CISCO SYSTEMS INC (CIS.DE) Stock Fundamental Analysis
Europe - FRA:CIS - US17275R1023 - Common Stock
66.09 EUR
-2.23 (-3.26%)
Taking everything into account, CIS scores 5 out of 10 in our fundamental rating. CIS was compared to 29 industry peers in the Communications Equipment industry. CIS has an excellent profitability rating, but there are some minor concerns on its financial health. CIS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year CIS was profitable.
In the past year CIS had a positive cash flow from operations.
Each year in the past 5 years CIS has been profitable.
In the past 5 years CIS always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.53%, CIS is in the better half of the industry, outperforming 79.31% of the companies in the same industry.
Looking at the Return On Equity, with a value of 22.04%, CIS belongs to the top of the industry, outperforming 82.76% of the companies in the same industry.
CIS's Return On Invested Capital of 12.86% is fine compared to the rest of the industry. CIS outperforms 79.31% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CIS is above the industry average of 11.51%.
| 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
Looking at the Profit Margin, with a value of 17.90%, CIS belongs to the top of the industry, outperforming 86.21% of the companies in the same industry.
CIS's Profit Margin has declined in the last couple of years.
CIS's Operating Margin of 22.52% is amongst the best of the industry. CIS outperforms 93.10% of its industry peers.
In the last couple of years the Operating Margin of CIS has declined.
Looking at the Gross Margin, with a value of 64.85%, CIS is in the better half of the industry, outperforming 79.31% of the companies in the same industry.
In the last couple of years the Gross Margin of CIS has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CIS is still creating some value.
Compared to 1 year ago, CIS has less shares outstanding
Compared to 5 years ago, CIS has less shares outstanding
CIS has a better debt/assets ratio than last year.
2.2 Solvency
CIS has a debt to FCF ratio of 2.21. This is a good value and a sign of high solvency as CIS would need 2.21 years to pay back of all of its debts.
CIS has a Debt to FCF ratio of 2.21. This is in the better half of the industry: CIS outperforms 68.97% of its industry peers.
CIS has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
CIS has a Debt to Equity ratio (0.46) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.21 | ||
| Altman-Z | N/A |
ROIC/WACC1.4
WACC9.21%
2.3 Liquidity
CIS has a Current Ratio of 0.93. This is a bad value and indicates that CIS is not financially healthy enough and could expect problems in meeting its short term obligations.
CIS has a Current ratio of 0.93. This is amonst the worse of the industry: CIS underperforms 86.21% of its industry peers.
CIS has a Quick Ratio of 0.93. This is a bad value and indicates that CIS is not financially healthy enough and could expect problems in meeting its short term obligations.
CIS has a Quick ratio of 0.83. This is amonst the worse of the industry: CIS underperforms 86.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
CIS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.20%, which is quite good.
CIS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.50% yearly.
CIS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.91%.
Measured over the past years, CIS shows a small growth in Revenue. The Revenue has been growing by 2.82% on average per year.
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 8.38% on average over the next years. This is quite good.
CIS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.95% yearly.
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
Based on the Price/Earnings ratio of 19.55, the valuation of CIS can be described as rather expensive.
Based on the Price/Earnings ratio, CIS is valued a bit cheaper than the industry average as 75.86% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.07. CIS is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 17.16, CIS is valued on the expensive side.
Based on the Price/Forward Earnings ratio, CIS is valued a bit cheaper than the industry average as 62.07% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.08, CIS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.55 | ||
| Fwd PE | 17.16 |
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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.63 | ||
| EV/EBITDA | 20.23 |
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 CIS may justify a higher PE ratio.
PEG (NY)2.3
PEG (5Y)5.59
EPS Next 2Y8.04%
EPS Next 3Y6.78%
5. Dividend
5.1 Amount
CIS has a Yearly Dividend Yield of 2.12%.
CIS's Dividend Yield is a higher than the industry average which is at 5.25.
Compared to an average S&P500 Dividend Yield of 2.44, CIS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
5.2 History
The dividend of CIS has a limited annual growth rate of 2.65%.
Dividend Growth(5Y)2.65%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
CIS pays out 62.56% of its income as dividend. This is not a sustainable payout ratio.
The dividend of CIS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP62.56%
EPS Next 2Y8.04%
EPS Next 3Y6.78%
FRA:CIS (11/21/2025, 5:10:33 PM)
66.09
-2.23 (-3.26%)
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 Cap261.27B
Revenue(TTM)57.70B
Net Income(TTM)10.33B
Analysts77.5
Price Target67.06 (1.47%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
Yearly Dividend1.39
Dividend Growth(5Y)2.65%
DP62.56%
Div Incr Years6
Div Non Decr Years6
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)1.42%
PT rev (3m)5.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.08%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.39%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)-0.33%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.55 | ||
| Fwd PE | 17.16 | ||
| P/S | 5.21 | ||
| P/FCF | 23.63 | ||
| P/OCF | 21.89 | ||
| P/B | 6.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.23 |
EPS(TTM)3.38
EY5.11%
EPS(NY)3.85
Fwd EY5.83%
FCF(TTM)2.8
FCFY4.23%
OCF(TTM)3.02
OCFY4.57%
SpS12.68
BVpS10.3
TBVpS-4.6
PEG (NY)2.3
PEG (5Y)5.59
Graham Number27.98
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
WACC9.21%
ROIC/WACC1.4
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 Y8.49%
EPS Next 2Y8.04%
EPS Next 3Y6.78%
EPS Next 5Y8.38%
Revenue 1Y (TTM)8.91%
Revenue growth 3Y3.19%
Revenue growth 5Y2.82%
Sales Q2Q%7.53%
Revenue Next Year5.35%
Revenue Next 2Y4.98%
Revenue Next 3Y5.04%
Revenue Next 5Y4.95%
EBIT growth 1Y11.75%
EBIT growth 3Y-3.72%
EBIT growth 5Y-2.35%
EBIT Next Year15.46%
EBIT Next 3Y7.57%
EBIT Next 5YN/A
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 / CIS.DE FAQ
What is the fundamental rating for CIS stock?
ChartMill assigns a fundamental rating of 5 / 10 to CIS.DE.
Can you provide the valuation status for CISCO SYSTEMS INC?
ChartMill assigns a valuation rating of 3 / 10 to CISCO SYSTEMS INC (CIS.DE). This can be considered as Overvalued.
What is the profitability of CIS stock?
CISCO SYSTEMS INC (CIS.DE) has a profitability rating of 7 / 10.
What are the PE and PB ratios of CISCO SYSTEMS INC (CIS.DE) stock?
The Price/Earnings (PE) ratio for CISCO SYSTEMS INC (CIS.DE) is 19.55 and the Price/Book (PB) ratio is 6.42.
Is the dividend of CISCO SYSTEMS INC sustainable?
The dividend rating of CISCO SYSTEMS INC (CIS.DE) is 4 / 10 and the dividend payout ratio is 62.56%.