Cisco Systems Inc

Find Ratings Reports
CSCO : NASDAQ : Technology
$30.53 | %
Today's Range: 30.47 - 30.69
Avg. Daily Volume: 23,508,700
07/29/16 - 4:00 PM ET

Financial Analysis


CISCO SYSTEMS INC's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, however the growth has outpaced the average competitor within the industry. CISCO SYSTEMS INC is extremely liquid. Currently, the Quick Ratio is 3.01 which clearly shows the ability to cover any short-term cash needs. CSCO managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.

During the same period, stockholders' equity ("net worth") has increased by 6.00% 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)12000.012137.0
EBITDA ($mil)3558.03519.0
EBIT ($mil)3024.02950.0
Net Income ($mil)2356.02442.0


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)63512.054419.0
Total Assets ($mil)118654.0106212.0
Total Debt ($mil)28595.021004.0
Equity ($mil)62358.058823.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin68.1866.12
EBITDA Margin29.6528.99
Operating Margin25.224.31
Sales Turnover0.420.46
Return on Assets8.648.38
Return on Equity16.4415.14
Debt Q3 FY16 Q3 FY15
Current Ratio3.272.98
Debt/Capital0.310.26
Interest Expense175.0139.0
Interest Coverage17.2821.22


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)5034.05093.0
Div / share0.260.21
EPS0.460.47
Book value / share12.3911.55
Institutional Own % n/a n/a
Avg Daily Volume2.3783848E72.6721584E7

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 27.55 for the Communications Equipment industry and a discount compared to the S&P 500 average of 25.05. For additional comparison, its price-to-book ratio of 2.47 indicates a discount versus the S&P 500 average of 2.81 and a discount versus the industry average of 3.09. The current price-to-sales ratio is well above the S&P 500 average, but below the industry average. Upon assessment of these and other key valuation criteria, CISCO SYSTEMS INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CSCO 15.21 Peers 27.55   CSCO 11.11 Peers 12.38

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 discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
CSCO 12.53 Peers 18.33   CSCO 0.46 Peers 0.62

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CSCO 2.47 Peers 3.09   CSCO 17.54 Peers 51.41

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.

 

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CSCO 3.11 Peers 3.14   CSCO 1.59 Peers 10.39

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

 

 

Latest Stock Upgrades/Downgrades