CISCO SYSTEMS INC (1CSCO.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1CSCO - US17275R1023 - Common Stock
65.41 EUR
-0.93 (-1.4%)
Overall 1CSCO gets a fundamental rating of 5 out of 10. We evaluated 1CSCO against 31 industry peers in the Communications Equipment industry. While 1CSCO belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 1CSCO has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1CSCO was profitable.
1CSCO had a positive operating cash flow in the past year.
1CSCO had positive earnings in each of the past 5 years.
Each year in the past 5 years 1CSCO had a positive operating cash flow.
1.2 Ratios
1CSCO's Return On Assets of 8.53% is amongst the best of the industry. 1CSCO outperforms 83.87% of its industry peers.
The Return On Equity of 1CSCO (22.04%) is better than 87.10% of its industry peers.
1CSCO's Return On Invested Capital of 12.86% is amongst the best of the industry. 1CSCO outperforms 83.87% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1CSCO is above the industry average of 9.92%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.53% | ||
| ROE | 22.04% | ||
| ROIC | 12.86% |
ROA(3y)9.67%
ROA(5y)10.49%
ROE(3y)24.29%
ROE(5y)25.65%
ROIC(3y)14.02%
ROIC(5y)15.13%
1.3 Margins
1CSCO's Profit Margin of 17.90% is amongst the best of the industry. 1CSCO outperforms 93.55% of its industry peers.
In the last couple of years the Profit Margin of 1CSCO has declined.
1CSCO has a Operating Margin of 22.52%. This is amongst the best in the industry. 1CSCO outperforms 96.77% of its industry peers.
In the last couple of years the Operating Margin of 1CSCO has declined.
With an excellent Gross Margin value of 64.85%, 1CSCO belongs to the best of the industry, outperforming 83.87% of the companies in the same industry.
1CSCO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.52% | ||
| PM (TTM) | 17.9% | ||
| GM | 64.85% |
OM growth 3Y-6.7%
OM growth 5Y-5.03%
PM growth 3Y-7.78%
PM growth 5Y-4.61%
GM growth 3Y1.26%
GM growth 5Y0.21%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1CSCO is still creating some value.
1CSCO has less shares outstanding than it did 1 year ago.
The number of shares outstanding for 1CSCO has been reduced compared to 5 years ago.
Compared to 1 year ago, 1CSCO has an improved debt to assets ratio.
2.2 Solvency
1CSCO has a debt to FCF ratio of 2.21. This is a good value and a sign of high solvency as 1CSCO would need 2.21 years to pay back of all of its debts.
The Debt to FCF ratio of 1CSCO (2.21) is better than 77.42% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that 1CSCO is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.46, 1CSCO perfoms like the industry average, outperforming 48.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.21 | ||
| Altman-Z | N/A |
ROIC/WACC1.38
WACC9.35%
2.3 Liquidity
1CSCO has a Current Ratio of 0.93. This is a bad value and indicates that 1CSCO is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of 1CSCO (0.93) is worse than 83.87% of its industry peers.
1CSCO has a Quick Ratio of 0.93. This is a bad value and indicates that 1CSCO is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.83, 1CSCO is not doing good in the industry: 83.87% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.20% over the past year.
1CSCO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.50% yearly.
The Revenue has grown by 8.91% in the past year. This is quite good.
Measured over the past years, 1CSCO shows a small growth in Revenue. The Revenue has been growing by 2.82% on average per year.
EPS 1Y (TTM)10.2%
EPS 3Y4.19%
EPS 5Y3.5%
EPS Q2Q%9.89%
Revenue 1Y (TTM)8.91%
Revenue growth 3Y3.19%
Revenue growth 5Y2.82%
Sales Q2Q%7.53%
3.2 Future
The Earnings Per Share is expected to grow by 10.07% on average over the next years. This is quite good.
1CSCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.28% yearly.
EPS Next Y10.59%
EPS Next 2Y9.4%
EPS Next 3Y8.67%
EPS Next 5Y10.07%
Revenue Next Year7.24%
Revenue Next 2Y6.15%
Revenue Next 3Y5.75%
Revenue Next 5Y6.28%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 19.70 indicates a rather expensive valuation of 1CSCO.
Compared to the rest of the industry, the Price/Earnings ratio of 1CSCO indicates a somewhat cheap valuation: 1CSCO is cheaper than 77.42% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.92. 1CSCO is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 16.87 indicates a correct valuation of 1CSCO.
70.97% of the companies in the same industry are more expensive than 1CSCO, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.46. 1CSCO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.7 | ||
| Fwd PE | 16.87 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1CSCO is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1CSCO is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.81 | ||
| EV/EBITDA | 19.73 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1CSCO does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of 1CSCO may justify a higher PE ratio.
PEG (NY)1.86
PEG (5Y)5.63
EPS Next 2Y9.4%
EPS Next 3Y8.67%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.07%, 1CSCO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.62, 1CSCO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, 1CSCO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
5.2 History
The dividend of 1CSCO has a limited annual growth rate of 2.65%.
Dividend Growth(5Y)2.65%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1CSCO pays out 62.56% of its income as dividend. This is not a sustainable payout ratio.
