Cisco Stock Analysis, Valuation (NASDAQ:CSCO)
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 3.3/5
Amigobulls CSCO stock analysis uses latest quarter 2018 Q3 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's average operating margin of 24.68 was exceptional.
- The price to earnings multiple of 18.4 is attractive when compared with the sector average PE ratio of 26.2.
- The company has a good Free Cash Flow (FCF) margin of 17.5.
Should you sell CSCO stock?
- 2018-04 revenue growth of 4.4% YoY was meagre.
- Over the last 5 years, the company registered a poor revenue growth of 0.3.
- Cisco registered an average TTM Net loss of -2.6%.
- Cisco has a debt/equity ratio of 0.61, which is worse than the average in the Computer and Technology sector.
- -3.8's negative ROIC of -3.8 indicates operational inefficiency.
- Cisco has a negative return on equity of -2.1. This indicates that the firm is inefficient at generating profits.
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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.