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. More Details
Flawless balance sheet established dividend payer.
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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: CSCO's weekly volatility (3%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: CSCO underperformed the US Communications industry which returned 25.7% over the past year.
Return vs Market: CSCO underperformed the US Market which returned 49.9% over the past year.
Long-Term 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
22 hours ago | Simply Wall StIs It Too Late To Consider Buying Cisco Systems, Inc. (NASDAQ:CSCO)?
1 week ago | Simply Wall StReturns Are Gaining Momentum At Cisco Systems (NASDAQ:CSCO)
4 weeks ago | Simply Wall StHow Many Cisco Systems, Inc. (NASDAQ:CSCO) Shares Do Institutions Own?
Is Cisco Systems undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CSCO ($53.43) is trading below our estimate of fair value ($80.77)
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 (22.3x) compared to the US Communications industry average (35.7x).
PE vs Market: CSCO is poor value based on its PE Ratio (22.3x) compared to the US market (20.3x).
Price to Earnings Growth Ratio
PEG Ratio: CSCO is poor value based on its PEG Ratio (3.2x)
Price to Book Ratio
PB vs Industry: CSCO is overvalued based on its PB Ratio (5.8x) compared to the US Communications industry average (2.6x).
How is Cisco Systems forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CSCO's forecast earnings growth (6.9% per year) is above the savings rate (2%).
Earnings vs Market: CSCO's earnings (6.9% per year) are forecast to grow slower than the US market (15% per year).
High Growth Earnings: CSCO's earnings are forecast to grow, but not significantly.
Revenue vs Market: CSCO's revenue (3.2% per year) is forecast to grow slower than the US market (9.1% per year).
High Growth Revenue: CSCO's revenue (3.2% 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 (29.8%)
How has Cisco Systems performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CSCO has high quality earnings.
Growing Profit Margin: CSCO's current net profit margins (21.1%) are lower than last year (21.4%).
Past Earnings Growth Analysis
Earnings Trend: CSCO's earnings have grown by 3.9% 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 (-8.4%) over the past year, making it difficult to compare to the Communications industry average (43.5%).
Return on Equity
High ROE: CSCO's Return on Equity (25.9%) is considered high.
How is Cisco Systems's financial position?
Financial Position Analysis
Short Term Liabilities: CSCO's short term assets ($43.9B) exceed its short term liabilities ($27.3B).
Long Term Liabilities: CSCO's short term assets ($43.9B) exceed its long term liabilities ($29.2B).
Debt to Equity History and Analysis
Debt Level: CSCO's debt to equity ratio (37.2%) is considered satisfactory.
Reducing Debt: CSCO's debt to equity ratio has reduced from 40.5% to 37.2% over the past 5 years.
Debt Coverage: CSCO's debt is well covered by operating cash flow (103.7%).
Interest Coverage: CSCO earns more interest than it pays, so coverage of interest payments is not a concern.
What is Cisco Systems's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CSCO's dividend (2.77%) is higher than the bottom 25% of dividend payers in the US market (1.23%).
High Dividend: CSCO's dividend (2.77%) is low compared to the top 25% of dividend payers in the US market (3.4%).
Stability and Growth of Payments
Stable Dividend: CSCO's dividends per share have been stable in the past 10 years.
Growing Dividend: CSCO's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (60.1%), CSCO's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CSCO's dividends in 3 years are forecast to be well covered by earnings (43.6% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Chuck Robbins (54 yo)
Mr. Charles H. Robbins, also known as Chuck, has been Chief Executive Officer of Cisco Systems, Inc., since July 26, 2015 and has been its Chairman of the Board on December 11, 2017. He has been on Board o...
CEO Compensation Analysis
Compensation vs Market: Chuck's total compensation ($USD23.16M) is above average for companies of similar size in the US market ($USD11.15M).
Compensation vs Earnings: Chuck's compensation has been consistent with company performance over the past year.
Experienced Management: CSCO's management team is not considered experienced ( 1 years average tenure), which suggests a new team.
Experienced Board: CSCO's board of directors are considered experienced (3.3 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Cisco Systems, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Cisco Systems, Inc.
- Ticker: CSCO
- Exchange: NasdaqGS
- Founded: 1984
- Industry: Communications Equipment
- Sector: Tech
- Market Cap: US$225.570b
- Shares outstanding: 4.22b
- Website: https://www.cisco.com
Number of Employees
- Cisco Systems, Inc.
- 170 West Tasman Drive
- San Jose
- United States
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 Mid...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/05/10 11:38|
|End of Day Share Price||2021/05/07 00:00|
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.