Cisco Systems
Cisco Systems, Inc. designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry worldwide. The last earnings update was 59 days ago. More info.
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CSCO Share Price and Events
7 Day Returns
1 Year Returns
CSCO Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Cisco Systems (CSCO) | 0.2% | 5.9% | 25.3% | 27.9% | 100.4% | 145.2% |
| US Communications | 1.1% | 6.4% | 23.1% | 21.1% | 90.2% | 95.1% |
| US Market | 0.2% | 2.1% | 8.5% | 6.3% | 37.9% | 45.7% |
1 Year Return vs Industry and Market
- CSCO outperformed the Communications industry which returned 21.1% over the past year.
- CSCO outperformed the Market in United States of America which returned 6.3% over the past year.
CSCO Value
Is Cisco Systems undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Cisco Systems
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Cisco Systems.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 27 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 9.4% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Communications Unlevered Beta | Simply Wall St/ S&P Global | 1.09 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.09 (1 + (1- 21%) (10.33%)) |
1.12 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.12 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.12 * 5.96%) |
9.4% |
Discounted Cash Flow Calculation for NasdaqGS:CSCO using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Cisco Systems is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 9.4%) |
|
|---|---|---|---|
| 2019 | 14,065.80 | Analyst x8 | 12,856.67 |
| 2020 | 15,551.68 | Analyst x10 | 12,992.88 |
| 2021 | 16,117.06 | Analyst x5 | 12,307.73 |
| 2022 | 16,822.00 | Analyst x2 | 11,741.78 |
| 2023 | 15,254.00 | Analyst x1 | 9,732.04 |
| 2024 | 15,366.32 | Est @ 0.74% | 8,960.95 |
| 2025 | 15,571.37 | Est @ 1.33% | 8,299.94 |
| 2026 | 15,844.35 | Est @ 1.75% | 7,719.46 |
| 2027 | 16,168.55 | Est @ 2.05% | 7,200.25 |
| 2028 | 16,532.56 | Est @ 2.25% | 6,729.46 |
| Present value of next 10 years cash flows | $98,541.15 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $16,532.56 × (1 + 2.73%) ÷ (9.4% – 2.73%) |
$254,451.98 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $254,451.98 ÷ (1 + 9.4%)10 |
$103,572.90 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $98,541.15 + $103,572.90 |
$202,114.06 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $202,114.06 / 4,402.03 |
$45.91 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $45.91 |
| Current discount | Discount to share price of
$56.40
= -1 x ($56.40 - $45.91) / $45.91 |
-22.8% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Cisco Systems is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Cisco Systems's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Cisco Systems's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2019-01-26) in USD | $2.78 |
| NasdaqGS:CSCO Share Price ** | NasdaqGS (2019-04-18) in USD | $56.4 |
| United States of America Communications Industry PE Ratio | Median Figure of 33 Publicly-Listed Communications Companies | 34.35x |
| United States of America Market PE Ratio | Median Figure of 3,081 Publicly-Listed Companies | 18.15x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Cisco Systems.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NasdaqGS:CSCO Share Price ÷ EPS (both in USD) = 56.4 ÷ 2.78 |
20.27x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Cisco Systems is good value based on earnings compared to the US Communications industry average.
- Cisco Systems is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Cisco Systems's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 20.27x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 27 Analysts |
3.9%per year |
| United States of America Communications Industry PEG Ratio | Median Figure of 21 Publicly-Listed Communications Companies | 1.33x |
| United States of America Market PEG Ratio | Median Figure of 2,109 Publicly-Listed Companies | 1.57x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 20.27x ÷ 3.9% |
5.13x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Cisco Systems is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Cisco Systems's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2019-01-26) in USD | $9.22 |
| NasdaqGS:CSCO Share Price * | NasdaqGS (2019-04-18) in USD | $56.4 |
| United States of America Communications Industry PB Ratio | Median Figure of 68 Publicly-Listed Communications Companies | 1.93x |
| United States of America Market PB Ratio | Median Figure of 5,178 Publicly-Listed Companies | 1.91x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NasdaqGS:CSCO Share Price ÷ Book Value per Share (both in USD) = 56.4 ÷ 9.22 |
6.12x |
* Primary Listing of Cisco Systems.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Cisco Systems is overvalued based on assets compared to the US Communications industry average.
