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Cisco Systems

Nasdaq:CSCO
Snowflake Description

Adequate balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CSCO
Nasdaq
$248B
Market Cap
  1. Home
  2. US
  3. Tech
Company description

Cisco Systems, Inc. designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry worldwide. The last earnings update was 58 days ago. More info.


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CSCO Share Price and Events
7 Day Returns
1.4%
NasdaqGS:CSCO
3%
US Communications
0.8%
US Market
1 Year Returns
26.6%
NasdaqGS:CSCO
21.8%
US Communications
5.9%
US Market
CSCO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Cisco Systems (CSCO) 1.4% 5.8% 25.3% 26.6% 99.7% 141.7%
US Communications 3% 7.2% 26.6% 21.8% 92% 94.8%
US Market 0.8% 2.6% 10.6% 5.9% 37.7% 45.5%
1 Year Return vs Industry and Market
  • CSCO outperformed the Communications industry which returned 21.8% over the past year.
  • CSCO outperformed the Market in United States of America which returned 5.9% over the past year.
Price Volatility
CSCO
Industry
5yr Volatility vs Market
Related Companies

CSCO Value

 Is Cisco Systems undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Cisco Systems to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Cisco Systems.

NasdaqGS:CSCO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 27 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.4%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:CSCO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Communications Unlevered Beta Simply Wall St/ S&P Global 1.09
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.091 (1 + (1- 21%) (10.33%))
1.121
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.12
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.121 * 5.96%)
9.41%

Discounted Cash Flow Calculation for NasdaqGS:CSCO using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Cisco Systems is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:CSCO DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.41%)
2019 14,065.80 Analyst x8 12,856.20
2020 15,551.68 Analyst x10 12,991.92
2021 16,117.06 Analyst x5 12,306.37
2022 16,822.00 Analyst x2 11,740.05
2023 15,254.00 Analyst x1 9,730.25
2024 15,366.32 Est @ 0.74% 8,958.97
2025 15,571.37 Est @ 1.33% 8,297.80
2026 15,844.35 Est @ 1.75% 7,717.18
2027 16,168.55 Est @ 2.05% 7,197.86
2028 16,532.56 Est @ 2.25% 6,726.98
Present value of next 10 years cash flows $98,523.58
NasdaqGS:CSCO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $16,532.56 × (1 + 2.73%) ÷ (9.41% – 2.73%)
$254,298.45
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $254,298.45 ÷ (1 + 9.41%)10
$103,472.29
NasdaqGS:CSCO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $98,523.58 + $103,472.29
$201,995.87
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $201,995.87 / 4,402.03
$45.89
NasdaqGS:CSCO Discount to Share Price
Calculation Result
Value per share (USD) From above. $45.89
Current discount Discount to share price of $56.40
= -1 x ($56.40 - $45.89) / $45.89
-22.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Cisco Systems is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Cisco Systems's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Cisco Systems's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:CSCO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-01-26) in USD $2.78
NasdaqGS:CSCO Share Price ** NasdaqGS (2019-04-18) in USD $56.4
United States of America Communications Industry PE Ratio Median Figure of 33 Publicly-Listed Communications Companies 33.72x
United States of America Market PE Ratio Median Figure of 3,078 Publicly-Listed Companies 18.23x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Cisco Systems.

NasdaqGS:CSCO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:CSCO Share Price ÷ EPS (both in USD)

= 56.4 ÷ 2.78

20.27x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cisco Systems is good value based on earnings compared to the US Communications industry average.
  • Cisco Systems is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Cisco Systems's expected growth come at a high price?
Raw Data
NasdaqGS:CSCO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 20.27x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 27 Analysts
3.9%per year
United States of America Communications Industry PEG Ratio Median Figure of 21 Publicly-Listed Communications Companies 1.36x
United States of America Market PEG Ratio Median Figure of 2,108 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

NasdaqGS:CSCO PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 20.27x ÷ 3.9%

5.13x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cisco Systems is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Cisco Systems's assets?
Raw Data
NasdaqGS:CSCO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-01-26) in USD $9.22
NasdaqGS:CSCO Share Price * NasdaqGS (2019-04-18) in USD $56.4
United States of America Communications Industry PB Ratio Median Figure of 68 Publicly-Listed Communications Companies 1.94x
United States of America Market PB Ratio Median Figure of 5,172 Publicly-Listed Companies 1.93x
NasdaqGS:CSCO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:CSCO Share Price ÷ Book Value per Share (both in USD)

