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AI Spotlight on CSCO
Company Description
Cisco Systems, Inc.designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China.It provides infrastructure platforms, including networking technologies of switching, routing, wireless, and data center products that are designed to work together to deliver networking capabilities, and transport and/or store data.
The company also offers collaboration products comprising unified communications, Cisco TelePresence, and conferencing, as well as the Internet of Things and analytics software.In addition, it provides security products, such as network security, cloud and email security, identity and access management, advanced threat protection, and unified threat management products.Further, the company offers a range of service and support options for its customers, including technical support and advanced services.
It serves businesses of various sizes, public institutions, governments, and service providers.The company sells its products and services directly, as well as through systems integrators, service providers, other resellers, and distributors.Cisco Systems, Inc.
has strategic alliances with other companies.Cisco Systems, Inc.was incorporated in 1984 and is headquartered in San Jose, California.
Market Data
Last Price | 64.08 |
Change Percentage | -0.30% |
Open | 64.05 |
Previous Close | 64.27 |
Market Cap ( Millions) | 254929 |
Volume | 13381735 |
Year High | 66.5 |
Year Low | 44.5 |
M A 50 | 60.66 |
M A 200 | 53.34 |
Financial Ratios
FCF Yield | 5.19% |
Dividend Yield | 2.50% |
ROE | 20.19% |
Debt / Equity | 68.17% |
Net Debt / EBIDTA | 153.82% |
Price To Book | 5.6 |
Price Earnings Ratio | 27.77 |
Price To FCF | 19.26 |
Price To sales | 4.71 |
EV / EBITDA | 18.98 |
News
- Feb -25 - The Big 3: AAPL, CSCO, COST
- Feb -25 - Cisco Expands Partnership with NVIDIA to Accelerate AI Adoption in the Enterprise
- Feb -25 - Cisco Achieves Milestone FedRAMP Authorization for Meraki Cloud Networking Platform
- Feb -24 - Cisco Faces Growing Competition For The Hyperscalers
- Feb -24 - Cisco: Tech Dividend Payer With Long Term AI Potential
- Feb -21 - Woods: Old tech stocks like IBM, Cisco, and AT&T are making a comeback
- Feb -20 - DZ Bank Upgrades Cisco Systems, Inc. (CSCO) to βBuyβ Following Strong Earnings and AI Growth
- Feb -20 - Wall Street Bulls Look Optimistic About Cisco (CSCO): Should You Buy?
- Feb -20 - Cisco: Climate Investments That Help Businesses - As Well as the Planet
- Feb -20 - Buybacks Galore: 3 Mega-Caps Just Approved Billions in Buybacks
- Feb -20 - These 2 Tech Giants Just Declared Dividend Raises
- Feb -19 - CSCO's Prospects Ride on Strong AI Push: Should You Buy the Stock?
- Feb -19 - My Dividend Stock Portfolio: New January Dividend Record - 100 Holdings With 14 Buys
- Feb -19 - Ciscoβs top exec spent 25 years climbing the ladder at one firmβshe tells Gen Z and middle managers βyou just need to be patientβ
- Feb -18 - Is Cisco Systems, Inc. (CSCO) the Best IoT Stock to Buy According to Analysts?
- Feb -18 - Cisco and IBM Show Old-School Tech Names Can Be AI Winners Too
- Feb -18 - A Cisco Program Brings Innovation and Equity to Millions
- Feb -17 - Cisco Systems, Inc. (CSCO) Price Target Raised on Strong AI Demand and Growth Outlook
- Feb -16 - Cisco Q2: Strong AI Infrastructure Order Growth
- Feb -14 - Stock Market This Week: META's 20-Day Win Streak, INTC & APP Soar, CSCO Earnings
Business Breakdown
Expected Mid-Term Growth
Segment nΒ°1 -> Secure, Agile Networks
Expected Growth : 3.0 %
What the company do ?
Secure, Agile Networks from Cisco Systems, Inc. is a network architecture that combines security, agility, and scalability to provide a robust and flexible network infrastructure.
Why we expect these perspectives ?
Cisco's Secure, Agile Networks growth is driven by increasing demand for cloud-based security solutions, adoption of 5G and IoT technologies, and the need for digital transformation. Additionally, the rise of remote work and cybersecurity threats are fueling growth, as organizations require advanced network security and infrastructure to support their operations.
Segment nΒ°2 -> Services
Expected Growth : 1.5 %
What the company do ?
Cisco Systems, Inc. offers a range of services including cybersecurity, data center, collaboration, and networking services to help businesses optimize their IT infrastructure and operations.
Why we expect these perspectives ?
Cisco's 1.5% growth in services is driven by increasing demand for network infrastructure, cybersecurity, and digital transformation. Growing adoption of cloud, IoT, and 5G technologies fuels the need for Cisco's services, including consulting, implementation, and managed services. Additionally, the company's strategic acquisitions and partnerships expand its service offerings, contributing to growth.
Segment nΒ°3 -> Internet for the Future
Expected Growth : 4.0 %
What the company do ?
The Internet for the Future from Cisco Systems, Inc. is a vision for a more secure, sustainable, and inclusive internet that supports humanity's growing demands and opportunities.
Why we expect these perspectives ?
Cisco's Internet for the Future growth is driven by increasing demand for 5G, IoT, and cloud computing, which fuels the need for high-speed, low-latency networks. Additionally, the rise of remote work and virtual events accelerates the adoption of reliable and secure internet infrastructure, further propelling growth.
Segment nΒ°4 -> Collaboration
Expected Growth : 2.5 %
What the company do ?
Cisco Collaboration is a suite of products enabling unified communication and collaboration, including video conferencing, instant messaging, and team collaboration.
Why we expect these perspectives ?
