Cisco Systems
Market Cap
US$191.4b
Last Updated
2019/11/16 23:33 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 worldwide.
Snowflake
Solid track record with adequate balance sheet.
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
-7.7%
CSCO
-5.5%
US Communications
0.7%
US Market
1 Year Return
-2.7%
CSCO
-4.0%
US Communications
12.9%
US Market
Return vs Industry: CSCO exceeded the US Communications industry which returned -4% over the past year.
Return vs Market: CSCO underperformed the US Market which returned 12.9% over the past year.
Shareholder returns
| CSCO | Industry | Market | |
|---|---|---|---|
| 7 Day | -7.7% | -5.5% | 0.7% |
| 30 Day | -4.1% | -3.1% | 4.4% |
| 90 Day | -4.0% | -2.5% | 7.0% |
| 1 Year | 0.03%-2.7% | -1.8%-4.0% | 15.4%12.9% |
| 3 Year | 64.0%49.4% | 43.0%33.9% | 49.1%39.5% |
| 5 Year | 96.3%67.7% | 67.5%48.8% | 62.7%44.7% |
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
1 day ago | Simply Wall St
Cisco Systems, Inc. Just Released Its First-Quarter Earnings: Here's What Analysts Think3 months ago | Simply Wall St
Can Cisco Systems, Inc. (NASDAQ:CSCO) Maintain Its Strong Returns?3 months ago | Simply Wall St
Can We See Significant Institutional Ownership On The Cisco Systems, Inc. (NASDAQ:CSCO) Share Register?Valuation
Is Cisco Systems undervalued compared to its fair value and its price relative to the market?
6.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CSCO ($45.09) is trading below our estimate of fair value ($48.32)
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 (17.8x) compared to the Communications industry average (20.1x).
PE vs Market: CSCO is good value based on its PE Ratio (17.8x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: CSCO is poor value based on its PEG Ratio (2.8x)
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 26 analysts?
6.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CSCO's forecast earnings growth (6.3% per year) is above the savings rate (2.7%).
Earnings vs Market: CSCO's earnings (6.3% per year) are forecast to grow slower than the US market (14.4% per year).
High Growth Earnings: CSCO's earnings are forecast to grow, but not significantly.
Revenue vs Market: CSCO's revenue (2.8% per year) is forecast to grow slower than the US market (7.3% per year).
High Growth Revenue: CSCO's revenue (2.8% 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 (38.7%)
Next Steps
Past Performance
How has Cisco Systems performed over the past 5 years?
-3.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CSCO has high quality earnings.
Growing Profit Margin: CSCO's current net profit margins (21.2%) are higher than last year (2.5%).
Past Earnings Growth Analysis
Earnings Trend: CSCO's earnings have declined by -3.9% per year over the past 5 years.
Accelerating Growth: CSCO's earnings growth over the past year (778.2%) exceeds its 5-year average (-3.9% per year).
Earnings vs Industry: CSCO earnings growth over the past year (778.2%) exceeded the Communications industry 42.2%.
Return on Equity
High ROE: CSCO's Return on Equity (31.9%) 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 ($41.7B) exceeds its short term liabilities ($24.6B)
Long Term Liabilities: CSCO's short term assets (41.7B) exceeds its long term liabilities (33.5B)
Debt to Equity History and Analysis
Debt Level: CSCO's debt to equity ratio (53.7%) is considered high
Reducing Debt: CSCO's debt to equity ratio has increased from 36.9% to 53.7% over the past 5 years.
Debt Coverage: CSCO's debt is well covered by operating cash flow (84.6%).
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 2.3x debt).
Next Steps
Dividend
What is Cisco Systems's current dividend yield, its reliability and sustainability?
3.10%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: CSCO's dividend (3.1%) is higher than the bottom 25% of dividend payers in the US market (1.42%).
High Dividend: CSCO's dividend (3.1%) is low compared to the top 25% of dividend payers in the US market (3.65%).
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 reasonably low payout ratio (40.6%), CSCO's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CSCO's dividends in 3 years are forecast to be well covered by earnings (45.1% payout ratio).
Next Steps
Management
What is the CEO of Cisco Systems's salary, the management and board of directors tenure and is there insider trading?
4.0yrs
Average management tenure
CEO
Chuck Robbins (53yo)
4.3yrs
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 ($USD11.01M).
Compensation vs Earnings: Chuck's compensation has increased by more than 20% in the past year.
Management Age and Tenure
4.0yrs
Average Tenure
55yo
Average Age
Experienced Management: CSCO's management team is considered experienced (4 years average tenure).
