CSCO Cisco Systems, Inc. - Fundamental Analysis
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CSCO Stock | Fundamental Analysis & Investment Insights
NASDAQ
Technology
Communication Equipment
Current Price
Live
$75.19
Analyst Target
$86.0
+14.4%
Upside
52W High
$80.82
52W Low
$52.11
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Jan 17, 2026
Market cap
$297.08B
P/E
29.03
ROE
22.4%
Profit margin
17.9%
Debt/Equity
0.63
Dividend yield
2.18%
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
72%
Analysis Accuracy
CSCO's deterministic health score is stable with a Piotroski F-Score of 5/9, indicating moderate financial strength, though the absence of an Altman Z-Score limits distress risk assessment. The stock trades significantly above its Graham Number of $26.34 and intrinsic value of $41.44 at $75.19, reflecting premium valuation likely driven by growth expectations and sector positioning. Profitability metrics are solid, with high gross margins and ROE, but weak technical trend and negative insider sentiment offset these strengths. Revenue and earnings growth are positive but modest, while analyst consensus supports a 'buy' with a $86.00 target, implying 14% upside.
Key Strengths
Strong profitability with ROE of 22.42% and gross margin of 64.85%
Consistent earnings beat history: 3 out of last 4 quarters exceeded estimates
Attractive dividend yield of 2.18% with a sustainable 62.93% payout ratio
Low debt/equity ratio of 0.63, below sector average of 0.79
Significant revenue growth momentum at 7.5% YoY in a mature industry
Key Risks
Current ratio of 0.93 and quick ratio of 0.72 indicate potential short-term liquidity pressure
Stock trades at a high premium: current price $75.19 vs Graham Number $26.34 and intrinsic value $41.44
Technical trend score of 10/100 signals strong bearish momentum near-term
Insider selling activity: $61.79M in net sales over last 6 months
Forward P/E of 16.81 is reasonable, but current P/E of 29.03 is elevated vs historical and sector averages
AI Fair Value Estimate
Based on comprehensive analysis
$48.5
-35.5% below current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
66
Strong
45
70
75
60
78
AI Verdict
Moderately positive outlook with valuation concerns and mixed signals across dimensions
Key drivers: Strong profitability and dividend profile, Premium valuation and bearish technicals, Positive earnings surprises and growth trajectory, Negative insider sentiment
Confidence
75%
Value
45/100
Ref P/E, PEG, Graham Number
Positives
- Forward P/E of 16.81 is below current P/E and suggests improving valuation
Watchpoints
- Current P/E of 29.03 is high
- Price/Sales of 5.15 and Price/Book of 6.32 are elevated
- Stock trades at 185% above Graham Number
Future
70/100
Ref Growth rates
Positives
- Revenue growth of 7.5% YoY and earnings growth of 6.0% YoY
- Q/Q earnings growth of 5.50% shows continued momentum
- Analyst target price implies 14% upside
Watchpoints
- PEG Ratio unavailable, limiting growth-adjusted valuation insight
Past
75/100
Ref Historical trends
Positives
- Consistent earnings beat record: 24 out of 25 quarters beat or met estimates
- Long-term price performance strong: +92.3% over 5 years
- Stable dividend history with reliable payout
Watchpoints
- 1-month price change of -0.5% shows recent stagnation
Health
60/100
Ref Altman Z-Score, Piotroski F-Score
Positives
- Piotroski F-Score of 5/9 indicates stable financial condition
- Debt/Equity of 0.63 is below sector average
Watchpoints
- Current ratio of 0.93 and quick ratio of 0.72 suggest near-term liquidity risk
- Altman Z-Score not available, limiting distress risk analysis
Dividend
78/100
Ref Yield, Payout
Positives
- Dividend yield of 2.18% is above market average
- Payout ratio of 62.93% is sustainable for a mature tech firm
- Dividend strength score of 50/100 indicates reliable but not exceptional
Watchpoints
- 5-year average yield unavailable, limiting trend analysis
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$75.19
Analyst Target
$86.0
Upside/Downside
+14.4%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for CSCO and closest competitors.
Updated 2026-01-16
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
CSCO
Cisco Systems, Inc.
Primary
|
+92.3% | +70.3% | +28.8% | +11.8% | -0.5% | +1.8% |
|
IBM
International Business Machines Corporation
Peer
|
+232.3% | +136.3% | +50.0% | +16.0% | +9.5% | +0.3% |
|
LRCX
Lam Research Corporation
Peer
|
+306.0% | +388.5% | +184.0% | +122.3% | +43.9% | +2.1% |
|
AMD
Advanced Micro Devices, Inc.
Peer
|
+134.4% | +121.1% | +97.1% | +22.0% | -9.4% | +0.5% |
|
AMAT
Applied Materials, Inc.
