Cisco Systems, Inc.
Cisco Systems, Inc. designs, develops, and sells technologies that help to power, secure, and draw insights from the internet in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China. The company offers data center switching; network security, identity and access manageme…
What to know about CSCO
Cisco Systems, Inc. is a Technology company with a mixed financial profile. It scores well on size and profitability, but valuation is worth keeping an eye on.
Should you consider CSCO?
Based on 31 financial metrics and sector comparison. Not financial advice.
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Cisco Systems, Inc. is a Technology company with a mixed overall financial profile — it is in the lower half of its Technology peers (48 of 82).
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Profit margins are a clear strength, though the balance sheet warrants a closer look — make sure the debt levels are manageable.
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The stock trades at a premium — investors are paying more per dollar of earnings than most S&P 500 companies. That's fine if strong growth justifies it, but leaves little room for disappointment.
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The company is growing at a reasonable pace — not the fastest, but consistently moving in the right direction.
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There is a small dividend (0.01%), but income-focused investors will likely find better yields elsewhere in the market.
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The stock is more volatile than most S&P 500 names — it can swing sharply in both directions. This suits investors comfortable with bigger short-term moves.
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There are several areas of concern. This may suit investors with a higher risk tolerance or a specific contrarian view on the Technology sector.
At a glance
How it scores
We look at 31 different financial metrics and group them into categories. Here's how CSCO compares to the other S&P 500 stocks.
Dive deeper — all 31 metrics 9 categories · valuation, growth, health, dividends & more Show all Hide
Valuation
Is the stock cheap or expensive relative to its earnings, sales, and assets? Lower multiples often mean better value.
| Metric | Value | vs S&P 500 |
|---|---|---|
| P/E Ratio (Trailing) | 39.85 | Below avg |
| Forward P/E | 25.03 | Below avg |
| PEG Ratio | 1.66 | Above avg |
| Price to Sales | 7.76 | Below avg |
| Price to Book | 9.64 | Below avg |
| EV/EBITDA | 28.67 | Below avg |
| Earnings Yield | 2.51% | Below avg |
Profitability
How efficiently does the company turn revenue into profit? Higher margins mean more money kept from each dollar earned.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Gross Margin | 64.30% | Top 25% |
| Operating Margin | 24.99% | Above avg |
| Net Profit Margin | 19.68% | Above avg |
| Return on Equity | 25.23% | Above avg |
| Return on Invested Capital | 7.34% | Above avg |
Growth
How fast is the business expanding? Strong growth in revenue and earnings signals increasing market demand.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Revenue Growth (YoY) | 12.00% | Above avg |
| Revenue Growth (3Y CAGR) | 3.19% | Average |
| EPS Growth (YoY) | 37.10% | Above avg |
| Free Cash Flow Growth | 30.15% | Top 25% |
Health
Can the company cover its debts and obligations? A healthy balance sheet reduces the risk of financial trouble.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Current Ratio | 0.93 | Average |
| Debt to Equity | 0.68 | Above avg |
| Interest Coverage | 7.97 | Above avg |
| Altman Z-Score | 4.55 | Above avg |
Dividends
Does the company pay shareholders, and is that payment growing and sustainable?
| Metric | Value | vs S&P 500 |
|---|---|---|
| Dividend Yield | 1.41% | Average |
| Payout Ratio | 55.00% | Average |
| Dividend Growth (5Y) | -10.80% | Average |
Cash Flow
Is real cash flowing into the business — not just accounting profits? Strong cash flow funds growth and dividends.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Free Cash Flow Yield | 2.50% | Average |
| OCF to Sales | 21.44% | Above avg |
Risk
How volatile is the stock compared to the broader market? Lower beta and volatility mean a smoother ride.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Beta (1-Year) | 1.00 | Average |
| Volatility (30-Day) | 54.10% | Below avg |
Sentiment
What do analysts and short-sellers think? High analyst ratings and low short interest signal broad confidence.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Short % of Float | 1.57% | Top 25% |
| Avg. Analyst Rating | 1.88 | Above avg |
| Target Upside % | 6.28% | Below avg |
Size
How large is the company by market value? Size affects stability, growth potential, and index inclusion.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Market Capitalization | 471.16B | Top 25% |
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