Cisco: Thesis Intact Despite Poor Execution

Oct. 02, 2022 8:57 AM ETCisco Systems, Inc. (CSCO)4 Comments
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  • Cisco struggled to fill orders over the past year due to COVID lockdowns in China.
  • As a result, the stock has underperformed the overall market.
  • Even with supply constraints, Cisco returned significant amounts of cash last year and is positioned to do so this year.
  • 50% growth in web scale orders indicates Silicon One platform is gaining traction.
  • Based on the low valuation, high cash flow, relatively low risk, and the asymmetric risk-return profile, Cisco is a Buy.

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Analysis of Previous Forecast

Since my last article and the beginning of the year, Cisco (NASDAQ:CSCO) has underperformed both the S&P 500 and the Nasdaq 100.

Total Return

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Total return is close to my forecast Minimum scenario of -34%. Three key

Total Revenue

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Gross Profit Margin

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Price To Earnings Ratio


Enterprise Value

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Unearned Revenue

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Total Return Estimates


Total Return Forecast


Forecast Statistics


This article was written by

PopperTech profile picture
PopperTech develops augmented intelligence software for investing

Disclosure: I/we have a beneficial long position in the shares of CSCO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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