Cisco Stock Analysis, Valuation (NASDAQ:CSCO)

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$43.21 $0.25 (0.58%) CSCO stock closing price May 18, 2018 (Closing)
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Cisco
Updated on : May 18, 2018
previous close
CSCO 43.2 (0%)
NASDAQ 7354.3 (0%)
Closing Price On: May 18, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Computer-Networks
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2018-Q2
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
0.4%
Operating Profit
Operating Margin:
25%
Sector Average:
5.4%
5 Quarter Net Profit
Net Margins
2018-Q2
%
LTM Margin
Debt/Equity Ratio
Debt:
33.62B
Debt/Equity Ratio:
 0.65
Compared to the industry
Cash Flow
Operating cash flow:
$4.07B
Net Income:
-$8.78B
Dividend Yield
CSCO dividend yield:
2.68%
PROS      CONS
Operating Margins
FCF Margin
PE Valuation
Recent Growth
Long Term Growth
Net Margins
High Debt Burden
ROIC
ROE
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
CSCO PS :
4.4
Industry PS :
2.9
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
-4.5%
Return on Equity:
-2.3%
Free Cash Flow Margin:
32.9%
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Cisco Stock Analysis

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View the Cisco stock analysis video on Amigobulls. Our analyst opinion covering the buy and sell arguments for CSCO stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Cisco Systems, Inc. Stock Rating 3.4/5

Amigobulls CSCO stock analysis uses latest quarter 2018 Q2 financial data like Cisco revenue growth, profit margins and cash flows. We compare Cisco valuation with its sector peers to gauge relative attractiveness of CSCO stock. Cisco stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy CSCO stock?

  • Cisco had a healthy average operating margin of 25% over the last 4 quarters.
  • CSCO stock is trading at an earnings multiple of 19.5 which is better than the industry average of 25.1.
  • Cisco has a healthy FCF (Free Cash Flow) margin of 32.9%.

Should you sell CSCO stock?

  • Cisco salesgrew by a marginal 2.7% year over year in 2018 Q2.
  • Long term revenue growth of 0.4% over the past 5 years has been disappointing.
  • Cisco registered an average TTM Net loss of -3%.
  • Cisco has a debt/equity ratio of  0.65, which is worse than the average in the Computer and Technology sector.
  • Cisco has a negative ROIC (Return on Invested Capital) of -4.5%.
  • A negative ROE of -2.3% indicates that the company is not able to generate profits with the money shareholders have invested.

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Comments on this video and Cisco stock

Amigobulls Cisco stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of CSCO stock. Company's fundamentals remain one of the key driver of CSCO stock and helps investors in making good buy and sell decision.

While doing a study of the company financials, Cisco revenue growth and profit or net income are two main metrics which help in identifying whether CSCO stock is overvalued or undervalued. One can also combine technical analysis and fundamental analysis to get a holistic picture about CSCO stock.