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Also traded in: Argentina, Brazil, Chile, Germany, Mexico, Switzerland, UK

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

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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

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» EMC's 30-Y Financials

Financials (Next Earnings Date: 2017-07-18 Est.)


Revenue & Net Income
Cash & Debt
Operating Cash Flow & Free Cash Flow
Operating Cash Flow & Net Income

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Business Description

Industry: Computer Hardware » Data Storage  
Compare:NAS:WDC, NAS:STX, NAS:NTAP, NAS:BRCD, NYSE:TDC, NYSE:PSTG, NAS:GDS, OTCPK:TFECY, NAS:DTLK, NYSE:QTM, NAS:DRAM, NYSE:GLA, NAS:MSDI, NAS:CRDS, OTCPK:VMEMQ » details
Traded in other countries:EMC.Argentina, EMCC34.Brazil, EMC.Chile, EMP.Germany, EMC.Mexico, EMC.Switzerland, 0QYV.UK,
Headquarter Location:USA
EMC Corp supports the businesses and service providers to transform information technology (IT) operations to an as a service model (ITaaS). It operates in three segments: EMC Information Infrastructure, Pivotal and VMware Virtual Infrastructure.

EMC Corp is a Massachusetts corporation, incorporated in 1979. The Company together with its subsidiaries supports the businesses and service providers to transform information technology (IT) operations to an as a service model (ITaaS). The Company operates in three segments: EMC Information Infrastructure, Pivotal and VMware Virtual Infrastructure. The Company's information infrastructure provides a foundation for organizations to store, manage, protect, analyze and secure ever-increasing quantities of information, while at the same time improving business agility, lowering cost and increasing competitive advantage. VMware Virtual Infrastructure provides virtualization infrastructure solutions. Pivotal provides application and data infrastructure software, agile development services and data science consulting. The Company offers a comprehensive portfolio of enterprise storage systems and software - including high-end EMC VMAX and mid-tier EMC VNX unified storage and a portfolio of backup products that support enterprise application workloads. The Company's two additional storage families, EMC Isilon and EMC Atmos, are specifically designed to handle vast quantities of unstructured data. EMC supports a broad range of customers, including service providers, around the world - in every industry, in both public and private sectors, and of sizes ranging from the Fortune 500 to small business and individual consumers. The Company markets its products through direct sales and through multiple distribution channels. It has a direct sales presence throughout North America, Latin America, Europe, the Middle East, South Africa and the Asia Pacific region. The Company also has agreements in place with many partners, including value-added resellers and distributors, cloud service providers, systems integrators, outsourcers, Independent Software Vendors ("ISVs"), and Original Equipment Manufacturers ("OEMs"). The Company competes with many companies in the markets it serve, including companies that offer IT products and services and others that offer specific information storage, protection, security, management and intelligence, data analytics or virtualization products or services.

Guru Investment Theses on EMC Corp

Daniel Loeb Comments on EMC Corp - Nov 02, 2016

During the Second Quarter, Dell announced a large bond issuance to finance the acquisition of EMC Corp. While the Dell issuance is not a situation that would traditionally be popular with event-driven or distressed credit mandates, we believed market dynamics led the deal to price ~200bps wider than where we valued the bonds. Following its own LBO in 2013, Dell significantly improved its business through a variety of operational improvements and cost cutting initiatives. We believed the company would follow a similar playbook with the EMC (NYSE:EMC) acquisition and that the pro forma company would be a market leader in several areas including external storage, integrated infrastructure, and server virtualization software. Dell has stated a goal of achieving investment grade ratings within 18 – 24 months of the acquisition, setting a path to tightening in long duration bonds and to attractive returns for our portfolio.



From Third Point's third-quarter 2016 commentary.



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David Rolfe Comments on EMC - Oct 15, 2015

Over the past several years, EMC (NYSE:EMC) has done an excellent job reinvesting earnings to keep pace with the constantly evolving IT landscape. Publicly traded EMC subsidiary, VMware, is a good example. With a commanding lead in compute virtualization, we saw VMware's profits plowed back into R&D and acquisitions, leading to compelling product offerings for storage virtualization and network virtualization, both necessary elements for converting on-premises IT investments into so called "software defined" data centers. As for EMC's traditional, "core" storage business, again management has done a very good job sustaining profit share in an IT environment characterized by stagnating budgets and lengthening decision cycles. Over the past few product cycles, we've seen plenty of product cannibalization of EMC's existing product portfolio, which we think is a quite positive, albeit rare, trait for such a large, established IT shop - launching highly successful product lines (from a revenue standpoint) including: all-flash arrays; vendor agnostic cloud-based storage; and hyper-converged architectures and solutions, to name a few.

However, management has noted that these products have meaningfully lower return profiles compared to previous cycles. We surmise that this shrinking profitability pie is related to the proliferation of pure cloud-based solutions, often used as a substitute to traditional on-prem solutions. While this is not a new trend, however, we are of the strong opinion the market significantly overestimates the available profits for these cloud-based players and we question the long-term viability of them as substitutes, especially should a more difficult funding environment emerge. That said, we have no edge in predicting the timing of such a macro-oriented event, and in the mean-time, EMC's highly profitable business must continue to compete with "not -for-profit" substitutes. Combined with several new investment opportunities that emerged during the quarter, and enforcing our self-imposed cap of 22 stocks, we decided to sell EMC from portfolios to fund more attractive ideas.