Cisco's collaboration growth is driven by increasing demand for remote work solutions, integration of AI and machine learning in collaboration tools, and strategic partnerships to expand its Webex platform. Additionally, the growing need for secure and reliable communication platforms, as well as the adoption of cloud-based services, contribute to this 2.5% growth.
Segment nΒ°5 -> End-to-End Security
Expected Growth : 3.5 %
What the company do ?
End-to-End Security from Cisco Systems, Inc. ensures secure data transmission from sender to receiver, protecting against unauthorized access, tampering, and eavesdropping.
Why we expect these perspectives ?
Cisco's End-to-End Security growth is driven by increasing cyber threats, digital transformation, and cloud adoption. Rising demand for network security, threat intelligence, and incident response fuels growth. Additionally, the need for integrated security solutions, compliance with regulations, and cost savings from reduced security breaches also contribute to the 3.5% growth rate.
Segment nΒ°6 -> Optimized Application Experiences
Expected Growth : 2.8 %
What the company do ?
Optimized Application Experiences from Cisco Systems, Inc. provides a personalized and adaptive experience for users, ensuring fast, reliable, and secure access to business-critical applications.
Why we expect these perspectives ?
Cisco's Optimized Application Experiences growth is driven by increasing demand for digital transformation, cloud adoption, and remote work. The 2.8% growth is fueled by the need for secure, fast, and reliable application delivery, as well as the company's strategic investments in AI, ML, and IoT technologies.
Segment nΒ°7 -> Other
Expected Growth : 1.8 %
What the company do ?
Other from Cisco Systems, Inc. refers to the remaining products and services not classified under Infrastructure Platforms, Applications, or Security, including Webex, IoT, and other emerging technologies.
Why we expect these perspectives ?
Cisco's 'Other' segment, growing at 1.8%, is driven by increasing demand for IoT, security, and collaboration solutions. The rise of remote work and digital transformation initiatives also contribute to this growth. Additionally, Cisco's strategic acquisitions and investments in emerging technologies, such as artificial intelligence and 5G, further boost the segment's performance.
Cisco Systems, Inc. Products
Product Range | What is it ? |
---|---|
Routers | Cisco routers are designed to connect multiple networks together and route traffic between them, enabling communication between devices on different networks. |
Switches | Cisco switches are used to connect devices within a network, allowing them to communicate with each other and share resources. |
Firewalls | Cisco firewalls provide network security by controlling incoming and outgoing network traffic based on predetermined security rules. |
Wireless Access Points | Cisco wireless access points provide wireless connectivity to devices, allowing them to connect to a network without the use of cables. |
Unified Communications | Cisco unified communications solutions integrate voice, video, and data communications, enabling real-time collaboration and communication. |
Network Security | Cisco network security solutions provide threat defense, vulnerability management, and incident response, protecting networks from cyber threats. |
Data Center Products | Cisco data center products provide a scalable and flexible infrastructure for data center environments, enabling virtualization and cloud computing. |
Collaboration Tools | Cisco collaboration tools provide real-time communication and collaboration capabilities, enabling teams to work together more effectively. |
IoT Products | Cisco IoT products provide connectivity, security, and analytics for IoT devices, enabling IoT applications and services. |
Cisco Systems, Inc.'s Porter Forces
Threat Of Substitutes
Cisco Systems, Inc. has a low threat of substitutes due to its strong brand recognition and high-quality products, making it difficult for substitutes to enter the market.
Bargaining Power Of Customers
Cisco Systems, Inc. has a medium bargaining power of customers due to the presence of large enterprises and governments as customers, which can negotiate prices and terms.
Bargaining Power Of Suppliers
Cisco Systems, Inc. has a low bargaining power of suppliers due to its large scale of operations and diversified supply chain, reducing dependence on individual suppliers.
Threat Of New Entrants
Cisco Systems, Inc. has a low threat of new entrants due to the high barriers to entry in the networking equipment market, including significant capital requirements and technological expertise.
Intensity Of Rivalry
Cisco Systems, Inc. operates in a highly competitive market with intense rivalry among established players, including Hewlett Packard Enterprise, Juniper Networks, and Huawei Technologies.
Capital Structure
Value | |
---|---|
Debt Weight | 15.91% |
Debt Cost | 6.18% |
Equity Weight | 84.09% |
Equity Cost | 8.23% |
WACC | 7.91% |
Leverage | 18.92% |
Cisco Systems, Inc. : Quality Control
Cisco Systems, Inc. passed 6 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
Company | Rational |
---|---|
HPE | Hewlett Packard Enterprise Company provides solutions that allow customers to capture, analyze, and act upon data seamlessly in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. β¦ |
QCOM | QUALCOMM Incorporated engages in the development and commercialization of foundational technologies for the wireless industry worldwide. The company operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); β¦ |
NTAP | NetApp, Inc. provides cloud-led and data-centric services to manage and share data on-premises, and private and public clouds worldwide. It operates in two segments, Hybrid Cloud and Public Could. The β¦ |
MSI | Motorola Solutions, Inc. provides mission critical communications and analytics in the United States, the United Kingdom, Canada, and internationally. The company operates in two segments, Products and Systems Integration, and β¦ |
IBM | International Business Machines Corporation provides integrated solutions and services worldwide. The company operates through four business segments: Software, Consulting, Infrastructure, and Financing. The Software segment offers hybrid cloud platform and β¦ |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
π₯
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Cisco
A-Score
1-Year Total Return ->
π₯
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HPE
A-Score
1-Year Total Return ->
π₯
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NetApp
A-Score
1-Year Total Return ->
4
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Motorola Solutions
A-Score
1-Year Total Return ->
5
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QUALCOMM
A-Score
1-Year Total Return ->
6
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