Cisco Systems
Market Cap
US$199.3b
Last Updated
2020/02/16 23:32 UTC
Data Sources
Company Financials +
Executive Summary
Cisco Systems, Inc. designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China.
Rewards
Risk Analysis
Snowflake Analysis
Adequate balance sheet and fair value.
Similar Companies
Share Price & News
How has Cisco Systems's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CSCO has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-2.1%
CSCO
-1.3%
US Communications
1.5%
US Market
1 Year Return
-5.0%
CSCO
-5.8%
US Communications
20.1%
US Market
Return vs Industry: CSCO matched the US Communications industry which returned -5.1% over the past year.
Return vs Market: CSCO underperformed the US Market which returned 20.1% over the past year.
Shareholder returns
| CSCO | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.1% | -1.3% | 1.5% |
| 30 Day | -4.2% | -3.7% | 1.4% |
| 90 Day | 4.0% | 3.7% | 8.7% |
| 1 Year | -2.3%-5.0% | -3.8%-5.8% | 22.7%20.1% |
| 3 Year | 52.6%39.2% | 33.1%25.0% | 50.1%40.5% |
| 5 Year | 85.7%58.6% | 59.4%41.7% | 73.1%54.1% |
Price Volatility Vs. Market
How volatile is Cisco Systems's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 days ago | Simply Wall St
Do You Like Cisco Systems, Inc. (NASDAQ:CSCO) At This P/E Ratio?1 week ago | Simply Wall St
Is Cisco Systems, Inc.'s (NASDAQ:CSCO) CEO Salary Justified?3 weeks ago | Simply Wall St
Why Cisco Systems, Inc. (NASDAQ:CSCO) Could Be Worth WatchingValuation
Is Cisco Systems undervalued compared to its fair value and its price relative to the market?
12.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CSCO ($46.97) is trading below our estimate of fair value ($53.5)
Significantly Below Fair Value: CSCO is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: CSCO is good value based on its PE Ratio (18.2x) compared to the Communications industry average (26.1x).
PE vs Market: CSCO is good value based on its PE Ratio (18.2x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: CSCO is poor value based on its PEG Ratio (3.8x)
Price to Book Ratio
PB vs Industry: CSCO is overvalued based on its PB Ratio (5.6x) compared to the US Communications industry average (1.8x).
Next Steps
Future Growth
How is Cisco Systems forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?
4.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CSCO's forecast earnings growth (4.8% per year) is above the savings rate (1.7%).
Earnings vs Market: CSCO's earnings (4.8% per year) are forecast to grow slower than the US market (14.5% per year).
High Growth Earnings: CSCO's earnings are forecast to grow, but not significantly.
Revenue vs Market: CSCO's revenue (2.2% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: CSCO's revenue (2.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CSCO's Return on Equity is forecast to be high in 3 years time (35.7%)
Next Steps
Past Performance
How has Cisco Systems performed over the past 5 years?
-2.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CSCO has high quality earnings.
Growing Profit Margin: CSCO's current net profit margins (21.4%) are lower than last year (25.1%).
Past Earnings Growth Analysis
Earnings Trend: CSCO's earnings have declined by -2.5% per year over the past 5 years.
Accelerating Growth: CSCO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: CSCO had negative earnings growth (-13.2%) over the past year, making it difficult to compare to the Communications industry average (-25.2%).
Return on Equity
High ROE: CSCO's Return on Equity (31.1%) is considered high.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Cisco Systems's financial position?
Financial Position Analysis
Short Term Liabilities: CSCO's short term assets ($40.1B) exceed its short term liabilities ($22.1B).
Long Term Liabilities: CSCO's short term assets ($40.1B) exceed its long term liabilities ($32.8B).
Debt to Equity History and Analysis
Debt Level: CSCO's debt to equity ratio (41.8%) is considered high.
Reducing Debt: CSCO's debt to equity ratio has increased from 35.5% to 41.8% over the past 5 years.
Debt Coverage: CSCO's debt is well covered by operating cash flow (105.5%).
Interest Coverage: CSCO earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: CSCO has a low level of unsold assets or inventory.
Debt Coverage by Assets: CSCO's debt is covered by short term assets (assets are 2.7x debt).
Next Steps
Dividend
What is Cisco Systems's current dividend yield, its reliability and sustainability?
2.98%
Current Dividend Yield
Upcoming Dividend Payment
Purchase Cisco Systems before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: CSCO's dividend (2.98%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: CSCO's dividend (2.98%) is low compared to the top 25% of dividend payers in the US market (3.69%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, CSCO has been paying a dividend for less than 10 years.
Growing Dividend: CSCO's dividend payments have increased, but the company has only paid a dividend for 9 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (54.2%), CSCO's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CSCO's dividends in 3 years are forecast to be well covered by earnings (44% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.3yrs
Average management tenure
CEO
Chuck Robbins (53yo)
4.6yrs
Tenure
US$25,829,833
Compensation
Mr. Charles H. Robbins, also known as Chuck, has been Chief Executive Officer of Cisco Systems, Inc., since July 26, 2015 and has been its Chairman of the Board on December 11, 2017. Mr. Robbins as Chairma ...
