Cisco Systems Inc.
Find Ratings ReportsCISCO SYSTEMS INC's gross profit margin for the second quarter of its fiscal year 2024 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its subsector. CISCO SYSTEMS INC has average liquidity. Currently, the Quick Ratio is 1.12 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has increased by 11.51% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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Income Statement | Q2 FY24 | Q2 FY23 |
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Net Sales ($mil) | 12791.0 | 13592.0 |
EBITDA ($mil) | 3550.0 | 3976.0 |
EBIT ($mil) | 3128.0 | 3538.0 |
Net Income ($mil) | 2634.0 | 2773.0 |
Balance Sheet | Q2 FY24 | Q2 FY23 |
---|---|---|
Cash & Equiv. ($mil) | 26236.0 | 22061.0 |
Total Assets ($mil) | 101174.0 | 95840.0 |
Total Debt ($mil) | 12638.0 | 9915.0 |
Equity ($mil) | 46251.0 | 41474.0 |
Profitability | Q2 FY24 | Q2 FY23 |
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Gross Profit Margin | 67.02 | 64.7 |
EBITDA Margin | 27.75 | 29.25 |
Operating Margin | 24.45 | 26.03 |
Sales Turnover | 0.57 | 0.55 |
Return on Assets | 13.28 | 11.79 |
Return on Equity | 29.06 | 27.25 |
Debt | Q2 FY24 | Q2 FY23 |
---|---|---|
Current Ratio | 1.37 | 1.41 |
Debt/Capital | 0.21 | 0.19 |
Interest Expense | 120.0 | 107.0 |
Interest Coverage | 26.07 | 33.07 |
Share Data | Q2 FY24 | Q2 FY23 |
---|---|---|
Shares outstanding (mil) | 4050.0 | 4095.0 |
Div / share | 0.39 | 0.38 |
EPS | 0.65 | 0.67 |
Book value / share | 11.42 | 10.13 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 1.91302E7 | 1.9150784E7 |
BUY. CISCO SYSTEMS INC's P/E ratio indicates a significant discount compared to an average of 53.34 for the Computer and Electronic Product Manufacturing subsector and a significant discount compared to the S&P 500 average of 27.95. To use another comparison, its price-to-book ratio of 4.36 indicates a discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 23.59. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average. Upon assessment of these and other key valuation criteria, CISCO SYSTEMS INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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CSCO 15.13 | Peers 53.34 | CSCO 14.02 | Peers 44.47 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. CSCO is trading at a significant discount to its peers. |
Discount. 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 significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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CSCO 13.05 | Peers 26.06 | CSCO 0.73 | Peers 1.95 | |||||||||||||||||||||
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. |
Discount. 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. CSCO trades at a significant discount to its peers. |
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Price/Book |
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Earnings Growth |
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CSCO 4.36 | Peers 23.59 | CSCO 20.51 | Peers 123.02 | |||||||||||||||||||||
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 significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, CSCO is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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CSCO 3.52 | Peers 14.13 | CSCO 7.65 | Peers 27.20 | |||||||||||||||||||||
Discount. 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 significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. CSCO significantly trails its peers on the basis of sales growth. |
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