Cisco Systems, Inc.

Telecommunications
Computer Communications Equipment
www.cisco.com

Earnings Score
Moat Score
Safety Score

Market Cap $234.35B
PE 25
Debt $32.62B
Cash $10.21B
EV $256.76B
FCF $11.42B

Earnings

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Sales & Net Margins

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Earnings	$9.39B
EBIT	$10.15B
ROE	21%
ROA	8%
FCF	$11.42B
Equity	$45.28B
Growth Stability	1%
PE	24.95
PEG	13.44
PB	5.18
P/FCF	20.53
P/S	4.42
Price/Cash	0.04
Debt/Equity	0.72
Debt/FCF	2.86
Net Margins	20%
Gross Margins	65%
Op. Margins	19%
Earnings CAGR	7%
Sales Growth YoY	-6%
Sales Growth QoQ	1%
Sales CAGR	2%
FCF CAGR	1%
Equity CAGR	-5%
Earnings Stability	0.05
Earnings Growth YoY	-25%
Earnings Growth QoQ	25%
Earnings CAGR 5Y	2%

Sales CAGR 5Y	3%
FCF CAGR 5Y	-3%
Equity CAGR 5Y	5%
Earnings CAGR 3Y	3%
Sales CAGR 3Y	3%
FCF CAGR 3Y	-6%
Equity CAGR 3Y	7%
Market Cap	$234.35B
Revenue	$52.98B
Dividend Yield	3%
Payout Ratio	68%
Assets	$123.33B
Total Debt	$32.62B
Cash	$10.21B
Shares Outstanding	3.97B
EV	256.76B
Earnings Score	7%
Moat Score	92%
Safety Score	60%
Final Score	53%
Working Capital	-4.79B
Current Ratio	0.88
Gross Profit	$34.39B
Shares Growth 3y	-1%
Equity Growth QoQ	-0%
Equity Growth YoY	0%

Assets & ROA

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Stockholders Equity & ROE

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Cisco Systems, Inc. is the world's largest hardware and software supplier within the networking solutions sector. The secure, agile networks business contains switching, routing, and wireless solutions. The hybrid work division has products for collaboration and contact center needs. The end-to-end security group has products spanning a variety of threat prevention necessities. The internet for the future division has routed optical networks, silicon, and optics. Optimized application experiences offer solutions such as full stack observability. Services are Cisco's technical support and advanced services offerings. In collaboration with Cisco's initiative on growing software and services, its revenue model is focused on increasing subscriptions and recurring sales.

SEC Filings

Direct access to Cisco Systems, Inc. (CSCO) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Oct 26
- 10-K Jul 27
- 10-Q Apr 27
- 10-Q Jan 27
2023
- 10-Q Oct 28
- 10-K Jul 29
- 10-Q Apr 29
- 10-Q Jan 28
2022
- 10-Q Oct 29
- 10-K Jul 30
- 10-Q Apr 30
- 10-Q Jan 29

Sector Comparison

How does Cisco Systems, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Cisco Systems, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 7%

Stability 5%

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Cisco Systems, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Cisco Systems, Inc..

Years

Calculation mode

= $123B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$11B	$12B	$12B	$12B	$12B	$12B	$12B	$12B	$12B	$13B	$13B	$127B
DCF		$10B	$9.6B	$8.9B	$8.1B	$7.5B	$6.9B	$6.3B	$5.8B	$5.3B	$4.9B	$49B
Value	$123B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	07/2015	07/2016	07/2017	07/2018	07/2019	07/2020	07/2021	07/2022	07/2023	07/2024	TTM
Net Margins	18%	22%	20%	0%	22%	23%	21%	23%	22%	19%	20%
ROA	-	11%	9%	12%	15%	15%	14%	15%	15%	10%	8%
ROE	-	17%	15%	0%	35%	30%	26%	30%	28%	23%	21%

Good Net Margins (19.59%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	07/2015	07/2016	07/2017	07/2018	07/2019	07/2020	07/2021	07/2022	07/2023	07/2024	TTM
Debt over FCF	-	2.64	2.98	2.41	2.06	1.2	0.95	0.79	0.54	3.09	2.86
Debt over Equity	0.49	0.52	0.58	0.72	0.91	0.46	0.34	0.25	0.23	0.7	0.72
Growth Stability	-	-	-	1%	100%	100%	100%	100%	100%	88%	1%

Neutral Debt/FCF ratio (2.86)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Good Debt/Equity ratio (0.72)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (1%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	07/2015	07/2016	07/2017	07/2018	07/2019	07/2020	07/2021	07/2022	07/2023	07/2024	CAGR 5Y
Revenue YoY growth	-	0%	-3%	3%	5%	-5%	1%	3%	11%	-6%	3%
Earnings YoY growth	-	20%	-11%	-99%	10K%	-4%	-6%	12%	7%	-18%	2%
Equity YoY growth	-	6%	4%	-35%	-22%	13%	9%	-4%	12%	2%	5%
FCF YoY growth	-	10%	4%	-1%	16%	-2%	1%	-14%	49%	-46%	-3%