= 56.4 ÷ 9.22

6.12x

* Primary Listing of Cisco Systems.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cisco Systems is overvalued based on assets compared to the US Communications industry average.
X
Value checks
We assess Cisco Systems's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Communications industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Communications industry average (and greater than 0)? (1 check)
  5. Cisco Systems has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

CSCO Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
3.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Cisco Systems expected to grow at an attractive rate?
  • Cisco Systems's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Cisco Systems's earnings growth is positive but not above the United States of America market average.
  • Cisco Systems's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:CSCO Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:CSCO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 27 Analysts 3.9%
NasdaqGS:CSCO Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 27 Analysts 3.4%
United States of America Communications Industry Earnings Growth Rate Market Cap Weighted Average 15%
United States of America Communications Industry Revenue Growth Rate Market Cap Weighted Average 5.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:CSCO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 27 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:CSCO Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-07-31 57,378 1
2022-07-31 58,613 15,287 2
2021-07-31 55,377 16,856 13,094 15
2020-07-31 53,488 16,943 12,743 27
2019-07-31 51,692 15,410 12,380 27
NasdaqGS:CSCO Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-01-26 50,825 14,076 12,865
2018-10-27 50,266 14,349 1,265
2018-07-28 49,330 13,666 110
2018-04-28 48,619 13,567 -1,269
2018-01-27 48,096 14,524 -1,445
2017-10-28 47,789 14,226 9,681
2017-07-29 48,005 13,876 9,609
2017-04-29 48,510 13,693 9,998
2017-01-28 48,570 13,384 9,832
2016-10-29 48,917 13,534 10,631
2016-07-30 49,247 13,570 10,739
2016-04-30 49,452 13,890 10,245

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Cisco Systems's earnings are expected to grow by 3.9% yearly, however this is not considered high growth (20% yearly).
  • Cisco Systems's revenue is expected to grow by 3.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:CSCO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 27 Analyst Estimates (S&P Global) See Below

All data from Cisco Systems Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:CSCO Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-07-31
2022-07-31 3.67 3.67 3.67 1.00
2021-07-31 3.36 3.42 3.30 2.00
2020-07-31 2.96 3.06 2.86 7.00
2019-07-31 2.78 2.83 2.73 7.00
NasdaqGS:CSCO Past Financials Data
Date (Data in USD Millions) EPS *
2019-01-26 2.78
2018-10-27 0.27
2018-07-28 0.02
2018-04-28 -0.26
2018-01-27 -0.29
2017-10-28 1.94
2017-07-29 1.92
2017-04-29 1.99
2017-01-28 1.96
2016-10-29 2.11
2016-07-30 2.13
2016-04-30 2.02

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Cisco Systems is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Cisco Systems's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Cisco Systems has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

CSCO Past Performance

  How has Cisco Systems performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Cisco Systems's growth in the last year to its industry (Communications).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Cisco Systems's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Cisco Systems has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Cisco Systems has become profitable in the last year making it difficult to compare the US Communications industry average.
Earnings and Revenue History
Cisco Systems's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Cisco Systems Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:CSCO Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-01-26 50,825.00 12,865.00 11,540.00 6,381.00
2018-10-27 50,266.00 1,265.00 11,474.00 6,373.00
2018-07-28 49,330.00 110.00 11,345.00 6,332.00
2018-04-28 48,619.00 -1,269.00 11,280.00 6,205.00
2018-01-27 48,096.00 -1,445.00 11,114.00 6,122.00
2017-10-28 47,789.00 9,681.00 11,077.00 6,081.00
2017-07-29 48,005.00 9,609.00 11,167.00 6,059.00
2017-04-29 48,510.00 9,998.00 11,330.00 6,161.00
2017-01-28 48,570.00 9,832.00 11,619.00 6,280.00
2016-10-29 48,917.00 10,631.00 11,396.00 6,281.00
2016-07-30 49,247.00 10,739.00 11,401.00 6,296.00
2016-04-30 49,452.00 10,245.00 11,513.00 6,243.00
2016-01-23 49,589.00 10,333.00 11,469.00 6,164.00
2015-10-24 49,598.00 9,583.00 11,811.00 6,184.00
2015-07-25 49,161.00 8,981.00 11,851.00 6,207.00
2015-04-25 48,675.00 8,909.00 11,747.00 6,757.00
2015-01-24 48,083.00 8,653.00 11,594.00 6,270.00
2014-10-25 47,302.00 7,685.00 11,527.00 6,153.00
2014-07-26 47,142.00 7,853.00 11,430.00 6,294.00
2014-04-26 47,202.00 7,876.00 11,378.00 5,713.00
2014-01-25 47,873.00 8,173.00 11,520.00 6,195.00
2013-10-26 48,816.00 9,887.00 11,752.00 6,235.00
2013-07-27 48,607.00 9,983.00 11,761.00 5,942.00
2013-04-27 47,880.00 9,630.00 12,202.00 5,841.00
2013-01-26 47,252.00 9,317.00 12,005.00 5,657.00
2012-10-27 46,681.00 8,356.00 11,937.00 5,544.00
2012-07-28 46,061.00 8,041.00 11,541.00 5,488.00
2012-04-28 45,566.00 7,356.00 11,702.00 5,556.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Cisco Systems has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Cisco Systems used its assets more efficiently than the US Communications industry average last year based on Return on Assets.
  • Cisco Systems has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Cisco Systems's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Communications industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Cisco Systems has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

