CISCO SYSTEMS INC (1CSCO.MI) Stock Fundamental Analysis
Europe - BIT:1CSCO - US17275R1023 - Common Stock
61.95 EUR
+2.38 (+4%)
Taking everything into account, 1CSCO scores 5 out of 10 in our fundamental rating. 1CSCO was compared to 28 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.
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 8.32% is fine compared to the rest of the industry. 1CSCO outperforms 74.07% of its industry peers.
The Return On Equity of 1CSCO (21.73%) is better than 77.78% of its industry peers.
1CSCO's Return On Invested Capital of 11.70% is fine compared to the rest of the industry. 1CSCO outperforms 74.07% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1CSCO is above the industry average of 10.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.32% | ||
| ROE | 21.73% | ||
| ROIC | 11.7% |
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
Looking at the Profit Margin, with a value of 17.97%, 1CSCO belongs to the top of the industry, outperforming 92.59% of the companies in the same industry.
1CSCO's Profit Margin has declined in the last couple of years.
The Operating Margin of 1CSCO (22.09%) is better than 92.59% of its industry peers.
In the last couple of years the Operating Margin of 1CSCO has declined.
1CSCO has a Gross Margin of 64.94%. This is in the better half of the industry: 1CSCO outperforms 77.78% of its industry peers.
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 | 22.09% | ||
| PM (TTM) | 17.97% | ||
| GM | 64.94% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1CSCO 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.
Compared to 1 year ago, 1CSCO has an improved debt to assets ratio.
2.2 Solvency
1CSCO has an Altman-Z score of 3.05. This indicates that 1CSCO is financially healthy and has little risk of bankruptcy at the moment.
1CSCO has a better Altman-Z score (3.05) than 74.07% of its industry peers.
1CSCO has a debt to FCF ratio of 2.11. This is a good value and a sign of high solvency as 1CSCO would need 2.11 years to pay back of all of its debts.
The Debt to FCF ratio of 1CSCO (2.11) is better than 70.37% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that 1CSCO is somewhat dependend on debt financing.
1CSCO has a Debt to Equity ratio (0.56) which is in line with its industry peers.
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 | 0.56 | ||
| Debt/FCF | 2.11 | ||
| Altman-Z | 3.05 |
ROIC/WACC1.3
WACC9%
2.3 Liquidity
A Current Ratio of 1.00 indicates that 1CSCO may have some problems paying its short term obligations.
The Current ratio of 1CSCO (1.00) is worse than 88.89% of its industry peers.
1CSCO has a Quick Ratio of 1.00. This is a bad value and indicates that 1CSCO is not financially healthy enough and could expect problems in meeting its short term obligations.
1CSCO has a Quick ratio of 0.91. This is in the lower half of the industry: 1CSCO underperforms 74.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.88% over the past year.
The Earnings Per Share has been growing slightly by 3.50% on average over the past years.
1CSCO shows a small growth in Revenue. In the last year, the Revenue has grown by 5.30%.
1CSCO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.82% yearly.
EPS 1Y (TTM)1.88%
EPS 3Y4.19%
EPS 5Y3.5%
EPS Q2Q%13.79%
Revenue 1Y (TTM)5.3%
Revenue growth 3Y3.19%
Revenue growth 5Y2.82%
Sales Q2Q%7.56%
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
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
1CSCO is valuated rather expensively with a Price/Earnings ratio of 18.83.
Based on the Price/Earnings ratio, 1CSCO is valued cheaper than 81.48% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.06, 1CSCO is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 17.37, the valuation of 1CSCO can be described as rather expensive.
1CSCO's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 32.73. 1CSCO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.83 | ||
| Fwd PE | 17.37 |
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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.31 | ||
| EV/EBITDA | 18.52 |
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 decent profitability rating of 1CSCO may justify a higher PE ratio.
PEG (NY)2.22
PEG (5Y)5.38
EPS Next 2Y8.04%
EPS Next 3Y6.78%
5. Dividend
5.1 Amount
1CSCO has a Yearly Dividend Yield of 2.31%. Purely for dividend investing, there may be better candidates out there.
