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Cisco Systems Inc. [CSCO] – How low can NASDAQ:CSCO go? A return to Fundamental Analysis

Cisco Systems Inc. [CSCO] is following downward trend in the market concluded with the last trading session. The shares of the Technology sector company has a current value of $42.42 after CSCO shares went down by -2.11% during the last trading session. One of the reasons why Technology stocks may go bearish is decreased momentum in the press.

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. For Cisco Systems Inc. [CSCO], the most recent analyst consensus recommendation available since its latest financial results for the quarter ending in 1/30/2020. This is compared to its latest closing price of $43.34.

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 05/13/2020.

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 27.50% and its Gross Margin at 64.00%, this company’s Net Margin is now 21.40. 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 20.83. Its Return on Equity is 31.50%, and its Return on Assets is 11.70%. 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 10.10 and its Total Debt to EBITDA Value is 1.50. The Enterprise Value to Sales for this firm is now 3.22, 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 16.59. These metrics all suggest that Cisco Systems Inc. is more likely to generate a positive ROI.

Cisco Systems Inc. [CSCO] has 4.26B shares outstanding, amounting to a total market cap of 184.42B. Its stock price has been found in the range of 32.40 to 58.26. At its current price, it has moved down by -27.18% from its 52-week high, and it has moved up 30.94% from its 52-week low.

This stock’s Beta value is currently 0.99, which indicates that it is 2.11% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 53.55. 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.

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