CluenexCisco Systems Inc CSCO
Cisco Systems Inc scores good on business quality (6.2 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Cisco Systems Inc does
Cisco Systems sells networking hardware, software, and cybersecurity services to enterprises, locking them into critical infrastructure. The company is leaning into recurring software subscriptions and AI-driven infrastructure to offset lumpy hardware cycles.
- What it does best
Cisco dominates enterprise routing and switching with a gross margin of 64.5%, anchoring corporate data centers. Unlike competitors such as ANET at 63.0% gross margin, its sprawling ecosystem of installed hardware makes switching costs painful for IT departments.
- The main risk
Valuation is a heavy anchor as the stock trades at $112.20 against an intrinsic value of $86.78, pricing in perfection while revenue growth sits at a modest middle-of-the-pack sector rank.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin hits 25.4% and net margin prints 21.0%, proving the model generates strong cash conversion as scale expands, supporting solid shareholder returns.
Enterprise switching creates deep stickiness, backed by an operating margin sitting in the top quartile of its sector at 73rd percentile, though rivals aggressively chip at market share.
Revenue grew 11.8% to $63.3B, accelerating compared to prior stagnation years as software and security integrations start to bite.
Holding $15.9B in cash against $29.5B in total debt, with a manageable interest coverage of 10.9x and free cash flow of $12.8B, the balance sheet remains sound.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
No open market buys or unplanned sales by executives or directors.
Our sealed record on CSCO
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Cisco Systems Inc scores good on the Cluenex quality check (6.2 of 10), measured against its own industry. Profitability is strong, moat fair, growth steady and financial health fair.
In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.
Nov 10, 2026.
See CSCO today
- Today's verdict on CSCO, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Cisco Systems Inc (CSCO)”, https://cluenex.com/stocks/csco/, data as of Oct 10, 2026.