company background image
CSCO

Cisco SystemsNasdaqGS:CSCO Stock Report

Market Cap

US$232.1b

7D

1.1%

1Y

27.3%

Updated

02 Dec, 2021

Data

Company Financials +
CSCO fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance4/6
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

Arista Networks

NYSE:ANET

US$37.3b

Ubiquiti

NYSE:UI

US$18.5b

Juniper Networks

NYSE:JNPR

US$10.0b

Lumentum Holdings

NasdaqGS:LITE

US$6.2b

Price History & Performance

Summary of all time highs, changes and price drops for Cisco Systems
Historical stock prices
Current Share PriceUS$56.15
52 Week HighUS$60.27
52 Week LowUS$43.35
Beta0.90
1 Month Change-2.55%
3 Month Change-5.50%
1 Year Change27.30%
3 Year Change16.04%
5 Year Change87.48%
Change since IPO72,579.50%

Recent News & Updates

Nov 29

Cisco Systems: More Of The Same

Cisco continues on the same path, pursuing bolt-on acquisitions to deliver on minimal revenue growth. Revenue growth trails that of the market, indicating that the business is underperforming. The balance sheet remains strong as multiples are non-demanding. Real appeal has to come from better operating performance, which I do not expect anytime soon. Shares look fairly valued to me here.

Nov 29
Does Cisco Systems (NASDAQ:CSCO) Deserve A Spot On Your Watchlist?

Does Cisco Systems (NASDAQ:CSCO) Deserve A Spot On Your Watchlist?

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Nov 18
Cisco’s (NASDAQ:CSCO) Price Weakness Offers an Opportunity to Buy a Solid Defensive Stock at a Discount

Cisco’s (NASDAQ:CSCO) Price Weakness Offers an Opportunity to Buy a Solid Defensive Stock at a Discount

Cisco Systems' (NASDAQ:CSCO) has joined the growing list of companies lowering guidance for the current quarter due to supply chain constraints.However, Cisco’s underlying fundamentals make it a solid defensive stock which is now quite reasonably priced.

Shareholder Returns

CSCOUS CommunicationsUS Market
7D1.1%-0.2%-3.5%
1Y27.3%30.6%19.4%

Return vs Industry: CSCO underperformed the US Communications industry which returned 28.8% over the past year.

Return vs Market: CSCO exceeded the US Market which returned 17.8% over the past year.

Price Volatility

Is CSCO's price volatile compared to industry and market?
CSCO volatility
CSCO Average Weekly Movement2.9%
Communications Industry Average Movement6.4%
Market Average Movement6.1%
10% most volatile stocks in US Market14.9%
10% least volatile stocks in US Market2.4%

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.

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$232.09b
Earnings (TTM)US$11.40b
Revenue (TTM)US$50.79b

20.8x

P/E Ratio

4.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CSCO income statement (TTM)
RevenueUS$50.79b
Cost of RevenueUS$18.42b
Gross ProfitUS$32.37b
ExpensesUS$20.97b
EarningsUS$11.40b

Last Reported Earnings

Oct 30, 2021

Next Earnings Date

Feb 16, 2022

Earnings per share (EPS)2.70
Gross Margin63.73%
Net Profit Margin22.44%
Debt/Equity Ratio22.3%

How did CSCO perform over the long term?

See historical performance and comparison

Dividends

2.6%

Current Dividend Yield

54%

Payout Ratio

Valuation

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

31.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CSCO ($56.15) is trading below our estimate of fair value ($82.2)

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 (20.8x) compared to the US Communications industry average (28.6x).

PE vs Market: CSCO is poor value based on its PE Ratio (20.8x) compared to the US market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: CSCO is poor value based on its PEG Ratio (3.9x)


Price to Book Ratio

PB vs Industry: CSCO is overvalued based on its PB Ratio (5.5x) compared to the US Communications industry average (2.1x).


Future Growth

How is Cisco Systems forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?

5.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CSCO's forecast earnings growth (5.4% per year) is above the savings rate (2%).

Earnings vs Market: CSCO's earnings (5.4% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: CSCO's revenue (4.6% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: CSCO's revenue (4.6% 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?

10.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CSCO has high quality earnings.

Growing Profit Margin: CSCO's current net profit margins (22.4%) are higher than last year (21.7%).


Past Earnings Growth Analysis

Earnings Trend: CSCO's earnings have grown by 10.8% per year over the past 5 years.

Accelerating Growth: CSCO's earnings growth over the past year (9.2%) is below its 5-year average (10.8% per year).

Earnings vs Industry: CSCO earnings growth over the past year (9.2%) underperformed the Communications industry 22.8%.


Return on Equity

High ROE: CSCO's Return on Equity (26.7%) is considered high.


Financial Health

How is Cisco Systems's financial position?


Financial Position Analysis

Short Term Liabilities: CSCO's short term assets ($37.6B) exceed its short term liabilities ($23.2B).

Long Term Liabilities: CSCO's short term assets ($37.6B) exceed its long term liabilities ($30.0B).


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 54.9% to 22.3% over the past 5 years.

Debt Coverage: CSCO's debt is well covered by operating cash flow (155.6%).

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?

2.64%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CSCO's dividend (2.64%) is higher than the bottom 25% of dividend payers in the US market (1.37%).

High Dividend: CSCO's dividend (2.64%) is low compared to the top 25% of dividend payers in the US market (3.69%).


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 (54.4%), 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 (40.6% 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 (55 yo)

6.42yrs

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 ($USD25.45M) is above average for companies of similar size in the US market ($USD11.11M).

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 (3.8 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
  • Market Cap: US$232.095b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/02 23:29
End of Day Share Price2021/12/02 00:00
Earnings2021/10/30
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.