CSCO GoodMoat Verdict
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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) Quality Analysis
GoodMoat Analysis
Cisco demonstrates strong profitability with robust margins and returns on capital, meeting several quality thresholds for a value investor. However, its competitive moat appears limited, with a score likely below the 5+ threshold, indicating a lack of durable structural advantages.
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Cisco's quality indicators are a mix of strong and neutral. The business is highly profitable, with an operating margin of 20.8% and a profit margin of 18.8%. Its Return on Equity of 23.6% exceeds the framework's high-quality threshold of 15-20%, indicating efficient use of shareholder capital. The balance sheet is solid with a moderate Debt/Equity ratio of 0.60, and the company is firmly GAAP profitable. However, the 9.7% YoY revenue growth is below the consistent double-digit target, and the 4.1% Free Cash Flow Yield, while positive, is below the preferred 10-15% FCF margin threshold. The moat assessment is less favourable. Cisco likely scores points for switching costs (mission-critical networking), niche dominance in enterprise networking, and a degree of scale. Yet, it faces high disruption risk from large cloud providers and software-defined networking, and lacks the network effects, proprietary data, or extreme pricing power seen in stronger moats. Compared to faster-growing, asset-light software peers, Cisco's growth and margins are adequate but not exceptional, positioning it as a stable, cash-generative business rather than a high-quality compounder with an unassailable competitive position.
CSCO Profitability
Profitability trend analysis coming soon
CSCO Growth
Growth trend analysis coming soon
CSCO Financial Health
Financial health indicators coming soon
CSCO Quality & Fundamental Analysis
Cisco Systems Inc (CSCO) is a Technology company in the Communication Equipment industry, listed on NASDAQ. This quality analysis page evaluates Cisco Systems Inc's financial health using the Piotroski F-Score methodology, profitability ratios, growth trajectory, and balance sheet strength.
Cisco Systems Inc has a Piotroski F-Score of N/A out of 9, measuring profitability, leverage, and operating efficiency. The company operates with a profit margin of 18.76% and a return on equity (ROE) of 23.64%. Return on assets (ROA) stands at 9.06%.
The debt-to-equity ratio is 0.60, with a current ratio of 1.00. Operating margin is 20.76%.
GoodMoat's quality analysis uses AI-powered insights to evaluate whether Cisco Systems Inc is a fundamentally sound investment. The GoodMoat Verdict synthesizes profitability, growth, and financial health scores into a clear investment quality rating. Use these metrics alongside valuation tools like the DCF calculator and fair value models to make informed investment decisions.