CISCO SYSTEMS INC (1CSCO.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1CSCO - US17275R1023 - Common Stock
65.41 EUR
-0.93 (-1.4%)
Taking everything into account, 1CSCO scores 5 out of 10 in our fundamental rating. 1CSCO was compared to 31 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 decent growth rate and is not valued too expensively.
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.
In the past 5 years 1CSCO always reported a positive cash flow from operatings.
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.
Looking at the Return On Equity, with a value of 22.04%, 1CSCO belongs to the top of the industry, outperforming 87.10% of the companies in the same industry.
1CSCO has a better Return On Invested Capital (12.86%) than 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 10.27%.
| 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
Looking at the Profit Margin, with a value of 17.90%, 1CSCO belongs to the top of the industry, outperforming 93.55% of the companies in the same industry.
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.
1CSCO's Operating Margin has declined in the last couple of years.
1CSCO has a Gross Margin of 64.85%. This is amongst the best in the industry. 1CSCO outperforms 83.87% 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
1CSCO has a better debt/assets ratio than last year.
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 has a better Debt to FCF ratio (2.21) than 77.42% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that 1CSCO is not too dependend on debt financing.
1CSCO has a Debt to Equity ratio (0.46) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.21 | ||
| Altman-Z | N/A |
ROIC/WACC1.38
WACC9.34%
2.3 Liquidity
A Current Ratio of 0.93 indicates that 1CSCO may have some problems paying its short term obligations.
1CSCO's Current ratio of 0.93 is on the low side compared to the rest of the industry. 1CSCO is outperformed by 83.87% of its industry peers.
A Quick Ratio of 0.83 indicates that 1CSCO may have some problems paying its short term obligations.
1CSCO's Quick ratio of 0.83 is on the low side compared to the rest of the industry. 1CSCO is outperformed by 83.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
1CSCO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.20%, which is quite good.
1CSCO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.50% yearly.
1CSCO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.91%.
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
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.
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
With a Price/Earnings ratio of 19.58, 1CSCO is valued on the expensive side.
Based on the Price/Earnings ratio, 1CSCO is valued a bit cheaper than 77.42% of the companies in the same industry.
1CSCO is valuated rather cheaply when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 17.16 indicates a rather expensive valuation of 1CSCO.
70.97% of the companies in the same industry are more expensive than 1CSCO, based on the Price/Forward Earnings ratio.
1CSCO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.58 | ||
| Fwd PE | 17.16 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as 1CSCO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.63 | ||
| EV/EBITDA | 19.58 |
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)2.31
PEG (5Y)5.6
EPS Next 2Y8.04%
EPS Next 3Y6.78%
5. Dividend
5.1 Amount
1CSCO has a Yearly Dividend Yield of 2.17%.
1CSCO's Dividend Yield is a higher than the industry average which is at 5.26.
Compared to an average S&P500 Dividend Yield of 2.31, 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 (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 Owners80.81%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap258.58B
Revenue(TTM)57.70B
Net Income(TTM)10.33B
Analysts77.5
Price Target74.13 (13.33%)
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 | 19.58 | ||
| Fwd PE | 17.16 | ||
| P/S | 5.21 | ||
| P/FCF | 23.63 | ||
| P/OCF | 21.89 | ||
| P/B | 6.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.58 |
EPS(TTM)3.34
EY5.11%
EPS(NY)3.81
Fwd EY5.83%
FCF(TTM)2.77
FCFY4.23%
OCF(TTM)2.99
OCFY4.57%
SpS12.54
BVpS10.19
TBVpS-4.56
PEG (NY)2.31
PEG (5Y)5.6
Graham Number27.68
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
WACC9.34%
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 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 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%.