%) Range
Min: 7.67   Max: 19.47
Current: 14.68

7.67
19.47
ROE (%) 12.31
VMW's ROE (%) is ranked higher than
83% of the 2033 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 6.20 vs. VMW: 12.31 )
VMW' s 10-Year ROE (%) Range
Min: 8.19   Max: 77.03
Current: 12.31

8.19
77.03
ROA (%) 6.34
VMW's ROA (%) is ranked higher than
81% of the 2126 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 3.37 vs. VMW: 6.34 )
VMW' s 10-Year ROA (%) Range
Min: 4.43   Max: 16.7
Current: 6.34

4.43
16.7
ROC (Joel Greenblatt) (%) 109.93
VMW's ROC (Joel Greenblatt) (%) is ranked higher than
87% of the 2105 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 29.03 vs. VMW: 109.93 )
VMW' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 53.45   Max: 967.84
Current: 109.93

53.45
967.84
Revenue Growth (3Y)(%) 21.20
VMW's Revenue Growth (3Y)(%) is ranked higher than
88% of the 1666 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 5.60 vs. VMW: 21.20 )
VMW' s 10-Year Revenue Growth (3Y)(%) Range
Min: 21.2   Max: 77.5
Current: 21.2

21.2
77.5
EBITDA Growth (3Y)(%) 28.70
VMW's EBITDA Growth (3Y)(%) is ranked higher than
74% of the 1378 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 7.20 vs. VMW: 28.70 )
VMW' s 10-Year EBITDA Growth (3Y)(%) Range
Min: 0   Max: 46.2
Current: 28.7

0
46.2
EPS Growth (3Y)(%) 40.70
VMW's EPS Growth (3Y)(%) is ranked higher than
73% of the 1261 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 6.90 vs. VMW: 40.70 )
VMW' s 10-Year EPS Growth (3Y)(%) 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

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
Q3 2014

VMW Guru Trades in Q3 2014

Paul Tudor Jones 7,094 sh (New)
Jim Simons 16,400 sh (New)
Paul Singer 1,255,000 sh (New)
John Hussman 75,000 sh (+50%)
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
» 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 2014-12-31 Reduce -41.33%0.25%$76.43 - $94.15 $ 86.592%44000
Ray Dalio 2014-12-31 Add 511.84%0.11%$76.43 - $94.15 $ 86.592%195123
PRIMECAP Management 2014-12-31 Add 76.71%0.04%$76.43 - $94.15 $ 86.592%981900
John Hussman 2014-09-30 Add 50%0.2%$92.73 - $103.64 $ 86.59-11%75000
Ray Dalio 2014-09-30 Reduce -38.08%0.01%$92.73 - $103.64 $ 86.59-11%31891
John Hussman 2014-06-30 New Buy0.37%$90 - $111.8 $ 86.59-11%50000
PRIMECAP Management 2014-06-30 Add 42.59%0.02%$90 - $111.8 $ 86.59-11%526300
Ray Dalio 2014-06-30 Add 48.84%0.01%$90 - $111.8 $ 86.59-11%51500
Ron Baron 2014-06-30 Add 40.07%$90 - $111.8 $ 86.59-11%28878
Ray Dalio 2014-03-31 New Buy0.03%$87.1 - $110.67 $ 86.59-11%34600
Ron Baron 2014-03-31 New Buy0.01%$87.1 - $110.67 $ 86.59-11%20617
PRIMECAP Management 2014-03-31 Add 28.92%0.01%$87.1 - $110.67 $ 86.59-11%369100
Premium More recent guru trades are included for Premium Members only!!
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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. (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) 42.10
VMW's P/E(ttm) is ranked higher than
75% of the 2303 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 56.70 vs. VMW: 42.10 )
VMW' s 10-Year P/E(ttm) Range
Min: 24.86   Max: 251.33
Current: 42.1

24.86
251.33
Forward P/E 19.69
VMW's Forward P/E is ranked higher than
88% of the 2303 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 0.00 vs. VMW: 19.69 )
N/A
PE(NRI) 41.30
VMW's PE(NRI) is ranked higher than
75% of the 2303 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 59.00 vs. VMW: 41.30 )
VMW' s 10-Year PE(NRI) Range
Min: 24.86   Max: 249.19
Current: 41.3

24.86
249.19
P/B 4.90
VMW's P/B is ranked higher than
62% of the 2303 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 3.32 vs. VMW: 4.90 )
VMW' s 10-Year P/B Range
Min: 3.55   Max: 36.37
Current: 4.9

3.55
36.37
P/S 6.23
VMW's P/S is ranked higher than
56% of the 2303 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 2.67 vs. VMW: 6.23 )
VMW' s 10-Year P/S Range
Min: 4.12   Max: 36.37
Current: 6.23

4.12
36.37
PFCF 17.80
VMW's PFCF is ranked higher than
85% of the 2303 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 102.32 vs. VMW: 17.80 )
VMW' s 10-Year PFCF Range
Min: 12.43   Max: 145
Current: 17.8

