Cisco Stock Analysis, Valuation (NASDAQ:CSCO)

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$44.06 $0.27 (0.61%) CSCO stock closing price Feb 20, 2018 (Closing)
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Cisco
Updated on : Feb 20, 2018
previous close
CSCO 44.1 (0%)
NASDAQ 7234.3 (0%)
Closing Price On: Feb 20, 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:
5.3%
5 Quarter Net Profit
Net Margins
2018-Q2
%
LTM Margin
Debt/Equity Ratio
Debt:
39.37B
Debt/Equity Ratio:
 0.76
Compared to the industry
Cash Flow
Operating cash flow:
$4.07B
Net Income:
-$8.78B
Dividend Yield
CSCO dividend yield:
1.97%
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 :
4.5
Industry PS :
2.8
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 3.9/5

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?

  • The TTM operating margin was good at 25% for Cisco.
  • CSCO stock is trading at an earnings multiple of 19.8 which is better than the industry average of 25.2.
  • The company has a healthy free cash flow margin of 32.9%.

Should you sell CSCO stock?

  • 2018 Q2 revenue growth of 2.7% YoY was meagre.
  • Revenue growth of 0.4% has been weak over the last 5 years.
  • Over the last 12 months, Cisco had an average Net loss of -3%.
  • With a debt/equity ratio of  0.76, Cisco is highly leveraged in comparison to Computer and Technology peers.
  • Cisco's negative ROIC of -4.5% indicates operational inefficiency.
  • Cisco has a negative return on equity of -2.3%. This indicates that the firm is inefficient at generating profits.

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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.