The dividend of 1CSCO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP62.56%
EPS Next 2Y9.4%
EPS Next 3Y8.67%
BIT:1CSCO (12/1/2025, 7:00:00 PM)
65.41
-0.93 (-1.4%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners81.22%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap258.44B
Revenue(TTM)57.70B
Net Income(TTM)10.33B
Analysts77.42
Price Target73.72 (12.7%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
Yearly Dividend1.38
Dividend Growth(5Y)2.65%
DP62.56%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.32%
Min EPS beat(2)-0.5%
Max EPS beat(2)-0.13%
EPS beat(4)2
Avg EPS beat(4)0.81%
Min EPS beat(4)-0.5%
Max EPS beat(4)2.52%
EPS beat(8)6
Avg EPS beat(8)1.6%
EPS beat(12)10
Avg EPS beat(12)2.14%
EPS beat(16)12
Avg EPS beat(16)1.69%
Revenue beat(2)0
Avg Revenue beat(2)-1.39%
Min Revenue beat(2)-1.58%
Max Revenue beat(2)-1.19%
Revenue beat(4)0
Avg Revenue beat(4)-1.35%
Min Revenue beat(4)-1.58%
Max Revenue beat(4)-1.14%
Revenue beat(8)0
Avg Revenue beat(8)-1.25%
Revenue beat(12)0
Avg Revenue beat(12)-1.18%
Revenue beat(16)2
Avg Revenue beat(16)-1.24%
PT rev (1m)11.93%
PT rev (3m)11.78%
EPS NQ rev (1m)3.32%
EPS NQ rev (3m)2.71%
EPS NY rev (1m)1.94%
EPS NY rev (3m)1.92%
Revenue NQ rev (1m)3.32%
Revenue NQ rev (3m)3.16%
Revenue NY rev (1m)1.79%
Revenue NY rev (3m)1.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.7 | ||
| Fwd PE | 16.87 | ||
| P/S | 5.25 | ||
| P/FCF | 23.81 | ||
| P/OCF | 22.06 | ||
| P/B | 6.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.73 |
EPS(TTM)3.32
EY5.08%
EPS(NY)3.88
Fwd EY5.93%
FCF(TTM)2.75
FCFY4.2%
OCF(TTM)2.97
OCFY4.53%
SpS12.45
BVpS10.11
TBVpS-4.52
PEG (NY)1.86
PEG (5Y)5.63
Graham Number27.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.53% | ||
| ROE | 22.04% | ||
| ROCE | 15.17% | ||
| ROIC | 12.86% | ||
| ROICexc | 15.76% | ||
| ROICexgc | 528.93% | ||
| OM | 22.52% | ||
| PM (TTM) | 17.9% | ||
| GM | 64.85% | ||
| FCFM | 22.07% |
ROA(3y)9.67%
ROA(5y)10.49%
ROE(3y)24.29%
ROE(5y)25.65%
ROIC(3y)14.02%
ROIC(5y)15.13%
ROICexc(3y)19.45%
ROICexc(5y)21.44%
ROICexgc(3y)218.06%
ROICexgc(5y)205%
ROCE(3y)17.32%
ROCE(5y)18.35%
ROICexgc growth 3Y7.78%
ROICexgc growth 5Y-7.79%
ROICexc growth 3Y-15.92%
ROICexc growth 5Y-13.75%
OM growth 3Y-6.7%
OM growth 5Y-5.03%
PM growth 3Y-7.78%
PM growth 5Y-4.61%
GM growth 3Y1.26%
GM growth 5Y0.21%
F-Score7
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.21 | ||
| Debt/EBITDA | 1.37 | ||
| Cap/Depr | 38.47% | ||
| Cap/Sales | 1.75% | ||
| Interest Coverage | 8.27 | ||
| Cash Conversion | 87.98% | ||
| Profit Quality | 123.27% | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | N/A |
F-Score7
WACC9.35%
ROIC/WACC1.38
Cap/Depr(3y)36.04%
Cap/Depr(5y)33.93%
Cap/Sales(3y)1.44%
Cap/Sales(5y)1.33%
Profit Quality(3y)126.8%
Profit Quality(5y)125.54%
High Growth Momentum
Growth
EPS 1Y (TTM)10.2%
EPS 3Y4.19%
EPS 5Y3.5%
EPS Q2Q%9.89%
EPS Next Y10.59%
EPS Next 2Y9.4%
EPS Next 3Y8.67%
EPS Next 5Y10.07%
Revenue 1Y (TTM)8.91%
Revenue growth 3Y3.19%
Revenue growth 5Y2.82%
Sales Q2Q%7.53%
Revenue Next Year7.24%
Revenue Next 2Y6.15%
Revenue Next 3Y5.75%
Revenue Next 5Y6.28%
EBIT growth 1Y11.75%
EBIT growth 3Y-3.72%
EBIT growth 5Y-2.35%
EBIT Next Year17.41%
EBIT Next 3Y9.5%
EBIT Next 5Y9.13%
FCF growth 1Y-27.19%
FCF growth 3Y1.39%
FCF growth 5Y-1.94%
OCF growth 1Y-24.88%
OCF growth 3Y2.38%
OCF growth 5Y-1.65%
CISCO SYSTEMS INC / 1CSCO.MI FAQ
What is the fundamental rating for 1CSCO stock?
ChartMill assigns a fundamental rating of 5 / 10 to 1CSCO.MI.
Can you provide the valuation status for CISCO SYSTEMS INC?
ChartMill assigns a valuation rating of 4 / 10 to CISCO SYSTEMS INC (1CSCO.MI). This can be considered as Fairly Valued.
What is the profitability of 1CSCO stock?
CISCO SYSTEMS INC (1CSCO.MI) has a profitability rating of 8 / 10.
What is the financial health of CISCO SYSTEMS INC (1CSCO.MI) stock?
The financial health rating of CISCO SYSTEMS INC (1CSCO.MI) is 4 / 10.
Is the dividend of CISCO SYSTEMS INC sustainable?
The dividend rating of CISCO SYSTEMS INC (1CSCO.MI) is 4 / 10 and the dividend payout ratio is 62.56%.