Tech company that made every "best stocks to buy now" list...

TL;DR

Cisco Systems, a former high-flying stock, has seen a decline in market cap but shows potential for future growth and a strong dividend yield.

Transcript

Cisco Systems is just off of a 52-week low look at our chart right here we had a high of 64 in the last year a low of 38.66 and we're currently at 41 so it's off a little bit off the low now Cisco was the high flying stock of the early 2000s this is the stock that was if you look at the Articles when it hit 500 billion dollars in market cap it was ... Read More

Key Insights

• 😘 Cisco Systems has shown a decline in market cap over the years, but its stock price is currently off its 52-week low.
• 🥶 The company's dividend yield is attractive at 3.7%, and it has the ability to sustain dividend payouts based on its free cash flow.
• 🤯 Cisco meets several criteria for investment, including a low P/E ratio, high return on invested capital, and consistent profit over the years.
• 🥡 The company's growth may have been driven by acquisitions rather than organic revenue growth, which should be taken into consideration.
• 🍉 Cisco actively buys back shares and manages its debt well, with manageable long-term liabilities.
• 🥶 The company utilizes its free cash flow for acquisitions, dividends, and other investments.
• 🥡 A conservative approach should be taken when evaluating Cisco's future growth potential due to its current revenue growth.

Questions & Answers

Q: Has Cisco Systems experienced significant growth in recent years?

While Cisco's revenue growth has been modest, it is important to note that some of this growth may be attributed to acquisitions rather than organic growth.

Q: How does Cisco Systems manage its outstanding shares?

Cisco has shown a commitment to buying back shares, which is positive for shareholders. However, it is ideal for the company to buy back shares at a lower price.

Q: How does Cisco Systems handle its debt?

Cisco has manageable long-term liabilities, with debt significantly lower than its five-year average free cash flow. This suggests that the company can pay off its debt within a few years.

Q: What does Cisco Systems do with its free cash flow?

Cisco uses its free cash flow for various purposes, including acquiring new companies and paying out dividends. This indicates that the company is making strategic investments and returning value to shareholders.

Summary & Key Takeaways

• Cisco Systems has experienced a decline in market cap, but its current stock price is off its 52-week low.

• The company's dividend yield is attractive at 3.7%, and its ability to pay dividends is supported by its free cash flow.

• Cisco meets several key criteria for investment, including a low P/E ratio, high return on invested capital, and consistent profit over the years.