CISCO SYSTEMS INC (1CSCO.MI) Stock Fundamental Analysis
BIT:1CSCO - Euronext Milan - US17275R1023 - Common Stock - Currency: EUR
1CSCO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 25 industry peers in the Communications Equipment industry. While 1CSCO has a great profitability rating, 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
1CSCO had positive earnings in the past year.
In the past year 1CSCO had a positive cash flow from operations.
In the past 5 years 1CSCO has always been profitable.
In the past 5 years 1CSCO always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of 1CSCO (8.17%) is better than 84.00% of its industry peers.
Looking at the Return On Equity, with a value of 21.32%, 1CSCO belongs to the top of the industry, outperforming 88.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.30%, 1CSCO belongs to the top of the industry, outperforming 84.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1CSCO is significantly above the industry average of 9.30%.
The 3 year average ROIC (15.60%) for 1CSCO is well above the current ROIC(11.30%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.17% | ||
| ROE | 21.32% | ||
| ROIC | 11.3% |
ROA(3y)11.08%
ROA(5y)11.19%
ROE(3y)26.95%
ROE(5y)27.21%
ROIC(3y)15.6%
ROIC(5y)15.96%
1.3 Margins
1CSCO's Profit Margin of 17.60% is amongst the best of the industry. 1CSCO outperforms 92.00% of its industry peers.
In the last couple of years the Profit Margin of 1CSCO has declined.
With an excellent Operating Margin value of 21.81%, 1CSCO belongs to the best of the industry, outperforming 92.00% of the companies in the same industry.
In the last couple of years the Operating Margin of 1CSCO has declined.
With a decent Gross Margin value of 65.24%, 1CSCO is doing good in the industry, outperforming 80.00% of the companies in the same industry.
In the last couple of years the Gross Margin of 1CSCO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.81% | ||
| PM (TTM) | 17.6% | ||
| GM | 65.24% |
OM growth 3Y-4.32%
OM growth 5Y-2.87%
PM growth 3Y-3.37%
PM growth 5Y-3.05%
GM growth 3Y0.37%
GM growth 5Y0.56%
2. Health
2.1 Basic Checks
1CSCO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, 1CSCO has less shares outstanding
The number of shares outstanding for 1CSCO has been reduced compared to 5 years ago.
The debt/assets ratio for 1CSCO is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.87 indicates that 1CSCO is not a great score, but indicates only limited risk for bankruptcy at the moment.
1CSCO has a Altman-Z score of 2.87. This is in the better half of the industry: 1CSCO outperforms 68.00% of its industry peers.
1CSCO has a debt to FCF ratio of 2.29. This is a good value and a sign of high solvency as 1CSCO would need 2.29 years to pay back of all of its debts.
1CSCO's Debt to FCF ratio of 2.29 is fine compared to the rest of the industry. 1CSCO outperforms 72.00% of its industry peers.
1CSCO has a Debt/Equity ratio of 0.59. This is a neutral value indicating 1CSCO is somewhat dependend on debt financing.
1CSCO has a Debt to Equity ratio of 0.59. This is comparable to the rest of the industry: 1CSCO outperforms 44.00% of its industry peers.
Even though the debt/equity ratio score it not favorable for 1CSCO, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 2.29 | ||
| Altman-Z | 2.87 |
ROIC/WACC1.16
WACC9.71%
2.3 Liquidity
1CSCO has a Current Ratio of 0.95. This is a bad value and indicates that 1CSCO is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.95, 1CSCO is doing worse than 84.00% of the companies in the same industry.
1CSCO has a Quick Ratio of 0.95. 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 Quick ratio of 1CSCO (0.87) is worse than 76.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
1CSCO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.00%.
Measured over the past 5 years, 1CSCO shows a small growth in Earnings Per Share. The EPS has been growing by 3.84% on average per year.
Looking at the last year, 1CSCO shows a small growth in Revenue. The Revenue has grown by 0.47% in the last year.
The Revenue has been growing slightly by 0.72% on average over the past years.
EPS 1Y (TTM)-8%
EPS 3Y5.02%
EPS 5Y3.84%
EPS Q2Q%9.09%
Revenue 1Y (TTM)0.47%
Revenue growth 3Y2.6%
Revenue growth 5Y0.72%
Sales Q2Q%11.39%
3.2 Future
Based on estimates for the next years, 1CSCO will show a small growth in Earnings Per Share. The EPS will grow by 6.50% on average per year.
The Revenue is expected to grow by 4.73% on average over the next years.
EPS Next Y3.63%
EPS Next 2Y4.93%
EPS Next 3Y6.03%
EPS Next 5Y6.5%
Revenue Next Year5.43%
Revenue Next 2Y5.31%
Revenue Next 3Y5.12%
Revenue Next 5Y4.73%
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
Based on the Price/Earnings ratio of 17.59, the valuation of 1CSCO can be described as rather expensive.
Based on the Price/Earnings ratio, 1CSCO is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.41. 1CSCO is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 15.77, the valuation of 1CSCO can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1CSCO indicates a somewhat cheap valuation: 1CSCO is cheaper than 76.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.19, 1CSCO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.59 | ||
| Fwd PE | 15.77 |
4.2 Price Multiples
1CSCO's Enterprise Value to EBITDA ratio is in line with the industry average.
1CSCO's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.03 | ||
| EV/EBITDA | 17.07 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of 1CSCO may justify a higher PE ratio.
