Obermatt

Cisco

NSQ:CSCO · US17275R1023
Communications EquipmentXX-Large

360

50
EV / EBIT44
Price / Owner Earnings33
Owner Earnings Yield70
Dividend Yield84
Price/Sales23
EV / Gross Profit20
Price/Book22
Return on Capital81
Cash Return on Capital86
Return on Equity86
EBIT Margin93
Gross Profitability59
Cash Conversion37
Accruals31
Owner Earnings Margin90
Sales growth62
Profit Growth100
Long-Term EPS Growth67
Owner Earnings Growth53
Reinvestment82
Price momentum74
Debt load44
Refinancing14
Debt Payback40
Liquidity91
Analyst ratings31
Opinion Changes48
Price Target Upside32
Market mood49
Value Creation16/20strong value creator
  • Creates more value than its capital costs
  • Owner earnings growing
  • Owner earnings per share growing
  • Reinvests at strong returns
  • Solid earnings base

What this means

Cisco generates returns well above its cost of capital, the foundation of durable shareholder value.

Profile

CountryUSA
IndustryCommunications Equipment
SizeXX-Large
TypePublic Company
ExchangeNASDAQGS
Founded1984
Employees95,983
Websitecisco.com
ISINUS17275R1023
Last UpdateApr 2, 2026
Themes
Cloud ManagementNetwork SecurityNetwork BackboneCloud InfrastructureData Center TechnologyCloud SecurityArtificial IntelligenceData and AnalyticsFinancial ServicesInternet ServicesLending and InvestmentsSoftware

Description

Cisco Systems, Inc. (Cisco) designs and sells a broad range of technologies that help to power, secure, and draw insights from the Internet. The company is incorporating artificial intelligence (AI) into its product portfolios across networking, sec…

Analysis

Quality compounder

Cisco Systems, Inc. earns the quality_compounder label: good underlying economics priced fairly, with no obvious bargain or excess. Worth noting: the cash the business generates has lagged behind what the income statement shows.

On valuation, the picture is expensive. The owner-earnings multiple stands at 36.1×; owner earnings: the cash an owner could take out each year. The implied growth embedded in that price is around 14% a year, against analyst forecasts of 9%. The gap between price and consensus is worth watching: demanding expectations.

Growth is moderate; the safety picture is adequate. The company scores 16/20 on our value-creation score: strong value creator. Analyst sentiment is cautious.

Flags to be aware of: A large part of the company's book value is the price paid for past acquisitions. Reported profits have run ahead of actual cash for several periods. As always: this describes the company's numbers; it is not a recommendation.

360° rank · history

1007550250
63
2023202420252026

All-time high

93

Jan 2026

All-time low

25

Jul 2024

Average rank

73

across all years

Detailed & Historical Ranks

Deep dive into 15 detailed ranks and 3 years of history.

Current202520242023
Price/Sales
23
11
9
13
Price/Earnings
51
58
60
57
Price/Book
22
39
39
24
Dividend Yield
84
92
98
84
Value (overall)
51
55
63
46

Cells are coloured by rank band (red weak → green strong). Sentiment & 360° history begins 2023.

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Make Sense of the Ranks

Every rank runs 1–100 against true peers. Higher is always better.

360° View
1 · Watch OutGood· 100
Value
1 · ExpensiveGood Value· 100
Quality
1 · Weak FundamentalsHigh Quality· 100
Growth
1 · Tough TimesHigh Growth· 100
Safety
1 · High LeverageWell-Financed· 100
Sentiment
1 · SkepticismPositive· 100
Learn More →