(CSCO) Cisco Systems - Overview
Stock: Router, Switch, Firewall, Phone, Webex
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 2.45% |
| Yield on Cost 5y | 3.87% |
| Yield CAGR 5y | 2.62% |
| Payout Consistency | 100.0% |
| Payout Ratio | 42.2% |
| Risk 5d forecast | |
|---|---|
| Volatility | 23.8% |
| Relative Tail Risk | -11.7% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 1.33 |
| Alpha | 24.93 |
| Character TTM | |
|---|---|
| Beta | 0.851 |
| Beta Downside | 0.874 |
| Drawdowns 3y | |
|---|---|
| Max DD | 20.16% |
| CAGR/Max DD | 1.25 |
Description: CSCO Cisco Systems January 28, 2026
Cisco Systems, Inc. (NASDAQ:CSCO) designs, develops, and sells a broad portfolio of networking, security, collaboration, and cloud-based software solutions that enable connectivity and insight across data-center, campus, branch, and wireless environments worldwide. Its customer base spans enterprises, governments, service providers, and public institutions, and sales are executed both directly and through a global ecosystem of integrators, resellers, and carriers.
In its most recent fiscal year (FY 2025), Cisco reported total revenue of **$55.1 billion**, a modest **2 % decline YoY**, driven by slower demand in legacy hardware offset by growth in software subscriptions. Adjusted earnings per share were **$1.06**, and the operating margin held at **26 %**, reflecting continued cost-discipline. Notably, subscription-based recurring revenue grew **9 %** year-over-year, now representing roughly **30 %** of total revenue, underscoring the company’s shift toward higher-margin, predictable cash flows.
Key sector drivers that shape Cisco’s outlook include: (1) enterprise IT capital-expenditure forecasts, which IDC projects to rise **~5 % YoY in 2026**, buoyed by cloud migration and edge-computing initiatives; (2) the accelerating demand for cybersecurity and Secure Access Service Edge (SASE) solutions, where Cisco’s security portfolio captured an estimated **12 % market share** in 2025, positioning it to benefit from rising security budgets; and (3) the data-center switching market, where Cisco remains the **largest vendor** with an IDC-reported **~45 % share**, providing a defensible moat against commoditization.
Given the mix of modest revenue contraction, strong software-revenue momentum, and favorable macro trends, Cisco’s valuation hinges on the sustainability of its subscription growth and its ability to monetize security and SASE offerings. Investors should monitor guidance on subscription ARR growth and any strategic acquisitions that could accelerate market share gains.
For a deeper quantitative dive, you might explore ValueRay’s sector-level valuation models.
Piotroski VR‑10 (Strict, 0-10) 7.0
| Net Income: 10.33b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.11 > 0.02 and ΔFCF/TA 1.26 > 1.0 |
| NWC/Revenue: -4.46% < 20% (prev -9.04%; Δ 4.58% < -1%) |
| CFO/TA 0.11 > 3% & CFO 13.74b > Net Income 10.33b |
| Net Debt (19.69b) to EBITDA (16.38b): 1.20 < 3 |
| Current Ratio: 0.93 > 1.5 & < 3 |
| Outstanding Shares: last quarter (3.99b) vs 12m ago -0.50% < -2% |
| Gross Margin: 64.85% > 18% (prev 0.65%; Δ 6420 % > 0.5%) |
| Asset Turnover: 47.21% > 50% (prev 42.95%; Δ 4.25% > 0%) |
| Interest Coverage Ratio: 9.02 > 6 (EBITDA TTM 16.38b / Interest Expense TTM 1.52b) |
Altman Z'' 1.27
| A: -0.02 (Total Current Assets 32.88b - Total Current Liabilities 35.45b) / Total Assets 121.10b |
| B: -0.00 (Retained Earnings -364.0m / Total Assets 121.10b) |
| C: 0.11 (EBIT TTM 13.75b / Avg Total Assets 122.22b) |
| D: 0.63 (Book Value of Equity 46.87b / Total Liabilities 74.23b) |
| Altman-Z'' Score: 1.27 = BB |
Beneish M -3.01
| DSRI: 0.96 (Receivables 7.91b/7.58b, Revenue 57.70b/52.98b) |
| GMI: 1.00 (GM 64.85% / 64.92%) |
| AQI: 1.02 (AQ_t 0.71 / AQ_t-1 0.69) |
| SGI: 1.09 (Revenue 57.70b / 52.98b) |
| TATA: -0.03 (NI 10.33b - CFO 13.74b) / TA 121.10b) |
| Beneish M-Score: -3.01 (Cap -4..+1) = AA |
What is the price of CSCO shares?