Value checks
We assess Cisco Systems's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Communications industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Communications industry average (and greater than 0)? (1 check) Cisco Systems has a total score of 1/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
CSCO Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Cisco Systems's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- Cisco Systems's earnings growth is positive but not above the United States of America market average.
- Cisco Systems's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NasdaqGS:CSCO Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 27 Analysts | 3.9% |
| NasdaqGS:CSCO Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 27 Analysts | 3.4% |
| United States of America Communications Industry Earnings Growth Rate | Market Cap Weighted Average | 15.3% |
| United States of America Communications Industry Revenue Growth Rate | Market Cap Weighted Average | 5.3% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 13.3% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 27 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-07-31 | 57,378 | 1 | ||
| 2022-07-31 | 58,613 | 15,287 | 2 | |
| 2021-07-31 | 55,377 | 16,856 | 13,094 | 15 |
| 2020-07-31 | 53,488 | 16,943 | 12,743 | 27 |
| 2019-07-31 | 51,692 | 15,410 | 12,380 | 27 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2019-01-26 | 50,825 | 14,076 | 12,865 |
| 2018-10-27 | 50,266 | 14,349 | 1,265 |
| 2018-07-28 | 49,330 | 13,666 | 110 |
| 2018-04-28 | 48,619 | 13,567 | -1,269 |
| 2018-01-27 | 48,096 | 14,524 | -1,445 |
| 2017-10-28 | 47,789 | 14,226 | 9,681 |
| 2017-07-29 | 48,005 | 13,876 | 9,609 |
| 2017-04-29 | 48,510 | 13,693 | 9,998 |
| 2017-01-28 | 48,570 | 13,384 | 9,832 |
| 2016-10-29 | 48,917 | 13,534 | 10,631 |
| 2016-07-30 | 49,247 | 13,570 | 10,739 |
| 2016-04-30 | 49,452 | 13,890 | 10,245 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 27 Analyst Estimates (S&P Global) | See Below |
All data from Cisco Systems Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-07-31 | ||||
| 2022-07-31 | 3.67 | 3.67 | 3.67 | 1.00 |
| 2021-07-31 | 3.36 | 3.42 | 3.30 | 2.00 |
| 2020-07-31 | 2.96 | 3.06 | 2.86 | 7.00 |
| 2019-07-31 | 2.78 | 2.83 | 2.73 | 7.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2019-01-26 | 2.78 |
| 2018-10-27 | 0.27 |
| 2018-07-28 | 0.02 |
| 2018-04-28 | -0.26 |
| 2018-01-27 | -0.29 |
| 2017-10-28 | 1.94 |
| 2017-07-29 | 1.92 |
| 2017-04-29 | 1.99 |
| 2017-01-28 | 1.96 |
| 2016-10-29 | 2.11 |
| 2016-07-30 | 2.13 |
| 2016-04-30 | 2.02 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Cisco Systems's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Cisco Systems has a total score of 2/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
CSCO Past Performance
How has Cisco Systems performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Cisco Systems's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
- Cisco Systems has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
- Cisco Systems has become profitable in the last year making it difficult to compare the US Communications industry average.
