EMC Fundamental Research Investment Analysis, EMC Corp.

EMC Corporation (EMC)

The Razor's Edge

2-Year Price History

Recent Price
(5/1 4:01PM) -0.6%
$12.45
52-Week Price
$8.25 - $18.50
Market Capitalization
$25.2 Billion
Dividend Yield
0.00%
Most Recent Dividend
$0.00

About EMC Corp.

EMC Corporation is considered to operate in the Technology sector. They specifically operate in the Data Storage Devices business segment contained within the Computer Hardware industry.

The Company and its subsidiaries develop, deliver and support the Information Technology industry's range of information infrastructure technologies and solutions.

Ockham's Rating

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EMC Revenue

For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at EMC through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 5.85x and 2.43x respectively.

Utilizing this range we can see that EMC’s current Price to Sales per share ratio of 1.50x is significantly below its average levels historically. In fact, with a current price of $11.96, EMC is a full 64% below its average Price to Sales ratio at comparable sales levels. This is a rare occurrence and, when taken in context of the other areas of our analysis, can be a strong positive for our outlook for EMC.

EMC Cash Earnings

As the old saying goes, "Cash is King!" However, we prefer to capture a few other items within our analysis to identify "cash earnings". Nevertheless, an analysis of Cash Earnings is absolutely pivotal to assessing a company's value, and currently EMC is significantly below its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 10 years of cash earnings levels for EMC to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 31.09 and a 15.39 low over the same period.

Now that EMC’s current price is $11.96 and its Price to Cash Earnings ratio is 10.05, we are very positive on its outlook from the cash earnings perspective. In fact, EMC is now trading a full 57% below its average historical Price to Cash Earnings ratio at these profit per share levels. When our clients ask us why EMC has great long term potential, the Cash Earnings levels to current stock is one of our primary reasons. But naturally, now we need for the overall market to recognize this disparity.

EMC Dividends

When determining a company's future prospects for success, Ockham Research sees analysis of dividend payments as a key additional factor. Even though it isn't imperative for EMC to shell out a dividend in order to receive a positive rating, it can be helpful to further our analysis. While we do like to see companies with healthy and growing dividends, it is not appropriate for all companies, especially those focused on growth. In this regard, we regard EMC as neutral because we do not have historical data for this company's dividends. We will being incorporating this into our analysis as soon as that data is available.

Peer Comparison

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EMC Corp. Industry Grouping

(4/30/2009)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not incuding EMC) 10.43 6.15 » 186.76 1.12 0.71 » 34.80 29.50% 26.17%
*10 year range does not include current year values
EMC Corp. EMC $25.2 Billion $12.53 10.05 6.94 » 1171.43 1.50 1.12 » 25.97 18.99% 10.50%
Dell, Inc. DELL $22.7 Billion $11.62 6.66 5.24 » 61.40 0.33 0.28 » 4.87 8.07% 66.00%
Juniper Networks, Inc. JNPR $11.3 Billion $21.65 17.18 10.31 » 421.77 2.82 1.96 » 115.39 38.48% 4.53%
AU Optronics Corp ADS AUO $8.5 Billion $10.85 1.63 0.76 » 12.41 0.44 0.22 » 2.54 46.69% 14.32%
NetApp, Inc. NTAP $6.1 Billion $18.30 22.72 12.67 » 424.32 1.43 0.92 » 49.92 29.93% 14.28%
Western Digital Corp. WDC $5.2 Billion $23.52 3.98 1.79 » 13.89 0.57 0.18 » 1.26 24.32% 31.70%
>
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The latest TV Media Discussion

