NASDAQ · Technology

Cisco Systems, Inc.

CSCO · Communication Equipment

$92.59

▲ 0.74 (0.81%)

Data cached · refreshes every 10 min

Mr. Market is currently offering Cisco Systems, Inc. at $92.59.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

Overall Grade

Defensive

Enterprising

Profitability A

Gross Profit Margin 64.9%

Operating Margin 22.1%

Net Income Margin 18.0%

Fin. Health D

Years to Pay Off Debt 2.8 yrs

Working Capital vs Long-Term Debt -$22.9B

Working Capital -$78M

Valuation F

Margin of Safety 0.0%

Price-to-Book 7.81x

Cash Flow A

Free Cash Flow $13.3B

CapEx % of Net Income 8.9%

Owner Earnings $13.9B

3/7

Graham Score

Speculative

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

Market Data

Market Cap $365.7B

Enterprise Value $378.8B

P/E (TTM) 33.31

Dividend Yield 1.79%

Exchange NASDAQ

Key Margins

Gross Profit 64.9%

Operating Margin 22.1%

Net Margin 18.0%

Company Info

Sector Technology

Industry Communication Equipment

Employees 86200

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Cisco Systems, Inc. at $92.59.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

At $92.59, the stock trades at a 251% premium to its Graham Number of $26.39. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

About Cisco Systems, Inc.

Cisco Systems, Inc. designs, develops, and sells technologies that help to power, secure, and draw insights from the internet in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China. The company offers data center switching; network security, identity and access management, and secure access service edge; threat intelligence, detection, and response solutions; interconnects public and private wireline and mobile networks, delivering connectivity to campus, data center, and branch networks; WEBEX suite, collaboration devices, and contact center; communication platform as a service software, including perpetual licenses, subscription arrangements, and hardware solutions; network assurance, monitoring and analytics, and observability suite; issue resolution, software support, and hardware replacement; professional services, such as planning, design, implementation, and high-value consulting; service and support packages, financing, and managed network services; and regional, national, and international wireline carriers, webscale products, internet, and cable. It also delivers connectivity to campus, data center, and branch networks; wireless products, including indoor and outdoor wireless coverage designed for seamless roaming use of voice, video, and data applications; end-to-end collaboration solutions through cloud, on-premise, or within hybrid cloud environments, transition collaboration solutions from on-premise to the cloud; and network assurance, monitoring and analytics, and observability suite. In addition, it offers technical support and advisory services. The company serves businesses, public institutions, governments, and service providers. It sells its products and services directly, through systems integrators, service providers, resellers, and distributors. Cisco Systems, Inc. was incorporated in 1984 and is headquartered in San Jose, California.

Showing Key Metrics

Income Highlights

Metric	2025	2024	2023	2022
Gross Profit %	64.9% ▲	64.7%	62.7%	62.5%
Operating Margin %	22.1% ▼	24.1%	27.3%	27.1%
Net Income %	18.0% ▼	19.2%	22.1%	22.9%
Diluted EPS	2.61 ▲	2.54	3.07	2.82

Balance Sheet Highlights

Metric	2025	2024	2023	2022	2021
Total Assets	$122.3B	$124.4B	$101.9B	$94.0B	N/A
Total Debt	$28.1B ↓	$31.0B	$8.4B	$9.5B	N/A
Working Capital	-$78M ▲	-$3.7B	$12.0B	$11.1B	N/A
Years to Pay Debt	2.76	3.00	0.67	0.81	N/A

Cash Flow Highlights

Metric	2025	2024	2023	2022	2021
Free Cash Flow	$13.3B ▲	$10.2B	$19.0B	$12.7B	N/A
Owner Earnings	$13.9B	$13.5B	$15.2B	$14.2B	N/A
CapEx % of Net Income	8.9%	6.5%	6.7%	4.0%	N/A

