CISCO SYSTEMS INC (CIS.DE) Stock Fundamental Analysis
FRA:CIS - Deutsche Boerse Ag - US17275R1023 - Common Stock - Currency: EUR
Taking everything into account, CIS scores 5 out of 10 in our fundamental rating. CIS was compared to 25 industry peers in the Communications Equipment industry. CIS scores excellent on profitability, but there are some minor concerns on its financial health. CIS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
CIS had positive earnings in the past year.
In the past year CIS had a positive cash flow from operations.
CIS had positive earnings in each of the past 5 years.
CIS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CIS has a Return On Assets of 8.17%. This is amongst the best in the industry. CIS outperforms 84.00% of its industry peers.
CIS has a Return On Equity of 21.32%. This is amongst the best in the industry. CIS outperforms 88.00% of its industry peers.
CIS has a better Return On Invested Capital (11.30%) than 80.00% of its industry peers.
CIS had an Average Return On Invested Capital over the past 3 years of 15.60%. This is significantly above the industry average of 10.12%.
The last Return On Invested Capital (11.30%) for CIS is well below the 3 year average (15.60%), which needs to be investigated, but indicates that CIS had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.17% | ||
| ROE | 21.32% | ||
| ROIC | 11.3% |
ROA(3y)11.08%
ROA(5y)11.19%
ROE(3y)26.95%
ROE(5y)27.21%
ROIC(3y)15.6%
ROIC(5y)15.96%
1.3 Margins
With an excellent Profit Margin value of 17.60%, CIS belongs to the best of the industry, outperforming 92.00% of the companies in the same industry.
CIS's Profit Margin has declined in the last couple of years.
CIS has a Operating Margin of 21.81%. This is amongst the best in the industry. CIS outperforms 92.00% of its industry peers.
In the last couple of years the Operating Margin of CIS has declined.
CIS has a better Gross Margin (65.24%) than 80.00% of its industry peers.
CIS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.81% | ||
| PM (TTM) | 17.6% | ||
| GM | 65.24% |
OM growth 3Y-4.32%
OM growth 5Y-2.87%
PM growth 3Y-3.37%
PM growth 5Y-3.05%
GM growth 3Y0.37%
GM growth 5Y0.56%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CIS is still creating some value.
The number of shares outstanding for CIS has been reduced compared to 1 year ago.
The number of shares outstanding for CIS has been reduced compared to 5 years ago.
CIS has a worse debt/assets ratio than last year.
2.2 Solvency
CIS has an Altman-Z score of 3.00. This indicates that CIS is financially healthy and has little risk of bankruptcy at the moment.
CIS's Altman-Z score of 3.00 is fine compared to the rest of the industry. CIS outperforms 72.00% of its industry peers.
CIS has a debt to FCF ratio of 2.29. This is a good value and a sign of high solvency as CIS would need 2.29 years to pay back of all of its debts.
CIS's Debt to FCF ratio of 2.29 is fine compared to the rest of the industry. CIS outperforms 68.00% of its industry peers.
A Debt/Equity ratio of 0.59 indicates that CIS is somewhat dependend on debt financing.
CIS has a Debt to Equity ratio of 0.59. This is in the lower half of the industry: CIS underperforms 60.00% of its industry peers.
Even though the debt/equity ratio score it not favorable for CIS, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 2.29 | ||
| Altman-Z | 3 |
ROIC/WACC1.14
WACC9.89%
2.3 Liquidity
A Current Ratio of 0.95 indicates that CIS may have some problems paying its short term obligations.
CIS's Current ratio of 0.95 is on the low side compared to the rest of the industry. CIS is outperformed by 88.00% of its industry peers.
A Quick Ratio of 0.87 indicates that CIS may have some problems paying its short term obligations.
CIS has a worse Quick ratio (0.87) than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
CIS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.00%.
The Earnings Per Share has been growing slightly by 3.84% on average over the past years.
Looking at the last year, CIS shows a small growth in Revenue. The Revenue has grown by 0.47% in the last year.
CIS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.72% yearly.
EPS 1Y (TTM)-8%
EPS 3Y5.02%
EPS 5Y3.84%
EPS Q2Q%9.09%
Revenue 1Y (TTM)0.47%
Revenue growth 3Y2.6%
Revenue growth 5Y0.72%
Sales Q2Q%11.39%
3.2 Future
CIS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.50% yearly.
The Revenue is expected to grow by 4.73% on average over the next years.
EPS Next Y3.63%
EPS Next 2Y4.92%
EPS Next 3Y5.99%
EPS Next 5Y6.5%
Revenue Next Year5.43%
Revenue Next 2Y5.33%
Revenue Next 3Y5.11%
Revenue Next 5Y4.73%
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
The Price/Earnings ratio is 18.71, which indicates a rather expensive current valuation of CIS.
Compared to the rest of the industry, the Price/Earnings ratio of CIS indicates a somewhat cheap valuation: CIS is cheaper than 80.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CIS to the average of the S&P500 Index (26.98), we can say CIS is valued slightly cheaper.
A Price/Forward Earnings ratio of 16.75 indicates a correct valuation of CIS.
Based on the Price/Forward Earnings ratio, CIS is valued a bit cheaper than the industry average as 68.00% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.49. CIS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.71 | ||
| Fwd PE | 16.75 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CIS is on the same level as its industry peers.
