Is Cisco Systems Stock a Good Investment?
Cisco Systems Investment Advice | CSCO |
- Examine Cisco Systems' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Cisco Systems' leadership team and their track record. Good management can help Cisco Systems navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Communications Equipment space and any emerging trends that could impact Cisco Systems' business and its evolving consumer preferences.
- Compare Cisco Systems' performance and market position to its competitors. Analyze how Cisco Systems is positioned in terms of product offerings, innovation, and market share.
- Check if Cisco Systems pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Cisco Systems' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Cisco Systems stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Cisco Systems is a good investment.
Sell | Buy |
Strong Hold
Market Performance | OK | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Examine Cisco Systems Stock
Researching Cisco Systems' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 79.0% of the company shares are held by institutions such as insurance companies. The book value of Cisco Systems was currently reported as 11.31. The company has Price/Earnings To Growth (PEG) ratio of 2.45. Cisco Systems last dividend was issued on the 2nd of October 2024. The entity had 2:1 split on the 23rd of March 2000.
To determine if Cisco Systems is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Cisco Systems' research are outlined below:
| Over 79.0% of the company shares are held by institutions such as insurance companies | |
| On 24th of July 2024 Cisco Systems paid $ 0.4 per share dividend to its current shareholders | |
| Latest headline from seekingalpha.com: Elastic sees lower customer commitments impacting revenue |
Cisco Systems Quarterly Liabilities And Stockholders Equity |
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Cisco Systems uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Cisco Systems. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Cisco Systems' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 15th of May 2024 Upcoming Quarterly Report | View | |
| 21st of August 2024 Next Financial Report | View | |
| 30th of April 2024 Next Fiscal Quarter End | View | |
| 21st of August 2024 Next Fiscal Year End | View | |
| 31st of January 2024 Last Quarter Report | View | |
| 31st of July 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Cisco Systems' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Cisco Systems' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
1999-08-10 | 1999-07-31 | 0.1 | 0.11 | 0.01 | 10 | ||
1999-05-11 | 1999-04-30 | 0.09 | 0.1 | 0.01 | 11 | ||
1999-02-02 | 1999-01-31 | 0.09 | 0.1 | 0.01 | 11 | ||
1998-11-04 | 1998-10-31 | 0.08 | 0.09 | 0.01 | 12 | ||
1998-05-05 | 1998-04-30 | 0.07 | 0.08 | 0.01 | 14 | ||
1997-11-04 | 1997-10-31 | 0.06 | 0.07 | 0.01 | 16 | ||
1996-08-15 | 1996-07-31 | 0.04 | 0.05 | 0.01 | 25 | ||
2003-11-05 | 2003-10-31 | 0.15 | 0.17 | 0.02 | 13 |
Know Cisco Systems' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Cisco Systems is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Cisco Systems backward and forwards among themselves. Cisco Systems' institutional investor refers to the entity that pools money to purchase Cisco Systems' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Northern Trust Corp | 2024-03-31 | 45.9 M | Wells Fargo & Co | 2024-03-31 | 45.7 M | Ameriprise Financial Inc | 2024-03-31 | 41.3 M | Amvescap Plc. | 2024-03-31 | 37 M | Goldman Sachs Group Inc | 2024-03-31 | 35.6 M | Ubs Group Ag | 2024-03-31 | 30.7 M | First Trust Advisors L.p. | 2024-03-31 | 28.1 M | Ubs Asset Mgmt Americas Inc | 2024-03-31 | 26.8 M | Jpmorgan Chase & Co | 2024-03-31 | 26.5 M | Vanguard Group Inc | 2024-03-31 | 384.2 M | Blackrock Inc | 2024-03-31 | 350.3 M |
Cisco Systems' market capitalization trends
The company currently falls under 'Mega-Cap' category with a current market capitalization of 203.62 B.Market Cap |
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Cisco Systems' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.16 | 0.18 | |
| Return On Capital Employed | 0.15 | 0.28 | |
| Return On Assets | 0.08 | 0.14 | |
| Return On Equity | 0.23 | 0.26 |
Determining Cisco Systems' profitability involves analyzing its financial statements and using various financial metrics to determine if Cisco Systems is a good buy. For example, gross profit margin measures Cisco Systems' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Cisco Systems' profitability and make more informed investment decisions.