Income Statement

	2025	2024	2023	2022
Tax Effect Of Unusual Items	-54,946	-148,980	-125,316	82,984
Tax Rate For Calcs	0	0	0	0
Normalized EBITDA	16,166,000	16,702,000	18,179,000	16,343,000
Total Unusual Items	-662,000	-955,000	-708,000	451,000
Total Unusual Items Excluding Goodwill	-662,000	-955,000	-708,000	451,000
Net Income From Continuing Operation Net Minority Interest	10,180,000	10,320,000	12,613,000	11,812,000
Reconciled Depreciation	2,811,000	2,507,000	1,726,000	1,957,000
Reconciled Cost Of Revenue	18,081,000	17,166,000	19,801,000	17,665,000
EBITDA	15,504,000	15,747,000	17,471,000	16,794,000
EBIT	12,693,000	13,240,000	15,745,000	14,837,000
Net Interest Income	-592,000	359,000	535,000	116,000
Interest Expense	1,593,000	1,006,000	427,000	360,000
Interest Income	1,001,000	1,365,000	962,000	476,000
Normalized Income	10,787,054	11,126,020	13,195,684	11,443,984
Net Income From Continuing And Discontinued Operation	10,180,000	10,320,000	12,613,000	11,812,000
Total Expenses	44,150,000	40,833,000	41,436,000	37,582,000
Total Operating Income As Reported	11,760,000	12,181,000	15,031,000	13,969,000
Diluted Average Shares	3,998,000	4,062,000	4,105,000	4,192,000
Basic Average Shares	3,976,000	4,043,000	4,093,000	4,170,000
Diluted EPS	0	0	0	0
Basic EPS	0	0	0	0
Diluted NI Availto Com Stockholders	10,180,000	10,320,000	12,613,000	11,812,000
Net Income Common Stockholders	10,180,000	10,320,000	12,613,000	11,812,000
Net Income	10,180,000	10,320,000	12,613,000	11,812,000
Net Income Including Noncontrolling Interests	10,180,000	10,320,000	12,613,000	11,812,000
Net Income Continuous Operations	10,180,000	10,320,000	12,613,000	11,812,000
Tax Provision	920,000	1,914,000	2,705,000	2,665,000
Pretax Income	11,100,000	12,234,000	15,318,000	14,477,000
Other Income Expense	-812,000	-1,095,000	-779,000	386,000
Other Non Operating Income Expenses	-150,000	-140,000	-71,000	-65,000
Special Income Charges	-744,000	-789,000	-531,000	-6,000
Restructuring And Mergern Acquisition	744,000	789,000	531,000	6,000
Gain On Sale Of Security	82,000	-166,000	-177,000	457,000
Net Non Operating Interest Income Expense	-592,000	359,000	535,000	116,000
Interest Expense Non Operating	1,593,000	1,006,000	427,000	360,000
Interest Income Non Operating	1,001,000	1,365,000	962,000	476,000
Operating Income	12,504,000	12,970,000	15,562,000	13,975,000
Operating Expense	24,286,000	21,858,000	20,191,000	18,273,000
Depreciation Amortization Depletion Income Statement	1,028,000	698,000	282,000	313,000
Depreciation And Amortization In Income Statement	1,028,000	698,000	282,000	313,000
Amortization	1,028,000	698,000	282,000	313,000
Amortization Of Intangibles Income Statement	1,028,000	698,000	282,000	313,000
Research And Development	9,300,000	7,983,000	7,551,000	6,774,000
Selling General And Administration	13,958,000	13,177,000	12,358,000	11,186,000
Selling And Marketing Expense	10,966,000	10,364,000	9,880,000	9,085,000
General And Administrative Expense	2,992,000	2,813,000	2,478,000	2,101,000
Other Gand A	2,992,000	2,813,000	2,478,000	2,101,000
Gross Profit	36,790,000	34,828,000	35,753,000	32,248,000
Cost Of Revenue	19,864,000	18,975,000	21,245,000	19,309,000
Total Revenue	56,654,000	53,803,000	56,998,000	51,557,000
Operating Revenue	56,654,000	53,803,000	56,998,000	51,557,000

