VMware Inc Stock Research

Market Summary

USD120.55+1.15

Market Closed

0.96%

VMW Stock Price

VMW RSI Chart

VMW Valuation

Market Cap

51.2B

Price/Earnings (Trailing)

36.41

Price/Sales (Trailing)

3.81

EV/EBITDA

17.35

Price/Free Cashflow

15.26

VMW Price/Sales (Trailing)

VMW Profitability

EBT Margin

13.60%

Return on Equity

174.44%

Return on Assets

Free Cashflow Yield

6.55%

VMW Fundamentals

VMW Revenue

Revenue (TTM)

13.1B

Revenue Y/Y

6.31%

Revenue Q/Q

8.03%

VMW Earnings

Earnings (TTM)

1.4B

Earnings Y/Y

-41.96%

Earnings Q/Q

-33.43%

Price Action

52 Week Range

91.53132.15

(Low)(High)

Last 7 days

-0.7%

Last 30 days

1.4%

Last 90 days

-2.9%

Trailing 12 Months

-25.8%

VMW Financial Health

Current Ratio

0.7

Debt/Equity

12.02

Debt/Cashflow

0.39

VMW Investor Care

Shares Dilution (1Y)

1.23%

Diluted EPS (TTM)

3.32

Financials for VMware

* denotes actual numbers (not divided by Millions)
Income Statement (Last 12 Months)					(In Millions)
Description	(%) Q/Q	2022Q3	2022Q2	2022Q1	2021Q4	2021Q3
Revenue	1.5%	13,143	12,945	12,851	12,614	12,290
S&GA Expenses	1.4%	4,218	4,161	4,067	3,977	-
R&D Expenses	0.9%	3,151	3,123	3,057	3,009	-
EBITDA	1.5%	3,379	3,328	-	-	-
EBITDA Margin	0.0%	0.26*	0.26*	-	-	-
Earnings Before Taxes	-0.1%	1,925	1,926	2,085	2,388	-
EBT Margin	-1.6%	0.15*	0.15*	-	-	-
Interest Expenses	9.2%	298	273	252	221	-
Net Income	-3.9%	1,573	1,637	1,820	2,025	-
Net Income Margin	-5.4%	0.12*	0.13*	-	-	-
Free Cahsflow	-13.4%	3,181	3,674	-	-	-

* denotes actual numbers (not divided by Millions)
Balance Sheet					(In Millions)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Assets	0.5%	28,126	27,993	27,434	28,676	35,710
Current Assets	1.4%	7,318	7,218	6,643	7,966	15,445
Cash Equivalents	22.5%	3,972	3,242	3,719	3,600	12,553
Goodwill	0%	9,598	9,598	9,598	9,598	9,598
Liabilities	-1.9%	27,320	27,853	27,845	29,552	25,485
Current Liabilities	9.7%	10,403	9,481	8,892	9,651	9,808
Long Term Debt	-13.4%	9,686	11,181	11,926	12,671	9,170
LT Debt, Current	Infinity%	1,000	-	-	-	-
Shareholder's Equity	475.7%	806	140	-876	10,225	-
Retained Earnings	80.8%	-55.00	-286	-633	-875	8,301
Additional Paid-In Capital	100.0%	870	435	227	-	1,923
Shares Outstanding	0.5%	425	423	421	419	419

Cashflow (Last 12 Months)					(In Millions)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Cashflow From Operations	4.8%	3,804	3,629	4,096	4,357	4,544
Share Based Compensation	8.1%	1,203	1,113	1,095	1,075	1,066
Cashflow From Investing	-13.7%	-348	-306	-348	-329	-293
Cashflow From Financing	-101.0%	-12,008	-5,973	-5,653	-5,135	4,311
Dividend Payments	-	11,499	-	-	-	-
Buy Backs	-27.0%	386	529	887	1,169	1,251

Risks for VMW

What is the probability of a big loss on VMW?