Earnings and Revenue History
All data from Cisco Systems Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2019-01-26 | 50,825.00 | 12,865.00 | 11,540.00 | 6,381.00 |
| 2018-10-27 | 50,266.00 | 1,265.00 | 11,474.00 | 6,373.00 |
| 2018-07-28 | 49,330.00 | 110.00 | 11,345.00 | 6,332.00 |
| 2018-04-28 | 48,619.00 | -1,269.00 | 11,280.00 | 6,205.00 |
| 2018-01-27 | 48,096.00 | -1,445.00 | 11,114.00 | 6,122.00 |
| 2017-10-28 | 47,789.00 | 9,681.00 | 11,077.00 | 6,081.00 |
| 2017-07-29 | 48,005.00 | 9,609.00 | 11,167.00 | 6,059.00 |
| 2017-04-29 | 48,510.00 | 9,998.00 | 11,330.00 | 6,161.00 |
| 2017-01-28 | 48,570.00 | 9,832.00 | 11,619.00 | 6,280.00 |
| 2016-10-29 | 48,917.00 | 10,631.00 | 11,396.00 | 6,281.00 |
| 2016-07-30 | 49,247.00 | 10,739.00 | 11,401.00 | 6,296.00 |
| 2016-04-30 | 49,452.00 | 10,245.00 | 11,513.00 | 6,243.00 |
| 2016-01-23 | 49,589.00 | 10,333.00 | 11,469.00 | 6,164.00 |
| 2015-10-24 | 49,598.00 | 9,583.00 | 11,811.00 | 6,184.00 |
| 2015-07-25 | 49,161.00 | 8,981.00 | 11,851.00 | 6,207.00 |
| 2015-04-25 | 48,675.00 | 8,909.00 | 11,747.00 | 6,757.00 |
| 2015-01-24 | 48,083.00 | 8,653.00 | 11,594.00 | 6,270.00 |
| 2014-10-25 | 47,302.00 | 7,685.00 | 11,527.00 | 6,153.00 |
| 2014-07-26 | 47,142.00 | 7,853.00 | 11,430.00 | 6,294.00 |
| 2014-04-26 | 47,202.00 | 7,876.00 | 11,378.00 | 5,713.00 |
| 2014-01-25 | 47,873.00 | 8,173.00 | 11,520.00 | 6,195.00 |
| 2013-10-26 | 48,816.00 | 9,887.00 | 11,752.00 | 6,235.00 |
| 2013-07-27 | 48,607.00 | 9,983.00 | 11,761.00 | 5,942.00 |
| 2013-04-27 | 47,880.00 | 9,630.00 | 12,202.00 | 5,841.00 |
| 2013-01-26 | 47,252.00 | 9,317.00 | 12,005.00 | 5,657.00 |
| 2012-10-27 | 46,681.00 | 8,356.00 | 11,937.00 | 5,544.00 |
| 2012-07-28 | 46,061.00 | 8,041.00 | 11,541.00 | 5,488.00 |
| 2012-04-28 | 45,566.00 | 7,356.00 | 11,702.00 | 5,556.00 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Cisco Systems has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
- Cisco Systems used its assets more efficiently than the US Communications industry average last year based on Return on Assets.
- Cisco Systems has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Cisco Systems's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Communications industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Cisco Systems has a total score of 3/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
CSCO Health
How is Cisco Systems's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Cisco Systems's finances.
The net worth of a company is the difference between its assets and liabilities.
- Cisco Systems is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Cisco Systems's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- Low level of unsold assets.