5:53:43 PM EMC $11.90 EMC Corp.
Fast Money
4 days ago (04/27)
“…About the ten range ireally like it here. I think broadcom is very, very likely to bid more and there will be a number of potentially interested parties. They provide to EMC, to ibm, to dell. There's a number of names that could take a look at this. Risk/reward. I realize the stock bottomed out at five. But when you have a big bidder …”
6:09:13 PM EMC $12.17 EMC Corp.
Mad Money
8 days ago (04/23)
“…Get that right. I don't call them bison anymore, go ahead. >> since microsoft didn't acquire sun microsystems, what are your thoughts about them possibly acquiring EMC? Well, I don't think, microsoft wasn't involved. That was ibm versus oracle. Oracle knot it and microsoft seems to have reported a good …”
10:17:14 AM EMC $12.84 EMC Corp.
9 days ago (04/22)
“…There are 300 stocks probably least in that group, but I watched the semiconductor index because it tended to be a pretty good proxy for tech in general and I liked what i've seen in the storage area, that's, you know, look at a stock like EMC is the granddaddy in the group. You look at some of the smaller ones look pretty good and that working cisco, looks pretty good, of course, intel is the …”
5:47:24 PM EMC $12.81 EMC Corp.
Fast Money
14 days ago (04/17)
“…Up 15,975% from the network's debut 20 years ago today. >> you've been long that stock since then. >> been holding that stock. >> not quite that -- >> I like EMC. >> don't go anywhere. Up next. -( rock music playing )-what if your car didn't come from a factory,but out in the world …”
5:47:01 PM EMC $12.81 EMC Corp.
Fast Money
14 days ago (04/17)
“…When yum is performing, when mcdonald's is performing, when even some of the casual dining's performing and these guys disappoint that's why she burger king has to really get >> and pop for EMC corporation. This information technology and data storage company is the best-performing stock since cnbc launched in 1989. …”
4:25:43 PM EMC $12.86 EMC Corp.
14 days ago (04/17)
“…The internet bubble, credit bubble, real estate bubble that burst in the last 18 months. When you go back to that period, you could be able to buy x number of companies in the paper products business with one EMC or yahoo! Or, there was no google at the time. But it's fascinating in this relatively short period, we have gone through more six or seven sigma events than are …”
4:24:28 PM EMC $12.86 EMC Corp.
14 days ago (04/17)
“…Know, procter & gamble, up 780%. United tech up 723%. Heck of a long run for cnbc and sometimes a run up and down for stocks like EMC. Number one performer on the s&p during the 20 years of cnbc. >> that is amazing. Technology is really part of this amazing run for cnbc and the amazing run for investors …”
4:24:01 PM EMC $12.86 EMC Corp.
14 days ago (04/17)
“…One song playing in the background there. That was chicago's look away, number one song of 1989. You see the history of the dot com and tech bubble. EMC hit its peak on september 14th of 2000 at $101 a share. Now, trading as you see at over that time, 21,000% higher. Best performing stock in the …”
4:23:25 PM EMC $12.85 EMC Corp.
14 days ago (04/17)
“…To the countdown. Number one. EMC corporation with a 20-year gain of almost 21,000%. Founded in 1979, EMC started with computer memory boards, went public in '86 and grew to …”
3:37:17 PM EMC $12.86 EMC Corp.
15 days ago (04/16)
“…>> I mean, you take a look at, you know, the other names in this sector. Who else do you like? >> well, I mean, I would say top of the list would be EMC. Bottom of the list of the top ten would be hewlett-packard. Moved to a difficult level, overdone if you will. Google fine, apple fine. Microsoft, fine. …”
3:35:10 PM EMC $12.86 EMC Corp.
15 days ago (04/16)
“…The top 10 are 12.5% of the whole sector. The patterns of each are good. Whether it's frankly ibm or microsoft, EMC or google as you referred to, in many instantsces there's a process of retracing to the upside the plunge of october. That's the only part of the market that's made it that far back up on the year one of only …”
3:39:39 PM EMC $12.39 EMC Corp.
16 days ago (04/15)
“…Ibm, I have to put them in there if, indeed, they're done and not going after jawva, they're going to spend the money someplace. EMC would be a name I do not own. EMC would be another one that might end up being acquired and I would keep an eye on unusual activities in those names. >> a quick question about goog. Earnings coming out this week. …”
6:35:32 PM EMC $11.88 EMC Corp.
Mad Money
24 days ago (04/07)