70%

Probability that VMware stock will be more than 20% underwater in next one year

49.6%

Probability that VMware stock will be more than 30% underwater in next one year.

25%

Probability that VMware stock will be more than 40% underwater in next one year.

*Calculated based on probability distribution of losses observed in actual data in the last 5 years.

How does VMW drawdown profile look like?

Y-axis is the maximum loss one would have experienced if VMware was unfortunately bought at previous high price.

Drawdowns

Returns for VMW

Cumulative Returns on VMW

5.5%

10-Year Cumulative Returns

16.2%

7-Year Cumulative Returns

2.8%

5-Year Cumulative Returns

3.4%

3-Year Cumulative Returns

What are the long-term rolling returns for VMW?

FIve years rolling returns for VMware.

Annualized Returns

Which funds bought or sold VMW recently?

View All Details

Datesorted ascending	Fund Name	Type	% Chg	$ Change	$ Held	% Portfolio
2023-03-15	B. Riley Wealth Advisors, Inc.	reduced	-1.58	140,378	1,183,380	0.03%
2023-03-13	Claro Advisors LLC	new	-	514,487	514,487	0.17%
2023-03-10	VICTORY CAPITAL MANAGEMENT INC	reduced	-6.97	729,722	10,756,700	0.01%
2023-03-08	Capital Asset Advisory Services LLC	reduced	-35.02	-88,820	264,180	0.02%
2023-03-06	Rockefeller Capital Management L.P.	reduced	-32.05	-163,000	587,000	-%
2023-03-06	NORTH STAR ASSET MANAGEMENT INC	reduced	-6.55	769,814	10,689,800	0.66%
2023-03-03	TIAA, FSB	reduced	-14.18	-3,010	253,990	-%
2023-03-02	LORING WOLCOTT & COOLIDGE FIDUCIARY ADVISORS LLP/MA	new	-	37,810	37,810	-%
2023-03-01	Lakewood Asset Management LLC	new	-	373,000	373,000	0.30%
2023-02-28	Voya Investment Management LLC	added	0.68	-174,569,000	5,800,290	0.01%

Latest Funds Activity

Are funds buying VMW calls or puts?

Calls

Puts

Are funds bullish or bearish(Calls - Puts)?

Net Call Options

No. of funds that own VMW

No. of Funds

VMware News

Schedule 13G FIlings of VMware

Date Filed	Name of Filer	Percent of Class	No. of Shares	Form Type
Feb 14, 2023	dodge & cox	6.4%	27,303,151	SC 13G/A
May 27, 2022	dell michael s	36.8%	155,005,746	SC 13D/A
May 26, 2022	sl spv-2, l.p.	3.8%	16,133,485	SC 13D/A
Feb 14, 2022	dodge & cox	6.1%	25,453,582	SC 13G/A
Dec 10, 2021	blackrock inc.	3.2%	13,565,448	SC 13G/A
Nov 03, 2021	sl spv-2, l.p.	3.8%	16,133,485	SC 13D
Nov 02, 2021	dell technologies inc.	0%	0	SC 13D/A
Nov 02, 2021	dell michael s	36.9%	155,005,746	SC 13D/A
Apr 14, 2021	dell technologies inc.	80.6%	337,900,441	SC 13D/A
Feb 16, 2021	price t rowe associates inc /md/	0.0%	47,418	SC 13G/A

VMW Fair Value

VMware fair value in different scenarios

The table shows the Fair Value estimates for VMware for various scenarios. Disclaimer: These are just estimations from a model. None of the models are good at predicting the future. Please dont buy or sell stocks based on these outputs.

