Cisco Systems Inc
Exchange: NASDAQSector: TechnologyIndustry: Communication Equipment
Cisco is the worldwide technology leader that is revolutionizing the way organizations connect and protect in the AI era. For more than 40 years, Cisco has securely connected the world. With its industry leading AI-powered solutions and services, Cisco enables its customers, partners and communities to unlock innovation, enhance productivity and strengthen digital resilience. With purpose at its core, Cisco remains committed to creating a more connected and inclusive future for all. Discover more on The Newsroom and follow us on X at @Cisco. Cisco and the Cisco logo are trademarks or registered trademarks of Cisco and/or its affiliates in the U.S. and other countries. A listing of Cisco's trademarks can be found at http://www.cisco.com/go/trademarks. Third-party trademarks mentioned are the property of their respective owners. The use of the word 'partner' does not imply a partnership relationship between Cisco and any other company. Disclaimer: Many of the products and features mentioned are still in development and will be made available as they are finalized, subject to ongoing evolution in development and innovation. The timeline for their release is subject to change. Logo - https://mma.prnewswire.com/media/2808325/Cisco_Logo.jpg
Did you know?
CSCO's revenue grew at a 1.5% CAGR over the last 6 years.
Current Price
$82.22
-1.14%GoodMoat Value
$51.33
37.6% overvaluedProfile
Valuation (TTM)
Market Cap$324.86B
P/E29.33
EV$322.79B
P/B6.94
Shares Out3.95B
P/Sales5.50
Revenue$59.05B
EV/EBITDA19.78
Cisco Systems Inc (CSCO) Stock Analysis
GoodMoat Analysis
Cisco's analysis presents a conflict: it possesses a moderate competitive moat but is priced at a significant premium to its estimated fair value. The GoodMoat Target of $51.33 suggests the current price of $81.83 may lack a margin of safety, making the valuation unfavourable for a value investor.
Read full analysis
Cisco Systems is a dominant provider of networking hardware, software, and services, forming the backbone of enterprise and internet infrastructure. Applying the GoodMoat framework, Cisco likely scores moderately on Moat Identification, meeting criteria such as Switching Costs (mission-critical hardware/software integration), Strategic Partnerships, and Niche Dominance in enterprise networking. However, its Quality Indicators are mixed; while it shows strong ROE of 23.6% and a solid operating margin of 20.8%, its revenue growth of 9.7% YoY is modest and its FCF Yield of 4.1% is not exceptionally high. The critical issue is valuation. The stock trades at a P/E of 29.2, which is high for a company with single-digit revenue growth. More decisively, the provided GoodMoat Target of $51.33 implies the current price of $81.83 is approximately 60% above that estimated intrinsic value, indicating a negative margin of safety. According to the Decision Framework, a stock must first pass the Moat & Quality Gate (which Cisco arguably could) and then show a Margin of Safety of at least 20% to be considered favourable. The current data suggests a significant overvaluation, placing Cisco in the 'Unfavourable' category for a value investor seeking a margin of safety. Further investigation would require a compelling challenge to the valuation assumptions behind the $51.33 target. Analysis based on data as of 2024-05-15.
Market Cap$324.86B
Current Price$82.22
P/E Ratio29.33
Forward P/E—
PEG Ratio0.94
EPS$2.55
Book Value$11.86
P/B Ratio6.94
CSCO Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use -1.9% FCF growth (CAGR)
Cash vs Debt
Net Debt: 19.7B
Revenue
51.9B
FY19
49.3B
FY20
49.8B
FY21
51.6B
FY22
57.0B
FY23
53.8B
FY24
56.7B
FY25
Net Income
11.6B
FY19
11.2B
FY20
10.6B
FY21
11.8B
FY22
12.6B
FY23
10.3B
FY24
10.2B
FY25
CSCO 52-Week Range
$53.16
$86.32
50-Day MA: $79.39200-Day MA: $72.86
Did you know?
CSCO's revenue grew at a 1.5% CAGR over the last 6 years.
Cisco Systems Inc (CSCO) Financial Summary
Cisco Systems Inc (CSCO) is a Technology company in the Communication Equipment industry, listed on NASDAQ. The stock currently trades at $82.22 with a market capitalization of $324.86B.
Key valuation metrics include a P/E ratio of 29.33, price-to-book ratio of 6.94, and EPS of $2.55. The company reports a profit margin of 18.8% and return on equity of 23.6%.
CSCO Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $324.86B |
| P/E Ratio | 29.33 |
| EPS | $2.55 |
| P/B Ratio | 6.94 |
| P/S Ratio | 5.50 |
| EV/EBITDA | 19.78 |
| Dividend Yield | 1.98% |
| Profit Margin | 18.8% |
| Return on Equity | 23.6% |
| Debt/Equity | 0.60 |
CSCO Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $51.90B | $11.62B |
| FY20 | $49.30B | $11.21B |
| FY21 | $49.82B | $10.59B |
| FY22 | $51.56B | $11.81B |
| FY23 | $57.00B | $12.61B |
| FY24 | $53.80B | $10.32B |
| FY25 | $56.65B | $10.18B |
Cisco Systems Inc (CSCO) Valuation
Based on GoodMoat's DCF model, Cisco Systems Inc has a fair value estimate of $51.33. At the current price of $82.22, the stock appears 60.2% overvalued relative to our intrinsic value estimate.
CSCO Quality Indicators
Cisco Systems Inc maintains a profit margin of 18.8% and an operating margin of 20.8%. Return on equity stands at 23.6%. The current ratio is 1.00. Debt-to-equity ratio is 0.60.
About Cisco Systems Inc
Cisco is the worldwide technology leader that is revolutionizing the way organizations connect and protect in the AI era. For more than 40 years, Cisco has securely connected the world. With its industry leading AI-powered solutions and services, Cisco enables its customers, partners and communities to unlock innovation, enhance productivity and strengthen digital resilience. With purpose at its core, Cisco remains committed to creating a more connected and inclusive future for all. Discover more on The Newsroom and follow us on X at @Cisco. Cisco and the Cisco logo are trademarks or registered trademarks of Cisco and/or its affiliates in the U.S. and other countries. A listing of Cisco's trademarks can be found at http://www.cisco.com/go/trademarks. Third-party trademarks mentioned are the property of their respective owners. The use of the word 'partner' does not imply a partnership relationship between Cisco and any other company. Disclaimer: Many of the products and features mentioned are still in development and will be made available as they are finalized, subject to ongoing evolution in development and innovation. The timeline for their release is subject to change. Logo - https://mma.prnewswire.com/media/2808325/Cisco_Logo.jpg
CSCO Free Cash Flow
Cisco Systems Inc generated $13.29B in trailing twelve-month free cash flow, representing an FCF yield of 4.09%. This moderate FCF yield indicates reasonable cash generation.
CSCO Shares Outstanding
Cisco Systems Inc has 3.95 billion shares outstanding at a share price of $82.22, giving it a market capitalization of $324.86B.
CSCO Recent Insider Trades
Recent insider transactions at Cisco Systems Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Patterson Mark (EVP and CFO) | SELL | 2,391 | $185727.38 |
| Tuszik Oliver (EVP, Global Sales) | SELL | 3,132 | $249745.68 |
| Stahlkopf Deborah L (EVP and Chief Legal Officer) | SELL | 7,981 | $634513.44 |