Cisco Systems, Inc. (CSCO) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Workday, Inc.

Cisco Systems, Inc.

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Broadridge Financial Solutions, Inc.

Nu Holdings Ltd.

Cognizant Technology Solutions Corp.

Accenture Plc

CDW Corp.

Block, Inc.

International Business Machines Corp.

Cloudflare, Inc.

Why is Cisco Systems, Inc. ?

High Management Efficiency with a high ROE of 27.32%

Company has a low Debt to Equity ratio (avg) at times

The company has declared positive results in Apr'2025 after 4 consecutive negative quarters

INTEREST COVERAGE RATIO(Q) Highest at 1,082.61
DIVIDEND PER SHARE(HY) Highest at USD 5.27
NET SALES(Q) Highest at USD 14,673 MM

With ROE of 22.92%, it has a fair valuation with a 5.69 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 29.93%, its profits have fallen by -19.8%

High Institutional Holdings at 79.58%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 1.75% over the previous quarter.

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Cisco Systems, Inc. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Cisco Systems, Inc. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Cisco Systems, Inc.

30.73%

2.77

24.03%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.82%

EBIT Growth (5y)

-1.88%

EBIT to Interest (avg)

26.45

Debt to EBITDA (avg)

0.31

Net Debt to Equity (avg)

0.27

Sales to Capital Employed (avg)

0.85

Tax Ratio

6.72%

Dividend Payout Ratio

62.07%

Pledged Shares

Institutional Holding

79.58%

ROCE (avg)

38.56%

ROE (avg)

27.32%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

5.69

EV to EBIT

22.65

EV to EBITDA

18.15

EV to Capital Employed

4.69

EV to Sales

4.93

PEG Ratio

Dividend Yield

2.51%

ROCE (Latest)

20.71%

ROE (Latest)

22.92%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 1,082.61

DIVIDEND PER SHARE(HY)

Highest at USD 5.27

NET SALES(Q)

Highest at USD 14,673 MM

OPERATING PROFIT(Q)

Highest at USD 3,984 MM

RAW MATERIAL COST(Y)

Fallen by -2.49% (YoY

PRE-TAX PROFIT(Q)

Highest at USD 3,227 MM

EPS(Q)

Highest at USD 0.71

-4What is not working for the Company

INTEREST(9M)

At USD 1,175 MM has Grown at 31.28%

CASH AND EQV(HY)

Lowest at USD 34,384 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.27 times

Here's what is working for Cisco Systems, Inc.

Interest Coverage Ratio

Highest at 1,082.61 and Grown

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at USD 14,673 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (USD MM)

Operating Profit

Highest at USD 3,984 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (USD MM)

Dividend per share

Highest at USD 5.27 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Pre-Tax Profit

Highest at USD 3,227 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

EPS

Highest at USD 0.71

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Raw Material Cost

Fallen by -2.49% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Cisco Systems, Inc.

Interest

At USD 1,175 MM has Grown at 31.28%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Cash and Eqv

Lowest at USD 34,384 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 5.27 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio