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Cisco Systems Inc CSCO

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Stock XNAS Rating as of
$48.32 +0.21 (0.44%)
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As of Delayed Price Post-Trading: $48.32 0.00
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Company Report

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Cisco Is a Networking Giant With Wide-Moat Profits and Cash Flow

William Kerwin

We view Cisco Systems as the dominant force in enterprise networking and expect it to retain its strength in both legacy and future networks. Cisco holds leading market shares across switching, routing, and wireless access, with strong complementary positions in security and collaboration. We believe Cisco’s portfolio is appropriately positioned to benefit from trends toward hybrid work and hybrid cloud environments. It offers the most comprehensive suite of capabilities across converging networking and security markets, and we deem its intertwined products as sticky and worthy of a wide economic moat.

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Price vs Fair Value

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CSCO is trading within a range we consider fairly valued.
Price
$48.11
Fair Value
$26.00
Uncertainty
Medium
1-Star Price
$68.50
5-Star Price
$84.00
Economic Moat
Ctykt
Capital Allocation
Nnlrxldt

Bulls Say, Bears Say

Bulls

Cisco holds dominant market shares across networking, and leading shares in areas like switching software and software-defined wide-area networking, or SD-WAN, bode well for its position in the next era.

Bears

Cisco’s core markets of networking don’t offer robust growth opportunities, and it has to seek top-line upside from nascent corners or other markets where it is less competitively advantaged.

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Trading Information

Previous Close Price
$48.11
Day Range
$48.03–48.43
52-Week Range
$45.56–58.19
Bid/Ask
$48.15 / $48.32
Market Cap
$195.66 Bil
Volume/Avg
21.0 Mil / 20.0 Mil

Key Statistics

Price/Earnings (Normalized)
11.59
Price/Sales
3.41
Dividend Yield (Trailing)
3.26%
Dividend Yield (Forward)
3.33%
Total Yield
5.78%

Company Profile

Cisco Systems is the largest provider of networking equipment in the world and one of the largest software companies in the world. Its largest businesses are selling networking hardware and software (where it has leading market shares) and cybersecurity software like firewalls. It also has collaboration products, like its Webex suite, and observability tools. It primarily outsources its manufacturing to third parties and has a large sales and marketing staff—25,000 strong across 90 countries. Overall, Cisco employees 80,000 employees and sells its products globally.
Sector
Technology
Industry
Communication Equipment
Stock Style Box
Large Value
Total Number of Employees
84,900
Website
https://www.cisco.com

Competitors

Valuation

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Metric
CSCO
HPE
PANW
Price/Earnings (Normalized)
 11.598.4856.57
Price/Book Value
 4.181.0320.82
Price/Sales
 3.410.8013.13
Price/Cash Flow
 12.104.1842.11
Price/Earnings
CSCO
HPE
PANW

Financial Strength

Metric
CSCO
HPE
PANW
Quick Ratio
 1.100.490.74
Current Ratio
 1.370.890.83
Interest Coverage
 33.7610.5455.88
Quick Ratio
CSCO
HPE
PANW

Profitability

Metric
CSCO
HPE
PANW
Return on Assets (Normalized)
 17.02%4.66%12.10%
Return on Equity (Normalized)
 38.38%12.75%88.54%
Return on Invested Capital (Normalized)
 30.59%8.37%32.00%
Return on Assets
CSCO
HPE
PANW
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