NasdaqGS:CSCO

Stock Analysis Report

Executive Summary

Cisco Systems, Inc. designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry worldwide.

Snowflake

Fundamentals

Solid track record with adequate balance sheet.


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


Market Performance


7 Day Return

2.4%

NasdaqGS:CSCO

2.4%

US Communications

1.3%

US Market


1 Year Return

5.5%

NasdaqGS:CSCO

0.8%

US Communications

2.0%

US Market

CSCO outperformed the Communications industry which returned 0.8% over the past year.

CSCO outperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

CSCOIndustryMarket
7 Day2.4%2.4%1.3%
30 Day6.5%6.1%3.9%
90 Day-9.7%-6.9%3.4%
1 Year8.4%5.5%3.0%0.8%4.2%2.0%
3 Year78.1%62.2%57.5%47.6%47.2%37.6%
5 Year132.4%98.5%87.6%68.1%60.5%42.9%

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 based on future cash flows and its price relative to the stock market?

19.02x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Cisco Systems's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Cisco Systems's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

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

Cisco Systems is poor value based on expected growth next year.


Price Based on Value of Assets

Cisco Systems is overvalued based on assets compared to the US Communications industry average.


Next Steps

Future Growth

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

3.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Cisco Systems's revenue is expected to grow by 2.5% yearly, however this is not considered high growth (20% yearly).

Cisco Systems's earnings are expected to grow by 3.7% yearly, however this is not considered high growth (20% yearly).

Cisco Systems's revenue growth is positive but not above the United States of America market average.

Cisco Systems's earnings growth is positive but not above the United States of America market average.

Cisco Systems's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Cisco Systems is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

How has Cisco Systems performed over the past 5 years?

-5.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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's 1-year earnings growth exceeds its 5-year average (12152.5% vs -5.7%)

Cisco Systems's earnings growth has exceeded the US Communications industry average in the past year (12152.5% vs 22.3%).


Return on Equity

Cisco Systems has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Cisco Systems used its assets more efficiently than the US Communications industry average last year based on Return on Assets.


Return on Capital Employed

Cisco Systems has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Cisco Systems's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Cisco Systems's level of debt (73.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (36.8% vs 73.5% today).

Debt is well covered by operating cash flow (64.2%, greater than 20% of total debt).

Cisco Systems earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.9x debt.


Next Steps

Dividend

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

3.04%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Cisco Systems's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

Cisco Systems's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

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

Dividends paid are covered by earnings (1.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.3x coverage).


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Chuck Robbins (53yo)

4.2yrs

Tenure

US$21,284,339

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. Mr. Robbins as Chairma ...


CEO Compensation Analysis

Chuck's remuneration is higher than average for companies of similar size in United States of America.

Chuck's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.6yrs

Average Tenure

52.5yo

Average Age

The tenure for the Cisco Systems management team is about average.


Board Age and Tenure

10.0yrs

Average Tenure

64yo

Average Age

The average tenure for the Cisco Systems board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$1,124,23614 Jun 19
Steven West
EntityIndividual
Shares20,000
Max PriceUS$56.21
BuyUS$557,40411 Jun 19
Wesley Bush
EntityIndividual
Shares10,000
Max PriceUS$55.74
SellUS$1,562,19614 Mar 19
David Goeckeler
EntityIndividual
Role
Senior Key Executive
Executive VP and GM of Networking & Security Business
Shares30,000
Max PriceUS$52.07
SellUS$444,44626 Feb 19
Mark Chandler
EntityIndividual
Shares8,853
Max PriceUS$50.20
SellUS$744,90621 Feb 19
Roderick McGeary
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares15,000
Max PriceUS$49.66
SellUS$209,02520 Dec 18
Martha Burns
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,744
Max PriceUS$44.06
SellUS$1,199,50314 Dec 18
Steven West
EntityIndividual
Shares25,000
Max PriceUS$47.98
SellUS$1,356,12706 Dec 18
Tiang Yew Tan
EntityIndividual
Role
Chief Operating Officer
Senior VP & Chief of Operations
Shares28,000
Max PriceUS$48.43
SellUS$2,999,20021 Sep 18
David Goeckeler
EntityIndividual
Role
Senior Key Executive
Executive VP and GM of Networking & Security Business
Shares63,050
Max PriceUS$47.57