CSCO Health

 How is Cisco Systems's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Cisco Systems's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Cisco Systems is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Cisco Systems's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Cisco Systems's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Cisco Systems Company Filings, last reported 2 months ago.

NasdaqGS:CSCO Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-01-26 40,789.00 25,658.00 40,383.00
2018-10-27 43,848.00 25,645.00 42,593.00
2018-07-28 43,204.00 25,641.00 46,548.00
2018-04-28 46,661.00 28,138.00 54,431.00
2018-01-27 51,982.00 39,392.00 73,683.00
2017-10-28 65,550.00 35,925.00 71,588.00
2017-07-29 66,137.00 33,717.00 70,492.00
2017-04-29 65,382.00 32,470.00 67,974.00
2017-01-28 63,818.00 34,922.00 71,847.00
2016-10-29 63,413.00 34,789.00 70,974.00
2016-07-30 63,585.00 28,643.00 65,767.00
2016-04-30 62,358.00 28,595.00 63,512.00
2016-01-23 60,878.00 24,599.00 60,375.00
2015-10-24 59,985.00 24,621.00 59,107.00
2015-07-25 59,707.00 25,354.00 60,438.00
2015-04-25 58,833.00 21,004.00 54,419.00
2015-01-24 57,733.00 20,522.00 53,022.00
2014-10-25 56,715.00 20,972.00 52,107.00
2014-07-26 56,661.00 20,848.00 52,074.00
2014-04-26 55,796.00 20,900.00 50,469.00
2014-01-25 56,084.00 17,157.00 47,065.00
2013-10-26 58,909.00 16,226.00 48,201.00
2013-07-27 59,128.00 16,211.00 50,610.00
2013-04-27 56,798.00 16,248.00 47,388.00
2013-01-26 55,525.00 16,291.00 46,376.00
2012-10-27 52,701.00 16,327.00 45,000.00
2012-07-28 51,301.00 16,328.00 48,716.00
2012-04-28 51,378.00 16,369.00 48,412.00
  • Cisco Systems's level of debt (62.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (30.7% vs 62.9% today).
  • Debt is well covered by operating cash flow (54.9%, greater than 20% of total debt).
  • Cisco Systems earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Cisco Systems's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Cisco Systems has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