CEO Compensation Analysis
Compensation vs Market: Chuck's total compensation ($USD25.83M) is above average for companies of similar size in the US market ($USD10.81M).
Compensation vs Earnings: Chuck's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 4.6yrs | US$25.83m | 0.0019% $3.8m | |
| Executive VP & CFO | 5.1yrs | US$13.63m | 0.0054% $10.7m | |
| Executive VP and Chief Sales & Marketing Officer | 1.8yrs | US$12.94m | 0.00093% $1.9m | |
| Executive VP and GM of Networking & Security Business | 3.9yrs | US$12.33m | 0.0023% $4.7m | |
| Executive VP & Chief Customer Experience Officer | 1.8yrs | US$14.98m | 0.00086% $1.7m | |
| Executive VP & Chief Operating Officer | 2.1yrs | no data | 0.00027% $538.0k | |
| Chief Accounting Officer | 10.6yrs | no data | 0.00059% $1.2m | |
| Group Chief Information Officer | 0yrs | no data | no data | |
| Director of Global Investor Relations | 0yrs | no data | no data | |
| Executive VP | 14yrs | no data | 0.0056% $11.2m |
4.3yrs
Average Tenure
55yo
Average Age
Experienced Management: CSCO's management team is considered experienced (4.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 4.6yrs | US$25.83m | 0.0019% $3.8m | |
| Lead Independent Director | 1.2yrs | US$383.96k | 0.0034% $6.9m | |
| Chairman Emeritus | 13.3yrs | no data | no data | |
| Independent Director | 10.4yrs | US$340.96k | no data | |
| Chairman of Cisco’s SPVSS Business | 0.8yrs | no data | no data | |
| Independent Director | 16.3yrs | US$362.96k | 0.0017% $3.4m | |
| Independent Director | 23.8yrs | US$354.96k | 0.00097% $1.9m | |
| Independent Director | 16.6yrs | US$380.96k | 0.0014% $2.7m | |
| Independent Director | 1.8yrs | US$365.96k | 0.00033% $657.6k | |
| Independent Director | 7.5yrs | US$326.96k | 0.00037% $737.3k |
9.0yrs
Average Tenure
63.5yo
Average Age
Experienced Board: CSCO's board of directors are considered experienced (9 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Cisco Systems, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Cisco Systems, Inc.
- Ticker: CSCO
- Exchange: NasdaqGS
- Founded: 1984
- Industry: Communications Equipment
- Sector: Tech
- Market Cap: US$199.259b
- Shares outstanding: 4.24b
- Website: https://www.cisco.com
Number of Employees
Location
- Cisco Systems, Inc.
- 170 West Tasman Drive
- San Jose
- California
- 95134
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CSCO | NasdaqGS (Nasdaq Global Select) | Yes | Common Shares | US | USD | Feb 1990 |
| CSCO * | BMV (Bolsa Mexicana de Valores) | Yes | Common Shares | MX | MXN | Feb 1990 |
| CIS | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Feb 1990 |
| 4333 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Common Shares | HK | HKD | Feb 1990 |
| CSCO | SWX (SIX Swiss Exchange) | Yes | Common Shares | CH | CHF | Feb 1990 |
| CIS | XTRA (XETRA Trading Platform) | Yes | Common Shares | DE | EUR | Feb 1990 |
| CSCO | SNSE (Santiago Stock Exchange) | Yes | Common Shares | CL | USD | Feb 1990 |
| CSCO | BVL (Bolsa de Valores de Lima) | Yes | Common Shares | PE | USD | Feb 1990 |
| CIS-U | ETLX (Eurotlx) | Yes | Common Shares | IT | EUR | Feb 1990 |
| CSCO | WBAG (Wiener Boerse AG) | Yes | Common Shares | AT | EUR | Feb 1990 |
| CIS | ENXTBR (Euronext Brussels) | Yes | Common Shares | BE | USD | Feb 1990 |
| CSCO | BASE (Buenos Aires Stock Exchange) | CEDEARS EACH 5 REPR 1 COM NPV | AR | ARS | Jan 2000 | |
| CSCO34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REPR 1 COM SH | BR | BRL | Sep 2013 |
Biography
Cisco Systems, Inc. designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China. It provides infrastructure platforms, including networking technologies of switching, routing, wireless, and data center products that are designed to work together to deliver networking capabilities, and transport and/or store data. The company also offers collaboration products comprising unified communications, Cisco TelePresence, and conferencing, as well as the Internet of Things and analytics software. In addition, it provides security products, such as network security, cloud and email security, identity and access management, advanced threat protection, and unified threat management products; and cloud and system management products. Further, the company offers a range of service and support options for its customers, including technical support and advanced services. It serves businesses of various sizes, public institutions, governments, and service providers. The company sells its products and services directly, as well as through systems integrators, service providers, other resellers, and distributors. Cisco Systems, Inc. was founded in 1984 and is headquartered in San Jose, California.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/16 23:32 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2020/01/25 |
| Annual Earnings | 2019/07/27 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.