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Cisco Systems Inc (CSCO)

Upturn stock ratingUpturn stock rating
$61.03
Delayed price
Profit since last BUY22.72%
upturn advisory
Consider higher Upturn Star rating
BUY since 104 days
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Upturn Advisory Summary

01/21/2025: CSCO (2-star) has a low Upturn Star Rating. Not recommended to BUY.

Upturn Star Rating

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Below Average Performance

These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.

AI Based Fundamental Rating

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Moderate Performance

These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.

Analysis of Past Performance

Type Stock
Historic Profit 12.79%
Avg. Invested days 59
Today’s Advisory Consider higher Upturn Star rating
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 3.0
Stock Returns Performance Upturn Returns Performance 2.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 01/21/2025

Key Highlights

Company Size Large-Cap Stock
Market Capitalization 242.12B USD
Price to earnings Ratio 26.69
1Y Target Price 70.37
Price to earnings Ratio 26.69
1Y Target Price 70.37
Volume (30-day avg) 19547965
Beta 0.78
52 Weeks Range 43.86 - 66.50
Updated Date 03/30/2025
52 Weeks Range 43.86 - 66.50
Updated Date 03/30/2025
Dividends yield (FY) 2.69%
Basic EPS (TTM) 2.28

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

Earnings Date

Report Date -
When -
Estimate -
Actual -

Profitability

Profit Margin 16.96%
Operating Margin (TTM) 22.32%

Management Effectiveness

Return on Assets (TTM) 6.56%
Return on Equity (TTM) 20.02%

Valuation

Trailing PE 26.69
Forward PE 16.39
Enterprise Value 256302877411
Price to Sales(TTM) 4.47
Enterprise Value 256302877411
Price to Sales(TTM) 4.47
Enterprise Value to Revenue 4.73
Enterprise Value to EBITDA 17.54
Shares Outstanding 3978289920
Shares Floating 3972643257
Shares Outstanding 3978289920
Shares Floating 3972643257
Percent Insiders 0.06
Percent Institutions 80.01

Analyst Ratings

Rating 3.68
Target Price 62.5
Buy 4
Strong Buy 8
Buy 4
Strong Buy 8
Hold 15
Sell 1
Strong Sell -
Strong Sell -

ai summary icon Upturn AI SWOT

Cisco Systems Inc

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Company Overview

History and Background

Cisco Systems Inc. was founded in December 1984 by Leonard Bosack and Sandy Lerner. Initially, it pioneered the concept of LANs (Local Area Networks) to connect disparate protocols, enabling data sharing across different computer systems. Throughout the 1990s, Cisco became a dominant player in the internet infrastructure market, manufacturing routers and switches. In the 2000s, Cisco expanded its portfolio through acquisitions, venturing into areas like security, collaboration, and software. Today, Cisco continues to evolve focusing on cloud-based solutions and as-a-service offerings.

Core Business Areas

  • Secure, Agile Networks: Provides networking solutions, including switching, routing, wireless, and data center technologies, designed for agility and security.
  • Internet for the Future: Focuses on building the next-generation internet infrastructure, including silicon, optics, and software solutions for service providers and web-scale companies.
  • Collaboration: Offers collaboration solutions like Webex for meetings, messaging, calling, and devices to enable seamless communication and teamwork.
  • Security: Delivers security products and services, including network security, cloud security, endpoint security, and threat intelligence, to protect against cyber threats.
  • Observability: Provides platforms, like AppDynamics, that provides visibility into applications and infrastructures.

Leadership and Structure

Chuck Robbins serves as the Chairman and CEO. The organizational structure comprises various business units aligned with the core business areas, supported by functional teams like engineering, sales, marketing, and finance.

Top Products and Market Share

Key Offerings

  • Market Share (%): 35
  • Routers: Cisco routers are used for connecting networks. Cisco holds a significant market share in the enterprise router market. Competitors include Juniper Networks and Huawei.
  • Market Share (%): 45
  • Switches: Cisco switches enable devices to connect to a network and communicate with each other. Cisco is a leading vendor in the Ethernet switch market. Competitors include Arista Networks and Hewlett Packard Enterprise (HPE).
  • Market Share (%): 15
  • Webex: Webex is a cloud-based collaboration platform for meetings, messaging, and calling. Competitors include Zoom and Microsoft Teams.
  • Market Share (%): 10
  • Security Solutions (Firewall, Intrusion Detection): Security solutions like firewalls that protect networks from unauthorized access. Competitors include Palo Alto Networks and Fortinet.

Market Dynamics

Industry Overview

The networking and security industry is characterized by rapid technological advancements, increasing demand for cloud-based solutions, and growing cybersecurity threats. The industry is highly competitive, with established players and emerging startups vying for market share.

Positioning

Cisco Systems Inc. is a leading provider of networking, security, and collaboration solutions, known for its broad product portfolio, extensive channel partner network, and strong brand reputation. Cisco differentiates itself through its end-to-end solutions, focus on innovation, and commitment to customer success.

