Cisco Stock Analysis Bailey Hargrave, MBA · Follow 2 min read · Just now Just now -- Listen Share Ticker: $CSCO Disclaimer: Not financial advice Cisco Systems, Inc., headquartered in San Jose, California, is a global technology giant that has played a pivotal role in shaping the networking industry.
Founded in 1984, Cisco is renowned for its innovative networking solutions, including routers, switches, and security appliances, which underpin the modern Internet. The company operates worldwide, serving governments, businesses, and individuals, and is a leader in cybersecurity, offering comprehensive security products and services. Cisco’s commitment to research and development, coupled with its focus on corporate social responsibility, has enabled it to maintain a strong global presence.
The company’s Networking Academy program fosters IT education and skills development. As a publicly traded company, Cisco continues to lead the way in connecting the world and powering the future of communication and collaboration through its cutting-edge technology and services. Summary Share Price: $56 Market Cap: $230.9B EPS: $3.07/share PE: 18.48 3y Historical PE Ratio: 18.39 Income Statement 3y Earnings Growth Rate: 5.53% Return on Equity: .28 Balance Sheet Current Ratio: 1.38 Debt to Equity Ratio: .15 Cash Flow Statement Operating Cash Flow per Share: $4.91/share Free Cash Flow per Share: $4.70/share Dividends Dividend Yield: 2.75% Dividend Payout Ratio: 40% 5y Dividend Growth Rate: 4.43% Years of Dividend Growth: 11 years Analysis Fair Value: $20.95 / share Undervalued: $10.48 / share Conclusion Buy? Given that the stock is considered undervalued according to your analysis, has a reasonable PE ratio, offers a decent dividend yield, and has a history of consistent dividend payments, it may be considered a “Buy” for investors who are looking for potentially undervalued opportunities and are willing to hold the stock for the long term. Hold? If you already hold the stock and believe in its long-term potential, it might be a “Hold.” The stock has positive attributes, such as a healthy balance sheet, manageable debt, and consistent dividends, which could make it worth holding onto. Sell? If you are risk-averse or have concerns about the stock’s valuation compared to my estimated fair value and undervalued price, you might consider “Sell.”