CSCO Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.34%
Current annual income from Cisco Systems dividends. Estimated to be 2.57% next year.
If you bought $2,000 of Cisco Systems shares you are expected to receive $47 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Cisco Systems's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.4%).
  • Cisco Systems's dividend is below the markets top 25% of dividend payers in United States of America (3.63%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:CSCO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 27 Analyst Estimates (S&P Global) See Below
United States of America Communications Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 2.2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2009 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:CSCO Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-07-31
2022-07-31 1.60 1.00
2021-07-31 1.57 7.00
2020-07-31 1.47 13.00
2019-07-31 1.36 13.00
NasdaqGS:CSCO Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-12-06 1.320 2.725
2018-09-20 1.320 2.842
2018-05-30 1.320 2.986
2018-05-22 1.320 3.047
2018-05-16 1.320 3.011
2017-12-11 1.160 2.749
2017-09-13 1.160 3.359
2017-06-06 1.160 3.672
2017-02-16 1.160 3.476
2016-12-07 1.040 3.389
2016-09-09 1.040 3.390
2016-06-06 1.040 3.464
2016-02-10 1.040 3.791
2015-11-19 0.840 3.299
2015-09-15 0.840 3.073
2015-05-28 0.840 3.037
2015-02-11 0.840 2.929
2014-12-17 0.760 2.757
2014-08-26 0.760 3.012
2014-06-20 0.760 3.021
2014-02-12 0.760 3.299
2013-12-17 0.680 3.077
2013-09-03 0.680 3.004
2013-06-03 0.680 2.735
2013-03-28 0.680 3.147
2012-11-15 0.560 2.747
2012-08-15 0.560 3.031
2012-06-14 0.320 1.927
2012-02-08 0.320 1.693
2011-12-15 0.240 1.257
2011-09-20 0.240 1.370
2011-06-08 0.240 1.545
2011-03-18 0.240 1.412

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Cisco Systems has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Cisco Systems only paid a dividend in the past 8 years.
Current Payout to shareholders
What portion of Cisco Systems's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).
X
Income/ dividend checks
We assess Cisco Systems's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Cisco Systems afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Cisco Systems has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

CSCO Management

 What is the CEO of Cisco Systems's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Chuck Robbins
COMPENSATION $21,284,339
AGE 52
TENURE AS CEO 3.8 years
CEO Bio

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 Chairman, he is focused on helping companies, cities and countries around the world as they look to Cisco to connect everything and everyone by building the highly secure, intelligent platform for digital business. Over his 20 years at Cisco, he has served as Senior Vice President of Worldwide Field Operations, where he led the Worldwide Sales and Partner Organizations, and helped drive and execute many of the company's investment areas and strategy shifts; Senior Vice President of The Americas, Cisco's largest geographic region; Senior Vice President of U.S. Enterprise, Commercial and Canada; Senior Vice President of U.S. Commercial Sales; and Segment Vice President, U.S. and Canada channel organization, where he was instrumental in helping build the industry's most powerful partner program. Prior to joining Cisco, he held management positions at Bay Networks and Ascend Communications. He is on the Board of Directors for BlackRock; Chairman of the US-Japan Business Council; a Member of the International Business Council for the World Economic Forum; on the Board of Directors for the Business Roundtable where he serves as Chairman of the Immigration Committee; and a member of the International Council for the Belfer Center for Science and International Affairs at Harvard University. Mr. Robbins holds a bachelor's degree in mathematics with a computer science concentration from the University of North Carolina.

CEO Compensation
  • Chuck's compensation has increased in line with Cisco Systems recently becoming profitable.
  • Chuck's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Cisco Systems management team in years:

2.2
Average Tenure
51.5
Average Age
  • The tenure for the Cisco Systems management team is about average.
Management Team

Chuck Robbins

TITLE
Chairman & CEO
COMPENSATION
$21M
AGE
52
TENURE
3.8 yrs

Kelly Kramer

TITLE
Executive VP & CFO
COMPENSATION
$11M
AGE
50
TENURE
4.3 yrs

Gerri Elliott

TITLE
Executive VP and Chief Sales & Marketing Officer
COMPENSATION
$17M
AGE
61
TENURE
1 yrs

David Goeckeler

TITLE
Executive VP and GM of Networking & Security Business
COMPENSATION
$11M
AGE
56
TENURE
3.1 yrs

Amy Chang

TITLE
Senior Vice President of Collaboration Technology Group
COMPENSATION
$294K
AGE
41
TENURE
1.3 yrs

Maria Martinez

TITLE
Executive VP & Chief Customer Experience Officer
COMPENSATION
$19M
AGE
60
TENURE
1 yrs

Irving Tan

TITLE
Senior VP & Chief of Operations
AGE
47
TENURE
1.3 yrs

Prat Bhatt

TITLE
Chief Accounting Officer
AGE
51
TENURE
9.8 yrs

Jacqui Guichelaar

TITLE
Group Chief Information Officer

Marilyn Mora

TITLE
Director of Global Investor Relations
Board of Directors Tenure

Average tenure and age of the Cisco Systems board of directors in years:

