Cisco Systems logged a 0.47% change during today's afternoon session, and is now trading at a price of $48.71 per share. The S&P 500 index moved 0.54% and the Nasdaq posted a 0.96% change.
Cisco Systems shares moved -10.6% over the last 52 weeks, with a high of $55.15 and a low of $38.3. During this time, the stock lagged the S&P 500 index by -1.37%. As of January 2022, the company's 50-day average price is $48.15. Cisco Systems, Inc. is an American multinational technology conglomerate headquartered in San Jose, California, in the center of Silicon Valley. The large-cap Technology company is based in San Jose, CA. Cisco Systems has returned a 3.22% dividend yield over the last 12 months.
The Company Has a Steady Stream of Strong Cash Flows:
| 2019-07-27 | 2020-07-25 | 2021-07-31 | 2022-07-30 | |
|---|---|---|---|---|
| Revenue (MM) | $51,037 | $48,991 | $49,690 | $51,376 |
| Revenue Growth | n/a | -4.01% | 1.43% | 3.39% |
| Gross Margins | 64.0% | 64.67% | 64.19% | 62.77% |
| Gross Margins Growth | n/a | 1.05% | -0.74% | -2.21% |
| Operating Margins | 27.86% | 27.8% | 25.83% | 27.19% |
| Operating Margins Growth | n/a | -0.22% | -7.09% | 5.27% |
| Earnings Per Share | $2.73 | $2.65 | $2.51 | $2.87 |
| EPS Growth | n/a | -2.93% | -5.28% | 14.34% |
| Free Cash Flow (MM) | $14,922 | $14,656 | $14,762 | $12,749 |
| FCF Growth | n/a | -1.78% | 0.72% | -13.64% |
| Capital Expenditures (MM) | $909 | $770 | $692 | $477 |
| Net Debt / EBITDA | 0.83 | 0.39 | 0.35 | 0.16 |
Cisco Systems Is Undervalued at Today's Prices:
Compared to the Technology sector's average of 27.16, Cisco Systems has a trailing twelve month P/E ratio of 17.84.
However, Cisco Systems is likely undervalued in terms of its equity because its P/B ratio is 5.03 compared to its sector average of 6.23. The company's shares are currently trading 119.51% above their fair value as expressed by Benjamin Graham's formula:
√(22.5 * 5-year average EPS * book value per share) = √(22.5 * 2.16 * 10.13) = $22.19
Cisco Systems Is the Subject of Positive Market Indicators:
20 analysts are following Cisco Systems and have set target prices ranging from $46.0 to $69.0 per share. On average, they have given the company a rating of buy. At the current price of $48.71, CSCO is trading -14.42% away from its average analyst target price of $56.92 per share, implying an analyst consensus of some upside potential for the stock.
