The share price of Cisco Systems Inc. [NASDAQ: CSCO] inclined by $43.85, presently trading at $44.27. The company’s shares saw 36.64% gains compared to the lowest price in the period of the last 52 weeks, set at 32.40 recorded on 05/15/20.
The last few days have been benevolent to the share price as CSCO jumped by 2.98% during the last week, even though the stock is still up by 44.58 compared to +1.28 of all time high it touched on 05/14/20. However, the stock had a poor performance during the past 3 months, roughly gaining 6.67%, while additionally dropping -20.85% during the last 12 months. Cisco Systems Inc. is said to have a 12-month price target set at $46.19. That means that the stock has a strong potential to acquire 1.92% increase from the current trading price.
Cisco Systems Inc. [NASDAQ:CSCO]: Analyst Rating and Earnings
Stock market traders frequently keep their eyes on what Wall Street experts as it relates to a potential investment. On average, stock market experts give CSCO an Overweight rating. The average 12-month price forecast for this stock is $44.27, with the high estimate being $60.00, the low estimate being $41.00 and the median estimate amounting to $48.00. This is compared to its latest closing price of $43.85.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Cisco Systems Inc. [CSCO] is sitting at 4.16. This is compared to 1 month ago, when its average rating was 4.26.
Keep your eyes peeled for the soon-to-be-published financial results of this company, which are expected to be made public on 08/12/2020.
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 27.70% and its Gross Margin at 64.40%, this company’s Net Margin is now 21.70. 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 20.83. Its Return on Equity is 31.30%, and its Return on Assets is 11.60%. 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 43.12, and its Long-Term Debt to Total Capital is 24.86.
What about valuation? This company’s Enterprise Value to EBITDA is 10.56 and its Total Debt to EBITDA Value is 1.50. The Enterprise Value to Sales for this firm is now 3.43, and its Total Debt to Enterprise Value stands at 0.10. Cisco Systems Inc. [CSCO] has a Price to Book Ratio of 7.16, a Price to Cash Flow Ratio of 15.90 and P/E Ratio of 17.60. These metrics all suggest that Cisco Systems Inc. is more likely to generate a positive ROI.
Cisco Systems Inc. [CSCO] has 4.24B shares outstanding, amounting to a total market cap of 187.79B. Its stock price has been found in the range of 32.40 to 58.26. At its current price, it has moved down by -24.01% from its 52-week high, and it has moved up 36.64% from its 52-week low.
This stock’s Beta value is currently 0.93, which indicates that it is 3.42% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 60.90. 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.