“…Far as puputting the nail in the coffin for microsoft in the virtualization space? >> here's the problem, ted. I like your thinking. But you know, vmware ran up on and that's always worrisome to particularly because EMC owns the lion's share of vmware. I think EMC's having a not great so i'm in a difficult position if I tell you to buy vmware you're coming in on takeover talk. So even though those fundamentals you just described are good I still think you could be in for a let dourn. I can't tell you to buy EMC as a cheap way to create vmware because i'm worried about EMC's so once again, don't buy. The fundies and techies agree. I've liked rim since 999 days of it's a buy. …”
3:46:55 PM EMC $12.40 EMC Corp.
28 days ago (04/03)
“…In microsoft, and that trade will protect you all the way down to about $14.20, give or so there's a number of those. EMC one by two put spreads because the volatility index is high and you see volatility still persistently high all over an opportunity to use it if you >> I wonder if we can put the …”
5:42:02 PM EMC $11.71 EMC Corp.
Fast Money
4/1/2009 5:42 PM
“…>> you're watching vm ware as >> it's virtualization. Way inflated but now it's back there at the $25 level. You've got to remember though EMC still owns 84%. Company. If anybody is out there and jump into this virtual world and get this type of a stock they have to go through EMC to make sure that this deal goes through so that's a bit of a harry situation but it's an >> bottom line here, potential takeover targets include tara date apalm, vmware but ancillary play is green hill which could …”
6:09:07 PM EMC $12.01 EMC Corp.
Mad Money
3/26/2009 6:09 PM
“…It's up 31% already. It is up 17% een though it will be buying sun micro. Broadcom up 23%. Google up 15%, yahoo!, up 9, not my favorite. EMC up 15 and I don't know how good the quarter is there because I own vmware, it doesn't matter they're short the bottom line. Tech is being pushed higher by the mutual funds and the hedge …”
6:07:37 PM EMC $12.01 EMC Corp.
Mad Money
3/26/2009 6:07 PM
“…They do business overseas like the charitable trust favorite, hewlett-packard. And of intel which seems to go up every day. The valuations are companies like hewlett-packard and EMC and intel and microsoft are at historic lows and even apple when you back out all of the cash it has. Its valuation is a stretch. You want to buy a tech stock based on the fundamentals, the one I would be buying right …”
5:46:52 PM EMC $11.58 EMC Corp.
Fast Money
3/25/2009 5:46 PM
“…2% the move. Lower the direction. Jeffrey, what the heck's the story? Because it turns out they're not >> EMC electronic materials. Wfr the ticker. Silicon waivers works with computers and it works with solar panels too. What's going on here, pete. >> what could be better, the stocks' performance over the …”
5:15:26 PM EMC $11.57 EMC Corp.
Fast Money
3/25/2009 5:15 PM
“…Institutional investors. So I would take a look at fmdk on the semi side. I would take a look at the storage plays that pete mentioned, EMC, seagate technology, stx, western digital, advanced micro devices. I mean, gee, we're seeing so much in there dylan, that I am actually very excited and very heartened by the activity we …”
5:10:20 PM EMC $11.53 EMC Corp.
Fast Money
3/25/2009 5:10 PM
“…>> speculation to the upside. Because people feel like these names have decent balance and there is plenty of upside, still some growth. So western digital, seagate, i've seen a lot of activity there. EMC's another name there, strong continue to move higher and they have been taken down so you have an opportunity still to ride this thing to the upside. >> got it. Go ahead, tim. >> the tech story I think is built on two main starts of the …”
9:34:31 AM EMC $11.79 EMC Corp.
3/24/2009 9:34 AM
“…To the down side and ibm, sun microsystems, still no deal announcement yet. Talking for some time chatter about the tech m and a that's going to start to gear up. Now, EMC is starting the investors business daily, saying it had an interview with EMC vice-president who says he's happy to link up with cisco, rumors about a marriage between the two companies since 2005. Also, a tn of analyst upgrades and down grades to take you …”
3:40:47 PM EMC $11.31 EMC Corp.
3/18/2009 3:40 PM
“…About the deal potentially happening. Dell and hewlett-packard were also interested in the mixed trading. Network effects. In some related names at EMC, juniper. Other names, cisco related to the companies. All in the green. Moving on the potential m&a …”
3:09:42 PM EMC $10.67 EMC Corp.
3/16/2009 3:09 PM
“…Another big story, we've been following throughout the day is a new development out of cisco. Cisco unveiling the first foray in the server business. Teaming up with EMC, microsoft, vmware an others to take on h.P., ibm and others but it's not having the intended effect on cisco shares or any name involved here. Red arrows on the screen here …”