Total Addressable Market (TAM)

The total addressable market (TAM) for Cisco's products and services is estimated to be in the hundreds of billions of dollars, encompassing networking infrastructure, cybersecurity, collaboration tools, and cloud solutions. Cisco is positioned to capture a significant share of this TAM through its comprehensive portfolio and strategic initiatives.

Upturn SWOT Analysis

Strengths

  • Strong brand recognition
  • Extensive product portfolio
  • Large installed base
  • Global presence
  • Robust channel partner network
  • History of Innovation

Weaknesses

  • High product prices
  • Complexity of product portfolio
  • Bureaucratic structure
  • Reliance on hardware sales
  • Slow adaptation to new technologies

Opportunities

  • Growth in cloud computing
  • Increasing demand for cybersecurity solutions
  • Expansion into emerging markets
  • Adoption of 5G technology
  • Internet of Things (IoT) deployments

Threats

  • Intense competition
  • Rapid technological changes
  • Economic downturns
  • Cybersecurity threats
  • Geopolitical risks
  • Supply chain disruptions

Competitors and Market Share

Key Competitors

  • Juniper Networks (JNPR)
  • Arista Networks (ANET)
  • Palo Alto Networks (PANW)
  • Fortinet (FTNT)
  • Hewlett Packard Enterprise (HPE)

Competitive Landscape

Cisco Systems Inc. benefits from its broad product portfolio, large installed base, and strong brand. However, it faces intense competition from specialized vendors like Arista Networks in switching and Palo Alto Networks in security. Cisco needs to continue to innovate and adapt to changing market conditions to maintain its competitive edge.

Major Acquisitions

Splunk

  • Year: 2023
  • Acquisition Price (USD millions): 28000
  • Strategic Rationale: This acquisition provides comprehensive visibility across an organizationu2019s entire digital footprint, delivering an unprecedented view of security and operations.

Armorblox

  • Year: 2024
  • Acquisition Price (USD millions): N/A
  • Strategic Rationale: Cisco will integrate Armorbloxu2019s innovative email security capabilities across its broad security portfolio to simplify security operations, and prevent sophisticated email attacks, stopping them before they cause damage.

Growth Trajectory and Initiatives

Historical Growth: Cisco has experienced periods of strong growth followed by periods of slower growth. Its growth is closely tied to the overall health of the IT spending environment and its ability to innovate and adapt to changing market conditions.

Future Projections: Analyst estimates project moderate growth for Cisco Systems Inc., driven by its focus on cloud, security, and recurring revenue streams. These projections are subject to change based on market conditions and company performance.

Recent Initiatives: Recent strategic initiatives include investments in cloud-based solutions, acquisitions of companies in the security and collaboration space, and partnerships with other technology vendors.

Summary

Cisco Systems Inc. remains a strong player in the networking and security industry, underpinned by a broad product portfolio and global presence. The company is successfully adapting to cloud trends and security demands by leveraging its large installed customer base. Areas to watch include competition from niche providers and adapting to fast technological advances.

Similar Companies

  • JNPR
  • ANET
  • HPE
  • IBM
  • MSFT

Sources and Disclaimers

Data Sources:

  • Cisco Investor Relations Website
  • Industry Reports (e.g., Gartner, IDC)
  • Financial News Outlets (e.g., Bloomberg, Reuters)
  • Company SEC Filings

Disclaimers:

The information provided is for informational purposes only and should not be considered financial advice. Market conditions and company performance are subject to change. Refer to official sources for the most up-to-date information.

Upturn AI SummarizationUpturn AI Summarization AI Summarization is directionally correct and might not be accurate.

Upturn AI SummarizationUpturn AI Summarization Summarized information shown could be a few years old and not current.

Upturn AI SummarizationUpturn AI Summarization Fundamental Rating based on AI could be based on old data.

Upturn AI SummarizationUpturn AI Summarization AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.

About Cisco Systems Inc

Exchange NASDAQ
Headquaters San Jose, CA, United States
IPO Launch date 1990-02-16
Chairman & CEO Mr. Charles H. Robbins
Sector Technology
Industry Communication Equipment
Full time employees 90400
Full time employees 90400

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 company also offers switching portfolio encompasses campus switching as well as data center switching; enterprise routing portfolio interconnects public and private wireline and mobile networks, delivering highly secure, and reliable connectivity to campus, data center and branch networks; and wireless products include indoor and outdoor wireless coverage designed for seamless roaming use of voice, video, and data applications. In addition, it provides security, which comprising network security, identity and access management, secure access service edge, and threat intelligence, detection, and response offerings; collaboration products, such as Webex Suite, collaboration devices, contact center, and communication platform as a service; end-to-end collaboration solutions that can be delivered from the cloud, on-premise or within hybrid cloud environments allowing customers to transition their collaboration solutions from on-premise to the cloud; and observability offers network assurance, monitoring and analytics and observability suite. Further, the company offers a range of service and support options for its customers, including technical support and advanced services and advisory services. It serves businesses of various sizes, public institutions, governments, and service providers. The company sells its products and services directly, as well as through systems integrators, service providers, other resellers, and distributors. Cisco Systems, Inc. has strategic alliances with other companies. Cisco Systems, Inc. was incorporated in 1984 and is headquartered in San Jose, California.

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