Cisco Systems Inc.

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CSCO : NASDAQ : Electronic Technology
$44.31 -0.06 | -0.14%
Today's Range: 44.1331 - 44.9
Avg. Daily Volume: 2.61719E7
03/21/18 - 4:00 PM ET

Financial Analysis

CISCO SYSTEMS INC's gross profit margin for the second quarter of its fiscal year 2018 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. CISCO SYSTEMS INC is extremely liquid. Currently, the Quick Ratio is 2.33 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has decreased by 18.53% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q2 FY18 Q2 FY17
Net Sales ($mil)11887.011580.0
EBITDA ($mil)3722.03577.0
EBIT ($mil)3176.03028.0
Net Income ($mil)-8778.02348.0

Balance Sheet Q2 FY18 Q2 FY17
Cash & Equiv. ($mil)73683.071845.0
Total Assets ($mil)131510.0126248.0
Total Debt ($mil)39366.034922.0
Equity ($mil)51982.063811.0

Profitability Q2 FY18 Q2 FY17
Gross Profit Margin67.1767.02
EBITDA Margin31.3130.88
Operating Margin26.7226.15
Sales Turnover0.370.38
Return on Assets-1.097.78
Return on Equity-2.7715.4
Debt Q2 FY18 Q2 FY17
Current Ratio2.433.67
Interest Expense247.0222.0
Interest Coverage12.8613.64

Share Data Q2 FY18 Q2 FY17
Shares outstanding (mil)4868.05007.0
Div / share0.290.26
Book value / share10.6812.74
Institutional Own % n/a n/a
Avg Daily Volume2.6620588E71.9723134E7


BUY. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. To use another comparison, its price-to-book ratio of 4.25 indicates a premium versus the S&P 500 average of 3.28 and a discount versus the industry average of 5.67. The current price-to-sales ratio is well above the S&P 500 average and above the industry average, indicating a premium. The valuation analysis reveals that, CISCO SYSTEMS INC seems to be trading at a premium to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CSCO NM Peers 47.42   CSCO 15.34 Peers 16.87

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

CSCO's P/E is negative making this valuation measure meaningless.


Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

CSCO is trading at a valuation on par to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
CSCO 15.91 Peers 24.82   CSCO NA Peers 1.29

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

CSCO is trading at a significant discount to its peers.


Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CSCO 4.25 Peers 5.67   CSCO -116.41 Peers -167.22

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

CSCO is trading at a discount to its peers.


Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

CSCO is expected to have an earnings growth rate that significantly exceeds its peers.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CSCO 4.59 Peers 4.31   CSCO -0.98 Peers 5.34

Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

CSCO is trading at a valuation on par with its industry on this measurement.


Lower. A sales growth rate that trails the industry implies that a company is losing market share.

CSCO significantly trails its peers on the basis of sales growth



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