Fair Value	Very Pessimistic	Pessimistic	Base Case	Optimistic	Very Optimistic
Very Low Inflation	53.11 -55.94%	74.97 -37.81%	102.83 -14.70%	137.36 13.94%	166.77 38.34%
Current Inflation	48.37 -59.88%	67.08 -44.36%	90.34 -25.06%	119.20 -1.12%	143.72 19.22%
Very High Inflation	42.51 -64.74%	57.55 -52.26%	75.61 -37.28%	98.14 -18.59%	117.22 -2.76%

Historical VMware Fair Value Estimates

Very Pessimistic Case

Pessimistic Case

Fair Value

Optimistic Case

Very Optimistic Case

Closing Stock Price

Recent SEC filings of VMware

View All Filings

Date Filed	Form Type	Document
Mar 16, 2023	425	Prospectus Filed
Mar 15, 2023	425	Prospectus Filed
Mar 09, 2023	425	Prospectus Filed
Mar 03, 2023	8-K	Current Report
Mar 03, 2023	4	Insider Trading
Mar 03, 2023	4	Insider Trading
Mar 02, 2023	8-K	Current Report
Feb 17, 2023	8-K	Current Report
Feb 15, 2023	425	Prospectus Filed
Feb 14, 2023	SC 13G/A	Major Ownership Report

Latest Insider Trading transactions for VMW

Filter Transactions

Datesorted ascending	Name	Buy/Sell	$ Value	Avg. Price	# Shares	Title
2023-03-01	Verdecanna Pebbie L	sold (taxes)	-120,218	110	-1,092	cao
2023-03-01	Dhawan Sumit	sold (taxes)	-229,868	110	-2,088	president
2023-02-01	Verdecanna Pebbie L	sold (taxes)	-6,290	123	-51.00	cao
2022-12-22	Brulard Jean Pierre	sold	-804,838	121	-6,651	evp, worldwide sales
2022-12-02	Rowe Zane	sold	-2,143,610	120	-17,860	chief financial officer & evp
2022-12-01	Raghuram Rangarajan (Raghu)	sold (taxes)	-470,415	121	-3,866	chief executive officer
2022-12-01	Verdecanna Pebbie L	sold (taxes)	-7,665	121	-63.00	cao
2022-12-01	Olli Amy Fliegelman	sold (taxes)	-229,002	121	-1,882	evp, gc & secretary
2022-12-01	Brulard Jean Pierre	sold (taxes)	-143,461	121	-1,179	evp, worldwide sales
2022-12-01	Rowe Zane	sold (taxes)	-319,288	121	-2,624	chief financial officer & evp

About VMware

Rangarajan G. Raghuram

www.vmware.com

37500

VMware, Inc. provides software solutions in the areas of modern applications, cloud management and infrastructure, networking, security, and digital workspaces in the United States and internationally. It offers VMware multi-cloud solutions, including VMware vSphere, a data center infrastructure that provides the fundamental compute layer; vSAN and VxRail, which offers holistic data storage and protection options to applications running on vSphere; and vRealize Cloud Management solutions that manages hybrid and multi-cloud environments running in virtual machines and containers, as well as VMware Cloud Foundation, a cloud platform that combines its vSphere, vSAN, and NSX with vRealize Cloud Management into an integrated stack and delivers enterprise-ready cloud infrastructure for private and public clouds. The company also provides networking solutions, such as VMware NSX, NSX Distributed and Gateway Firewalls, NSX Network Detection and Response Engine, NSX Advanced Load Balancer, Tanzu Service Mesh, and VMware SASE; security solutions consisting of VMware Carbon Black Endpoint, Workload, and Container; and digital workspace solutions comprising Workspace ONE Unified Endpoint Management, Access, Intelligent Hub, and Horizon. In addition, it offers application modernization solutions, such as Tanzu Application and Operations Platform, Tanzu Application Service Platform, Tanzu Observability, Tanzu Community Edition, and Tanzu Labs; and cloud management solutions, including vRealize Cloud Management, vCloud Suite, and CloudHealth by VMware Suite. The company sells its products through distributors, resellers, system vendors, and systems integrators. VMware, Inc. has a strategic alliance with Amazon Web Services to build and deliver an integrated hybrid solution. The company was incorporated in 1998 and is headquartered in Palo Alto, California.