Balance Sheet

	2025	2024	2023	2022	2021
Ordinary Shares Number	3,959,998	4,007,000	4,066,000	4,110,000
Share Issued	3,959,998	4,007,000	4,066,000	4,110,000
Net Debt	19,747,000	23,465,000		2,436,000	2,351,000
Total Debt	28,093,000	30,973,000	8,391,000	9,515,000
Tangible Book Value	-21,468,000	-24,422,000	4,000,000	-1,100,000
Invested Capital	74,936,000	76,430,000	52,744,000	49,288,000
Working Capital	-78,000	-3,722,000	12,039,000	11,077,000
Net Tangible Assets	-21,468,000	-24,422,000	4,000,000	-1,100,000
Common Stock Equity	46,843,000	45,457,000	44,353,000	39,773,000
Total Capitalization	69,704,000	65,089,000	51,011,000	48,189,000
Total Equity Gross Minority Interest	46,843,000	45,457,000	44,353,000	39,773,000
Stockholders Equity	46,843,000	45,457,000	44,353,000	39,773,000
Gains Losses Not Affecting Retained Earnings	-954,000	-1,430,000	-1,575,000	-1,622,000
Other Equity Adjustments	-954,000	-1,430,000	-1,575,000	-1,622,000
Retained Earnings	50,000	1,087,000	1,639,000	-1,319,000
Capital Stock	47,747,000	45,800,000	44,289,000	42,714,000
Common Stock	47,747,000	45,800,000	44,289,000	42,714,000
Total Liabilities Net Minority Interest	75,448,000	78,956,000	57,499,000	54,229,000
Total Non Current Liabilities Net Minority Interest	40,384,000	38,372,000	26,190,000	28,589,000
Other Non Current Liabilities	2,995,000	2,540,000	2,134,000	1,968,000
Derivative Product Liabilities	0	-11,000
Tradeand Other Payables Non Current	2,165,000	3,985,000	5,756,000	7,725,000
Non Current Deferred Liabilities	12,363,000	12,226,000	11,642,000	10,480,000
Non Current Deferred Revenue	12,363,000	12,226,000	11,642,000	10,480,000
Long Term Debt And Capital Lease Obligation	22,861,000	19,632,000	6,658,000	8,416,000
Long Term Debt	22,861,000	19,632,000	6,658,000	8,416,000
Current Liabilities	35,064,000	40,584,000	31,309,000	25,640,000
Other Current Liabilities	5,420,000	5,643,000	5,136,000	5,199,000
Current Deferred Liabilities	16,416,000	16,249,000	13,908,000	12,784,000
Current Deferred Revenue	16,416,000	16,249,000	13,908,000	12,784,000
Current Debt And Capital Lease Obligation	5,232,000	11,341,000	1,733,000	1,099,000
Current Debt	5,232,000	11,341,000	1,733,000	1,099,000
Other Current Borrowings	1,750,000	488,000	1,733,000	499,000
Commercial Paper	3,482,000	10,853,000	0	600,000
Pensionand Other Post Retirement Benefit Plans Current	3,611,000	3,608,000	3,984,000	3,316,000
Payables And Accrued Expenses	4,385,000	3,743,000	6,548,000	3,242,000
Payables	4,385,000	3,743,000	6,548,000	3,242,000
Total Tax Payable	1,857,000	1,439,000	4,235,000	961,000
Income Tax Payable	1,857,000	1,439,000	4,235,000	961,000
Accounts Payable	2,528,000	2,304,000	2,313,000	2,281,000
Total Assets	122,291,000	124,413,000	101,852,000	94,002,000
Total Non Current Assets	87,305,000	87,551,000	58,504,000	57,285,000
Other Non Current Assets	6,059,000	5,944,000	6,007,000	5,957,000
Non Current Deferred Assets	7,356,000	6,262,000	6,576,000	4,449,000
Non Current Deferred Taxes Assets	7,356,000	6,262,000	6,576,000	4,449,000
Non Current Note Receivables	2,876,000	2,737,000	2,869,000	2,380,000
Non Current Accounts Receivable	590,000	639,000	614,000	4,009,000
Goodwill And Other Intangible Assets	68,311,000	69,879,000	40,353,000	40,873,000
Other Intangible Assets	9,175,000	11,219,000	1,818,000	2,569,000
Goodwill	59,136,000	58,660,000	38,535,000	38,304,000
Net PPE	2,113,000	2,090,000	2,085,000	1,997,000
Accumulated Depreciation	-7,477,000	-7,783,000	-7,973,000	-8,168,000
Gross PPE	9,590,000	9,873,000	10,058,000	10,165,000
Other Properties	51,000	115,000	135,000	4,832,000
Machinery Furniture Equipment	5,494,000	5,511,000	5,694,000	1,114,000
Properties	4,045,000	4,247,000	4,229,000	4,219,000
Current Assets	34,986,000	36,862,000	43,348,000	36,717,000
Other Current Assets	5,950,000	5,612,000	4,352,000	4,355,000
Inventory	3,164,000	3,373,000	3,644,000	2,568,000
Other Inventories	6,000	8,000	16,000	10,000
Finished Goods	933,000	1,027,000	1,493,000	717,000
Work In Process	261,000	83,000	264,000	150,000
Raw Materials	1,964,000	2,255,000	1,871,000	1,691,000
Receivables	9,762,000	10,023,000	9,206,000	10,527,000
Other Receivables	346,000	267,000	364,000	3,905,000
Loans Receivable	2,715,000	3,071,000	2,988,000	2,176,000
Accounts Receivable	6,701,000	6,685,000	5,854,000	6,622,000
Allowance For Doubtful Accounts Receivable	-69,000	-87,000	-85,000	-83,000
Gross Accounts Receivable	6,770,000	6,772,000	5,939,000	6,705,000
Cash Cash Equivalents And Short Term Investments	16,110,000	17,854,000	26,146,000	19,267,000
Other Short Term Investments	7,764,000	10,346,000	16,023,000	12,188,000
Cash And Cash Equivalents	8,346,000	7,508,000	10,123,000	7,079,000