From David Rolfe (Trades, Portfolio)'s Wedgewood Partners third quarter 2015 letter.

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Top Ranked Articles about EMC Corp

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Michael Price Sells Dolby Labs, EMC The guru's largest 3rd-quarter transactions
Michael Price (Trades, Portfolio) manages the private firm MFP Investors LLC with $1.6 billion under management, much of it his own money. During the third quarter the guru’s largest trades were: Read more...
Seth Klarman Eliminates 4 Stakes in 3rd Quarter Guru reports quarterly portfolio
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Disruptive technologies and slow growth have galvanized a record level of mergers and acquisitions in tech that will likely increase in 2017, according to a survey this week. Read more...
Daniel Loeb Comments on EMC Corp Guru stock highlight
During the Second Quarter, Dell announced a large bond issuance to finance the acquisition of EMC Corp. While the Dell issuance is not a situation that would traditionally be popular with event-driven or distressed credit mandates, we believed market dynamics led the deal to price ~200bps wider than where we valued the bonds. Following its own LBO in 2013, Dell significantly improved its business through a variety of operational improvements and cost cutting initiatives. We believed the company would follow a similar playbook with the EMC (NYSE:EMC) acquisition and that the pro forma company would be a market leader in several areas including external storage, integrated infrastructure, and server virtualization software. Dell has stated a goal of achieving investment grade ratings within 18 – 24 months of the acquisition, setting a path to tightening in long duration bonds and to attractive returns for our portfolio. Read more...
9 Questions With Neuroscientist and Investor Jim Hsu 'I would be lying if I said I had a systematic approach'
Jim Hsu is a neuroscientist, contrarian, centrist and optimist. He specializes in Long, global, distressed investing. Read more...
Dodge & Cox Exits Time Warner Cable, Buys MetLife Guru's largest trades in the 2nd quarter
Dodge & Cox was founded in 1930, by Van Duyn Dodge and E. Morris Cox. During the second quarter the guru’s most heavily weighted trades were as follows: Read more...
John Paulson Goes Virtual Guru’s new holdings in cloud software, video games
In the second quarter, John Paulson (Trades, Portfolio) of Paulson & Co. acquired three new holdings. They were with EMC Corp. (NYSE:EMC), VMWare Inc. (NYSE:VMW) and Take-Two Interactive Software Inc. (NASDAQ:TTWO). Read more...
T. Rowe Price Ditches Domestic, Buys Foreign T. Rowe Price Equity Income Fund gains 4 new holdings, sells 5
The T. Rowe Price Equity Income Fund gained four new holdings over the second quarter. Shares of Diageo PLC (NYSE:DEO), Apple (NASDAQ:AAPL), Medtronic PLC (NYSE:MDT) and PrairieSky Royalty Ltd (TSX:PSK) were purchased. Read more...

Ratios

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Dividend & Buy Back

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Dividend Yield % 1.58
EMC's Dividend Yield % is ranked lower than
59% of the 1848 Companies
in the Global Data Storage industry.

( Industry Median: 1.98 vs. EMC: 1.58 )
Ranked among companies with meaningful Dividend Yield % only.
EMC' s Dividend Yield % Range Over the Past 10 Years
Min: 0  Med: 0 Max: 1.58
Current: 1.58
0
1.58
Dividend Payout Ratio 0.43
EMC's Dividend Payout Ratio is ranked higher than
58% of the 1224 Companies
in the Global Data Storage industry.

( Industry Median: 0.39 vs. EMC: 0.43 )
Ranked among companies with meaningful Dividend Payout Ratio only.
EMC' s Dividend Payout Ratio Range Over the Past 10 Years
Min: 0  Med: 0 Max: 0.43
Current: 0.43
0
0.43
Forward Dividend Yield % 1.58
EMC's Forward Dividend Yield % is ranked lower than
62% of the 1779 Companies
in the Global Data Storage industry.

( Industry Median: 2.21 vs. EMC: 1.58 )
Ranked among companies with meaningful Forward Dividend Yield % only.
N/A
5-Year Yield-on-Cost % 1.58
EMC's 5-Year Yield-on-Cost % is ranked lower than
64% of the 2309 Companies
in the Global Data Storage industry.

( Industry Median: 2.39 vs. EMC: 1.58 )
Ranked among companies with meaningful 5-Year Yield-on-Cost % only.
EMC' s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0  Med: 0 Max: 1.58
Current: 1.58
0
1.58

Valuation & Return

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More Statistics

Revenue (TTM) (Mil) $24,586.00
EPS (TTM) $ 1.07
Short Percentage of Float0.70%
52-Week Range $22.99 - 29.13
Shares Outstanding (Mil)1,956.84

Analyst Estimate

Dec16 Dec17 Dec18 Dec19
Revenue (Mil $) 24,755 25,022 25,451 25,441
EPS ($) 1.74 1.81 1.95 1.95
EPS without NRI ($) 1.74 1.81 1.95 1.95
EPS Growth Rate
(Future 3Y To 5Y Estimate)
2.89%
Dividends per Share ($) 0.48 0.50 0.48
» More Articles for EMC

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