2:54:53 PM EMC $10.71 EMC Corp.
3/16/2009 2:54 PM
“…>> there's a lot of excitement about cisco versus -- and a lot of the underlying current is where would vm ware be best? Owned by EMC. Eventually, this has to be a much sought after property by one of these two. It's not yet -- I know hewlett's in for the satyam, we find out but keep an eye on em sxrchlt vm ware because I think this property's worth more than we think, and EMC's flatlined and done nothing for a long time. >> and EMC, these are companies that deal with storing data. >> brocade's there too. But this is obviously -- EMC is the class of the field, and they own this vm ware. EMC has just been $10 for what seems like ages. But maybe this thing's maybe it's undervalued. >> interesting point. >> and we're going to do more, by the way, on these guys and whether they could raise other more expensive but capital they …”
2:50:22 PM EMC $10.74 EMC Corp.
3/16/2009 2:50 PM
“…That has multiple components in it and part of it is compute. But we have virtualization, innovation with partners. We announced the number of partnerships with microsoft, EMC on the virtualization -- sorry, on the storage. So a lot of them, so this is an ecosystem play. To roll it in out the data centers is going to require …”
2:48:12 PM EMC $10.73 EMC Corp.
3/16/2009 2:48 PM
“…That the company made in recent memory. The new launch will also include partnership with other companies in the tech system. Microsoft, vmware, EMC and others. Mr. Dominquez says about I want to point out other movers i'm watching today. …”
9:15:32 AM EMC $11.19 EMC Corp.
2/19/2009 9:15 AM
“…If we had investors sign more than a 10 multiple on this stock just given their risks on the >> what's the best buy at this point in your space? >> at this point, we're more confident and think the risk reward is better in EMC, cisco and juniper ahead of their >> brent bracelin, thanks so much for your time. >> no problem. >> from tech to media. …”
5:25:54 PM EMC $12.51 EMC Corp.
Happy Hour
2/9/2009 5:25 PM
“…From all the metals except those that retain value, gold, platinum, silver. I would stay away from. Eric: for record I like lvlt. Cody: throw out EMC. They're going to spend a whole lot of money in steal all your money and spend it on things like bandwidth storage. EMC is a direct beneficiary. You can take a little bit of money they have left they don't take from you and buy it will not quite recover what they have stolen from you but it will help. Eric: if they steal more of …”
6:44:08 PM EMC $11.95 EMC Corp.
Mad Money
2/6/2009 6:44 PM
“…Let's go to my home state new jersey. >> caller: boo-yah, jim kramer. >> boo-yah, local man. >> caller: lot of show. I'm a young investor. I wanted to ask you about EMC ticker EMC. >> I think that EMC is a one-time great growth story that no longer as this and then did this vm wear spin-off deal. Didn't make any money but I like EMC's quarter and I think that it has good resilience. I think that EMC is probably fine for a point or two. I can't get excited about it because it no longer has that great growth luster that it had for so many years. I would love the management to come on and explain why I am …”
5:29:20 PM EMC $10.90 EMC Corp.
Happy Hour
1/22/2009 5:29 PM
“…Air curveball. Maybe a slider. Vmware? Cody: much more up side potential on long-term growth trend. EMC is multidollar company. Vm has more upside. Eric: bottom line, don't game the earnings? Cody: you and I guys have saying this is not a market to be playing or trading aggressively in. Nothing changed this week …”
5:28:53 PM EMC $10.90 EMC Corp.
Happy Hour
1/22/2009 5:28 PM
“…Season on the oil sector? Are you learning anything from the earnings reports? Eric: they start next week we'll keep eye on them next is there anything else you cody: EMC and texas instruments reporting next week. EMC reason I like it is doing less bad than all its competitors. It is much like google, it is less bad. Like voting for republican or democrat you can choose to vote for lesser evil. Eric: this is maybe a …”
View All EMC Corp. News

Key Fundamentals

EMC - EMC Corporation Fundamentals
Price (5/1 4:01PM) $12.45
Volume (5/1 4:01PM) 18.9 Million
Last Close Price $12.53
10 Day Average Volume 29.2 Million
13 Week Price Range $9.61 - $13.40
52 Week Price Range $8.25 - $18.50
LTM Revenue $14.9 Billion
 
Shares Outstanding (12/2008) 2.0 Billion
Market Capitalization $25.2 Billion
Shares Held By Institutions 1.6 Billion
Institutional Holders 1,162
% Shares Held By Institutions 77.10%
Earnings Per Share (EPS) $0.64
P/E Ratio 19.60
Book Value Per Share $6.48
 
Gross Margin 62.40%
Annual Dividend 0.00
Dividend Yield 0.00%
Beta 1.05
Fiscal Year Ends December