CSCO - Embedded Expectations Analysis - 2021 04 26
Cisco Systems, Inc. (CSCO:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) earnings, with an 18.8x Uniform P/E, implying bearish expectations for the firm. Furthermore, management may have concerns about their security portfolio strategies, gross margins, and the capabilities of WiFi 6Specifically, management may be overstating the ability of their unified cloud-native platform suite to deliver secure agile networking, and they may have concerns about customer adoption of new security architectures and the sustainability of silicone sales to 400-gig franchises. Management may also lack confidence in their ability to sustain customer segment growth rates, execute their security portfolio integration strategy, and preserve their strong gross margins. In addition, they may be overstating their progress in the web scale space, the capabilities of SD-WAN and cloud security, and the video load capabilities of WiFi 6. Finally, management may have concerns about the progress of their WiFi 6 buildouts, traditional competitor success in the cloud business, and the potential of stand-alone provider 5G packages
Cisco Systems designs and sells a range of technologies that power the Internet. The company's business is organized into the following three geographic segments: Americas; Europe, Middle East, and Africa; and Asia Pacific, Japan, and China. The company's products and technologies are grouped into the following categories: Infrastructure Platforms; Applications; Security and Other Products. In addition to its product offerings, the company provides a range of service offerings, including technical support services and other services. The company delivers its technologies through software and services. The company's customers include businesses of all sizes, public institutions, governments, and service providers.
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