VMW Income Statement

2022-10-28

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($)
shares in Thousands, $ in Millions

3 Months Ended

9 Months Ended

Oct. 28, 2022

Oct. 29, 2021

Oct. 28, 2022

Oct. 29, 2021

Revenue:

Revenue

^[1]

$ 3,211

$ 3,188

$ 9,635

$ 9,320

Operating expenses:

Research and development

^[2]

832

768

2,409

2,251

Sales and marketing

^[2]

1,081

1,011

3,216

2,993

General and administrative

^[2]

289

316

815

808

Realignment

^[2]

Operating income

390

519

1,364

1,603

Investment income

Interest expense

(77)

(74)

(222)

(173)

Other income (expense), net

(14)

(44)

(7)

Income before income tax

319

457

1,126

1,424

Income tax provision

306

190

Net income, basic

231

398

820

1,234

Net income, diluted

$ 231

$ 398

$ 820

$ 1,234

Net income per weighted-average share, basic (in USD per share)

$ 0.55

$ 0.95

$ 1.94

$ 2.94

Net income per weighted-average share, diluted (in USD per share)

$ 0.54

$ 0.94

$ 1.93

$ 2.92

Weighted-average shares, basic (in shares)

423,993

419,456

422,194

419,309

Weighted-average shares, diluted (in shares)

426,328

421,763

424,490

422,201

License

Revenue:

Revenue

^[1]

$ 621

$ 710

$ 1,990

$ 2,093

Operating expenses:

Cost of revenue

^[2]

113

111

Subscription and SaaS

Revenue:

Revenue

^[1]

988

820

2,830

2,336

Operating expenses:

Cost of revenue

^[2]

196

175

583

502

Services

Revenue:

Revenue

^[1]

1,602

1,658

4,815

4,891

Operating expenses:

Cost of revenue

^[2]

$ 384

$ 362

$ 1,128

$ 1,051

[1]

Includes related party revenue as follows (refer to Note D):


License	$	436	$	374	$	690	$	661
Subscription and SaaS	259		195		514		368
Services	633		606		1,274		1,194

[2]

Includes stock-based compensation as follows:


Cost of license revenue	$	—	$	—	$	1	$	1
Cost of subscription and SaaS revenue	6		5		11		11
Cost of services revenue	25		24		48		49
Research and development	146		150		278		277
Sales and marketing	93		81		174		153
General and administrative	41		33		81		64

VMW Balance Sheet

2022-10-28

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Oct. 28, 2022	Jan. 28, 2022
Current assets:
Cash and cash equivalents	$ 3,972	$ 3,614
Short-term investments	0	19
Accounts receivable, net of allowance of $10 and $10	1,909	2,297
Due from related parties	821	1,438
Other current assets	616	598
Total current assets	7,318	7,966
Property and equipment, net	1,597	1,461
Deferred tax assets	6,090	5,906
Intangible assets, net	526	714
Goodwill	9,598	9,598
Due from related parties	189	199
Other assets	2,808	2,832
Total assets	28,126	28,676
Current liabilities:
Accounts payable	297	234
Accrued expenses and other	2,566	2,806
Current portion of long-term debt	1,000	0
Unearned revenue	6,339	6,479
Due to related parties	201	132
Total current liabilities	10,403	9,651
Long-term debt	9,686	12,671
Unearned revenue	4,878	4,743
Income tax payable	260	242
Operating lease liabilities	849	927
Due to related parties	804	909
Other liabilities	440	409
Total liabilities	27,320	29,552
Contingencies (refer to Note D)
Stockholders’ equity (deficit):
Class A common stock, par value $0.01; authorized 2,500,000 shares; issued and outstanding 424,613 and 418,808 shares	4	4
Additional paid-in capital	870	0
Accumulated other comprehensive loss	(13)	(5)
Accumulated deficit	(55)	(875)
Total stockholders’ equity (deficit)	806	(876)
Total liabilities and stockholders’ equity (deficit)	$ 28,126	$ 28,676