CIS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.27 | ||
| EV/EBITDA | 18.17 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CIS does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of CIS may justify a higher PE ratio.
PEG (NY)5.15
PEG (5Y)4.88
EPS Next 2Y4.92%
EPS Next 3Y5.99%
5. Dividend
5.1 Amount
CIS has a Yearly Dividend Yield of 2.38%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.58, CIS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, CIS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
5.2 History
The dividend of CIS has a limited annual growth rate of 3.23%.
Dividend Growth(5Y)3.23%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
65.54% of the earnings are spent on dividend by CIS. This is not a sustainable payout ratio.
CIS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP65.54%
EPS Next 2Y4.92%
EPS Next 3Y5.99%
FRA:CIS (6/30/2025, 3:26:38 PM)
58.745
-0.16 (-0.28%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners81.14%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap232.63B
Analysts78.67
Price Target62.6 (6.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
Yearly Dividend1.35
Dividend Growth(5Y)3.23%
DP65.54%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.94%
Min EPS beat(2)1.37%
Max EPS beat(2)2.52%
EPS beat(4)4
Avg EPS beat(4)1.74%
Min EPS beat(4)0.58%
Max EPS beat(4)2.52%
EPS beat(8)8
Avg EPS beat(8)3.07%
EPS beat(12)11
Avg EPS beat(12)2.24%
EPS beat(16)12
Avg EPS beat(16)1.71%
Revenue beat(2)0
Avg Revenue beat(2)-1.31%
Min Revenue beat(2)-1.48%
Max Revenue beat(2)-1.14%
Revenue beat(4)0
Avg Revenue beat(4)-1.32%
Min Revenue beat(4)-1.48%
Max Revenue beat(4)-1.14%
Revenue beat(8)0
Avg Revenue beat(8)-1.22%
Revenue beat(12)2
Avg Revenue beat(12)-0.83%
Revenue beat(16)2
Avg Revenue beat(16)-1.3%
PT rev (1m)1.3%
PT rev (3m)-6.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.03%
EPS NY rev (1m)0.49%
EPS NY rev (3m)1.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.67%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.71 | ||
| Fwd PE | 16.75 | ||
| P/S | 4.89 | ||
| P/FCF | 21.27 | ||
| P/OCF | 19.89 | ||
| P/B | 5.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.17 |
EPS(TTM)3.14
EY5.35%
EPS(NY)3.51
Fwd EY5.97%
FCF(TTM)2.76
FCFY4.7%
OCF(TTM)2.95
OCFY5.03%
SpS12
BVpS9.91
TBVpS-4.9
PEG (NY)5.15
PEG (5Y)4.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.17% | ||
| ROE | 21.32% | ||
| ROCE | 14.23% | ||
| ROIC | 11.3% | ||
| ROICexc | 13.7% | ||
| ROICexgc | 196.3% | ||
| OM | 21.81% | ||
| PM (TTM) | 17.6% | ||
| GM | 65.24% | ||
| FCFM | 23.02% |
ROA(3y)11.08%
ROA(5y)11.19%
ROE(3y)26.95%
ROE(5y)27.21%
ROIC(3y)15.6%
ROIC(5y)15.96%
ROICexc(3y)22.29%
ROICexc(5y)24.14%
ROICexgc(3y)203.21%
ROICexgc(5y)218.11%
ROCE(3y)19.37%
ROCE(5y)19.54%
ROICexcg growth 3Y-12.42%
ROICexcg growth 5Y-32.21%
ROICexc growth 3Y-16.83%
ROICexc growth 5Y-15.54%
OM growth 3Y-4.32%
OM growth 5Y-2.87%
PM growth 3Y-3.37%
PM growth 5Y-3.05%
GM growth 3Y0.37%
GM growth 5Y0.56%
F-Score7
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 2.29 | ||
| Debt/EBITDA | 1.79 | ||
| Cap/Depr | 29.54% | ||
| Cap/Sales | 1.59% | ||
| Interest Coverage | 7.57 | ||
| Cash Conversion | 90.46% | ||
| Profit Quality | 130.75% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 3 |
F-Score7
WACC9.89%
ROIC/WACC1.14
Cap/Depr(3y)33.43%
Cap/Depr(5y)36.01%
Cap/Sales(3y)1.22%
Cap/Sales(5y)1.32%
Profit Quality(3y)119.27%
Profit Quality(5y)125.58%
High Growth Momentum
Growth
EPS 1Y (TTM)-8%
EPS 3Y5.02%
EPS 5Y3.84%
EPS Q2Q%9.09%
EPS Next Y3.63%
EPS Next 2Y4.92%
EPS Next 3Y5.99%
EPS Next 5Y6.5%
Revenue 1Y (TTM)0.47%
Revenue growth 3Y2.6%
Revenue growth 5Y0.72%
Sales Q2Q%11.39%
Revenue Next Year5.43%
Revenue Next 2Y5.33%
Revenue Next 3Y5.11%
Revenue Next 5Y4.73%
EBIT growth 1Y-17.55%
EBIT growth 3Y-1.84%
EBIT growth 5Y-2.17%
EBIT Next Year17.34%
EBIT Next 3Y7.96%
EBIT Next 5YN/A
FCF growth 1Y-23.98%
FCF growth 3Y-11.56%
FCF growth 5Y-7.31%
OCF growth 1Y-22.21%
OCF growth 3Y-11.04%
OCF growth 5Y-7.23%