Cisco Systems (NASDAQ:CSCO)- Stocks Taking Toll on Profitability Valuation: Extreme Networks (NASDAQ:EXTR)

Cisco Systems, Inc. (NASDAQ:CSCO) also listed in significant eye catching mover, CSCO attains returns on investment ratio of 11.40%, which suggests it’s viable on security that has lesser ROI.

Cisco (NASDAQ:CSCO) reported that appointment of Brenton L. Saunders, Chairman, President and CEO of Allergan plc, to its board of directors. The appointment is effective immediately. “I’m thrilled that Brent is joining Cisco’s board at such an exciting time for our industry,” said Chuck Robbins, CEO, Cisco. “Brent is a natural innovator and leader with a deep understanding of business transformation and I’m looking forward to his many contributions in shaping the future of Cisco.”

“With his years at the helm of companies undergoing massive transformations, Brent has the vision and foresight needed to help Cisco realize the business potential of the biggest digital transition in history,” said Cisco Executive Chairman John Chambers.

To strengthen this concept we can use profit margin, which is standing at positive 20.20%, and it is providing insight view about a variety of aspects of a firm’s financial performance. The operating profit margin and gross profit margin can be giving more focus view that is 24.80% and 63.50% respectively. Turns back to returns ratios, the co’s returns on assets calculated as 11.40%; that gives an idea as to how efficient management is at using its assets to generate earnings. Finally yet importantly, returns on equity stands at 15.50%.

EPS estimates indicating constrictive facts, the current year from sell-side analysts, Price to current year EPS stands at 20.90%, and looking further price to next year’s EPS is 4.92%. While take a short look on price to sales ratio, that was 3.53 and price to earning ration of 17.62 attracting passive investors.

Extreme Networks, Inc. (NASDAQ:EXTR) kept active in profitability ratio analysis, on current situation shares price rose 1.36% to $6.71. The total volume of 1.22 Million shares held in the session, while on average its shares change hands 1252.47 shares.

Efficiency Evaluation in Focus

Entering into profitability analysis, the co has noticeable returns on equity ratio of -31.60%, which discloses how corporation’s management efficiently generates profit from shareholders invested money. The returns on investment very popular metric among passive investors, it stands at -20.60%, when it lies in positive figure than security is feasible for investment or goes for higher ROI stocks. To see the other side of picture, profit margin of EXTR stands at negative -5.30%; that indicates a firm actually every dollar of sales keeps in earnings. The -7.30% returns on assets present notable condition of firm. Mostly ROA known as a comparative measure, it is best to compare it against a firm’s previous ROA numbers or the ROA of a same firm.

To find out the technical position of EXTR, it holds price to book ratio of 8.39 that unearth high-growth companies selling at low-growth prices, but it requires appropriate measurement approach. It has forward price to earnings ratio of 13.16. EXTR free cash flow concluded as 27.09.

 

About Richard Avery

He is a capital projects manager and process design engineer at a large-cap company. He has renowned MBA degree. Before joining SWR, he was a freelance writer for renounce tech websites. He is currently studying for CFP exam. Interests: Tech stocks, Economic Markets, Blue-chips.

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