In the realm of the stock market, volatility is a critical factor that investors must consider. This article will delve into a comparative analysis of two prominent companies: Cisco Systems (USA Stocks: CSCO) and Merck. Cisco Systems, a leading player in the Communications & Networking industry, has been a staple in the technology sector. The company ended its recent financial period with a cash flow of
$8.6B, down from $9.9B at the beginning of the period. Despite this decrease, the company maintains a robust
financial position with $19.3B in cash and short-term investments, of which $7.1B is in cash. The company's book value stands at $10.379, with a payout ratio of 0.4314. Analysts have given a wide range of target prices for Cisco, with the lowest estimated target price at $45 and the highest at $73. The Wall Street target price is $50.44, while the analyst target price estimated value is $55.944. Cisco's diluted EPS is 2.79, and the EPS estimate for the current quarter is 0.97 based on 18 analyst estimates. The company's PE ratio is 18.5975, and it offers a dividend yield of 0.0299 with a dividend per share of $1.53. Despite a gross profit of
$32.2B, the company's valuation market value is $52.58, slightly below its valuation real value of $53.56. This discrepancy indicates a possible upside price of $53.35. In conclusion, Cisco Systems presents a complex picture of volatility. With a short ratio of 3.03, the company's stock is subject to fluctuations that investors must carefully consider. However, with six strong buy recommendations from analysts, the company's
future prospects look promising. Stay tuned for the comparative analysis of Merck in the following sections. While many discerning traders are steering clear of the communications equipment sector, it is worthwhile to delve deeper into Cisco Systems and compare its standing against Merck and other comparable entities. Our focus will be on some of the competitive aspects of both Cisco and Merck.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Cisco or Comtech is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
understanding Cisco Systems dividends
A dividend is the distribution of a portion of Cisco Systems earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Cisco Systems dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Cisco one year expected dividend income is about USD1.05 per share.
As of the 30th of November 2024,
Dividend Paid And Capex Coverage Ratio is likely to grow to 2.25, though
Dividends Paid is likely to grow to (6.1
B).
Investing in dividend-paying stocks, such as Cisco Systems is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Cisco Systems must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Cisco Systems. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
How important is Cisco Systems's Liquidity
Cisco Systems
financial leverage refers to using borrowed capital as a funding source to finance Cisco Systems ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Cisco Systems financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Cisco Systems' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Cisco Systems' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Cisco Systems's total debt and its cash.
Correlation Between Cisco and Comtech Telecommunicatio
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Cisco Systems together with similar or unrelated positions with a negative correlation. For example, you can also add Comtech Telecommunicatio to your portfolio. If Comtech Telecommunicatio is not perfectly correlated to Cisco Systems it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Cisco Systems, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Cisco Systems and Comtech Telecommunicatio in your portfolio? Please note if you are using this as a pair-trade strategy between Cisco Systems and Comtech Telecommunicatio, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between CSCO and CMTL for more information.
Is Cisco Systems valued appropriately by the market?
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Lets now check Cisco Systems revenue. Based on the latest financial disclosure, Cisco Systems reported 51.56
B of revenue. This is much higher than that of the Communications Equipment sector and significantly higher than that of the
Information Technology industry. The revenue for all United States stocks is significantly lower than that of the stock. As for Merck we see revenue of 59.28
B, which is much higher than that of the Information Technology
| Cisco | 51.56 Billion |
| Sector | 4.08 Billion |
| Merck | 59.28 Billion |
Cisco Systems (NASDAQ: CSCO) has displayed a notable market performance with a market capitalization of
$214.59B and a PE Ratio of 18.60.
The technology giant's current valuation stands at $198.47B, indicating a positive market sentiment. The company's profitability is reflected in its net income of $11.81B and a profit margin of 0.21%. In terms of liquidity, Cisco holds a current ratio of 1.45X, backed by a substantial amount of cash and short-term investments totaling
$19.3B. However, there was a negative change in cash of $1.4B, resulting from total cash from financing activities amounting to a loss of $16.1B. Despite this, the company managed to generate a free cash flow of $12.7B, indicating its ability to self-finance and invest in growth opportunities. In the context of market volatility, Cisco's standard deviation stands at 1.04, while the downside deviation is 1.11, suggesting a relatively moderate level of risk. The company's total risk alpha is 0.0179, further affirming the manageable risk associated with its stock. Comparatively, Cisco's Wall Street target price stands at $50.44, slightly below its 50-day moving average of $50.80, suggesting a potential for price correction. The company's EPS estimate for the current year is $3.45, reflecting an optimistic earnings outlook. .
Cisco Systems is likely to close below $54 next week
Cisco Systems, a prominent player in the tech industry, has recently shown a promising risk-adjusted performance increase over 0.11. Despite this positive trend, market indicators suggest a potential downturn in the short term. Based on a thorough analysis of the company's financials, market trends, and economic factors, it is projected that Cisco Systems' stock may close below $54 in the upcoming week. Investors are advised to closely monitor the stock and make trading decisions accordingly. Cisco Systems exhibits relatively low volatility with a skewness of -0.45 and a kurtosis of 0.16. However, we recommend that all investors conduct independent investigations into Cisco Systems to ensure that all available information aligns with their expectations about its upside potential and future expected returns. Understanding different
market volatility trends can often assist investors in timing the market. Proper use of volatility indicators allows traders to measure Cisco Systems' stock risk against market volatility during both bullish and bearish trends.
The heightened level of volatility that accompanies bear markets can directly impact
Cisco Systems' stock price, adding stress to investors as they watch the value of their shares decline. This typically compels investors to rebalance their portfolios by purchasing different stocks as prices drop. In conclusion, investing in Cisco Systems (CSCO) at this juncture requires careful consideration. The analyst overall consensus is a 'Hold', with a total of
18 estimates, including
12 holds,
2 buys,
6 strong buys, and
1 strong sell. The analyst target price estimated value stands at $55.944, with the highest and lowest estimated target prices being $73 and $45 respectively. The current valuation market value is $52.58, which is slightly above the naive expected forecast value of $52.33. The possible downside price is $51.32, while the possible upside price is $53.35. With the fiscal year ending in July, investors should monitor these factors closely before making a decision. .
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Cisco Systems. Please refer to our
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