1CSCO's Dividend Yield is a higher than the industry average which is at 5.41.
Compared to an average S&P500 Dividend Yield of 2.37, 1CSCO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
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 63.23% of its income as dividend. This is not a sustainable payout ratio.
1CSCO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP63.23%
EPS Next 2Y8.04%
EPS Next 3Y6.78%
BIT:1CSCO (10/29/2025, 7:00:00 PM)
61.95
+2.38 (+4%)
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 Cap244.90B
Revenue(TTM)56.65B
Net Income(TTM)10.18B
Analysts77.5
Price Target65.86 (6.31%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
Yearly Dividend1.4
Dividend Growth(5Y)2.65%
DP63.23%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.01%
Min EPS beat(2)-0.5%
Max EPS beat(2)2.52%
EPS beat(4)3
Avg EPS beat(4)1.46%
Min EPS beat(4)-0.5%
Max EPS beat(4)2.52%
EPS beat(8)7
Avg EPS beat(8)2.32%
EPS beat(12)11
Avg EPS beat(12)2.22%
EPS beat(16)12
Avg EPS beat(16)1.69%
Revenue beat(2)0
Avg Revenue beat(2)-1.53%
Min Revenue beat(2)-1.58%
Max Revenue beat(2)-1.48%
Revenue beat(4)0
Avg Revenue beat(4)-1.41%
Min Revenue beat(4)-1.58%
Max Revenue beat(4)-1.14%
Revenue beat(8)0
Avg Revenue beat(8)-1.3%
Revenue beat(12)1
Avg Revenue beat(12)-1.04%
Revenue beat(16)2
Avg Revenue beat(16)-1.32%
PT rev (1m)1.69%
PT rev (3m)4.14%
EPS NQ rev (1m)0.19%
EPS NQ rev (3m)1.3%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.39%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.94%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.83 | ||
| Fwd PE | 17.37 | ||
| P/S | 5 | ||
| P/FCF | 21.31 | ||
| P/OCF | 19.95 | ||
| P/B | 6.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.52 |
EPS(TTM)3.29
EY5.31%
EPS(NY)3.57
Fwd EY5.76%
FCF(TTM)2.91
FCFY4.69%
OCF(TTM)3.11
OCFY5.01%
SpS12.4
BVpS10.25
TBVpS-4.7
PEG (NY)2.22
PEG (5Y)5.38
Graham Number27.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.32% | ||
| ROE | 21.73% | ||
| ROCE | 14.35% | ||
| ROIC | 11.7% | ||
| ROICexc | 14.23% | ||
| ROICexgc | 168.77% | ||
| OM | 22.09% | ||
| PM (TTM) | 17.97% | ||
| GM | 64.94% | ||
| FCFM | 23.45% |
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-Score8
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.11 | ||
| Debt/EBITDA | 1.72 | ||
| Cap/Depr | 32.2% | ||
| Cap/Sales | 1.6% | ||
| Interest Coverage | 8.34 | ||
| Cash Conversion | 92.6% | ||
| Profit Quality | 130.53% | ||
| Current Ratio | 1 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 3.05 |
F-Score8
WACC9%
ROIC/WACC1.3
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)1.88%
EPS 3Y4.19%
EPS 5Y3.5%
EPS Q2Q%13.79%
EPS Next Y8.49%
EPS Next 2Y8.04%
EPS Next 3Y6.78%
EPS Next 5Y8.38%
Revenue 1Y (TTM)5.3%
Revenue growth 3Y3.19%
Revenue growth 5Y2.82%
Sales Q2Q%7.56%
Revenue Next Year5.35%
Revenue Next 2Y4.98%
Revenue Next 3Y5.04%
Revenue Next 5Y4.95%
EBIT growth 1Y-3.69%
EBIT growth 3Y-3.72%
EBIT growth 5Y-2.35%
EBIT Next Year15.46%
EBIT Next 3Y7.57%
EBIT Next 5YN/A
FCF growth 1Y30.15%
FCF growth 3Y1.39%
FCF growth 5Y-1.94%
OCF growth 1Y30.45%
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 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 63.23%.