Over the past week, the price has changed by +8.30%, over one month by +12.75%, over three months by +20.04% and over the past year by +39.52%.
Is CSCO a buy, sell or hold?
- StrongBuy: 10
- Buy: 5
- Hold: 10
- Sell: 1
- StrongSell: 0
What are the forecasts/targets for the CSCO price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 87 | 2.5% |
| Analysts Target Price | 87 | 2.5% |
| ValueRay Target Price | 103.1 | 21.6% |
CSCO Fundamental Data Overview February 07, 2026
P/E Forward = 19.9203
P/S = 5.8086
P/B = 6.9424
P/EG = 1.6329
Revenue TTM = 57.70b USD
EBIT TTM = 13.75b USD
EBITDA TTM = 16.38b USD
Long Term Debt = 21.36b USD (from longTermDebt, last quarter)
Short Term Debt = 6.72b USD (from shortTermDebt, last quarter)
Debt = 28.09b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 19.69b USD (from netDebt column, last quarter)
Enterprise Value = 354.82b USD (335.13b + Debt 28.09b - CCE 8.40b)
Interest Coverage Ratio = 9.02 (Ebit TTM 13.75b / Interest Expense TTM 1.52b)
EV/FCF = 27.87x (Enterprise Value 354.82b / FCF TTM 12.73b)
FCF Yield = 3.59% (FCF TTM 12.73b / Enterprise Value 354.82b)
FCF Margin = 22.07% (FCF TTM 12.73b / Revenue TTM 57.70b)
Net Margin = 17.90% (Net Income TTM 10.33b / Revenue TTM 57.70b)
Gross Margin = 64.85% ((Revenue TTM 57.70b - Cost of Revenue TTM 20.28b) / Revenue TTM)
Gross Margin QoQ = 65.48% (prev 63.25%)
Tobins Q-Ratio = 2.93 (Enterprise Value 354.82b / Total Assets 121.10b)
Interest Expense / Debt = 1.25% (Interest Expense 350.0m / Debt 28.09b)
Taxrate = 15.66% (531.0m / 3.39b)
NOPAT = 11.60b (EBIT 13.75b * (1 - 15.66%))
Current Ratio = 0.93 (Total Current Assets 32.88b / Total Current Liabilities 35.45b)
Debt / Equity = 0.60 (Debt 28.09b / totalStockholderEquity, last quarter 46.87b)
Debt / EBITDA = 1.20 (Net Debt 19.69b / EBITDA 16.38b)
Debt / FCF = 1.55 (Net Debt 19.69b / FCF TTM 12.73b)
Total Stockholder Equity = 46.30b (last 4 quarters mean from totalStockholderEquity)
RoA = 8.45% (Net Income 10.33b / Total Assets 121.10b)
RoE = 22.31% (Net Income TTM 10.33b / Total Stockholder Equity 46.30b)
RoCE = 20.32% (EBIT 13.75b / Capital Employed (Equity 46.30b + L.T.Debt 21.36b))
RoIC = 15.38% (NOPAT 11.60b / Invested Capital 75.42b)
WACC = 8.43% (E(335.13b)/V(363.22b) * Re(9.05%) + D(28.09b)/V(363.22b) * Rd(1.25%) * (1-Tc(0.16)))
Discount Rate = 9.05% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -1.16%
[DCF Debug] Terminal Value 77.49% ; FCFF base≈12.21b ; Y1≈13.01b ; Y5≈15.65b
Fair Price DCF = 58.46 (EV 250.69b - Net Debt 19.69b = Equity 231.00b / Shares 3.95b; r=8.43% [WACC]; 5y FCF grow 7.34% → 2.90% )
EPS Correlation: 38.11 | EPS CAGR: 4.76% | SUE: 0.90 | # QB: 1
Revenue Correlation: 50.15 | Revenue CAGR: 4.28% | SUE: 2.49 | # QB: 1
EPS next Quarter (2026-04-30): EPS=1.03 | Chg30d=+0.000 | Revisions Net=+1 | Analysts=19
EPS current Year (2026-07-31): EPS=4.12 | Chg30d=+0.002 | Revisions Net=+1 | Growth EPS=+8.2% | Growth Revenue=+7.2%
EPS next Year (2027-07-31): EPS=4.47 | Chg30d=+0.001 | Revisions Net=+1 | Growth EPS=+8.5% | Growth Revenue=+5.3%