Cash Flow

	2025	2024	2023	2022	2021
Free Cash Flow	13,288,000	10,210,000	19,037,000	12,749,000
Repurchase Of Capital Stock	-7,222,000	-6,779,000	-4,890,000	-8,381,000
Repayment Of Debt	-22,073,000	-12,966,000	-500,000	-3,550,000
Issuance Of Debt	19,292,000	31,818,000	0	1,049,000
Issuance Of Capital Stock	736,000	714,000	700,000	660,000
Capital Expenditure	-905,000	-670,000	-849,000	-477,000
Interest Paid Supplemental Data	1,500,000	583,000	376,000	355,000
Income Tax Paid Supplemental Data	3,892,000	7,426,000	3,571,000	3,663,000
End Cash Position	8,910,000	8,842,000	11,627,000	8,579,000
Beginning Cash Position	8,842,000	11,627,000	8,579,000	9,942,000
Effect Of Exchange Rate Changes	-43,000	-31,000	-105,000	-180,000
Changes In Cash	111,000	-2,754,000	3,153,000	-1,183,000
Financing Cash Flow	-15,815,000	6,844,000	-11,626,000	-15,962,000
Cash Flow From Continuing Financing Activities	-15,815,000	6,844,000	-11,626,000	-15,962,000
Net Other Financing Charges	-80,000	-37,000	-32,000	-122,000
Cash Dividends Paid	-6,437,000	-6,384,000	-6,302,000	-6,224,000
Common Stock Dividend Paid	-6,437,000	-6,384,000	-6,302,000	-6,224,000
Net Common Stock Issuance	-6,486,000	-6,065,000	-4,190,000	-7,721,000
Common Stock Payments	-7,222,000	-6,779,000	-4,890,000	-8,381,000
Common Stock Issuance	736,000	714,000	700,000	660,000
Net Issuance Payments Of Debt	-2,812,000	19,330,000	-1,102,000	-1,895,000
Net Short Term Debt Issuance	-31,000	478,000	-602,000	606,000
Net Long Term Debt Issuance	-2,781,000	18,852,000	-500,000	-2,501,000
Long Term Debt Payments	-22,073,000	-12,966,000	-500,000	-3,550,000
Long Term Debt Issuance	19,292,000	31,818,000	0	1,049,000
Investing Cash Flow	1,733,000	-20,478,000	-5,107,000	1,553,000
Cash Flow From Continuing Investing Activities	1,733,000	-20,478,000	-5,107,000	1,553,000
Net Other Investing Changes	9,000	-5,000	-23,000	76,000
Net Investment Purchase And Sale	2,920,000	6,191,000	-3,934,000	2,327,000
Sale Of Investment	7,892,000	10,705,000	7,122,000	8,583,000
Purchase Of Investment	-4,972,000	-4,514,000	-11,056,000	-6,256,000
Net Business Purchase And Sale	-291,000	-25,994,000	-301,000	-373,000
Sale Of Business					194,000
Purchase Of Business	-291,000	-25,994,000	-301,000	-373,000
Net PPE Purchase And Sale	-905,000	-670,000	-849,000	-477,000
Sale Of PPE			3,000	91,000	28,000
Purchase Of PPE	-905,000	-670,000	-849,000	-477,000
Operating Cash Flow	14,193,000	10,880,000	19,886,000	13,226,000
Cash Flow From Continuing Operating Activities	14,193,000	10,880,000	19,886,000	13,226,000
Change In Working Capital	-1,292,000	-4,298,000	5,042,000	-1,722,000
Change In Other Working Capital	-1,591,000	-3,319,000	3,544,000	638,000
Change In Other Current Liabilities	193,000	416,000	48,000	535,000
Change In Other Current Assets	-499,000	-671,000	5,000	-1,615,000
Change In Payables And Accrued Expense	204,000	-786,000	678,000	-482,000
Change In Accrued Expense	-53,000	-696,000	651,000	-427,000
Change In Payable	257,000	-90,000	27,000	-55,000
Change In Account Payable	257,000	-90,000	27,000	-55,000
Change In Inventory	209,000	275,000	-1,069,000	-1,030,000
Change In Receivables	192,000	-213,000	1,836,000	232,000
Changes In Account Receivables	-22,000	-289,000	734,000	-1,009,000
Stock Based Compensation	3,641,000	3,074,000	2,353,000	1,886,000
Provisionand Write Offof Assets	24,000	34,000	31,000	55,000
Deferred Tax	-1,133,000	-972,000	-2,085,000	-309,000
Deferred Income Tax	-1,133,000	-972,000	-2,085,000	-309,000
Depreciation Amortization Depletion	2,811,000	2,507,000	1,726,000	1,957,000
Depreciation And Amortization	2,811,000	2,507,000	1,726,000	1,957,000
Depreciation	2,811,000	2,507,000	1,726,000	1,957,000
Operating Gains Losses	-38,000	215,000	206,000	-453,000
Gain Loss On Sale Of Business	-38,000	215,000	206,000	-453,000
Net Income From Continuing Operations	10,180,000	10,320,000	12,613,000	11,812,000

