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NASDAQ:CSCO is an undervalued gem with solid fundamentals.

By Mill Chart

Last update: Mar 8, 2024

Uncover the hidden value in CISCO SYSTEMS INC (NASDAQ:CSCO) as our stock screening tool recommends it as an undervalued choice. NASDAQ:CSCO maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

A Closer Look at Valuation for NASDAQ:CSCO

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:CSCO, the assigned 7 reflects its valuation:

  • Based on the Price/Earnings ratio of 11.87, the valuation of CSCO can be described as reasonable.
  • CSCO's Price/Earnings ratio is rather cheap when compared to the industry. CSCO is cheaper than 83.93% of the companies in the same industry.
  • CSCO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.03.
  • The Price/Forward Earnings ratio is 11.93, which indicates a very decent valuation of CSCO.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of CSCO indicates a somewhat cheap valuation: CSCO is cheaper than 76.79% of the companies listed in the same industry.
  • CSCO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.06, which is the current average of the S&P500 Index.
  • 82.14% of the companies in the same industry are more expensive than CSCO, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, CSCO is valued cheaper than 80.36% of the companies in the same industry.
  • The excellent profitability rating of CSCO may justify a higher PE ratio.

Profitability Examination for NASDAQ:CSCO

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:CSCO has achieved a 9:

  • CSCO has a Return On Assets of 13.29%. This is amongst the best in the industry. CSCO outperforms 92.86% of its industry peers.
  • With an excellent Return On Equity value of 29.06%, CSCO belongs to the best of the industry, outperforming 94.64% of the companies in the same industry.
  • CSCO's Return On Invested Capital of 17.68% is amongst the best of the industry. CSCO outperforms 91.07% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for CSCO is significantly above the industry average of 10.25%.
  • The last Return On Invested Capital (17.68%) for CSCO is above the 3 year average (16.86%), which is a sign of increasing profitability.
  • CSCO has a better Profit Margin (23.49%) than 96.43% of its industry peers.
  • CSCO's Profit Margin has improved in the last couple of years.
  • CSCO has a better Operating Margin (27.99%) than 96.43% of its industry peers.
  • The Gross Margin of CSCO (64.22%) is better than 89.29% of its industry peers.

A Closer Look at Health for NASDAQ:CSCO

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:CSCO, the assigned 8 reflects its health status:

  • An Altman-Z score of 3.42 indicates that CSCO is not in any danger for bankruptcy at the moment.
  • CSCO has a Altman-Z score of 3.42. This is amongst the best in the industry. CSCO outperforms 80.36% of its industry peers.
  • CSCO has a debt to FCF ratio of 0.86. This is a very positive value and a sign of high solvency as it would only need 0.86 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 0.86, CSCO belongs to the top of the industry, outperforming 80.36% of the companies in the same industry.
  • CSCO has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
  • The current and quick ratio evaluation for CSCO is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Understanding NASDAQ:CSCO's Growth

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:CSCO boasts a 4 out of 10:

  • The Earnings Per Share has grown by an nice 19.77% over the past year.
  • Measured over the past years, CSCO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.34% on average per year.

More Decent Value stocks can be found in our Decent Value screener.

Check the latest full fundamental report of CSCO for a complete fundamental analysis.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.



NASDAQ:CSCO (5/17/2024, 7:00:01 PM)

After market: 48.17 0 (0%)


-0.17 (-0.35%)


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