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Market Cap

US$225.6b

Last Updated

2021/05/10 11:38 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. More Details


Snowflake Analysis

Flawless balance sheet established dividend payer.


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 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.


Market Performance


7 Day Return

4.4%

CSCO

3.5%

US Communications

-1.2%

US Market


1 Year Return

23.3%

CSCO

24.9%

US Communications

48.3%

US Market

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.


Shareholder returns

CSCOIndustryMarket
7 Day4.4%3.5%-1.2%
30 Day2.6%0.8%0.2%
90 Day10.2%5.8%1.6%
1 Year27.4%23.3%28.2%24.9%50.8%48.3%
3 Year28.1%16.9%22.2%13.5%62.0%51.9%
5 Year132.3%98.1%103.3%80.2%126.9%101.7%

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

Valuation

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

33.8%

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).


Future Growth

How is Cisco Systems forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

6.9%

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%)


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 (21.1%) 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.


Financial Health

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.


Balance Sheet


Dividend

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

2.77%

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).


Next Steps

Management

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

1.0yrs

Average management tenure


CEO

Chuck Robbins (54 yo)

5.83yrs

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 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.


Leadership Team

Experienced Management: CSCO's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

Experienced Board: CSCO's board of directors are considered experienced (3.3 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 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$225.570b
  • 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


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 Mid...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/10 11:38
End of Day Share Price2021/05/07 00:00
Earnings2021/01/23
Annual Earnings2020/07/25


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.