- Debt is covered by short term assets, assets are 2.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Cisco Systems Company Filings, last reported 2 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2019-01-26 | 40,789.00 | 25,658.00 | 40,383.00 |
| 2018-10-27 | 43,848.00 | 25,645.00 | 42,593.00 |
| 2018-07-28 | 43,204.00 | 25,641.00 | 46,548.00 |
| 2018-04-28 | 46,661.00 | 28,138.00 | 54,431.00 |
| 2018-01-27 | 51,982.00 | 39,392.00 | 73,683.00 |
| 2017-10-28 | 65,550.00 | 35,925.00 | 71,588.00 |
| 2017-07-29 | 66,137.00 | 33,717.00 | 70,492.00 |
| 2017-04-29 | 65,382.00 | 32,470.00 | 67,974.00 |
| 2017-01-28 | 63,818.00 | 34,922.00 | 71,847.00 |
| 2016-10-29 | 63,413.00 | 34,789.00 | 70,974.00 |
| 2016-07-30 | 63,585.00 | 28,643.00 | 65,767.00 |
| 2016-04-30 | 62,358.00 | 28,595.00 | 63,512.00 |
| 2016-01-23 | 60,878.00 | 24,599.00 | 60,375.00 |
| 2015-10-24 | 59,985.00 | 24,621.00 | 59,107.00 |
| 2015-07-25 | 59,707.00 | 25,354.00 | 60,438.00 |
| 2015-04-25 | 58,833.00 | 21,004.00 | 54,419.00 |
| 2015-01-24 | 57,733.00 | 20,522.00 | 53,022.00 |
| 2014-10-25 | 56,715.00 | 20,972.00 | 52,107.00 |
| 2014-07-26 | 56,661.00 | 20,848.00 | 52,074.00 |
| 2014-04-26 | 55,796.00 | 20,900.00 | 50,469.00 |
| 2014-01-25 | 56,084.00 | 17,157.00 | 47,065.00 |
| 2013-10-26 | 58,909.00 | 16,226.00 | 48,201.00 |
| 2013-07-27 | 59,128.00 | 16,211.00 | 50,610.00 |
| 2013-04-27 | 56,798.00 | 16,248.00 | 47,388.00 |
| 2013-01-26 | 55,525.00 | 16,291.00 | 46,376.00 |
| 2012-10-27 | 52,701.00 | 16,327.00 | 45,000.00 |
| 2012-07-28 | 51,301.00 | 16,328.00 | 48,716.00 |
| 2012-04-28 | 51,378.00 | 16,369.00 | 48,412.00 |
- Cisco Systems's level of debt (62.9%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has increased over the past 5 years (30.7% vs 62.9% today).
- Debt is well covered by operating cash flow (54.9%, greater than 20% of total debt).
- Cisco Systems earns more interest than it pays, coverage of interest payments is not a concern.
Financial health checks
We assess Cisco Systems's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Cisco Systems has a total score of 4/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
CSCO Dividends
What is Cisco Systems's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Cisco Systems
shares you are expected to receive
$47
in your first year as a dividend.
Dividend Amount
- Cisco Systems's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.4%).
- Cisco Systems's dividend is below the markets top 25% of dividend payers in United States of America (3.62%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 27 Analyst Estimates (S&P Global) | See Below |
| United States of America Communications Industry Average Dividend Yield | Market Cap Weighted Average of 15 Stocks | 2.3% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2009 Stocks | 2.4% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.6% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2023-07-31 | ||
| 2022-07-31 | 1.60 | 1.00 |
| 2021-07-31 | 1.57 | 7.00 |
| 2020-07-31 | 1.47 | 13.00 |
| 2019-07-31 | 1.36 | 13.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2018-12-06 | 1.320 | 2.721 |
| 2018-09-20 | 1.320 | 2.842 |
| 2018-05-30 | 1.320 | 2.986 |
| 2018-05-22 | 1.320 | 3.047 |
| 2018-05-16 | 1.320 | 3.011 |
| 2017-12-11 | 1.160 | 2.749 |
| 2017-09-13 | 1.160 | 3.359 |
| 2017-06-06 | 1.160 | 3.672 |
| 2017-02-16 | 1.160 | 3.476 |
| 2016-12-07 | 1.040 | 3.389 |
| 2016-09-09 | 1.040 | 3.390 |
| 2016-06-06 | 1.040 | 3.464 |
| 2016-02-10 | 1.040 | 3.791 |
| 2015-11-19 | 0.840 | 3.299 |
| 2015-09-15 | 0.840 | 3.073 |
| 2015-05-28 | 0.840 | 3.037 |
| 2015-02-11 | 0.840 | 2.929 |
| 2014-12-17 | 0.760 | 2.757 |
| 2014-08-26 | 0.760 | 3.012 |
| 2014-06-20 | 0.760 | 3.021 |
| 2014-02-12 | 0.760 | 3.299 |
| 2013-12-17 | 0.680 | 3.077 |
| 2013-09-03 | 0.680 | 3.004 |
| 2013-06-03 | 0.680 | 2.735 |
| 2013-03-28 | 0.680 | 3.147 |
| 2012-11-15 | 0.560 | 2.747 |
| 2012-08-15 | 0.560 | 3.031 |
| 2012-06-14 | 0.320 | 1.927 |
| 2012-02-08 | 0.320 | 1.693 |
| 2011-12-15 | 0.240 | 1.257 |
| 2011-09-20 | 0.240 | 1.370 |
| 2011-06-08 | 0.240 | 1.545 |
| 2011-03-18 | 0.240 | 1.412 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Whilst dividend payments have been stable, Cisco Systems has been paying a dividend for less than 10 years.
