Stock In Focus – TAM Stock Screener – Cisco Systems Inc (CSCO)

As part of our ongoing series here at The Acquirer’s Multiple, we provide this feature article titled ‘Stock in Focus‘ where we focus on one of the stocks from our Stock Screeners.

One of the cheapest stocks in our Stock Screeners is:

Cisco Systems Inc (CSCO)

Cisco Systems is the largest provider of networking equipment in the world and one of the largest software companies in the world. Its largest businesses are selling networking hardware and software (where it has leading market shares) and cybersecurity software like firewalls. It also has collaboration products, like its Webex suite, and observability tools. It primarily outsources its manufacturing to third parties and has a large sales and marketing staff—25,000 strong across 90 countries. Overall, Cisco employees 80,000 employees and sells its products globally.

A quick look at the share price history (below) over the past twelve months shows that the price is down 12%. Here’s why the company is undervalued.

CSCO data by YCharts

Key Stats

Market Cap: $202 Billion

Enterprise Value: $190 Billion

Operating Earnings

Operating Earnings: $14 Billion

Acquirer’s Multiple

Acquirer’s Multiple: 13.50

Free Cash Flow (TTM)

Free Cash Flow: $15.45 Billion

FCF/EV Yield %:

FCF/EV Yield: 7.63

Shareholder Yield %:

Shareholder Yield: 5.20

Other Indicators

Piotroski F-Score: 6.00

Altman Z-Score: 3.389

ROA (5 Year Avge%): 15