CISCO SYSTEMS INC (1CSCO.MI) Stock Fundamental Analysis
Europe - BIT:1CSCO - US17275R1023 - Common Stock
66.34 EUR
+6.77 (+11.36%)
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 is not valued too expensively and it also shows a decent 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.
Each year in the past 5 years 1CSCO has been profitable.
Each year in the past 5 years 1CSCO had a positive operating cash flow.
1.2 Ratios
1CSCO's Return On Assets of 8.32% is fine compared to the rest of the industry. 1CSCO outperforms 74.07% of its industry peers.
The Return On Equity of 1CSCO (21.73%) is better than 77.78% of its industry peers.
With a decent Return On Invested Capital value of 11.70%, 1CSCO is doing good in the industry, outperforming 74.07% of the companies in the same industry.
1CSCO had an Average Return On Invested Capital over the past 3 years of 14.02%. This is above the industry average of 11.51%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.32% | ||
| ROE | 21.73% | ||
| ROIC | 11.7% |
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
1CSCO has a better Profit Margin (17.97%) than 92.59% of its industry peers.
1CSCO's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 22.09%, 1CSCO belongs to the best of the industry, outperforming 92.59% of the companies in the same industry.
In the last couple of years the Operating Margin of 1CSCO has declined.
1CSCO's Gross Margin of 64.94% is fine compared to the rest of the industry. 1CSCO outperforms 77.78% of its industry peers.
1CSCO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.09% | ||
| PM (TTM) | 17.97% | ||
| GM | 64.94% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1CSCO is creating some value.
The number of shares outstanding for 1CSCO has been reduced compared to 1 year ago.
The number of shares outstanding for 1CSCO has been reduced compared to 5 years ago.
Compared to 1 year ago, 1CSCO has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.05 indicates that 1CSCO is not in any danger for bankruptcy at the moment.
1CSCO has a better Altman-Z score (3.05) than 74.07% of its industry peers.
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.
1CSCO's Debt to FCF ratio of 2.11 is fine compared to the rest of the industry. 1CSCO outperforms 70.37% of its industry peers.
1CSCO has a Debt/Equity ratio of 0.56. This is a neutral value indicating 1CSCO is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.56, 1CSCO is in line with its industry, outperforming 40.74% of the companies in the same industry.
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 | 0.56 | ||
| Debt/FCF | 2.11 | ||
| Altman-Z | 3.05 |
ROIC/WACC1.3
WACC9%
2.3 Liquidity
1CSCO has a Current Ratio of 1.00. This is a bad value and indicates that 1CSCO is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 1.00, 1CSCO is not doing good in the industry: 88.89% of the companies in the same industry are doing better.
1CSCO has a Quick Ratio of 1.00. This is a bad value and indicates that 1CSCO is not financially healthy enough and could expect problems in meeting its short term obligations.
1CSCO has a Quick ratio of 0.91. This is in the lower half of the industry: 1CSCO underperforms 74.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.91 |
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.
The Revenue has been growing slightly by 5.30% in the past 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 Y8.49%
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
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
The Price/Earnings ratio is 20.16, which indicates a rather expensive current valuation of 1CSCO.
Compared to the rest of the industry, the Price/Earnings ratio of 1CSCO indicates a rather cheap valuation: 1CSCO is cheaper than 81.48% of the companies listed in the same industry.
1CSCO is valuated rather cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 18.60, which indicates a rather expensive current valuation of 1CSCO.
1CSCO's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, 1CSCO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.16 | ||
| Fwd PE | 18.6 |
4.2 Price Multiples
1CSCO's Enterprise Value to EBITDA is on the same level as the industry average.
1CSCO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.82 | ||
| EV/EBITDA | 18.52 |
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.
1CSCO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.38
PEG (5Y)5.77
EPS Next 2Y8.04%
EPS Next 3Y6.78%
5. Dividend
5.1 Amount
1CSCO has a Yearly Dividend Yield of 2.31%.
1CSCO's Dividend Yield is a higher than the industry average which is at 5.25.
1CSCO's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
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
63.23% 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.
DP63.23%
EPS Next 2Y8.04%
EPS Next 3Y6.78%
BIT:1CSCO (11/13/2025, 7:00:00 PM)
66.34
+6.77 (+11.36%)
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 Cap262.26B
Revenue(TTM)56.65B
Net Income(TTM)10.18B
Analysts77.5
Price Target65.86 (-0.72%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
Yearly Dividend1.4
Dividend Growth(5Y)2.65%
DP63.23%
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)1.69%
PT rev (3m)4.14%
EPS NQ rev (1m)0.19%
EPS NQ rev (3m)1.3%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.39%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.94%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.16 | ||
| Fwd PE | 18.6 | ||
| P/S | 5.35 | ||
| P/FCF | 22.82 | ||
| P/OCF | 21.36 | ||
| P/B | 6.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.52 |
EPS(TTM)3.29
EY4.96%
EPS(NY)3.57
Fwd EY5.38%
FCF(TTM)2.91
FCFY4.38%
OCF(TTM)3.11
OCFY4.68%
SpS12.4
BVpS10.25
TBVpS-4.7
PEG (NY)2.38
PEG (5Y)5.77
Graham Number27.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.32% | ||
| ROE | 21.73% | ||
| ROCE | 14.35% | ||
| ROIC | 11.7% | ||
| ROICexc | 14.23% | ||
| ROICexgc | 168.77% | ||
| OM | 22.09% | ||
| PM (TTM) | 17.97% | ||
| GM | 64.94% | ||
| FCFM | 23.45% |
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-Score8
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.11 | ||
| Debt/EBITDA | 1.72 | ||
| Cap/Depr | 32.2% | ||
| Cap/Sales | 1.6% | ||
| Interest Coverage | 8.34 | ||
| Cash Conversion | 92.6% | ||
| Profit Quality | 130.53% | ||
| Current Ratio | 1 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 3.05 |
F-Score8
WACC9%
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)126.8%
Profit Quality(5y)125.54%
High Growth Momentum
Growth
EPS 1Y (TTM)1.88%
EPS 3Y4.19%
EPS 5Y3.5%
EPS Q2Q%13.79%
EPS Next Y8.49%
EPS Next 2Y8.04%
EPS Next 3Y6.78%
EPS Next 5Y8.38%
Revenue 1Y (TTM)5.3%
Revenue growth 3Y3.19%
Revenue growth 5Y2.82%
Sales Q2Q%7.56%
Revenue Next Year5.35%
Revenue Next 2Y4.98%
Revenue Next 3Y5.04%
Revenue Next 5Y4.95%
EBIT growth 1Y-3.69%
EBIT growth 3Y-3.72%
EBIT growth 5Y-2.35%
EBIT Next Year15.46%
EBIT Next 3Y7.57%
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%
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 7 / 10.
What is the financial health of CISCO SYSTEMS INC (1CSCO.MI) stock?
The financial health rating of CISCO SYSTEMS INC (1CSCO.MI) is 5 / 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 63.23%.