- Dividend payments have increased, but Cisco Systems only paid a dividend in the past 8 years.
Income/ dividend checks
We assess Cisco Systems's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Cisco Systems afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Cisco Systems has a total score of 3/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
CSCO Management
CEO
| COMPENSATION | $21,284,339 |
| AGE | 52 |
| TENURE AS CEO | 3.8 years |
CEO Bio
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 Chairman, he is focused on helping companies, cities and countries around the world as they look to Cisco to connect everything and everyone by building the highly secure, intelligent platform for digital business. Over his 20 years at Cisco, he has served as Senior Vice President of Worldwide Field Operations, where he led the Worldwide Sales and Partner Organizations, and helped drive and execute many of the company's investment areas and strategy shifts; Senior Vice President of The Americas, Cisco's largest geographic region; Senior Vice President of U.S. Enterprise, Commercial and Canada; Senior Vice President of U.S. Commercial Sales; and Segment Vice President, U.S. and Canada channel organization, where he was instrumental in helping build the industry's most powerful partner program. Prior to joining Cisco, he held management positions at Bay Networks and Ascend Communications. He is on the Board of Directors for BlackRock; Chairman of the US-Japan Business Council; a Member of the International Business Council for the World Economic Forum; on the Board of Directors for the Business Roundtable where he serves as Chairman of the Immigration Committee; and a member of the International Council for the Belfer Center for Science and International Affairs at Harvard University. Mr. Robbins holds a bachelor's degree in mathematics with a computer science concentration from the University of North Carolina.
CEO Compensation
- Chuck's compensation has increased in line with Cisco Systems recently becoming profitable.
- Chuck's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Cisco Systems management team in years:
- The tenure for the Cisco Systems management team is about average.
Management Team
Chuck Robbins
Chairman & CEO
$21M
52
3.8 yrs
Kelly Kramer
Executive VP & CFO
$11M
50
4.3 yrs
Gerri Elliott
Executive VP and Chief Sales & Marketing Officer
$17M
61
1 yrs
David Goeckeler
Executive VP and GM of Networking & Security Business
$11M
56
3.1 yrs
Amy Chang
Senior Vice President of Collaboration Technology Group
$294K
41
1.3 yrs
Maria Martinez
Executive VP & Chief Customer Experience Officer
$19M
60
1 yrs
Irving Tan
Senior VP & Chief of Operations
47
1.3 yrs
Prat Bhatt
Chief Accounting Officer
51
9.8 yrs
Jacqui Guichelaar
Group Chief Information Officer
Marilyn Mora
Director of Global Investor Relations
Board of Directors Tenure
Average tenure and age of the Cisco Systems board of directors in years:
- The tenure for the Cisco Systems board of directors is about average.
