Cisco Systems, Inc. (CSCO) on Decifer

Decifer ranks CSCO number 40 of 276 tracked names on durable business quality.

Why it ranks here

• It earns solid returns on the money it puts to work, around 12% and it turns most of its profit into real cash.
• Revenue is expected to grow about 7% a year, profits grew 0% over the past year, and growth is speeding up, not slowing down.
• It keeps a high share of every sale as profit, and that has stayed steady over the years, a sign of real pricing power.
• It is riding an active market tailwind and has the balance sheet to fund its growth.
• It is not watering down its owners with new shares and it returns cash to shareholders.
• Our durability check found pressure on this name, which costs it a few points.
• It is one of 2 credible switching suppliers in a partly recognized AI thesis with momentum of 22 out of 35, but profits grew 0% and its AI exposure is only partial on a red board.

The current read

The evidence on CSCO lines up on the supportive side: a live market force supports this name through its theme connection. One signal disagrees: the longer-term story is intact, but price is not rewarding it: semiconductor stocks are down 7.5% this week. The drop is large enough to signal near-term caution, worth watching but not the weight of the evidence.

Themes

• Networking & Connectivity: Cisco Systems, Inc. operates in communication equipment. That places it inside the Networking & Connectivity story.

Read the full CSCO research brief · See all quality rankings

Intelligence data powered by Decifer. Not financial advice. For informational purposes only.