CISCO SYSTEMS INC (1CSCO.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1CSCO - US17275R1023 - Common Stock
65.41 EUR
-0.93 (-1.4%)
1CSCO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 31 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 correct valuation and a medium growth rate.
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.
In the past 5 years 1CSCO always reported a positive cash flow from operatings.
1.2 Ratios
1CSCO has a better Return On Assets (8.53%) than 83.87% of its industry peers.
1CSCO's Return On Equity of 22.04% is amongst the best of the industry. 1CSCO outperforms 87.10% of its industry peers.
The Return On Invested Capital of 1CSCO (12.86%) is better 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 10.97%.
| 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
With an excellent Profit Margin value of 17.90%, 1CSCO belongs to the best 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.
With an excellent Operating Margin value of 22.52%, 1CSCO belongs to the best of the industry, outperforming 96.77% of the companies in the same industry.
In the last couple of years the Operating Margin of 1CSCO has declined.
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
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
Compared to 1 year ago, 1CSCO has an improved debt to assets ratio.
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 Debt to FCF ratio of 2.21. This is in the better half of the industry: 1CSCO outperforms 77.42% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that 1CSCO is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.46, 1CSCO perfoms like the industry average, outperforming 48.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.21 | ||
| Altman-Z | N/A |
ROIC/WACC1.38
WACC9.35%
2.3 Liquidity
A Current Ratio of 0.93 indicates that 1CSCO may have some problems paying its short term obligations.
With a Current ratio value of 0.93, 1CSCO is not doing good in the industry: 83.87% of the companies in the same industry are doing better.
A Quick Ratio of 0.83 indicates that 1CSCO may have some problems paying its short term obligations.
1CSCO has a worse Quick ratio (0.83) than 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.
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.
The Revenue has grown by 8.91% in the past year. This is quite good.
1CSCO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.82% yearly.
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
The Earnings Per Share is expected to grow by 10.07% on average over the next years. This is quite good.
Based on estimates for the next years, 1CSCO will show a small growth in Revenue. The Revenue will grow by 6.28% on average per year.
EPS Next Y10.59%
EPS Next 2Y9.4%
EPS Next 3Y8.67%
EPS Next 5Y10.07%
Revenue Next Year7.24%
Revenue Next 2Y6.15%
Revenue Next 3Y5.75%
Revenue Next 5Y6.28%
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
Based on the Price/Earnings ratio of 19.70, the valuation of 1CSCO can be described as rather expensive.
Based on the Price/Earnings ratio, 1CSCO is valued a bit cheaper than 77.42% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.56. 1CSCO is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 16.87, the valuation of 1CSCO can be described as correct.
70.97% of the companies in the same industry are more expensive than 1CSCO, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of 1CSCO to the average of the S&P500 Index (23.79), we can say 1CSCO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.7 | ||
| Fwd PE | 16.87 |
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 | 23.81 | ||
| EV/EBITDA | 19.73 |
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 excellent profitability rating of 1CSCO may justify a higher PE ratio.
PEG (NY)1.86
PEG (5Y)5.63
EPS Next 2Y9.4%
EPS Next 3Y8.67%
5. Dividend
5.1 Amount
1CSCO has a Yearly Dividend Yield of 2.07%.
1CSCO's Dividend Yield is a higher than the industry average which is at 2.76.
1CSCO's Dividend Yield is comparable with the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
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 2Y9.4%
EPS Next 3Y8.67%
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 Owners81.22%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap258.44B
Revenue(TTM)57.70B
Net Income(TTM)10.33B
Analysts77.42
Price Target73.72 (12.7%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
Yearly Dividend1.38
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)11.93%
PT rev (3m)11.78%
EPS NQ rev (1m)3.32%
EPS NQ rev (3m)2.71%
EPS NY rev (1m)1.94%
EPS NY rev (3m)1.92%
Revenue NQ rev (1m)3.32%
Revenue NQ rev (3m)3.16%
Revenue NY rev (1m)1.79%
Revenue NY rev (3m)1.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.7 | ||
| Fwd PE | 16.87 | ||
| P/S | 5.25 | ||
| P/FCF | 23.81 | ||
| P/OCF | 22.06 | ||
| P/B | 6.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.73 |
EPS(TTM)3.32
EY5.08%
EPS(NY)3.88
Fwd EY5.93%
FCF(TTM)2.75
FCFY4.2%
OCF(TTM)2.97
OCFY4.53%
SpS12.45
BVpS10.11
TBVpS-4.52
PEG (NY)1.86
PEG (5Y)5.63
Graham Number27.49
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
WACC9.35%
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 Y10.59%
EPS Next 2Y9.4%
EPS Next 3Y8.67%
EPS Next 5Y10.07%
Revenue 1Y (TTM)8.91%
Revenue growth 3Y3.19%
Revenue growth 5Y2.82%
Sales Q2Q%7.53%
Revenue Next Year7.24%
Revenue Next 2Y6.15%
Revenue Next 3Y5.75%
Revenue Next 5Y6.28%
EBIT growth 1Y11.75%
EBIT growth 3Y-3.72%
EBIT growth 5Y-2.35%
EBIT Next Year17.41%
EBIT Next 3Y9.5%
EBIT Next 5Y9.13%
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%.