12.43
145
POCF 15.06
VMW's POCF is ranked higher than
80% of the 2303 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 28.43 vs. VMW: 15.06 )
VMW' s 10-Year POCF Range
Min: 8.46   Max: 62.55
Current: 15.06

8.46
62.55
EV-to-EBIT 29.13
VMW's EV-to-EBIT is ranked higher than
73% of the 2303 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 36.34 vs. VMW: 29.13 )
VMW' s 10-Year EV-to-EBIT Range
Min: 17.7   Max: 267.4
Current: 29.13

17.7
267.4
PEG 1.50
VMW's PEG is ranked higher than
94% of the 2303 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 0.00 vs. VMW: 1.50 )
VMW' s 10-Year PEG Range
Min: 1.25   Max: 2.33
Current: 1.5

1.25
2.33
Shiller P/E 57.70
VMW's Shiller P/E is ranked higher than
82% of the 2303 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 0.00 vs. VMW: 57.70 )
VMW' s 10-Year Shiller P/E Range
Min: 51.15   Max: 164.92
Current: 57.7

51.15
164.92
Current Ratio 2.32
VMW's Current Ratio is ranked higher than
74% of the 2080 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 1.88 vs. VMW: 2.32 )
VMW' s 10-Year Current Ratio Range
Min: 0.55   Max: 2.97
Current: 2.32

0.55
2.97
Quick Ratio 2.32
VMW's Quick Ratio is ranked higher than
76% of the 2080 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 1.77 vs. VMW: 2.32 )
VMW' s 10-Year Quick Ratio Range
Min: 0.55   Max: 2.97
Current: 2.32

0.55
2.97
Days Sales Outstanding 91.93
VMW's Days Sales Outstanding is ranked higher than
67% of the 2303 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 84.50 vs. VMW: 91.93 )
VMW' s 10-Year Days Sales Outstanding Range
Min: 65.59   Max: 100.45
Current: 91.93

65.59
100.45

Valuation & Return

vs
industry
vs
history
Price/Net Cash 8659.00
VMW's Price/Net Cash is ranked lower than
54% of the 2303 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 0.00 vs. VMW: 8659.00 )
VMW' s 10-Year Price/Net Cash Range
Min: 23.31   Max: 9384
Current: 8659

23.31
9384
Price/Net Current Asset Value 51.50
VMW's Price/Net Current Asset Value is ranked higher than
76% of the 2303 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 0.00 vs. VMW: 51.50 )
VMW' s 10-Year Price/Net Current Asset Value Range
Min: 16.43   Max: 4250
Current: 51.5

16.43
4250
Price/Tangible Book 13.00
VMW's Price/Tangible Book is ranked higher than
62% of the 2303 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 8.39 vs. VMW: 13.00 )
VMW' s 10-Year Price/Tangible Book Range
Min: 6.77   Max: 57.43
Current: 13

6.77
57.43
Price/DCF (Projected) 1.30
VMW's Price/DCF (Projected) is ranked higher than
88% of the 2303 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 7.56 vs. VMW: 1.30 )
VMW' s 10-Year Price/DCF (Projected) Range
Min: 1.34   Max: 3.62
Current: 1.3

1.34
3.62
Price/Median PS Value 0.70
VMW's Price/Median PS Value is ranked higher than
93% of the 2303 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 1.28 vs. VMW: 0.70 )
VMW' s 10-Year Price/Median PS Value Range
Min: 0.55   Max: 2.97
Current: 0.7

0.55
2.97
Price/Peter Lynch Fair Value 1.70
VMW's Price/Peter Lynch Fair Value is ranked higher than
93% of the 2303 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 0.00 vs. VMW: 1.70 )
VMW' s 10-Year Price/Peter Lynch Fair Value Range
Min: 1.49   Max: 4.79
Current: 1.7

1.49
4.79
Price/Graham Number 5.00
VMW's Price/Graham Number is ranked higher than
76% of the 2303 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 16.38 vs. VMW: 5.00 )
VMW' s 10-Year Price/Graham Number Range
Min: 2.96   Max: 22.67
Current: 5

2.96
22.67
Earnings Yield (Greenblatt) 3.40
VMW's Earnings Yield (Greenblatt) is ranked higher than
71% of the 2102 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 3.40 vs. VMW: 3.40 )
VMW' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.4   Max: 5.7
Current: 3.4

0.4
5.7
Forward Rate of Return (Yacktman) 32.30
VMW's Forward Rate of Return (Yacktman) is ranked higher than
91% of the 1125 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 12.92 vs. VMW: 32.30 )
VMW' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 1.4   Max: 41.4
Current: 32.3

1.4
41.4

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 utilized by organizations to help transform the way they build, deliver and consume information technology ("IT") resources. 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 Company has approximately 97 offices worldwide. 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 primarily 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. They derive the majority of its sales from their indirect sales channel, which includes distributors, resellers, system vendors and systems integrators. The customer deployments range in size from a single virtualized server for small businesses to thousands of virtual machines for its largest enterprise customers. The Company compete 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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