Ownership Breakdown


Management Team

  • Maria Martinez (61yo)

    Executive VP & Chief Customer Experience Officer

    • Tenure: 1.4yrs
    • Compensation: US$19.34m
  • Gerri Elliott (62yo)

    Executive VP and Chief Sales & Marketing Officer

    • Tenure: 1.4yrs
    • Compensation: US$16.85m
  • Marilyn Mora

    Director of Global Investor Relations

    • Tenure: 0yrs
  • Kelly Kramer (51yo)

    Executive VP & CFO

    • Tenure: 4.7yrs
    • Compensation: US$11.44m
  • Chuck Robbins (53yo)

    Chairman & CEO

    • Tenure: 4.2yrs
    • Compensation: US$21.28m
  • Prat Bhatt (52yo)

    Chief Accounting Officer

    • Tenure: 10.2yrs
  • Amy Chang (42yo)

    Senior Vice President of Collaboration Technology Group

    • Tenure: 1.7yrs
    • Compensation: US$293.97k
  • Jacqui Guichelaar

    Group Chief Information Officer

    • Tenure: 0yrs
  • Irving Tan (49yo)

    Senior VP & Chief of Operations

    • Tenure: 1.7yrs
  • David Goeckeler (57yo)

    Executive VP and GM of Networking & Security Business

    • Tenure: 3.5yrs
    • Compensation: US$11.09m

Board Members

  • Michael Capellas (64yo)

    Independent Director

    • Tenure: 13.7yrs
    • Compensation: US$323.97k
  • John Morgridge (86yo)

    Chairman Emeritus

    • Tenure: 12.8yrs
  • Arun Sarin (64yo)

    Independent Director

    • Tenure: 10yrs
    • Compensation: US$333.97k
  • Abe Peled (74yo)

    Chairman of Cisco’s SPVSS Business

    • Tenure: 0.4yrs
  • Martha Burns (61yo)

    Independent Director

    • Tenure: 15.8yrs
    • Compensation: US$353.97k
  • Rod McGeary (69yo)

    Independent Director

    • Tenure: 16.2yrs
    • Compensation: US$355.97k
  • Mark Garrett (61yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$264.97k
  • Kristina Johnson (62yo)

    Independent Director

    • Tenure: 7.1yrs
    • Compensation: US$315.97k
  • Owen Chan

    Chairman of Greater China & Co-Chairman of China Board

    • Tenure: 0yrs
  • Chuck Robbins (53yo)

    Chairman & CEO

    • Tenure: 4.2yrs
    • Compensation: US$21.28m

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$212.392b
  • Shares outstanding: 4.25b
  • Website: https://www.cisco.com

Number of Employees


Location

  • Cisco Systems, Inc.
  • 170 West Tasman Drive
  • San Jose
  • California
  • 95134
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CISXTRA (XETRA Trading Platform)YesCommon SharesDEEURFeb 1990
CSCONasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDFeb 1990
CSCOWBAG (Wiener Boerse AG)YesCommon SharesATEURFeb 1990
CISDB (Deutsche Boerse AG)YesCommon SharesDEEURFeb 1990
4333SEHK (The Stock Exchange of Hong Kong Ltd.)YesCommon SharesHKHKDFeb 1990
CSCOSWX (SIX Swiss Exchange)YesCommon SharesCHCHFFeb 1990
CSCO *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNFeb 1990
CSCOBVL (Bolsa de Valores de Lima)YesCommon SharesPEUSDFeb 1990
CSCOSNSE (Santiago Stock Exchange)YesCommon SharesCLUSDFeb 1990
CISENXTBR (Euronext Brussels)YesCommon SharesBEUSDFeb 1990
CSCOBASE (Buenos Aires Stock Exchange)CEDEARS EACH 5 REPR 1 COM NPVARARSJan 2000
CSCO34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM SHBRBRLSep 2013

Biography

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 sw ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 23:33
End of Day Share Price2019/09/13 00:00
Earnings2019/07/27
Annual Earnings2019/07/27


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.