Cisco Systems, Inc.
CSCO
Computer Communications Equipment
Mkt Cap
$187.8BPE
15.50Debt
$32.14BCash
$10.44BEV
$209.5BFCF
$12.41BP/E Ratio
15.50Debt
$32.14BCash
$10.44BEV
$209.5BFCF
$12.41BCharts data: {"Earnings":[{"time":"2014-07-25","value":7853000000},{"time":"2015-07-24","value":8981000000},{"time":"2016-07-29","value":10739000000},{"time":"2017-07-28","value":9609000000},{"time":"2018-07-27","value":110000000},{"time":"2019-07-26","value":11621000000},{"time":"2020-07-24","value":11214000000},{"time":"2021-07-30","value":10591000000},{"time":"2022-07-29","value":11812000000},{"time":"2023-07-28","value":12613000000}],"Sales":[{"time":"2014-07-25","value":47142000000},{"time":"2015-07-24","value":49161000000},{"time":"2016-07-29","value":49247000000},{"time":"2017-07-28","value":48005000000},{"time":"2018-07-27","value":49330000000},{"time":"2019-07-26","value":51904000000},{"time":"2020-07-24","value":49301000000},{"time":"2021-07-30","value":49818000000},{"time":"2022-07-29","value":51557000000},{"time":"2023-07-28","value":56998000000}],"Net Margins":[{"time":"2014-07-25","value":0.1665818166390904},{"time":"2015-07-24","value":0.1826854620532536},{"time":"2016-07-29","value":0.2180640445103255},{"time":"2017-07-28","value":0.2001666493073638},{"time":"2018-07-27","value":0.0022298803973241437},{"time":"2019-07-26","value":0.22389411220715166},{"time":"2020-07-24","value":0.22745988925173932},{"time":"2021-07-30","value":0.21259384158336345},{"time":"2022-07-29","value":0.22910565005721822},{"time":"2023-07-28","value":0.2212884662619741}],"Assets":[{"time":"2014-07-25","value":105134000000},{"time":"2015-07-24","value":113481000000},{"time":"2016-07-29","value":121652000000},{"time":"2017-07-28","value":129818000000},{"time":"2018-07-27","value":108784000000},{"time":"2019-07-26","value":97793000000},{"time":"2020-07-24","value":94853000000},{"time":"2021-07-30","value":97497000000},{"time":"2022-07-29","value":94002000000},{"time":"2023-07-28","value":101852000000}],"Stockholders Equity":[{"time":"2014-07-25","value":56661000000},{"time":"2015-07-24","value":59707000000},{"time":"2016-07-29","value":63586000000},{"time":"2017-07-28","value":66137000000},{"time":"2018-07-27","value":43204000000},{"time":"2019-07-26","value":33571000000},{"time":"2020-07-24","value":37920000000},{"time":"2021-07-30","value":41275000000},{"time":"2022-07-29","value":39773000000},{"time":"2023-07-28","value":44353000000}],"ROE":[{"time":"2014-07-25","value":0.1385962125624327},{"time":"2015-07-24","value":0.15041787395112802},{"time":"2016-07-29","value":0.16888937816500488},{"time":"2017-07-28","value":0.14528932367661068},{"time":"2018-07-27","value":0.0025460605499490786},{"time":"2019-07-26","value":0.3461618658961604},{"time":"2020-07-24","value":0.29572784810126584},{"time":"2021-07-30","value":0.2565960024227741},{"time":"2022-07-29","value":0.29698539210016844},{"time":"2023-07-28","value":0.28437760692625075}],"ROA":[{"time":"2014-07-25","value":0.09240588201723515},{"time":"2015-07-24","value":0.09870374776394286},{"time":"2016-07-29","value":0.10620458356623812},{"time":"2017-07-28","value":0.09464789166371382},{"time":"2018-07-27","value":0.11986137667304016},{"time":"2019-07-26","value":0.14899839456811836},{"time":"2020-07-24","value":0.1472805288182767},{"time":"2021-07-30","value":0.13602469819584193},{"time":"2022-07-29","value":0.15400736154549904},{"time":"2023-07-28","value":0.1503946903349959}]}
Cisco Systems, Inc. designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China. The company also offers switching portfolio encompasses campus switching as well as data center switching; enterprise routing portfolio interconnects public and private wireline and mobile networks, delivering highly secure, and reliable connectivity to campus, data center and branch networks; wireless products include wireless access points that are standalone, controller appliance-based, switch-converged, and Meraki cloud-managed offerings; and compute portfolio including the cisco unified computing system, hyperflex, and software management capabilities, which combine computing, networking, and storage infrastructure management and virtualization. In addition, it provides Internet for the future product consists of routed optical networking, 5G, silicon, and optics solutions; collaboration products, such as meetings, collaboration devices, calling, contact center, and communication platform as a service; end-to-end security product consists of network security, cloud security, security endpoints, unified threat management, and zero trust; and optimized application experiences products including full stack observability and cloud-native platform. Further, the company offers a range of service and support options for its customers, including technical support and advanced services and advisory services. It serves businesses of various sizes, public institutions, governments, and service providers. The company sells its products and services directly, as well as through systems integrators, service providers, other resellers, and distributors. Cisco Systems, Inc. has strategic alliances with other companies. Cisco Systems, Inc. was incorporated in 1984 and is headquartered in San Jose, California.
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DCF
Discounted Cash Flow Valuation of Cisco Systems, Inc.
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $12.41B | $12.75B | $13.09B | $13.45B | $13.81B | $14.18B | $14.57B | $14.96B | $15.37B | $15.78B | $16.21B | $162.1B |
| DCF | $11.08B | $9.9B | $8.841B | $7.896B | $7.052B | $6.298B | $5.625B | $5.024B | $4.487B | $4.007B | $40.07B | |
| Value | $110.3B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 6.9%
Earnings Stability 4.2%
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 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 18% | 22% | 20% | 0.22% | 22% | 23% | 21% | 23% | 22% | 22% |
| ROA | 9.9% | 11% | 9.5% | 12% | 15% | 15% | 14% | 15% | 15% | 12% |
| ROE | 15% | 17% | 15% | 0.25% | 35% | 30% | 26% | 30% | 28% | 26% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +18.61%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is +3.13%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +14.28%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is +0.45%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +24.71%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is +3.49%.
Safety & Stabiliy
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 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | 2.58 | 2.64 | 2.98 | 2.41 | 2.06 | 1.20 | 0.95 | 0.79 | 0.54 | 2.59 |
| Debt Equity | 0.49 | 0.52 | 0.58 | 0.72 | 0.91 | 0.46 | 0.34 | 0.25 | 0.23 | 0.70 |
| MIN | ||||||||||
| Graham Stability | - | - | 100% | 1.1% | 100% | 100% | 100% | 100% | 100% | 1.1% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 2.59.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is -0.38.
What is the Graham’s Stability?
Graham’s Stability measure stands at 0.01.
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 | 07-2016 | 07-2018 | 07-2020 | 07-2022 | Trend |
|---|---|---|---|---|---|
| Revenue | 2.1% | 2.9% | 5% | 11% | 0.57% |
| Net Income | 2.3% | 160% | 4% | 6.8% | 0.85% |
| Stockholders Equity | -5% | 0.53% | 5.4% | 12% | 0.86% |
| FCF | 6.3% | 8.2% | 9.1% | 49% | 1.8% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +2.93%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is +0.57%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is +158.16%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is +0.85%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +0.53%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is +0.86%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is +8.21%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is +1.83%.