Board Age and Tenure
5.0yrs
Average Tenure
63yo
Average Age
Experienced Board: CSCO's board of directors are considered experienced (5 years average tenure).
Insider Trading
Insider Buying: CSCO insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Senior Key Executive Executive VP and GM of Networking & Security Business |
| Shares | 70,000 |
| Max Price | US$49.22 |
| Entity | Individual |
| Shares | 20,000 |
| Max Price | US$56.21 |
| Entity | Individual |
| Shares | 10,000 |
| Max Price | US$55.74 |
| Entity | Individual |
| Role | Senior Key Executive Executive VP and GM of Networking & Security Business |
| Shares | 30,000 |
| Max Price | US$52.07 |
| Entity | Individual |
| Role | Chief Legal Officer Executive VP |
| Shares | 8,853 |
| Max Price | US$50.20 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 15,000 |
| Max Price | US$49.66 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 4,744 |
| Max Price | US$44.06 |
| Entity | Individual |
| Shares | 25,000 |
| Max Price | US$47.98 |
| Entity | Individual |
| Role | Chief Operating Officer Executive VP & Chief Operating Officer |
| Shares | 28,000 |
| Max Price | US$48.43 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Maria Martinez (61yo)
Executive VP & Chief Customer Experience Officer
- Tenure: 1.6yrs
- Compensation: US$14.98m
Mark Chandler (63yo)
Executive VP
- Tenure: 13.8yrs
Gerri Elliott (62yo)
Executive VP and Chief Sales & Marketing Officer
- Tenure: 1.6yrs
- Compensation: US$12.94m
Marilyn Mora
Director of Global Investor Relations
- Tenure: 0yrs
Kelly Kramer (51yo)
Executive VP & CFO
- Tenure: 4.8yrs
- Compensation: US$13.63m
Chuck Robbins (53yo)
Chairman & CEO
- Tenure: 4.3yrs
- Compensation: US$25.83m
Prat Bhatt (52yo)
Chief Accounting Officer
- Tenure: 10.3yrs
Jacqui Guichelaar
Group Chief Information Officer
- Tenure: 0yrs
Irving Tan (49yo)
Executive VP & Chief Operating Officer
- Tenure: 1.8yrs
David Goeckeler (57yo)
Executive VP and GM of Networking & Security Business
- Tenure: 3.7yrs
- Compensation: US$12.33m
Board Members
Michael Capellas (64yo)
Lead Independent Director
- Tenure: 0.9yrs
- Compensation: US$383.96k
John Morgridge (86yo)
Chairman Emeritus
- Tenure: 13yrs
Arun Sarin (64yo)
Independent Director
- Tenure: 10.2yrs
- Compensation: US$340.96k
Abe Peled (74yo)
Chairman of Cisco’s SPVSS Business
- Tenure: 0.6yrs
Martha Burns (61yo)
Independent Director
- Tenure: 16yrs
- Compensation: US$362.96k
Rod McGeary (69yo)
Independent Director
- Tenure: 16.3yrs
- Compensation: US$380.96k
Mark Garrett (61yo)
Independent Director
- Tenure: 1.6yrs
- Compensation: US$365.96k
Kristina Johnson (62yo)
Independent Director
- Tenure: 7.3yrs
- Compensation: US$326.96k
Brent Saunders (49yo)
Independent Director
- Tenure: 2.7yrs
- Compensation: US$322.96k
Chuck Robbins (53yo)
Chairman & CEO
- Tenure: 4.3yrs
- Compensation: US$25.83m
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$191.354b
- 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 |
|---|---|---|---|---|---|---|
| CIS | XTRA (XETRA Trading Platform) | Yes | Common Shares | DE | EUR | Feb 1990 |
| CSCO | NasdaqGS (Nasdaq Global Select) | Yes | Common Shares | US | USD | Feb 1990 |
| CSCO | WBAG (Wiener Boerse AG) | Yes | Common Shares | AT | EUR | 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 |
| CSCO * | BMV (Bolsa Mexicana de Valores) | Yes | Common Shares | MX | MXN | Feb 1990 |
| CSCO | BVL (Bolsa de Valores de Lima) | Yes | Common Shares | PE | USD | Feb 1990 |
| CSCO | SNSE (Santiago Stock Exchange) | Yes | Common Shares | CL | USD | 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 worldwide. The company offers sw ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/11/16 23:33 |
| End of Day Share Price | 2019/11/15 00:00 |
| Earnings | 2019/10/26 |
| 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.