CISCO SYSTEMS INC (1CSCO.MI) Stock Fundamental Analysis
Europe - BIT:1CSCO - US17275R1023 - Common Stock
60.41 EUR
-0.64 (-1.05%)
Taking everything into account, 1CSCO scores 5 out of 10 in our fundamental rating. 1CSCO was compared to 27 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year 1CSCO was profitable.
In the past year 1CSCO had a positive cash flow from operations.
In the past 5 years 1CSCO has always been profitable.
1CSCO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1CSCO's Return On Assets of 8.53% is amongst the best of the industry. 1CSCO outperforms 84.62% of its industry peers.
1CSCO's Return On Equity of 22.19% is amongst the best of the industry. 1CSCO outperforms 84.62% of its industry peers.
The Return On Invested Capital of 1CSCO (12.90%) is better than 76.92% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1CSCO is above the industry average of 11.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.53% | ||
| ROE | 22.19% | ||
| ROIC | 12.9% |
ROA(3y)9.74%
ROA(5y)10.53%
ROE(3y)24.44%
ROE(5y)25.74%
ROIC(3y)14.79%
ROIC(5y)15.83%
1.3 Margins
With an excellent Profit Margin value of 18.45%, 1CSCO belongs to the best of the industry, outperforming 88.46% of the companies in the same industry.
In the last couple of years the Profit Margin of 1CSCO has declined.
The Operating Margin of 1CSCO (22.69%) is better than 88.46% of its industry peers.
1CSCO's Operating Margin has declined in the last couple of years.
1CSCO has a better Gross Margin (65.56%) than 76.92% 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 | 22.69% | ||
| PM (TTM) | 18.45% | ||
| GM | 65.56% |
OM growth 3Y-5.86%
OM growth 5Y-4.51%
PM growth 3Y-6.96%
PM growth 5Y-4.1%
GM growth 3Y1.58%
GM growth 5Y0.4%
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.
1CSCO has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, 1CSCO has less shares outstanding
The debt/assets ratio for 1CSCO has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of 1CSCO is 2.11, which is a good value as it means it would take 1CSCO, 2.11 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.11, 1CSCO is doing good in the industry, outperforming 69.23% of the companies in the same industry.
1CSCO has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
1CSCO has a Debt to Equity ratio of 0.49. This is in the lower half of the industry: 1CSCO underperforms 61.54% of 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 | 0.49 | ||
| Debt/FCF | 2.11 | ||
| Altman-Z | N/A |
ROIC/WACC1.3
WACC9.89%
2.3 Liquidity
A Current Ratio of 1.01 indicates that 1CSCO should not have too much problems paying its short term obligations.
1CSCO has a Current ratio of 1.01. This is amonst the worse of the industry: 1CSCO underperforms 88.46% of its industry peers.
A Quick Ratio of 0.92 indicates that 1CSCO may have some problems paying its short term obligations.
1CSCO has a Quick ratio of 0.92. This is in the lower half of the industry: 1CSCO underperforms 65.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
1CSCO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.88%.
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 small growth in Revenue. The Revenue has grown by 5.30% in the last year.
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.
1CSCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.95% yearly.
EPS Next Y8.5%
EPS Next 2Y8.04%
EPS Next 3Y8%
EPS Next 5Y8.38%
Revenue Next Year5.33%
Revenue Next 2Y4.95%
Revenue Next 3Y4.84%
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.
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 18.47, 1CSCO is valued on the expensive side.
69.23% of the companies in the same industry are more expensive than 1CSCO, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.27. 1CSCO is valued slightly cheaper when compared to this.
1CSCO is valuated rather expensively with a Price/Forward Earnings ratio of 17.01.
1CSCO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1CSCO is cheaper than 61.54% of the companies in the same industry.
