CISCO SYSTEMS INC (1CSCO.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1CSCO - US17275R1023 - Common Stock
66.34 EUR
+4.39 (+7.09%)
1CSCO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 28 industry peers in the Communications Equipment industry. 1CSCO has an excellent profitability rating, but 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.
1CSCO had a positive operating cash flow in the past year.
Each year in the past 5 years 1CSCO has been profitable.
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 fine compared to the rest of the industry. 1CSCO outperforms 75.86% of its industry peers.
1CSCO has a better Return On Equity (22.04%) than 79.31% of its industry peers.
1CSCO's Return On Invested Capital of 12.86% is fine compared to the rest of the industry. 1CSCO outperforms 75.86% of its industry peers.
1CSCO had an Average Return On Invested Capital over the past 3 years of 14.02%. This is above the industry average of 10.55%.
| 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 has a Profit Margin of 17.90%. This is amongst the best in the industry. 1CSCO outperforms 86.21% of its industry peers.
In the last couple of years the Profit Margin of 1CSCO has declined.
With an excellent Operating Margin value of 22.52%, 1CSCO belongs to the best of the industry, outperforming 89.66% of the companies in the same industry.
1CSCO's Operating Margin has declined in the last couple of years.
1CSCO has a Gross Margin of 64.85%. This is in the better half of the industry: 1CSCO outperforms 79.31% of its industry peers.
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.
The number of shares outstanding for 1CSCO has been reduced compared to 1 year ago.
Compared to 5 years ago, 1CSCO has less shares outstanding
Compared to 1 year ago, 1CSCO has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of 1CSCO is 2.21, which is a good value as it means it would take 1CSCO, 2.21 years of fcf income to pay off all of its debts.
1CSCO's Debt to FCF ratio of 2.21 is fine compared to the rest of the industry. 1CSCO outperforms 68.97% 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 is not doing good in the industry: 62.07% of the companies in the same industry are doing better.
Although 1CSCO does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.21 | ||
| Altman-Z | N/A |
ROIC/WACC1.41
WACC9.14%
2.3 Liquidity
A Current Ratio of 0.93 indicates that 1CSCO may have some problems paying its short term obligations.
With a Current ratio value of 0.93, 1CSCO is not doing good in the industry: 86.21% of the companies in the same industry are doing better.
A Quick Ratio of 0.83 indicates that 1CSCO may have some problems paying its short term obligations.
1CSCO has a worse Quick ratio (0.83) than 86.21% of its industry peers.
| 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.
Looking at the last year, 1CSCO shows a quite strong growth in Revenue. The Revenue has grown by 8.91% in the last year.
The Revenue has been growing slightly by 2.82% on average over the past years.
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
1CSCO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.38% yearly.
The Revenue is expected to grow by 4.95% on average over the next years.
EPS Next Y8.49%
EPS Next 2Y8.04%
EPS Next 3Y6.78%
EPS Next 5Y8.38%
Revenue Next Year5.35%
Revenue Next 2Y4.98%
Revenue Next 3Y5.04%
Revenue Next 5Y4.95%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 19.63, the valuation of 1CSCO can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of 1CSCO indicates a somewhat cheap valuation: 1CSCO is cheaper than 68.97% of the companies listed in the same industry.
1CSCO is valuated rather cheaply when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 17.23 indicates a rather expensive valuation of 1CSCO.
1CSCO's Price/Forward Earnings is on the same level as the industry average.
1CSCO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.63 | ||
| Fwd PE | 17.23 |
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.
1CSCO's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.73 | ||
| EV/EBITDA | 19.66 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
1CSCO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.31
PEG (5Y)5.61
EPS Next 2Y8.04%
EPS Next 3Y6.78%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.17%, 1CSCO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.50, 1CSCO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, 1CSCO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
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
62.56% of the earnings are spent on dividend by 1CSCO. 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 2Y8.04%
EPS Next 3Y6.78%
BIT:1CSCO (11/13/2025, 7:00:00 PM)
66.34
+4.39 (+7.09%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners80.81%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap262.26B
Revenue(TTM)57.70B
Net Income(TTM)10.33B
Analysts77.5
Price Target74.13 (11.74%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
Yearly Dividend1.4
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)14.46%
PT rev (3m)12.4%
EPS NQ rev (1m)3.26%
EPS NQ rev (3m)2.58%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)3.24%
Revenue NQ rev (3m)2.99%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.63 | ||
| Fwd PE | 17.23 | ||
| P/S | 5.24 | ||
| P/FCF | 23.73 | ||
| P/OCF | 21.98 | ||
| P/B | 6.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.66 |
EPS(TTM)3.38
EY5.09%
EPS(NY)3.85
Fwd EY5.8%
FCF(TTM)2.8
FCFY4.21%
OCF(TTM)3.02
OCFY4.55%
SpS12.67
BVpS10.29
TBVpS-4.6
PEG (NY)2.31
PEG (5Y)5.61
Graham Number27.98
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
WACC9.14%
ROIC/WACC1.41
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 Y8.49%
EPS Next 2Y8.04%
EPS Next 3Y6.78%
EPS Next 5Y8.38%
Revenue 1Y (TTM)8.91%
Revenue growth 3Y3.19%
Revenue growth 5Y2.82%
Sales Q2Q%7.53%
Revenue Next Year5.35%
Revenue Next 2Y4.98%
Revenue Next 3Y5.04%
Revenue Next 5Y4.95%
EBIT growth 1Y11.75%
EBIT growth 3Y-3.72%
EBIT growth 5Y-2.35%
EBIT Next Year15.46%
EBIT Next 3Y7.57%
EBIT Next 5YN/A
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 3 / 10 to CISCO SYSTEMS INC (1CSCO.MI). This can be considered as Overvalued.
What is the profitability of 1CSCO stock?
CISCO SYSTEMS INC (1CSCO.MI) has a profitability rating of 7 / 10.
What is the financial health of CISCO SYSTEMS INC (1CSCO.MI) stock?
The financial health rating of CISCO SYSTEMS INC (1CSCO.MI) is 5 / 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%.