Cisco Systems, Inc. [NASDAQ: CSCO] shares went higher by 0.74% from its previous closing of $49.21, now trading at the price of $49.58, also adding 0.37 points. Is CSCO stock a buy or should you stay away?
The stock had a rather active trading session with the latest closing, by far recording 7.81 million contracts. Compared to the average trading volume of CSCO shares, the company saw a far better performance. Moreover, the stock has a 4.24B float and a +5.25% run over in the last seven days. CSCO share price has been hovering between $58.26 and $40.25 lately, and is definitely worthy of attention.
Cisco Systems, Inc. [NASDAQ:CSCO]: Analyst Rating and Earnings
Its stock price has been found in the range of 40.25 to 58.26. This is compared to its latest closing price of $49.21.
Stay on the lookout for the next quarterly financial report – the company is expected to release the following results on Wed 13 Nov (In 63 Days).
Fundamental Analysis of Cisco Systems, Inc. [CSCO]
Now let’s turn to look at profitability: with a current Operating Margin for Cisco Systems, Inc. [CSCO] sitting at +28.01 and its Gross Margin at +63.91, this company’s Net Margin is now 22.40%. These measurements indicate that Cisco Systems, Inc. [CSCO] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 22.89, and its Return on Invested Capital has reached 38.80%. Its Return on Equity is 30.27, and its Return on Assets is 11.25. These metrics all suggest that Cisco Systems, Inc. is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Cisco Systems, Inc. [CSCO] has generated a Total Debt to Total Equity ratio of 73.47. Similarly, its Total Debt to Total Capital is 42.35, while its Total Debt to Total Assets stands at 25.22. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 16.79, and its Long-Term Debt to Total Capital is 43.12.
What about valuation? This company’s Enterprise Value to EBITDA is 12.08 and its Total Debt to EBITDA Value is 1.50. The Enterprise Value to Sales for this firm is now 3.83.
Shifting the focus to workforce efficiency, Cisco Systems, Inc. [CSCO] earns $683,821 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 4.92 and its Total Asset Turnover is 0.50. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.46 and its Current Ratio is 1.51. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Cisco Systems, Inc. [CSCO] has 4.24B shares outstanding, amounting to a total market cap of $208.84B. Its stock price has been found in the range of 40.25 to 58.26. At its current price, it has moved down by -14.91% from its 52-week high, and it has moved up 23.17% from its 52-week low.
This stock’s Beta value is currently 1.26, which indicates that it is 1.72% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 49.32. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Cisco Systems, Inc. [CSCO] a Reliable Buy?
Shares of Cisco Systems, Inc. [CSCO], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.