Board of Directors
Chuck Robbins
Chairman & CEO
$21M
52
2.3 yrs
John Morgridge
Chairman Emeritus
85
12.4 yrs
Owen Chan
Chairman of Greater China & Co-Chairman of China Board
Rod McGeary
Independent Director
$356K
68
15.8 yrs
Martha Burns
Independent Director
$354K
60
15.4 yrs
Michael Capellas
Independent Director
$324K
63
13.3 yrs
Kristina Johnson
Independent Director
$316K
61
6.7 yrs
Mark Garrett
Independent Director
$265K
60
1 yrs
Arun Sarin
Independent Director
$334K
63
9.6 yrs
Brent Saunders
Independent Director
$298K
48
2.1 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 14. Mar 19 | Sell | David Goeckeler | Individual | 12. Mar 19 | 12. Mar 19 | -30,000 | $52.07 | $-1,562,196 | ||
| 26. Feb 19 | Sell | Mark Chandler | Individual | 22. Feb 19 | 22. Feb 19 | -8,853 | $50.20 | $-444,446 | ||
| 21. Feb 19 | Sell | Roderick McGeary | Individual | 19. Feb 19 | 19. Feb 19 | -15,000 | $49.66 | $-744,906 | ||
| 20. Dec 18 | Sell | Martha Burns | Individual | 19. Dec 18 | 19. Dec 18 | -4,744 | $44.06 | $-209,025 | ||
| 14. Dec 18 | Sell | Steven West | Individual | 12. Dec 18 | 12. Dec 18 | -25,000 | $47.98 | $-1,199,503 | ||
| 06. Dec 18 | Sell | Irving Tan | Individual | 03. Dec 18 | 03. Dec 18 | -28,000 | $48.43 | $-1,356,127 | ||
| 21. Sep 18 | Sell | David Goeckeler | Individual | 20. Sep 18 | 20. Sep 18 | -63,050 | $47.57 | $-2,999,200 | ||
| 14. Sep 18 | Sell | Irving Tan | Individual | 14. Sep 18 | 14. Sep 18 | -68,308 | $47.38 | $-3,236,447 | ||
| 25. Jun 18 | Sell | David Goeckeler | Individual | 22. Jun 18 | 22. Jun 18 | -35,000 | $43.27 | $-1,514,349 | ||
Management checks
We assess Cisco Systems's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Cisco Systems has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
CSCO News
Simply Wall St News
2 Days Left Until Cisco Systems, Inc. (NASDAQ:CSCO) Trades Ex-Dividend
If you are interested in cashing in on Cisco Systems, Inc.'s (NASDAQ:CSCO) upcoming dividend of US$0.35 per share, you only have 2 days left to buy the shares before its ex-dividend date, 04 April 2019, in time for dividends payable on the 24 April 2019. … Below, I'm going to look at the latest data and analyze the stock and its dividend property in further detail. … How I analyze a dividend stock?
Simply Wall St - – Full articleShould You Buy Cisco Systems, Inc. (NASDAQ:CSCO) For Its Dividend?
A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. … Let's take a look at Cisco Systems in more detail. … See our latest analysis for Cisco Systems
Simply Wall St - – Full articleCisco Systems Shareholders Have Enjoyed An Impressive 136% Share Price Gain
For instance, the price of Cisco Systems, Inc. … In more good news, the share price has risen 0.7% in thirty days. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.
Simply Wall St - – Full articleCould The Cisco Systems, Inc. (NASDAQ:CSCO) Ownership Structure Tell Us Something Useful?
The big shareholder groups in Cisco Systems, Inc. … Generally speaking, as a company grows, institutions will increase their ownership. … We can zoom in on the different ownership groups, to learn more about CSCO
Simply Wall St - – Full articleDoes Cisco Systems, Inc.'s (NASDAQ:CSCO) CEO Pay Compare Well With Peers?
Chuck Robbins became the CEO of Cisco Systems, Inc. … First, this article will compare CEO compensation with compensation at other large companies. … How Does Chuck Robbins's Compensation Compare With Similar Sized Companies?
Simply Wall St - – Full articleBased On Its ROE, Is Cisco Systems, Inc. (NASDAQ:CSCO) A High Quality Stock?
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.029 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleHow Financially Strong Is Cisco Systems, Inc. (NASDAQ:CSCO)?
There are a number of reasons that attract investors towards large-cap companies such as Cisco Systems, Inc. … This article will examine Cisco Systems’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis
Simply Wall St - – Full articleIs Cisco Systems Inc (NASDAQ:CSCO) Expensive For A Reason? A Look At The Intrinsic Value
In this article I am going to calculate the intrinsic value of Cisco Systems Inc (NASDAQ:CSCO). … by taking the expected future cash flows and discounting them to today's value. … Discounted Cash Flows (DCF).