Peer
|
+210.2% | +191.2% | +129.8% | +104.2% | +0.6% | +5.2% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
29.03
Forward P/E
16.81
PEG Ratio
N/A
P/B Ratio
6.32
P/S Ratio
5.15
EV/Revenue
5.39
EV/EBITDA
19.84
Market Cap
$297.08B
Profitability
Profit margins and return metrics
Profit Margin
17.9%
Operating Margin
23.6%
Gross Margin
64.85%
ROE
22.42%
ROA
6.65%
Growth
Revenue and earnings growth rates
Revenue Growth
+7.5%
Earnings Growth
+6.0%
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
+5.5%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
0.63
Moderate
Current Ratio
0.93
Weak
Quick Ratio
0.72
Poor
Cash/Share
$3.98
Quarterly Earnings History
EPS performance vs analyst estimates
2026-02-11
$N/A
2025-11-12
$1.0
+1.8% surprise
2025-08-13
$0.99
+1.3% surprise
2025-05-14
$0.96
+4.6% surprise
Technology Sector Comparison
Comparing CSCO against 149 companies in the Technology sector
(10 bullish, 66 neutral, 73 bearish)
P/E Ratio
29.03
This Stock
vs
90.97
Sector Avg
-68.1%
(Discount)
Return on Equity (ROE)
22.42%
This Stock
vs
-8.13%
Sector Avg
-375.7%
(Below Avg)
Profit Margin
17.9%
This Stock
vs
-7.75%
Sector Avg
-330.9%
(Weaker)
Debt to Equity
0.63
This Stock
vs
0.76
Sector Avg
-17.3%
(Lower)
Revenue Growth
7.5%
This Stock
vs
56.87%
Sector Avg
-86.8%
(Slower)
Current Ratio
0.93
This Stock
vs
3.33
Sector Avg
-72.2%
(Weaker)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
CSCO
Cisco Systems, Inc.
|
NEUTRAL | $297.08B | 29.03 | 22.4% | 17.9% | $75.19 | |
|
IBM
International Business...
|
NEUTRAL | $285.74B | 36.48 | 30.2% | 12.1% | $305.69 | |
|
LRCX
Lam Research Corporation
|
NEUTRAL | $281.16B | 49.33 | 62.3% | 29.7% | $222.96 | |
|
AMD
Advanced Micro Devices, Inc.
|
NEUTRAL | $315.31B | 74.1 | 7.1% | 12.5% | $193.39 | |
|
AMAT
Applied Materials, Inc.
|
NEUTRAL | $271.04B | 35.1 | 38.9% | 27.8% | $341.53 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-12-19 | GARRETT MARK S | Director | Gift | 3,481 | - |
| 2025-12-19 | MURPHY SARAH RAE | Director | Gift | 3,481 | - |
| 2025-12-19 | CAPELLAS MICHAEL D | Director | Sale | 27,000 | $2,084,855 |
| 2025-12-18 | JOHNSON KRISTINA MARY | Director | Sale | 13,481 | $1,039,845 |
| 2025-12-16 | BUSH WESLEY G | Director | Stock Award | 438 | $33,967 |
| 2025-12-16 | TESSEL MARIANNA | Director | Stock Award | 3,481 | - |
| 2025-12-16 | HARRIS JOHN D. II | Director | Stock Award | 3,481 | - |
| 2025-12-16 | WEIL KEVIN | Director | Stock Award | 3,871 | $30,244 |
| 2025-12-16 | JOHNSON KRISTINA MARY | Director | Stock Award | 3,481 | - |
| 2025-12-16 | GARRETT MARK S | Director | Stock Award | 3,481 | - |
| 2025-12-16 | SCHULMAN DANIEL H | Director | Stock Award | 3,481 | - |
| 2025-12-16 | MURPHY SARAH RAE | Director | Stock Award | 3,481 | - |
| 2025-12-16 | CAPELLAS MICHAEL D | Director | Stock Award | 3,481 | - |
| 2025-12-12 | SUBAIYA THIMAYA K | Officer | Sale | 1,745 | $138,658 |
| 2025-12-11 | WONG MARIA VICTORIA | Officer | Sale | 428 | $34,381 |
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
BUY
21 analysts
Morgan Stanley
2025-12-17
Overweight
Overweight
Barclays
2025-11-13
Equal-Weight
Equal-Weight
Citigroup
2025-11-13
Buy
Buy
JP Morgan
2025-11-13
Overweight
Overweight
Wells Fargo
2025-11-13
Overweight
Overweight
UBS
2025-11-13
Buy
Buy
Piper Sandler
2025-11-13
Neutral
Neutral
Evercore ISI Group
2025-11-13
In-Line
In-Line
Keybanc
2025-11-13
Overweight
Overweight
Rosenblatt
2025-11-13
Buy
Buy
Past News Coverage
Recent headlines mentioning CSCO from our newsroom.
Newest → oldest
No matching news yet.