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 valuation in line with the averages, but it does not seem to be growing.
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.
Each year in the past 5 years 1CSCO has 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 (7.57%) is better than 92.31% of its industry peers.
1CSCO has a Return On Equity of 20.18%. This is amongst the best in the industry. 1CSCO outperforms 88.46% of its industry peers.
1CSCO has a better Return On Invested Capital (10.52%) than 84.62% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1CSCO is significantly above the industry average of 7.38%.
The last Return On Invested Capital (10.52%) for 1CSCO is well below the 3 year average (15.60%), which needs to be investigated, but indicates that 1CSCO had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.57% | ||
| ROE | 20.18% | ||
| ROIC | 10.52% |
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
The Profit Margin of 1CSCO (16.96%) is better than 92.31% of its industry peers.
1CSCO's Profit Margin has declined in the last couple of years.
1CSCO has a Operating Margin of 21.49%. This is amongst the best in the industry. 1CSCO outperforms 92.31% of its industry peers.
1CSCO's Operating Margin has declined in the last couple of years.
1CSCO's Gross Margin of 65.13% is fine compared to the rest of the industry. 1CSCO outperforms 76.92% of its industry peers.
1CSCO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.49% | ||
| PM (TTM) | 16.96% | ||
| GM | 65.13% |
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
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 a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.72 indicates that 1CSCO is not a great score, but indicates only limited risk for bankruptcy at the moment.
1CSCO has a better Altman-Z score (2.72) than 80.77% of its industry peers.
1CSCO has a debt to FCF ratio of 2.42. This is a good value and a sign of high solvency as 1CSCO would need 2.42 years to pay back of all of its debts.
1CSCO has a Debt to FCF ratio of 2.42. This is in the better half of the industry: 1CSCO outperforms 61.54% of its industry peers.
A Debt/Equity ratio of 0.67 indicates that 1CSCO is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.67, 1CSCO is doing worse than 61.54% of the companies in the same industry.
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 | 0.67 | ||
| Debt/FCF | 2.42 | ||
| Altman-Z | 2.72 |
ROIC/WACC1.15
WACC9.11%
2.3 Liquidity
1CSCO has a Current Ratio of 0.87. 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 0.87, 1CSCO is doing worse than 88.46% of the companies in the same industry.
1CSCO has a Quick Ratio of 0.87. 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 Quick ratio, with a value of 0.79, 1CSCO is doing worse than 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
1CSCO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.62%.
The Earnings Per Share has been growing slightly by 3.84% on average over the past years.
1CSCO shows a decrease in Revenue. In the last year, the revenue decreased by -5.34%.
1CSCO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.72% yearly.
EPS 1Y (TTM)-12.62%
EPS 3Y5.02%
EPS 5Y3.84%
EPS Q2Q%8.05%
Revenue 1Y (TTM)-5.34%
Revenue growth 3Y2.6%
Revenue growth 5Y0.72%
Sales Q2Q%9.38%
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 4.42% on average per year.
Based on estimates for the next years, 1CSCO will show a small growth in Revenue. The Revenue will grow by 4.03% on average per year.
EPS Next Y1.69%
EPS Next 2Y4.73%
EPS Next 3Y5.94%
EPS Next 5Y4.42%
Revenue Next Year5.02%
Revenue Next 2Y5.09%
Revenue Next 3Y4.96%
Revenue Next 5Y4.03%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
1CSCO is valuated rather expensively with a Price/Earnings ratio of 17.65.
Based on the Price/Earnings ratio, 1CSCO is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
1CSCO is valuated rather cheaply when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 15.55 indicates a correct valuation of 1CSCO.
Based on the Price/Forward Earnings ratio, 1CSCO is valued a bit cheaper than the industry average as 61.54% of the companies are valued more expensively.
1CSCO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.65 | ||
| Fwd PE | 15.55 |
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 | 19.76 | ||
| EV/EBITDA | 16.67 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)10.46
PEG (5Y)4.6
EPS Next 2Y4.73%
EPS Next 3Y5.94%
5. Dividend
5.1 Amount
1CSCO has a Yearly Dividend Yield of 2.59%.