Simply Wall St - – Full articleConsider This Before Buying Cisco Systems Inc (NASDAQ:CSCO) For The 2.8% Dividend
Historically, Cisco Systems Inc (NASDAQ:CSCO) has paid dividends to shareholders, and these days it yields 2.8%. … Let's dig deeper into whether Cisco Systems should have a place in your portfolio. … Check out our latest analysis for Cisco Systems
Simply Wall St - – Full articleWhat Kind Of Investor Owns Most Of Cisco Systems Inc (NASDAQ:CSCO)?
Every investor in Cisco Systems Inc (NASDAQ:CSCO) should be aware of the most powerful shareholder groups. … Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … With a market capitalization of US$207.9b, Cisco Systems is rather large.
Simply Wall St - – Full articleCSCO Company Info
Description
Cisco Systems, Inc. designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry worldwide. The company offers switching products; routing products that interconnect public and private wireline and mobile networks; data center products; and wireless access points for use in voice, video, and data applications. It also provides collaboration products comprising unified communications, TelePresence, and conferencing, as well as the Internet of Things and analytics software. In addition, the company offers security products, including network and data center security, advanced threat protection, Web and email security, access and policy, unified threat management, advisory, integration, and managed services; and other products, such as service provider video software and solutions, and cloud and system management products. Further, it offers technical support services and advanced services; and hyperconvergence software, cloud calling and contact center solutions, and AI-driven relationship intelligence platform. The company serves businesses of various sizes, public institutions, governments, and service providers. It sells its products directly, as well as through channel partners, such as systems integrators, service providers, other resellers, and distributors. The company has collaboration agreements with KT Corporation and Bharti Airtel. Cisco Systems, Inc. was founded in 1984 and is headquartered in San Jose, California.
Details
| Name: | Cisco Systems, Inc. |
| CSCO | |
| Exchange: | NasdaqGS |
| Founded: | 1984 |
| $248,274,363,182 | |
| 4,402,027,716 | |
| Website: | http://www.cisco.com |
| Address: |
Cisco Systems, Inc. 170 West Tasman Drive, San Jose, California, 95134, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NasdaqGS | CSCO | Common Shares | Nasdaq Global Select | US | USD | 16. Feb 1990 | |
| DB | CIS | Common Shares | Deutsche Boerse AG | DE | EUR | 16. Feb 1990 | |
| XTRA | CIS | Common Shares | XETRA Trading Platform | DE | EUR | 16. Feb 1990 | |
| SWX | CSCO | Common Shares | SIX Swiss Exchange | CH | CHF | 16. Feb 1990 | |
| SEHK | 4333 | Common Shares | The Stock Exchange of Hong Kong Ltd. | HK | HKD | 16. Feb 1990 | |
| ENXTBR | CIS | Common Shares | Euronext Brussels | BE | USD | 16. Feb 1990 | |
| WBAG | CSCO | Common Shares | Wiener Boerse AG | AT | EUR | 16. Feb 1990 | |
| SNSE | CSCO | Common Shares | Santiago Stock Exchange | CL | USD | 16. Feb 1990 | |
| BMV | CSCO * | Common Shares | Bolsa Mexicana de Valores | MX | MXN | 16. Feb 1990 | |
| BVL | CSCO | Common Shares | Bolsa de Valores de Lima | PE | USD | 16. Feb 1990 | |
| BOVESPA | CSCO34 | BDR EACH REPR 1 COM SH | Bolsa de Valores de Sao Paulo | BR | BRL | 02. Sep 2013 | |
| BASE | CSCO | CEDEARS EACH 5 REPR 1 COM NPV | Buenos Aires Stock Exchange | AR | ARS | 31. Jan 2000 |
Number of employees
Current staff
Industry
| Communications Equipment | |
| Tech |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/04/19 23:33 |
| End of day share price update: | 2019/04/18 00:00 |
| Last estimates confirmation: | 2019/04/18 |
| Last earnings filing: | 2019/02/19 |
| Last earnings reported: | 2019/01/26 |
| Last annual earnings reported: | 2018/07/28 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
