Cisco Systems, Inc. Fundamental Analysis (HKSE: 4333.HK)
Cisco Systems, Inc. Fundamental Analysis (HKSE: 4333.HK)
Cisco Systems, Inc. (HKSE: 4333.HK) shows strong financial fundamentals with a PE ratio of 28.56, profit margin of 20.95%, and ROE of 27.39%. The company generates $63.2B in annual revenue with moderate year-over-year growth of 5.30%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 63.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze 4333.HK's fundamental strength across five key dimensions:
Efficiency Score
Excellent4333.HK demonstrates superior asset utilization.
Valuation Score
Weak4333.HK trades at a premium to fair value.
Growth Score
Moderate4333.HK shows steady but slowing expansion.
Financial Health Score
Moderate4333.HK shows balanced financial health with some risks.
Profitability Score
Excellent4333.HK achieves industry-leading margins.
Key Financial Metrics
Is 4333.HK Expensive or Cheap?
P/E Ratio
4333.HK trades at 28.56 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 4333.HK's PEG of 7.25 indicates potential overvaluation.
Price to Book
The market values Cisco Systems, Inc. at 7.51 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 18.87 times EBITDA. This signals the market has high growth expectations.
How Well Does 4333.HK Make Money?
Net Profit Margin
For every $100 in sales, Cisco Systems, Inc. keeps $20.95 as profit after all expenses.
Operating Margin
Core operations generate 25.08 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $27.39 in profit for every $100 of shareholder equity.
ROA
Cisco Systems, Inc. generates $10.23 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Cisco Systems, Inc. produces operating cash flow of $14.15B, showing steady but balanced cash generation.
Free Cash Flow
Cisco Systems, Inc. generates strong free cash flow of $12.75B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.23 in free cash annually.
FCF Yield
4333.HK converts 3.39% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.56
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
7.25
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.51
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.95
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.59
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.93
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.27
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How 4333.HK Stacks Against Its Sector Peers
| Metric | 4333.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.56 | 35.20 | Better (Cheaper) |
| ROE | 27.39% | 749.00% | Weak |
| Net Margin | 20.95% | -2813.00% (disorted) | Strong |
| Debt/Equity | 0.59 | 0.59 | Neutral |
| Current Ratio | 0.93 | 6.19 | Weak Liquidity |
| ROA | 10.23% | 328.00% | Weak |
4333.HK outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Cisco Systems, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
22.43%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
-3.28%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
-1.98%
Industry Style: Growth, Innovation, High Beta
Declining