Morningstar Rating

Stock Research and Analysis

by Peter Wahlstrom, CFA

Bulls Say

With more than $11 billion in cash and equivalents and more than $5 billion in free cash flow, EMC has more resources than smaller competitors to pursue new technologies through acquisition and internal development.
EMC's distribution network is anchored by a famously aggressive salesforce that is armed with extreme discounts to prevent customer defections.
New IT trends such as virtualization and the use of SSDs create opportunities for EMC to expand in the market for high-end enterprise storage systems. Read more 

Bears Say

Unable to develop comparable technologies internally, EMC was forced to pay high premiums to acquire Isilon and Data Domain.
The other established vendors enjoy many of the attributes that provide EMC with a narrow moat, including switching costs, an established customer base, flush balance sheets, and strong distribution.
The largest cloud computing providers often build their own storage systems. If they begin to account for a greater percentage of enterprise storage, EMC may lose market share. Read more 

Management

We view EMC's stewardship of shareholder capital as Standard. Joe Tucci has been CEO since January 2001 and serves as chairman of the board. Tucci originally planned to step down as CEO in 2012, but has delayed the transition. When the time comes, one   Read more 

Profile

EMC is a leading provider of hardware, software, and services for enterprise network storage. Historically focused on proprietary storage hardware, the company has recently   Read more 

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