Cisco Is a Large Player in the Networking and Technology Space

Cisco is a well known company in the technology field and can be noted for simple items such as wireless internet routers, all the way to commercial servers and other networking tools. When a company is heavily vested in the technology sector, the one aspect they are always fighting is time. The reason for that is technology changes almost daily and there is always a newer and greater invention and creation to use.

Published over a year ago
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Reviewed by Vlad Skutelnik

Looking forward, there will be a greater reliance on technology and this company is in the right position to capitalize. Certainly there are other companies out there that may create and produce similar items, but you have to see if Cisco is a stand out in that field, or if the work along side these companies. If you take a look at the chart, you will that the company is creating a double top and retesting the previous highs. This is important to look at because it essentially means it is decision time for the market. They’ve pushed it back to the highs, and if you are a person who wants to see it go higher, you want to ensure there is volume behind it. Without the volume, it will likely retrace off the highs and come back to another price level.

Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Cisco Systems income statement, its balance sheet, and the statement of cash flows. Potential Cisco Systems investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Cisco Systems investors may use each financial statement separately, they are all related. The changes in Cisco Systems's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Cisco Systems's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of Cisco Systems fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Cisco Systems performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Cisco Systems shares is the value that is considered the true value of the share. If the intrinsic value of Cisco is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Cisco Systems. Please read more on our fundamental analysis page.

How effective is Cisco Systems in utilizing its assets?

Cisco Systems reports assets on its Balance Sheet. It represents the amount of Cisco resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Cisco Systems aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Communications Equipment space. To get a better handle on how balance sheet or income statements item affect Cisco volatility, please check the breakdown of all its fundamentals.

Are Cisco Systems Earnings Expected to grow?

The future earnings power of Cisco Systems involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Cisco Systems factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Cisco Systems stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Cisco expected earnings.

And What about dividends?

A dividend is the distribution of a portion of Cisco Systems earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Cisco Systems dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Cisco one year expected dividend income is about USD1.03 per share.
As of the 19th of April 2024, Dividend Paid And Capex Coverage Ratio is likely to grow to 2.97, while Dividends Paid is likely to drop about 4.7 B.
Last ReportedProjected for Next Year
Dividends Paid7.2 B4.7 B
Dividend Yield 0.03  0.02 
Dividend Payout Ratio 0.58  0.55 
Dividend Paid And Capex Coverage Ratio 2.82  2.97 
Investing in dividend-paying stocks, such as Cisco Systems is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Cisco Systems must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Cisco Systems. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

Cisco Systems Gross Profit

Cisco Systems Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Cisco Systems previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Cisco Systems Gross Profit growth over the last 10 years. Please check Cisco Systems' gross profit and other fundamental indicators for more details.

Is Cisco Systems valued appropriately by the market?

Of course there is always risk investing in the technology sector as this is ever changing and all it takes is one slip up or the next greatest invention to take market share away. A risk to keep in mind is that the product quality has to be the best, especially in this field. Retail and commercial consumers alike are looking for the best performing tech and if it begins to slow or underperforms, they will switch brands no problem. Another risk to keep in mind is that competition in this field is insane, and that there are many companies that all work on similar products. Be sure to take a look at all the companies and find which ones fit your investing objectives because you may find out that technology is not the place to be for your current situation.

This is a reputable company and certainly shouldn’t be dismissed. However, you need to take your time, research deeply, and see what the company has in store for the future. Compare apples to apples and see what each company has to offer, and then pick the one with the best value. If you get stuck, reach out to an investing professional and they can help to point you in the right direction.

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Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nathan Young do not own shares of Cisco Systems. Please refer to our Terms of Use for any information regarding our disclosure principles.

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