PEG (NY)4.85
PEG (5Y)4.59
EPS Next 2Y4.93%
EPS Next 3Y6.03%
5. Dividend
5.1 Amount
1CSCO has a Yearly Dividend Yield of 2.39%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.16, 1CSCO pays a bit more dividend than its industry peers.
1CSCO's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
5.2 History
The dividend of 1CSCO has a limited annual growth rate of 3.23%.
Dividend Growth(5Y)3.23%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1CSCO pays out 65.54% 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.
DP65.54%
EPS Next 2Y4.93%
EPS Next 3Y6.03%
BIT:1CSCO (7/2/2025, 7:00:00 PM)
55.42
-0.29 (-0.52%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners81.14%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap219.46B
Analysts79.35
Price Target62.89 (13.48%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
Yearly Dividend1.35
Dividend Growth(5Y)3.23%
DP65.54%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.94%
Min EPS beat(2)1.37%
Max EPS beat(2)2.52%
EPS beat(4)4
Avg EPS beat(4)1.74%
Min EPS beat(4)0.58%
Max EPS beat(4)2.52%
EPS beat(8)8
Avg EPS beat(8)3.07%
EPS beat(12)11
Avg EPS beat(12)2.24%
EPS beat(16)12
Avg EPS beat(16)1.71%
Revenue beat(2)0
Avg Revenue beat(2)-1.31%
Min Revenue beat(2)-1.48%
Max Revenue beat(2)-1.14%
Revenue beat(4)0
Avg Revenue beat(4)-1.32%
Min Revenue beat(4)-1.48%
Max Revenue beat(4)-1.14%
Revenue beat(8)0
Avg Revenue beat(8)-1.22%
Revenue beat(12)2
Avg Revenue beat(12)-0.83%
Revenue beat(16)2
Avg Revenue beat(16)-1.3%
PT rev (1m)0.47%
PT rev (3m)-4.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.04%
EPS NY rev (1m)0.48%
EPS NY rev (3m)1.91%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)0.62%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.59 | ||
| Fwd PE | 15.77 | ||
| P/S | 4.61 | ||
| P/FCF | 20.03 | ||
| P/OCF | 18.73 | ||
| P/B | 5.58 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.07 |
EPS(TTM)3.15
EY5.68%
EPS(NY)3.51
Fwd EY6.34%
FCF(TTM)2.77
FCFY4.99%
OCF(TTM)2.96
OCFY5.34%
SpS12.02
BVpS9.93
TBVpS-4.91
PEG (NY)4.85
PEG (5Y)4.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.17% | ||
| ROE | 21.32% | ||
| ROCE | 14.23% | ||
| ROIC | 11.3% | ||
| ROICexc | 13.7% | ||
| ROICexgc | 196.3% | ||
| OM | 21.81% | ||
| PM (TTM) | 17.6% | ||
| GM | 65.24% | ||
| FCFM | 23.02% |
ROA(3y)11.08%
ROA(5y)11.19%
ROE(3y)26.95%
ROE(5y)27.21%
ROIC(3y)15.6%
ROIC(5y)15.96%
ROICexc(3y)22.29%
ROICexc(5y)24.14%
ROICexgc(3y)203.21%
ROICexgc(5y)218.11%
ROCE(3y)19.37%
ROCE(5y)19.54%
ROICexcg growth 3Y-12.42%
ROICexcg growth 5Y-32.21%
ROICexc growth 3Y-16.83%
ROICexc growth 5Y-15.54%
OM growth 3Y-4.32%
OM growth 5Y-2.87%
PM growth 3Y-3.37%
PM growth 5Y-3.05%
GM growth 3Y0.37%
GM growth 5Y0.56%
F-Score7
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 2.29 | ||
| Debt/EBITDA | 1.79 | ||
| Cap/Depr | 29.54% | ||
| Cap/Sales | 1.59% | ||
| Interest Coverage | 7.57 | ||
| Cash Conversion | 90.46% | ||
| Profit Quality | 130.75% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 2.87 |
F-Score7
WACC9.71%
ROIC/WACC1.16
Cap/Depr(3y)33.43%
Cap/Depr(5y)36.01%
Cap/Sales(3y)1.22%
Cap/Sales(5y)1.32%
Profit Quality(3y)119.27%
Profit Quality(5y)125.58%
High Growth Momentum
Growth
EPS 1Y (TTM)-8%
EPS 3Y5.02%
EPS 5Y3.84%
EPS Q2Q%9.09%
EPS Next Y3.63%
EPS Next 2Y4.93%
EPS Next 3Y6.03%
EPS Next 5Y6.5%
Revenue 1Y (TTM)0.47%
Revenue growth 3Y2.6%
Revenue growth 5Y0.72%
Sales Q2Q%11.39%
Revenue Next Year5.43%
Revenue Next 2Y5.31%
Revenue Next 3Y5.12%
Revenue Next 5Y4.73%
EBIT growth 1Y-17.55%
EBIT growth 3Y-1.84%
EBIT growth 5Y-2.17%
EBIT Next Year17.34%
EBIT Next 3Y7.96%
EBIT Next 5YN/A
FCF growth 1Y-23.98%
FCF growth 3Y-11.56%
FCF growth 5Y-7.31%
OCF growth 1Y-22.21%
OCF growth 3Y-11.04%
OCF growth 5Y-7.23%