What is VMware Profitability Rank?
VMware has the Profitability Rank of 9. It has a higher profitability and may stay that way.
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.
Piotroski F-Score
3. Trend of the
Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank
VMware's Operating Margin % for the quarter that ended in Jul. 2023 was 16.05%. As of today, VMware's Piotroski F-Score is 6.
Competitive Comparison of VMware's Profitability Rank
For the Software - Infrastructure subindustry, VMware's Profitability Rank, along with its competitors' market caps and Profitability Rank data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
VMware's Profitability Rank Distribution in the Software Industry
For the Software industry and Technology sector, VMware's Profitability Rank distribution charts can be found below:
* The bar in red indicates where VMware's Profitability Rank falls into.
VMware Profitability Rank Calculation
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.
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.
VMware has the Profitability Rank of 9. It has a higher profitability and may stay that way.
Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.
Profitability Rank is based on these factors:
1. Operating Margin %
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
VMware's Operating Margin % for the quarter that ended in Jul. 2023 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
2. Piotroski F-Score
The zones of discrimination were as such:
Good or high score = 8 or 9
Bad or low score = 0 or 1
VMware has an F-score of 6 indicating the company's financial situation is typical for a stable company.
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
Warning Sign:
VMware Inc operating margin has been in a 5-year decline. The average rate of decline per year is -2%.
4. Consistency of the profitability
5. Predictability Rank
VMware (VMware) Business Description
Traded in Other Exchanges
N/A
Address
3401 Hillview Avenue, Palo Alto, CA, USA, 94304
VMware is an industry titan in virtualizing IT infrastructure and became a stand-alone entity after spinning off from Dell Technologies in November 2021. The software provider operates in three segments: licenses; subscriptions and software as a service; and services. VMware's solutions are used across IT infrastructure, application development, and cybersecurity teams, and the company takes a neutral approach to being the cohesion between cloud environments. The Palo Alto, California, firm operates and sells on a global scale, with about half its revenue from the United States, through direct sales, distributors, and partnerships.
Executives
| Jean Pierre Brulard |
officer: EVP, Worldwide Sales |
3401 HILLVIEW AVENUE, PALO ALTO CA 94304 |
| Zane Rowe |
officer: Chief Financial Officer & EVP |
1600 SMITH STREET, HQSEO, HOUSTON TX 77002 |
| Sumit Dhawan |
officer: President |
3401 HILLVIEW AVENUE, PALO ALTO CA 94304 |
| Amy Fliegelman Olli |
officer: Sr. VP and General Counsel |
C/O VMWARE, INC., 3401 HILLVIEW AVENUE, PALO ALTO CA 94304 |
| Pebbie L Verdecanna |
officer: Interim CAO |
3401 HILLVIEW AVENUE, PALO ALTO CA 94304 |
| Nicole Anasenes |
director |
2600 ANSYS DRIVE, CANONSBURG PA 15317 |
| Slta Spv-2 (gp), L.l.c. |
director, 10 percent owner |
C/O SILVER LAKE, 2775 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025 |
| Slta Spv-2, L.p. |
director, 10 percent owner |
C/O SILVER LAKE, 2775 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025 |
| Silver Lake Technology Investors V, L.p. |
director, 10 percent owner |
C/O SILVER LAKE, 2775 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025 |
| Slta V (gp), L.l.c. |
director, 10 percent owner |
C/O SILVER LAKE, 2775 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025 |
| Silver Lake Technology Associates V, L.p. |
director, 10 percent owner |
C/O SILVER LAKE, 2775 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025 |
| Silver Lake Partners V De (aiv), L.p. |
director, 10 percent owner |
C/O SILVER LAKE, 2775 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025 |
| Sl Spv-2, L.p. |
director, 10 percent owner |
C/O SILVER LAKE, 2775 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025 |
| Dell Inc |
10 percent owner |
ONE DELL WAY, ROUND ROCK TX 78682 |
| Rangarajan (raghu) Raghuram |
officer: EVP, Cloud Infrastructure |
3401 HILLVIEW AVENUE, PALO ALTO CA 94304 |
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