These metrics estimate what Cisco Systems, Inc. is worth based on its fundamentals — independent of what the market currently prices it at. Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles. EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.

Graham's Fair Value

$26.39

Margin of Safety

Market Cap ÷ Company Value

1.49

P/B Ratio

7.81

Warren's Owner Earnings

$13.9B

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

3/7 — Speculative Investor

✅ Adequate Size

$56.7B

vs > $1.5B revenue

❌ Strong Financial Condition

1.00x

vs Current Ratio > 2.0x

✅ Earnings Stability

No loss years (4 yrs data)

vs No negative EPS years

✅ Dividend Record

1.79%

vs Uninterrupted dividends

❌ Earnings Growth

-7.4% EPS growth

vs > 33% EPS growth

❌ Moderate P/E Ratio

33.3x

vs P/E ≤ 15.0x

❌ Moderate Price-to-Book

7.81x P/B (P/E×P/B: 260.0)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

Net Current Asset Value

$-10.24

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

$35.17

Per share, no-growth floor. Compare to current price.

Cash Flow Analysis

Metric	2025	2024	2023	2022	2021
Capital Expenditure % of Net Income	8.9%	6.5%	6.7%	4.0%	N/A
Repurchase of Capital Stock	-$7.2B	-$6.8B	-$4.9B	-$8.4B	N/A
Free Cash Flow	$13.3B ▲	$10.2B ▼	$19.0B ▲	$12.7B •	N/A •
Warren's Owner Earnings	$13.9B	$13.5B	$15.2B	$14.2B	N/A

Peers & Industry

No auto-detected peers for Communication Equipment. You can manually compare CSCO against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.06%

Low — management has little skin in the game

Return on Equity (ROE)

21.7%

Excellent — management generates strong returns on equity

Return on Assets (ROA)

8.3%

Strong — management uses assets efficiently

Share Buybacks (Latest Year)

$7.2B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

-9.3% YoY

Debt is declining — management is deleveraging

Leadership Team

Charles Robbins

Chairman & CEO

Age 59

Pay: $6,968,061

0.068% of net income

Jeetendra Patel

President & Chief Product Officer

Age 53

Pay: $2,945,368

0.029% of net income

Thimaya Subaiya

Executive Vice President of Operations

Age 46

Pay: $2,626,614

0.026% of net income

Top Institutional Holders

Institution	% Owned	Shares
Vanguard Group Inc	10.10%	398,943,293
Blackrock Inc.	9.58%	378,336,071
State Street Corporation	4.95%	195,521,161
Geode Capital Management, LLC	2.52%	99,624,866
Morgan Stanley	1.91%	75,326,258
Charles Schwab Investment Management, Inc.	1.79%	70,521,797
FMR, LLC	1.66%	65,445,654
Invesco Ltd.	1.51%	59,836,782

⚠️ Current ratio below 1 — liquidity risk

Risk Analysis

Beta (Market Risk)

0.91

Low volatility — more stable than the market

Short Interest

1.5% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

0.67x

Conservative balance sheet — low financial risk

Current Ratio

0.95x

Weak liquidity — current liabilities exceed current assets

52-Week Price Range

Low: $58.58 Current: $92.59 High: $93.10

Currently at 99% of 52-week range

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