Cisco Systems may be undervalued with strong growth indicators, but the 20 analysts following the company give it an rating of hold. Their target prices range from $49.0 to $76.0 per share, for an average of $55.54. At today's price of $49.85, Cisco Systems is trading -10.24% away from its average target price, suggesting there is an analyst consensus of some upside potential for the stock.
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. The Large-Cap Telecommunications company is based in San Jose, CA. Cisco Systems has provided a 3.1% dividend yield over the last 12 months.
Cisco Systems has a trailing twelve month P/E ratio of 19.6, compared to an average of 20.19 for the Telecommunications sector. Considering its EPS guidance of $3.88, the company has a forward P/E ratio of 12.8.
Cisco Systems is overpriced compared to its book value, since its P/B ratio of 4.41 is higher than the sector average of 2.29. The company's shares are currently 80.4% below their Graham number, indicating that its shares have a margin of safety.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $49,330 | $51,904 | $49,301 | $49,818 | $51,557 | $56,998 |
| Gross Margins | 62% | 63% | 64% | 64% | 63% | 63% |
| Net Margins | 0% | 22% | 23% | 21% | 23% | 22% |
| Net Income (M) | $110 | $11,621 | $11,214 | $10,591 | $11,812 | $12,613 |
| Net Interest Expense (M) | $943 | $859 | $585 | $434 | $360 | $427 |
| Depreciation & Amort. (M) | $221 | $150 | $141 | $215 | $313 | $282 |
| Diluted Shares (M) | 4,614 | 4,273 | 4,244 | 4,243 | 4,116 | 4,087 |
| Earnings Per Share | $0.02 | $2.61 | $2.64 | $2.5 | $2.82 | $3.07 |
| EPS Growth | n/a | 12950.0% | 1.15% | -5.3% | 12.8% | 8.87% |
| Avg. Price | $37.88 | $44.56 | $39.15 | $49.99 | $49.6 | $49.85 |
| P/E Ratio | 1894.0 | 16.94 | 14.77 | 19.92 | 17.53 | 16.19 |
| Free Cash Flow (M) | $12,832 | $14,922 | $14,656 | $14,762 | $12,749 | $19,037 |
| CAPEX (M) | $834 | $909 | $770 | $692 | $477 | $849 |
| EV / EBITDA | 15.77 | 14.13 | 12.53 | 16.5 | 14.47 | 13.14 |
| Total Debt (M) | $32,805 | $22,497 | $17,571 | $12,010 | $10,127 | $8,640 |
| Net Debt / EBITDA | 1.95 | 0.97 | 0.49 | 0.34 | 0.2 | -0.06 |
| Current Ratio | 2.11 | 1.7 | 1.59 | 1.62 | 1.45 | 1.47 |