9.6
Average Tenure
61
Average Age
  • The tenure for the Cisco Systems board of directors is about average.
Board of Directors

Chuck Robbins

TITLE
Chairman & CEO
COMPENSATION
$21M
AGE
52
TENURE
2.3 yrs

John Morgridge

TITLE
Chairman Emeritus
AGE
85
TENURE
12.4 yrs

Owen Chan

TITLE
Chairman of Greater China & Co-Chairman of China Board

Rod McGeary

TITLE
Independent Director
COMPENSATION
$356K
AGE
68
TENURE
15.8 yrs

Martha Burns

TITLE
Independent Director
COMPENSATION
$354K
AGE
60
TENURE
15.4 yrs

Michael Capellas

TITLE
Independent Director
COMPENSATION
$324K
AGE
63
TENURE
13.3 yrs

Kristina Johnson

TITLE
Independent Director
COMPENSATION
$316K
AGE
61
TENURE
6.7 yrs

Mark Garrett

TITLE
Independent Director
COMPENSATION
$265K
AGE
60
TENURE
1 yrs

Arun Sarin

TITLE
Independent Director
COMPENSATION
$334K
AGE
63
TENURE
9.6 yrs

Brent Saunders

TITLE
Independent Director
COMPENSATION
$298K
AGE
48
TENURE
2.1 yrs
Who owns this company?
Recent Insider Trading
  • Cisco Systems insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
14. Mar 19 Sell David Goeckeler Individual 12. Mar 19 12. Mar 19 -30,000 $52.07 $-1,562,196
26. Feb 19 Sell Mark Chandler Individual 22. Feb 19 22. Feb 19 -8,853 $50.20 $-444,446
21. Feb 19 Sell Roderick McGeary Individual 19. Feb 19 19. Feb 19 -15,000 $49.66 $-744,906
20. Dec 18 Sell Martha Burns Individual 19. Dec 18 19. Dec 18 -4,744 $44.06 $-209,025
14. Dec 18 Sell Steven West Individual 12. Dec 18 12. Dec 18 -25,000 $47.98 $-1,199,503
06. Dec 18 Sell Irving Tan Individual 03. Dec 18 03. Dec 18 -28,000 $48.43 $-1,356,127
21. Sep 18 Sell David Goeckeler Individual 20. Sep 18 20. Sep 18 -63,050 $47.57 $-2,999,200
14. Sep 18 Sell Irving Tan Individual 14. Sep 18 14. Sep 18 -68,308 $47.38 $-3,236,447
25. Jun 18 Sell David Goeckeler Individual 22. Jun 18 22. Jun 18 -35,000 $43.27 $-1,514,349
X
Management checks
We assess Cisco Systems's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Cisco Systems has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

CSCO News

Simply Wall St News

2 Days Left Until Cisco Systems, Inc. (NASDAQ:CSCO) Trades Ex-Dividend

If you are interested in cashing in on Cisco Systems, Inc.'s (NASDAQ:CSCO) upcoming dividend of US$0.35 per share, you only have 2 days left to buy the shares before its ex-dividend date, 04 April 2019, in time for dividends payable on the 24 April 2019. … Below, I'm going to look at the latest data and analyze the stock and its dividend property in further detail. … How I analyze a dividend stock?

Simply Wall St -

Should You Buy Cisco Systems, Inc. (NASDAQ:CSCO) For Its Dividend?

A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. … Let's take a look at Cisco Systems in more detail. … See our latest analysis for Cisco Systems

Simply Wall St -

Cisco Systems Shareholders Have Enjoyed An Impressive 136% Share Price Gain

For instance, the price of Cisco Systems, Inc. … In more good news, the share price has risen 0.7% in thirty days. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

Simply Wall St -

Could The Cisco Systems, Inc. (NASDAQ:CSCO) Ownership Structure Tell Us Something Useful?

The big shareholder groups in Cisco Systems, Inc. … Generally speaking, as a company grows, institutions will increase their ownership. … We can zoom in on the different ownership groups, to learn more about CSCO

Simply Wall St -

Does Cisco Systems, Inc.'s (NASDAQ:CSCO) CEO Pay Compare Well With Peers?

