CSCO

Cisco SystemsNasdaqGS:CSCO Stock Report

Market Cap

US$233.1b

7D

-4.5%

1Y

40.5%

Updated

22 Sep, 2021

Data

Company Financials +
CSCO fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance3/6
Financial Health6/6
Dividends5/6

CSCO Overview

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.

Cisco Systems Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Cisco Systems
Historical stock prices
Current Share PriceUS$55.26
52 Week HighUS$35.28
52 Week LowUS$60.27
Beta0.90
1 Month Change-5.08%
3 Month Change4.74%
1 Year Change40.54%
3 Year Change14.01%
5 Year Change75.54%
Change since IPO71,427.50%

Recent News & Updates

Sep 21

Cisco's Flat Revenues Obscure Steady Underlying Growth, Creating Buy Opportunity

Even though Cisco has continued to grow with the strong increase in internet traffic, its reported revenues have been flat since 2014. This is due to Cisco's transition of its revenue model from that of a network equipment seller into a subscription and services company which generates recurring revenues. This misperception has created an opportunity to invest in the leading network communications company at an attractive valuation.

Sep 20
Cisco (NASDAQ:CSCO) is on Track to Dividend Aristocracy

Cisco (NASDAQ:CSCO) is on Track to Dividend Aristocracy

After a turbulent 2020, Cisco Systems, Inc. (NASDAQ: CSCO) stock has been doing well in 2021, outperforming the broad market and staying in line with the expectations. Yet, investment banks are divided between the bull and the bear camp. In this article, we will examine those standpoints and take a closer look at the dividend that currently yields 2.6%.

Sep 10
Calculating The Intrinsic Value Of Cisco Systems, Inc. (NASDAQ:CSCO)

Calculating The Intrinsic Value Of Cisco Systems, Inc. (NASDAQ:CSCO)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Cisco Systems, Inc...

Sep 05

Cisco: A Balance Sheet Primed For M&A

Cisco is an old-guard tech stock that continues to thrive in the age of advanced new technologies. The company must leverage its clean balance sheet and inorganically grow the company. Dividend growth along with acquisitional growth will make Cisco's stock even more attractive. Rate Cisco a buy, but slowly losing reasons to be bullish unless necessary moves are made.

Shareholder Returns

CSCOUS CommunicationsUS Market
7D-4.5%-3.9%-1.8%
1Y40.5%41.5%31.5%

Return vs Industry: CSCO underperformed the US Communications industry which returned 44.1% over the past year.

Return vs Market: CSCO exceeded the US Market which returned 33% over the past year.

Price Volatility

Is CSCO's price volatile compared to industry and market?
CSCO volatility
CSCO Beta0.90
Industry Beta0.95
Market Beta1

Stable Share Price: CSCO is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: CSCO's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
198479,500Chuck Robbinshttps://www.cisco.com

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.

Valuation

Is Cisco Systems undervalued compared to its fair value and its price relative to the market?

28.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CSCO ($55.26) is trading below our estimate of fair value ($77.56)

Significantly Below Fair Value: CSCO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CSCO is good value based on its PE Ratio (22x) compared to the US Communications industry average (22.3x).

PE vs Market: CSCO is poor value based on its PE Ratio (22x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

PEG Ratio: CSCO is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: CSCO is overvalued based on its PB Ratio (5.6x) compared to the US Communications industry average (2.1x).


Future Growth

How is Cisco Systems forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?

6.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CSCO's forecast earnings growth (6.6% per year) is above the savings rate (2%).

Earnings vs Market: CSCO's earnings (6.6% per year) are forecast to grow slower than the US market (14.9% per year).

High Growth Earnings: CSCO's earnings are forecast to grow, but not significantly.

Revenue vs Market: CSCO's revenue (4.3% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: CSCO's revenue (4.3% 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 (28.7%)


Past Performance

How has Cisco Systems performed over the past 5 years?

8.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CSCO has high quality earnings.

Growing Profit Margin: CSCO's current net profit margins (21.3%) are lower than last year (22.7%).


Past Earnings Growth Analysis

Earnings Trend: CSCO's earnings have grown by 8% 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 (-5.1%) over the past year, making it difficult to compare to the Communications industry average (63%).


Return on Equity

High ROE: CSCO's Return on Equity (25.7%) is considered high.


Financial Health

How is Cisco Systems's financial position?


Financial Position Analysis

Short Term Liabilities: CSCO's short term assets ($39.1B) exceed its short term liabilities ($26.3B).

Long Term Liabilities: CSCO's short term assets ($39.1B) exceed its long term liabilities ($30.0B).


Debt to Equity History and Analysis

Debt Level: CSCO's debt to equity ratio (27.9%) is considered satisfactory.

Reducing Debt: CSCO's debt to equity ratio has reduced from 45.3% to 27.9% over the past 5 years.

Debt Coverage: CSCO's debt is well covered by operating cash flow (134.1%).

Interest Coverage: CSCO earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Cisco Systems's current dividend yield, its reliability and sustainability?

2.68%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CSCO's dividend (2.68%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: CSCO's dividend (2.68%) is low compared to the top 25% of dividend payers in the US market (3.65%).


Stability and Growth of Payments

Stable Dividend: CSCO's dividends per share have been stable in the past 10 years.

Growing Dividend: CSCO's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58.2%), 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 (41.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.8yrs

Average management tenure


CEO

Chuck Robbins (55 yo)

6.17yrs

Tenure

US$23,163,710

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. He has been Director o...


CEO Compensation Analysis

Compensation vs Market: Chuck's total compensation ($USD23.16M) is above average for companies of similar size in the US market ($USD11.33M).

Compensation vs Earnings: Chuck's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: CSCO's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: CSCO's board of directors are considered experienced (3.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CSCO insiders have only sold shares 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 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$233.072b
  • Shares outstanding: 4.22b
  • Website: https://www.cisco.com

Number of Employees


Location

  • Cisco Systems, Inc.
  • 170 West Tasman Drive
  • San Jose
  • California
  • 95134
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/22 00:08
End of Day Share Price2021/09/21 00:00
Earnings2021/07/31
Annual Earnings2021/07/31


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.