Vmware Stock Intrinsic Value – VMWARE Reports Strong First Quarter Earnings for FY2024
June 12, 2023
☀️Earnings Overview
On April 30 2023, VMWARE ($NYSE:VMW) announced their first quarter FY2024 earnings results for the period ending June 1 2023. Total revenue for the quarter was USD 3277.0 million, representing a 6.1% increase from the same period in the prior year. However, net income declined 7.4%, amounting to USD 224.0 million year over year.
Market Price
The report was met with enthusiasm from investors, and VMWARE stock opened at $135.3.
However, the stock closed at $133.9, down by 1.7% from its prior closing price of 136.3. The decrease in stock price was believed to be due to investor caution amid the uncertainty in the market. This is an impressive increase, particularly given the current economic climate. He also commented that the company is confident that their strategy will continue to help them deliver value to their customers and shareholders, and is optimistic about the rest of the year. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Vmware. VMWARE_Reports_Strong_First_Quarter_Earnings_for_FY2024″>More…
| Total Revenues | Net Income | Net Margin |
| 13.54k | 1.3k | 8.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Vmware. VMWARE_Reports_Strong_First_Quarter_Earnings_for_FY2024″>More…
| Operations | Investing | Financing |
| 5.04k | -389 | -1.84k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Vmware. VMWARE_Reports_Strong_First_Quarter_Earnings_for_FY2024″>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 30.57k | 28.71k | 4.34 |
Key Ratios Snapshot
Some of the financial key ratios for Vmware are shown below. VMWARE_Reports_Strong_First_Quarter_Earnings_for_FY2024″>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.9% | 6.7% | 15.3% |
| FCF Margin | ROE | ROA |
| 33.9% | 76.3% | 4.2% |
Analysis – Vmware Stock Intrinsic Value
At GoodWhale, we take a deep dive into the fundamentals of companies to determine their fair value. After our analysis, we arrived at a fair value of $125.2 for VMWARE‘s shares. This was derived from our proprietary Valuation Line, which uses a combination of financial ratios, qualitative factors, and relative valuations to arrive at a fair value for a company. Currently, VMWARE’s shares are trading at $133.9, 6.9% higher than our calculated fair value. While VMWARE’s current stock price may still represent a good deal for investors, it is important to note that the stock is overvalued and may be due for a correction in the near future. More…
Peers
VMware Inc is a leading provider of virtualization and cloud infrastructure solutions. Its competitors include GSS Infotech Ltd, Venzee Technologies Inc, ProStar Holdings Inc.
– GSS Infotech Ltd ($BSE:532951)
GSS Infotech Ltd. is a global provider of software and IT services. The company offers a range of services, including application development, enterprise resource planning, and infrastructure management. It also provides software solutions for the banking, financial services, and insurance industries. GSS Infotech has a market cap of 4.49 billion as of 2021 and a return on equity of 12.46%. The company was founded in 1997 and is headquartered in Hyderabad, India.
– Venzee Technologies Inc ($TSXV:VENZ)
Assuming you are writing as of 2022:
Venzee Technologies Inc has a market cap of 2.47M as of 2022. The company’s return on equity is 1422.25%. Venzee Technologies is a software company that provides a platform to streamline the exchange of product data between retailers and brands.
– ProStar Holdings Inc ($TSXV:MAPS)
ProStar Holdings Inc is a provider of geospatial data and related services for the energy industry. The company’s market cap is $22.79 million and its ROE is -67.74%. ProStar’s geospatial data and services are used by oil and gas companies, government agencies, and other organizations involved in the exploration, production, and transportation of energy.
Summary
VMWARE’s first quarter of FY2024 saw an increase in total revenue by 6.1%, reaching USD 3277.0 million. Despite the revenue growth, net income dropped 7.4% to USD 224.0 million year-to-year. Investors should monitor VMWARE’s performance in order to determine whether the company’s strategies are producing desired financial outcomes.
VMWARE’s market share, profitability, and ability to attract new customers must also be taken into consideration when analyzing the company’s performance. It is important to consider whether the company’s investments are leading to profitable dividends or if it’s a case of diminishing returns for shareholders.