Cisco Systems' Earnings Breakdown by Geography
Evaluate Cisco Systems' management efficiency
Cisco Systems has return on total asset (ROA) of 0.0718 % which means that it generated a profit of $0.0718 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.2298 %, meaning that it created $0.2298 on every $100 dollars invested by stockholders. Cisco Systems' management efficiency ratios could be used to measure how well Cisco Systems manages its routine affairs as well as how well it operates its assets and liabilities. As of the 31st of August 2024, Return On Tangible Assets is likely to grow to 0.18. Also, Return On Capital Employed is likely to grow to 0.28. At this time, Cisco Systems' Return On Tangible Assets are very stable compared to the past year. As of the 31st of August 2024, Intangibles To Total Assets is likely to grow to 0.50, while Total Current Assets are likely to drop about 32.3 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 11.24 | 11.81 | |
| Tangible Book Value Per Share | (3.27) | (3.10) | |
| Enterprise Value Over EBITDA | 14.17 | 22.50 | |
| Price Book Value Ratio | 4.31 | 8.04 | |
| Enterprise Value Multiple | 14.17 | 22.50 | |
| Price Fair Value | 4.31 | 8.04 | |
| Enterprise Value | 274.7 M | 261 M |
The analysis of Cisco Systems' management efficiency is an essential part of evaluating and assessing the financial and operational performance of the entity. It is also vital to analyze Cisco Systems' future growth prospects and the overall market conditions to determine the value and potential of its stock. The analysis involves studying a range of financial metrics such as revenue, earnings, profit margins, cash flow, debt, market share, and external factors such as economic trends, industry outlook, competition, and government regulations. The goal of Cisco Stock analysis is to determine whether it is undervalued, fairly valued, or overvalued and to make informed investment decisions.
Dividend Yield 0.0317 | Forward Dividend Yield 0.0317 | Forward Dividend Rate 1.6 | Beta 0.844 |
Basic technical analysis of Cisco Stock
As of the 31st of August, Cisco Systems shows the Risk Adjusted Performance of 0.0935, mean deviation of 0.9231, and Downside Deviation of 1.42. Cisco Systems technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.Cisco Systems' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Cisco Systems insiders, such as employees or executives, is commonly permitted as long as it does not rely on Cisco Systems' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Cisco Systems insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Wong Maria Victoria over six months ago Sale by Wong Maria Victoria of 5060 shares of Cisco Systems | ||
Wong Maria Victoria over six months ago Payment of 4983 shares by Wong Maria Victoria of Cisco Systems subject to Rule 16b-3 | ||
Wong Maria Victoria over six months ago Acquisition by Wong Maria Victoria of 13287 shares of Cisco Systems subject to Rule 16b-3 | ||
Wong Maria Victoria over six months ago Sale by Wong Maria Victoria of 206 shares of Cisco Systems | ||
Wong Maria Victoria over six months ago Payment of 109 shares by Wong Maria Victoria of Cisco Systems subject to Rule 16b-3 | ||
Steven West over a year ago Bona fide gift to Steven West of 5663 shares of Cisco Systems subject to Section 16 | ||
Steven West over a year ago Sale by Steven West of 15000 shares of Cisco Systems | ||
Steven West over a year ago Bona fide gift to Steven West of 8870 shares of Cisco Systems subject to Section 16 |
Cisco Systems' Outstanding Corporate Bonds
Cisco Systems issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Cisco Systems uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Cisco bonds can be classified according to their maturity, which is the date when Cisco Systems has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| CISCO SYS INC Corp BondUS17275RAF91 | View | |
| CISCO SYS INC Corp BondUS17275RAD44 | View | |
| CISCO SYS INC Corp BondUS17275RBL50 | View | |
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| CISCO SYS INC Corp BondUS17275RAW25 | View | |
| CVS Health Corp Corp BondUS126650DE72 | View |
Understand Cisco Systems' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Cisco Systems' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0935 | |||
| Market Risk Adjusted Performance | 0.1472 | |||
| Mean Deviation | 0.9231 | |||
