Cisco Stock Analysis, Valuation (NASDAQ:CSCO)

Add to My Stocks
$32.52 $0.08 (0.25%) CSCO stock closing price Sep 18, 2017 (Closing)
Watch Robo Advisor Video of CSCO Stock Analysis
Cisco
Updated on : Sep 18, 2017
previous close
CSCO 32.5 (0%)
NASDAQ 6454.6 (0%)
Closing Price On: Sep 18, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Computer-Networks
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2017-Q4
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
0.8%
Operating Profit
Operating Margin:
24.9%
Sector Average:
5.8%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
33.72B
Debt/Equity Ratio:
 0.51
Compared to the industry
Cash Flow
Operating cash flow:
$4B
Net Income:
$2.42B
Dividend Yield
CSCO dividend yield:
3.38%
PROS      CONS
Operating Margins
Net Margins
Cash Flow
ROIC
ROE
FCF Margin
Recent Growth
Long Term Growth
High Debt Burden
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
CSCO PS :
3.4
Industry PS :
2.7
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
30.8%
Return on Equity:
14.9%
Free Cash Flow Margin:
31.3%
Double Tap To Exit Full Screen
0:00
/

Cisco Analysis Video

6775 8 2

View Cisco stock analysis video. This is our CSCO analyst opinion covering the buy and sell arguments for CSCO stock.

Cisco Systems, Inc. Stock Rating (4/5)

Our Cisco stock opinion is based on fundamentals of the company. This Cisco stock analysis is based on latest 2017 Q4 earnings. The stock price analysis takes into account the company's valuation metrics.

Should you buy CSCO stock?

  • The TTM operating margin was good at 24.9% for Cisco.
  • LTM Net margins were good at 20% for Cisco.
  • The company has an operating cash flow which is 1.7 times the net income. We see this as a positive signal.
  • The Cisco stock currently trades at a price to earnings ratio of 15. We rate this as a positive, compared to the industry average of 26.5.
  • Cisco generates a high return on invested capital of 30.8%.
  • The LTM ROE of 14.9% for Cisco is attractive.
  • The company has a healthy free cash flow margin of 31.3%.

Should you sell CSCO stock?

  • Cisco revenue saw a decline of -4% YoY in 2017 Q4.
  • Long term revenue growth of 0.8% over the past 5 years has been disappointing.
  • Cisco is debt laden and has a high debt/equity ratio of  0.51.

Comments on this video and Cisco stock