Chuck Robbins became the CEO of Cisco Systems, Inc. … First, this article will compare CEO compensation with compensation at other large companies. … How Does Chuck Robbins's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Based On Its ROE, Is Cisco Systems, Inc. (NASDAQ:CSCO) A High Quality Stock?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.029 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

How Financially Strong Is Cisco Systems, Inc. (NASDAQ:CSCO)?

There are a number of reasons that attract investors towards large-cap companies such as Cisco Systems, Inc. … This article will examine Cisco Systems’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis

Simply Wall St -

Is Cisco Systems Inc (NASDAQ:CSCO) Expensive For A Reason? A Look At The Intrinsic Value

In this article I am going to calculate the intrinsic value of Cisco Systems Inc (NASDAQ:CSCO). … by taking the expected future cash flows and discounting them to today's value. … Discounted Cash Flows (DCF).

Simply Wall St -

Consider This Before Buying Cisco Systems Inc (NASDAQ:CSCO) For The 2.8% Dividend

Historically, Cisco Systems Inc (NASDAQ:CSCO) has paid dividends to shareholders, and these days it yields 2.8%. … Let's dig deeper into whether Cisco Systems should have a place in your portfolio. … Check out our latest analysis for Cisco Systems

Simply Wall St -

What Kind Of Investor Owns Most Of Cisco Systems Inc (NASDAQ:CSCO)?

Every investor in Cisco Systems Inc (NASDAQ:CSCO) should be aware of the most powerful shareholder groups. … Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … With a market capitalization of US$207.9b, Cisco Systems is rather large.

Simply Wall St -

CSCO Company Info

Description

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 switching products; routing products that interconnect public and private wireline and mobile networks; data center products; and wireless access points for use in voice, video, and data applications. It also provides collaboration products comprising unified communications, TelePresence, and conferencing, as well as the Internet of Things and analytics software. In addition, the company offers security products, including network and data center security, advanced threat protection, Web and email security, access and policy, unified threat management, advisory, integration, and managed services; and other products, such as service provider video software and solutions, and cloud and system management products. Further, it offers technical support services and advanced services; and hyperconvergence software, cloud calling and contact center solutions, and AI-driven relationship intelligence platform. The company serves businesses of various sizes, public institutions, governments, and service providers. It sells its products directly, as well as through channel partners, such as systems integrators, service providers, other resellers, and distributors. The company has collaboration agreements with KT Corporation and Bharti Airtel. Cisco Systems, Inc. was founded in 1984 and is headquartered in San Jose, California.

Details
Name: Cisco Systems, Inc.
CSCO
Exchange: NasdaqGS
Founded: 1984
$248,274,363,182
4,402,027,716
Website: http://www.cisco.com
Address: Cisco Systems, Inc.
170 West Tasman Drive,
San Jose,
California, 95134,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS CSCO Common Shares Nasdaq Global Select US USD 16. Feb 1990
DB CIS Common Shares Deutsche Boerse AG DE EUR 16. Feb 1990
XTRA CIS Common Shares XETRA Trading Platform DE EUR 16. Feb 1990
SWX CSCO Common Shares SIX Swiss Exchange CH CHF 16. Feb 1990
SEHK 4333 Common Shares The Stock Exchange of Hong Kong Ltd. HK HKD 16. Feb 1990
ENXTBR CIS Common Shares Euronext Brussels BE USD 16. Feb 1990
WBAG CSCO Common Shares Wiener Boerse AG AT EUR 16. Feb 1990
SNSE CSCO Common Shares Santiago Stock Exchange CL USD 16. Feb 1990
BMV CSCO * Common Shares Bolsa Mexicana de Valores MX MXN 16. Feb 1990
BVL CSCO Common Shares Bolsa de Valores de Lima PE USD 16. Feb 1990
BOVESPA CSCO34 BDR EACH REPR 1 COM SH Bolsa de Valores de Sao Paulo BR BRL 02. Sep 2013
BASE CSCO CEDEARS EACH 5 REPR 1 COM NPV Buenos Aires Stock Exchange AR ARS 31. Jan 2000
Number of employees
Current staff
Staff numbers
74,200
Cisco Systems employees.
Industry
Communications Equipment
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/18 23:33
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/18
Last earnings filing: 2019/02/19
Last earnings reported: 2019/01/26
Last annual earnings reported: 2018/07/28


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.