CISCO SYSTEMS INC (1CSCO.MI) Stock Fundamental Analysis
Europe - BIT:1CSCO - US17275R1023 - Common Stock
59.57 EUR
+0.69 (+1.17%)
1CSCO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 29 industry peers in the Communications Equipment industry. 1CSCO scores excellent on profitability, 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
1CSCO had positive earnings in the past year.
1CSCO had a positive operating cash flow in the past year.
1CSCO had positive earnings in each of the past 5 years.
1CSCO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.53%, 1CSCO is in the better half of the industry, outperforming 75.86% of the companies in the same industry.
1CSCO's Return On Equity of 22.19% is fine compared to the rest of the industry. 1CSCO outperforms 79.31% of its industry peers.
1CSCO has a better Return On Invested Capital (12.90%) than 75.86% of its industry peers.
1CSCO had an Average Return On Invested Capital over the past 3 years of 14.79%. This is above the industry average of 12.11%.
| 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 93.10% of the companies in the same industry.
In the last couple of years the Profit Margin of 1CSCO has declined.
1CSCO's Operating Margin of 22.69% is amongst the best of the industry. 1CSCO outperforms 93.10% 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 82.76% of its industry peers.
1CSCO's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1CSCO is creating some value.
1CSCO has less shares outstanding than it did 1 year ago.
The number of shares outstanding for 1CSCO has been reduced compared to 5 years ago.
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.
Looking at the Debt to FCF ratio, with a value of 2.11, 1CSCO is in the better half of the industry, outperforming 68.97% of the companies in the same industry.
A Debt/Equity ratio of 0.49 indicates that 1CSCO is not too dependend on debt financing.
The Debt to Equity ratio of 1CSCO (0.49) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.11 | ||
| Altman-Z | N/A |
ROIC/WACC1.41
WACC9.13%
2.3 Liquidity
1CSCO has a Current Ratio of 1.01. This is a normal value and indicates that 1CSCO is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of 1CSCO (1.01) is worse than 86.21% of its industry peers.
A Quick Ratio of 0.92 indicates that 1CSCO may have some problems paying its short term obligations.
With a Quick ratio value of 0.92, 1CSCO is not doing good in the industry: 72.41% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.88% over the past year.
Measured over the past 5 years, 1CSCO shows a small growth in Earnings Per Share. The EPS has been growing by 3.50% on average per year.
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
Based on estimates for the next years, 1CSCO will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.38% on average per year.
The Revenue is expected to grow by 4.95% on average over the next years.
EPS Next Y8.52%
EPS Next 2Y8.05%
EPS Next 3Y7.97%
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.
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 18.33, the valuation of 1CSCO can be described as rather expensive.
75.86% of the companies in the same industry are more expensive than 1CSCO, based on the Price/Earnings ratio.
1CSCO is valuated rather cheaply when we compare the Price/Earnings ratio to 27.42, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 16.87 indicates a correct valuation of 1CSCO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1CSCO indicates a somewhat cheap valuation: 1CSCO is cheaper than 65.52% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.94, 1CSCO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.33 | ||
| Fwd PE | 16.87 |
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 | 20.7 | ||
| EV/EBITDA | 17.83 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1CSCO does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of 1CSCO may justify a higher PE ratio.
PEG (NY)2.15
PEG (5Y)5.24
EPS Next 2Y8.05%
EPS Next 3Y7.97%
5. Dividend
5.1 Amount
1CSCO has a Yearly Dividend Yield of 2.44%.
1CSCO's Dividend Yield is a higher than the industry average which is at 5.20.
Compared to an average S&P500 Dividend Yield of 2.36, 1CSCO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.44% |
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
61.58% of the earnings are spent on dividend by 1CSCO. This is not a sustainable payout ratio.
1CSCO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP61.58%
EPS Next 2Y8.05%
EPS Next 3Y7.97%
BIT:1CSCO (10/17/2025, 7:00:00 PM)
59.57
+0.69 (+1.17%)
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 Cap235.49B
Analysts77.5
Price Target64.77 (8.73%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.44% |
Yearly Dividend1.38
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)-1.79%
PT rev (3m)3.47%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)1.37%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.37%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)1.06%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.33 | ||
| Fwd PE | 16.87 | ||
| P/S | 4.86 | ||
| P/FCF | 20.7 | ||
| P/OCF | 19.38 | ||
| P/B | 5.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.83 |
EPS(TTM)3.25
EY5.46%
EPS(NY)3.53
Fwd EY5.93%
FCF(TTM)2.88
FCFY4.83%
OCF(TTM)3.07
OCFY5.16%
SpS12.27
BVpS10.2
TBVpS-4.59
PEG (NY)2.15
PEG (5Y)5.24
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
WACC9.13%
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)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 Y8.52%
EPS Next 2Y8.05%
EPS Next 3Y7.97%
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 Year15.46%
EBIT Next 3Y7.7%
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%