1CSCO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.47 | ||
| Fwd PE | 17.01 |
4.2 Price Multiples
1CSCO's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as 1CSCO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.9 | ||
| EV/EBITDA | 17.99 |
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)2.17
PEG (5Y)5.28
EPS Next 2Y8.04%
EPS Next 3Y8%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.45%, 1CSCO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.04, 1CSCO pays a bit more dividend than its industry peers.
1CSCO's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
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 61.58% 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.
DP61.58%
EPS Next 2Y8.04%
EPS Next 3Y8%
BIT:1CSCO (8/13/2025, 7:00:00 PM)
60.41
-0.64 (-1.05%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners81.26%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap239.22B
Analysts78.79
Price Target65.95 (9.17%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
Yearly Dividend1.39
Dividend Growth(5Y)2.65%
DP61.58%
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)4.87%
PT rev (3m)6.87%
EPS NQ rev (1m)1.24%
EPS NQ rev (3m)2.25%
EPS NY rev (1m)0.41%
EPS NY rev (3m)0.35%
Revenue NQ rev (1m)0.94%
Revenue NQ rev (3m)1.5%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.47 | ||
| Fwd PE | 17.01 | ||
| P/S | 4.9 | ||
| P/FCF | 20.9 | ||
| P/OCF | 19.57 | ||
| P/B | 5.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.99 |
EPS(TTM)3.27
EY5.41%
EPS(NY)3.55
Fwd EY5.88%
FCF(TTM)2.89
FCFY4.79%
OCF(TTM)3.09
OCFY5.11%
SpS12.32
BVpS10.25
TBVpS-4.61
PEG (NY)2.17
PEG (5Y)5.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.53% | ||
| ROE | 22.19% | ||
| ROCE | 14.69% | ||
| ROIC | 12.9% | ||
| ROICexc | 15.81% | ||
| ROICexgc | 366.62% | ||
| OM | 22.69% | ||
| PM (TTM) | 18.45% | ||
| GM | 65.56% | ||
| FCFM | 23.45% |
ROA(3y)9.74%
ROA(5y)10.53%
ROE(3y)24.44%
ROE(5y)25.74%
ROIC(3y)14.79%
ROIC(5y)15.83%
ROICexc(3y)20.5%
ROICexc(5y)22.42%
ROICexgc(3y)289.78%
ROICexgc(5y)250.68%
ROCE(3y)17.43%
ROCE(5y)18.42%
ROICexcg growth 3Y37.98%
ROICexcg growth 5Y6.94%
ROICexc growth 3Y-13.9%
ROICexc growth 5Y-12.52%
OM growth 3Y-5.86%
OM growth 5Y-4.51%
PM growth 3Y-6.96%
PM growth 5Y-4.1%
GM growth 3Y1.58%
GM growth 5Y0.4%
F-Score7
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.11 | ||
| Debt/EBITDA | 1.46 | ||
| Cap/Depr | 32.2% | ||
| Cap/Sales | 1.6% | ||
| Interest Coverage | 8.57 | ||
| Cash Conversion | 90.59% | ||
| Profit Quality | 127.12% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z | N/A |
F-Score7
WACC9.89%
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)125.66%
Profit Quality(5y)124.86%
High Growth Momentum
Growth
EPS 1Y (TTM)1.88%
EPS 3Y4.19%
EPS 5Y3.5%
EPS Q2Q%13.79%
EPS Next Y8.5%
EPS Next 2Y8.04%
EPS Next 3Y8%
EPS Next 5Y8.38%
Revenue 1Y (TTM)5.3%
Revenue growth 3Y3.19%
Revenue growth 5Y2.82%
Sales Q2Q%7.56%
Revenue Next Year5.33%
Revenue Next 2Y4.95%
Revenue Next 3Y4.84%
Revenue Next 5Y4.95%
EBIT growth 1Y-1.07%
EBIT growth 3Y-2.85%
EBIT growth 5Y-1.82%
EBIT Next Year15.24%
EBIT Next 3Y7.56%
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%