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CSCO

Cisco Systems NasdaqGS:CSCO Stock Report

Last Price

US$44.10

Market Cap

US$182.6b

7D

1.6%

1Y

-16.9%

Updated

26 Jun, 2022

Data

Company Financials +
CSCO fundamental analysis
Snowflake Score
Valuation5/6
Future Growth2/6
Past Performance5/6
Financial Health6/6
Dividends5/6

CSCO Stock 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$44.10
52 Week HighUS$64.29
52 Week LowUS$41.02
Beta0.98
1 Month Change-3.33%
3 Month Change-20.02%
1 Year Change-16.89%
3 Year Change-19.42%
5 Year Change40.89%
Change since IPO56,982.21%

Recent News & Updates

Jun 21
The Trend Of High Returns At Cisco Systems (NASDAQ:CSCO) Has Us Very Interested

The Trend Of High Returns At Cisco Systems (NASDAQ:CSCO) Has Us Very Interested

To find a multi-bagger stock, what are the underlying trends we should look for in a business? One common approach is...

Jun 14

Cisco Brings Simplicity And Observability To Networks, Collaboration And Cloud Apps

At the Cisco Live event in Las Vegas this week, the company unveiled their Cloud Management for Cisco Catalyst service, which brings a simple, straightforward interface to the process of managing traditional Cisco network switches. Cisco also unveiled Cisco Cloud Nexus, a cloud-based network management-as-a-service offering that allows organizations to control their network infrastructure across hybrid cloud and edge computing environments, including local private networks as well as through the major cloud computing providers. In addition to simplifying the process of managing network hardware, Cisco brought some cloud-based enhancements to their AppDynamics line of software monitoring tools.

Shareholder Returns

CSCOUS CommunicationsUS Market
7D1.6%3.4%6.6%
1Y-16.9%-15.0%-18.4%

Return vs Industry: CSCO underperformed the US Communications industry which returned -15% over the past year.

Return vs Market: CSCO exceeded the US Market which returned -18.4% over the past year.

Price Volatility

Is CSCO's price volatile compared to industry and market?
CSCO volatility
CSCO Average Weekly Movement5.6%
Communications Industry Average Movement8.2%
Market Average Movement8.1%
10% most volatile stocks in US Market16.6%
10% least volatile stocks in US Market3.2%

Stable Share Price: CSCO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: CSCO's weekly volatility (6%) 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.

Cisco Systems Fundamentals Summary

How do Cisco Systems's earnings and revenue compare to its market cap?
CSCO fundamental statistics
Market CapUS$182.62b
Earnings (TTM)US$12.01b
Revenue (TTM)US$51.58b

15.2x

P/E Ratio

3.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CSCO income statement (TTM)
RevenueUS$51.58b
Cost of RevenueUS$19.01b
Gross ProfitUS$32.57b
Other ExpensesUS$20.56b
EarningsUS$12.01b

Last Reported Earnings

Apr 30, 2022

Next Earnings Date

Aug 17, 2022

Earnings per share (EPS)2.90
Gross Margin63.14%
Net Profit Margin23.28%
Debt/Equity Ratio23.3%

How did CSCO perform over the long term?

See historical performance and comparison

Dividends

3.4%

Current Dividend Yield

52%

Payout Ratio

Does CSCO pay a reliable dividends?

See CSCO dividend history and benchmarks
When do you need to buy CSCO by to receive an upcoming dividend?
Cisco Systems dividend dates
Ex Dividend DateJul 05 2022
Dividend Pay DateJul 27 2022
Days until Ex dividend8 days
Days until Dividend pay date30 days

Does CSCO pay a reliable dividends?

See CSCO dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is CSCO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CSCO?

Other financial metrics that can be useful for relative valuation.

CSCO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.4x
Enterprise Value/EBITDA10.8x
PEG Ratio3x

Price to Earnings Ratio vs Peers

How does CSCO's PE Ratio compare to its peers?

