Cisco Systems Stock Fundamentals
| CSCO Stock | USD 47.88 0.64 1.35% |
Cisco Systems fundamentals help investors to digest information that contributes to Cisco Systems' financial success or failures. It also enables traders to predict the movement of Cisco Stock. The fundamental analysis module provides a way to measure Cisco Systems' intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Cisco Systems stock.
At this time, Cisco Systems' EBITDA is very stable compared to the past year. As of the 27th of July 2024, Cost Of Revenue is likely to grow to about 25.7 B, while Depreciation And Amortization is likely to drop about 1.6 B. Cisco | Select Account or Indicator |
Cisco Systems Company Operating Margin Analysis
Cisco Systems' Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Current Cisco Systems Operating Margin | 0.22 % |
Most of Cisco Systems' fundamental indicators, such as Operating Margin, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Cisco Systems is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Cisco Operating Margin Historical Pattern
Today, most investors in Cisco Systems Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Cisco Systems' growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's operating margin growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of Cisco Systems operating margin as a starting point in their analysis.
Cisco Systems Operating Margin |
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A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
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Cisco Pretax Profit Margin
Pretax Profit Margin |
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Based on the recorded statements, Cisco Systems has an Operating Margin of 0.219%. This is 102.48% lower than that of the Communications Equipment sector and 102.23% lower than that of the Information Technology industry. The operating margin for all United States stocks is 103.97% lower than that of the firm.
Cisco Systems Fundamental Drivers Relationships
Comparative valuation techniques use various fundamental indicators to help in determining Cisco Systems's current stock value. Our valuation model uses many indicators to compare Cisco Systems value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Cisco Systems competition to find correlations between indicators driving Cisco Systems's intrinsic value. More Info.Cisco Systems is rated second in return on equity category among its peers. It also is rated second in return on asset category among its peers reporting about 0.31 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Cisco Systems is roughly 3.28 . At this time, Cisco Systems' Return On Equity is very stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Cisco Systems' earnings, one of the primary drivers of an investment's value.Cisco Systems' Earnings Breakdown by Geography
Cisco Operating Margin Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Cisco Systems' direct or indirect competition against its Operating Margin to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Cisco Systems could also be used in its relative valuation, which is a method of valuing Cisco Systems by comparing valuation metrics of similar companies.Cisco Systems is currently under evaluation in operating margin category among its peers.
Cisco Systems ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Cisco Systems' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Cisco Systems' managers, analysts, and investors.Environmental | Governance | Social |
Cisco Fundamentals
| Return On Equity | 0.28 | ||||
| Return On Asset | 0.084 | ||||
| Profit Margin | 0.22 % | ||||
| Operating Margin | 0.22 % | ||||
| Current Valuation | 206.59 B | ||||
| Shares Outstanding | 4.03 B | ||||
| Shares Owned By Insiders | 0.04 % | ||||
| Shares Owned By Institutions | 78.67 % | ||||
| Number Of Shares Shorted | 56.15 M | ||||
| Price To Earning | 17.95 X | ||||
| Price To Book | 4.25 X | ||||
| Price To Sales | 3.43 X | ||||
| Revenue | 57 B | ||||
| Gross Profit | 35.75 B | ||||
| EBITDA | 18 B | ||||
| Net Income | 12.61 B | ||||
| Cash And Equivalents | 10.12 B | ||||
| Cash Per Share | 4.82 X | ||||
| Total Debt | 8.39 B | ||||
| Debt To Equity | 0.24 % | ||||
| Current Ratio | 1.45 X | ||||
| Book Value Per Share | 11.35 X | ||||
| Cash Flow From Operations | 19.89 B | ||||
| Short Ratio | 2.74 X | ||||
| Earnings Per Share | 2.96 X | ||||
| Price To Earnings To Growth | 3.43 X | ||||
| Target Price | 50.4 | ||||
| Number Of Employees | 84.9 K | ||||
| Beta | 0.84 | ||||
| Market Capitalization | 192.9 B | ||||
| Total Asset | 101.85 B | ||||
| Retained Earnings | 1.64 B | ||||
| Working Capital | 12.04 B | ||||
| Current Asset | 78.72 B | ||||
| Current Liabilities | 24.91 B | ||||
| Annual Yield | 0.03 % | ||||
| Five Year Return | 2.92 % | ||||
| Net Asset | 101.85 B | ||||
| Last Dividend Paid | 1.57 |
About Cisco Systems Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Cisco Systems's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Cisco Systems using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Cisco Systems based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.| Last Reported | Projected for Next Year | ||
| Current Deferred Revenue | 16 B | 16.8 B | |
| Total Revenue | 65.5 B | 68.8 B | |
| Cost Of Revenue | 24.4 B | 25.7 B | |
| Stock Based Compensation To Revenue | 0.04 | 0.02 | |
| Sales General And Administrative To Revenue | 0.04 | 0.03 | |
| Research And Ddevelopement To Revenue | 0.13 | 0.15 | |
| Capex To Revenue | 0.01 | 0.01 | |
| Revenue Per Share | 11.80 | 12.39 | |
| Ebit Per Revenue | 0.26 | 0.28 |
Pair Trading with Cisco Systems
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Cisco Systems position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cisco Systems will appreciate offsetting losses from the drop in the long position's value.Moving against Cisco Stock
| 0.55 | WDC | Western Digital Earnings Call This Week | PairCorr |
| 0.53 | PSTG | Pure Storage | PairCorr |
| 0.34 | HPQ | HP Inc Fiscal Year End 19th of November 2024 | PairCorr |
| 0.32 | NTAP | NetApp Inc | PairCorr |
The ability to find closely correlated positions to Cisco Systems could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Cisco Systems when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Cisco Systems - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Cisco Systems to buy it.
The correlation of Cisco Systems is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Cisco Systems moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Cisco Systems moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Cisco Systems can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Additional Information and Resources on Investing in Cisco Stock
When determining whether Cisco Systems offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Cisco Systems' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Cisco Systems Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Cisco Systems Stock:Check out Cisco Systems Piotroski F Score and Cisco Systems Altman Z Score analysis. To learn how to invest in Cisco Stock, please use our How to Invest in Cisco Systems guide.You can also try the Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Is Communications Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Cisco Systems. If investors know Cisco will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Cisco Systems listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.41) | Dividend Share 1.57 | Earnings Share 2.96 | Revenue Per Share 13.649 | Quarterly Revenue Growth (0.13) |
The market value of Cisco Systems is measured differently than its book value, which is the value of Cisco that is recorded on the company's balance sheet. Investors also form their own opinion of Cisco Systems' value that differs from its market value or its book value, called intrinsic value, which is Cisco Systems' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Cisco Systems' market value can be influenced by many factors that don't directly affect Cisco Systems' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Cisco Systems' value and its price as these two are different measures arrived at by different means. Investors typically determine if Cisco Systems is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cisco Systems' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.