Compared to an average industry Dividend Yield of 3.51, 1CSCO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, 1CSCO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
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
69.73% 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.
DP69.73%
EPS Next 2Y4.73%
EPS Next 3Y5.94%
BIT:1CSCO (3/5/2025, 7:00:00 PM)
58.6
-2.24 (-3.68%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners79.84%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap233.13B
Analysts75.33
Price Target67.14 (14.57%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
Yearly Dividend1.46
Dividend Growth(5Y)3.23%
DP69.73%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.92%
Min EPS beat(2)1.37%
Max EPS beat(2)2.47%
EPS beat(4)4
Avg EPS beat(4)2.27%
Min EPS beat(4)0.58%
Max EPS beat(4)4.64%
EPS beat(8)8
Avg EPS beat(8)2.87%
EPS beat(12)10
Avg EPS beat(12)1.93%
EPS beat(16)11
Avg EPS beat(16)1.51%
Revenue beat(2)0
Avg Revenue beat(2)-1.3%
Min Revenue beat(2)-1.46%
Max Revenue beat(2)-1.14%
Revenue beat(4)0
Avg Revenue beat(4)-1.11%
Min Revenue beat(4)-1.46%
Max Revenue beat(4)-0.63%
Revenue beat(8)0
Avg Revenue beat(8)-1.13%
Revenue beat(12)2
Avg Revenue beat(12)-1.18%
Revenue beat(16)2
Avg Revenue beat(16)-1.21%
PT rev (1m)7.6%
PT rev (3m)13.13%
EPS NQ rev (1m)1.98%
EPS NQ rev (3m)1.98%
EPS NY rev (1m)1.78%
EPS NY rev (3m)1.82%
Revenue NQ rev (1m)1.31%
Revenue NQ rev (3m)1.31%
Revenue NY rev (1m)0.78%
Revenue NY rev (3m)0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.65 | ||
| Fwd PE | 15.55 | ||
| P/S | 4.67 | ||
| P/FCF | 19.76 | ||
| P/OCF | 18.61 | ||
| P/B | 5.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.67 |
EPS(TTM)3.32
EY5.67%
EPS(NY)3.77
Fwd EY6.43%
FCF(TTM)2.97
FCFY5.06%
OCF(TTM)3.15
OCFY5.37%
SpS12.54
BVpS10.54
TBVpS-5.4
PEG (NY)10.46
PEG (5Y)4.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.57% | ||
| ROE | 20.18% | ||
| ROCE | 14.31% | ||
| ROIC | 10.52% | ||
| ROICexc | 12.87% | ||
| ROICexgc | 147.93% | ||
| OM | 21.49% | ||
| PM (TTM) | 16.96% | ||
| GM | 65.13% | ||
| FCFM | 23.65% |
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-Score5
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 2.42 | ||
| Debt/EBITDA | 2.05 | ||
| Cap/Depr | 24.52% | ||
| Cap/Sales | 1.46% | ||
| Interest Coverage | 10.13 | ||
| Cash Conversion | 91.42% | ||
| Profit Quality | 139.44% | ||
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 2.72 |
F-Score5
WACC9.11%
ROIC/WACC1.15
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)-12.62%
EPS 3Y5.02%
EPS 5Y3.84%
EPS Q2Q%8.05%
EPS Next Y1.69%
EPS Next 2Y4.73%
EPS Next 3Y5.94%
EPS Next 5Y4.42%
Revenue 1Y (TTM)-5.34%
Revenue growth 3Y2.6%
Revenue growth 5Y0.72%
Sales Q2Q%9.38%
Revenue Next Year5.02%
Revenue Next 2Y5.09%
Revenue Next 3Y4.96%
Revenue Next 5Y4.03%
EBIT growth 1Y-27.31%
EBIT growth 3Y-1.84%
EBIT growth 5Y-2.17%
EBIT Next Year15.52%
EBIT Next 3Y6.99%
EBIT Next 5YN/A
FCF growth 1Y-17.08%
FCF growth 3Y-11.56%
FCF growth 5Y-7.31%
OCF growth 1Y-15.19%
OCF growth 3Y-11.04%
OCF growth 5Y-7.23%