| Semi Deviation | 1.12 | |||
| Downside Deviation | 1.42 | |||
| Coefficient Of Variation | 864.74 | |||
| Standard Deviation | 1.41 | |||
| Variance | 1.98 | |||
| Information Ratio | 0.0294 | |||
| Jensen Alpha | 0.0288 | |||
| Total Risk Alpha | (0.05) | |||
| Sortino Ratio | 0.0292 | |||
| Treynor Ratio | 0.1372 | |||
| Maximum Drawdown | 8.5 | |||
| Value At Risk | (1.70) | |||
| Potential Upside | 1.66 | |||
| Downside Variance | 2.01 | |||
| Semi Variance | 1.25 | |||
| Expected Short fall | (0.90) | |||
| Skewness | 1.0 | |||
| Kurtosis | 7.67 |
| Risk Adjusted Performance | 0.0935 | |||
| Market Risk Adjusted Performance | 0.1472 | |||
| Mean Deviation | 0.9231 | |||
| Semi Deviation | 1.12 | |||
| Downside Deviation | 1.42 | |||
| Coefficient Of Variation | 864.74 | |||
| Standard Deviation | 1.41 | |||
| Variance | 1.98 | |||
| Information Ratio | 0.0294 | |||
| Jensen Alpha | 0.0288 | |||
| Total Risk Alpha | (0.05) | |||
| Sortino Ratio | 0.0292 | |||
| Treynor Ratio | 0.1372 | |||
| Maximum Drawdown | 8.5 | |||
| Value At Risk | (1.70) | |||
| Potential Upside | 1.66 | |||
| Downside Variance | 2.01 | |||
| Semi Variance | 1.25 | |||
| Expected Short fall | (0.90) | |||
| Skewness | 1.0 | |||
| Kurtosis | 7.67 |
Consider Cisco Systems' intraday indicators
Cisco Systems intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Cisco Systems stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Cisco Systems Corporate Filings
F4 | 28th of August 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
8K | 14th of August 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
| 9th of August 2024 Other Reports | ViewVerify | |
| 26th of July 2024 Other Reports | ViewVerify |
Cisco Stock media impact
Far too much social signal, news, headlines, and media speculation about Cisco Systems that are available to investors today. That information is available publicly through Cisco media outlets and privately through word of mouth or via Cisco internal channels. However, regardless of the origin, that massive amount of Cisco data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Cisco Systems news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Cisco Systems relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Cisco Systems' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Cisco Systems alpha.
Cisco Systems Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Cisco Systems can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Cisco Systems Historical Investor Sentiment
Investor biases related to Cisco Systems' public news can be used to forecast risks associated with an investment in Cisco. The trend in average sentiment can be used to explain how an investor holding Cisco can time the market purely based on public headlines and social activities around Cisco Systems. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Cisco Systems' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Cisco Systems and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Cisco Systems news discussions. The higher the estimate score, the more favorable the investor's outlook on Cisco Systems.
Cisco Systems Maximum Pain Price across 2024-09-06 Option Contracts
Cisco Systems' options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Cisco Systems close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Cisco Systems' options.
Cisco Systems Corporate Management
| Kip Compton | Operations, Strategy | Profile | |
| Pratik Bhatt | VP Officer | Profile | |
| Jeffery Sharritts | Executive Officer | Profile | |
| Thimaya Subaiya | Executive Operations | Profile |
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 Trending Equities to better understand how to build diversified portfolios, which includes a position in Cisco Systems. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators. To learn how to invest in Cisco Stock, please use our How to Invest in Cisco Systems guide.You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
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 (0.44) | Dividend Share 1.58 | Earnings Share 2.54 | Revenue Per Share 13.308 | Quarterly Revenue Growth (0.10) |
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.
In summary, please note that there is a difference between Cisco Systems' value and its price, as these two are different measures arrived at by various 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.