CSCO PE Ratio vs Peers
The above table shows the PE ratio for CSCO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average31.4x
MSI Motorola Solutions
28.7x10.4%US$36.4b
ANET Arista Networks
33x11.1%US$30.8b
UI Ubiquiti
36.2x8.2%US$16.0b
JNPR Juniper Networks
27.7x11.7%US$9.4b
CSCO Cisco Systems
15.2x5.1%US$182.6b

Price-To-Earnings vs Peers: CSCO is good value based on its Price-To-Earnings Ratio (15.2x) compared to the peer average (31.4x).


Price to Earnings Ratio vs Industry

How does CSCO's PE Ratio compare vs other companies in the US Communications Industry?

Price-To-Earnings vs Industry: CSCO is good value based on its Price-To-Earnings Ratio (15.2x) compared to the US Communications industry average (21.9x)


Price to Earnings Ratio vs Fair Ratio

What is CSCO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CSCO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.2x
Fair PE Ratio23.7x

Price-To-Earnings vs Fair Ratio: CSCO is good value based on its Price-To-Earnings Ratio (15.2x) compared to the estimated Fair Price-To-Earnings Ratio (23.7x).


Share Price vs Fair Value

What is the Fair Price of CSCO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CSCO ($44.1) is trading below our estimate of fair value ($98.81)

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


Price to Earnings Growth Ratio

PEG Ratio: CSCO is poor value based on its PEG Ratio (3x)


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Future Growth

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

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


5.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CSCO's forecast earnings growth (5.1% per year) is above the savings rate (1.9%).

Earnings vs Market: CSCO's earnings (5.1% per year) are forecast to grow slower than the US market (13.9% per year).

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

Revenue vs Market: CSCO's revenue (4.2% per year) is forecast to grow slower than the US market (8.4% per year).

High Growth Revenue: CSCO's revenue (4.2% 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 (30.8%)


Discover growth companies

Past Performance

How has Cisco Systems performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


16.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CSCO has high quality earnings.

Growing Profit Margin: CSCO's current net profit margins (23.3%) are higher than last year (20.9%).


Past Earnings Growth Analysis

Earnings Trend: CSCO's earnings have grown by 16.1% per year over the past 5 years.

Accelerating Growth: CSCO's earnings growth over the past year (17.5%) exceeds its 5-year average (16.1% per year).

Earnings vs Industry: CSCO earnings growth over the past year (17.5%) underperformed the Communications industry 35.7%.


Return on Equity

High ROE: CSCO's Return on Equity (29.7%) is considered high.


Discover strong past performing companies

Financial Health

How is Cisco Systems's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: CSCO's short term assets ($36.0B) exceed its short term liabilities ($24.2B).

Long Term Liabilities: CSCO's short term assets ($36.0B) exceed its long term liabilities ($28.2B).


Debt to Equity History and Analysis

Debt Level: CSCO has more cash than its total debt.

Reducing Debt: CSCO's debt to equity ratio has reduced from 49.7% to 23.3% over the past 5 years.

Debt Coverage: CSCO's debt is well covered by operating cash flow (149.1%).

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


Balance Sheet


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Dividend

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

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


3.45%

Current Dividend Yield

Upcoming Dividend Payment

TodayJun 27 2022Ex Dividend DateJul 05 2022Dividend Pay DateJul 27 202222 days from Ex DividendBuy in the next 8 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: CSCO's dividend (3.45%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: CSCO's dividend (3.45%) is low compared to the top 25% of dividend payers in the US market (4.24%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (52%), CSCO's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (46.4%), CSCO's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

1.4yrs

Average management tenure


CEO

Chuck Robbins (55 yo)

6.92yrs

Tenure

US$25,446,695

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 ($USD25.45M) is above average for companies of similar size in the US market ($USD13.44M).

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 ( 1.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: CSCO's board of directors are considered experienced (6.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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
  • Implied Market Cap: US$182.617b
  • Shares outstanding: 4.14b
  • 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 Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/04/30
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.