CISCO SYSTEMS INC (CIS.DE) Stock Fundamental Analysis
FRA:CIS • US17275R1023
66.54 EUR
+0.62 (+0.94%)
Last: Feb 19, 2026, 07:00 PM
CIS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 32 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
- In the past year CIS was profitable.
- CIS had a positive operating cash flow in the past year.
- 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
- With a decent Return On Assets value of 8.98%, CIS is doing good in the industry, outperforming 78.13% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 23.21%, CIS belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
- CIS's Return On Invested Capital of 13.41% is amongst the best of the industry. CIS outperforms 87.50% of its industry peers.
- CIS had an Average Return On Invested Capital over the past 3 years of 14.02%. This is above the industry average of 9.80%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.98% | ||
| ROE | 23.21% | ||
| ROIC | 13.41% |
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 18.76%, CIS belongs to the best of the industry, outperforming 96.88% 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 23.18%. This is amongst the best in the industry. CIS outperforms 93.75% of its industry peers.
- In the last couple of years the Operating Margin of CIS has declined.
- CIS has a better Gross Margin (64.81%) than 81.25% of its industry peers.
- 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 | 23.18% | ||
| PM (TTM) | 18.76% | ||
| GM | 64.81% |
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
- CIS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, CIS has less shares outstanding
- CIS has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, CIS has an improved debt to assets ratio.
2.2 Solvency
- The Debt to FCF ratio of CIS is 2.46, which is a good value as it means it would take CIS, 2.46 years of fcf income to pay off all of its debts.
- CIS has a Debt to FCF ratio of 2.46. This is in the better half of the industry: CIS outperforms 62.50% of its industry peers.
- CIS has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.45, CIS is in line with its industry, outperforming 40.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 2.46 | ||
| Altman-Z | N/A |
ROIC/WACC1.43
WACC9.4%
2.3 Liquidity
- A Current Ratio of 0.96 indicates that CIS may have some problems paying its short term obligations.
- CIS has a Current ratio of 0.96. This is in the lower half of the industry: CIS underperforms 78.13% of its industry peers.
- A Quick Ratio of 0.85 indicates that CIS may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.85, CIS is doing worse than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
- CIS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.83%, which is quite good.
- The Earnings Per Share has been growing slightly by 3.50% on average over the past years.
- CIS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.00%.
- The Revenue has been growing slightly by 2.82% on average over the past years.
EPS 1Y (TTM)10.83%
EPS 3Y4.19%
EPS 5Y3.5%
EPS Q2Q%10.64%
Revenue 1Y (TTM)9%
Revenue growth 3Y3.19%
Revenue growth 5Y2.82%
Sales Q2Q%9.71%
3.2 Future
- CIS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.07% yearly.
- The Revenue is expected to grow by 5.76% on average over the next years.
EPS Next Y10.59%
EPS Next 2Y9.4%
EPS Next 3Y8.63%
EPS Next 5Y10.07%
Revenue Next Year7.24%
Revenue Next 2Y6.15%
Revenue Next 3Y5.74%
Revenue Next 5Y5.76%
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.
- 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 19.63, the valuation of CIS can be described as rather expensive.
- 84.38% of the companies in the same industry are more expensive than CIS, based on the Price/Earnings ratio.
- CIS is valuated rather cheaply when we compare the Price/Earnings ratio to 27.09, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 17.20, CIS is valued on the expensive side.
- 81.25% of the companies in the same industry are more expensive than CIS, based on the Price/Forward Earnings ratio.
- CIS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 27.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.63 | ||
| Fwd PE | 17.2 |
4.2 Price Multiples
- CIS's Enterprise Value to EBITDA ratio is in line with the industry average.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of CIS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.24 | ||
| EV/EBITDA | 19.43 |
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)1.85
PEG (5Y)5.61
EPS Next 2Y9.4%
EPS Next 3Y8.63%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.24%, CIS has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.49, CIS pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.85, CIS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
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 58.56% of its income as dividend. This is a bit on the high side, but may be sustainable.
- CIS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP58.56%
EPS Next 2Y9.4%
EPS Next 3Y8.63%
FRA:CIS (2/19/2026, 7:00:00 PM)
66.54
+0.62 (+0.94%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-11 2026-02-11/amc
Earnings (Next)05-12 2026-05-12/amc
Inst Owners81.27%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap262.91B
Revenue(TTM)59.05B
Net Income(TTM)11.08B
Analysts78.71
Price Target74.96 (12.65%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
Yearly Dividend1.36
Dividend Growth(5Y)2.65%
DP58.56%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.17%
Min EPS beat(2)-0.21%
Max EPS beat(2)-0.13%
EPS beat(4)1
Avg EPS beat(4)0.42%
Min EPS beat(4)-0.5%
Max EPS beat(4)2.52%
EPS beat(8)5
Avg EPS beat(8)1.34%
EPS beat(12)9
Avg EPS beat(12)2.05%
EPS beat(16)11
Avg EPS beat(16)1.55%
Revenue beat(2)0
Avg Revenue beat(2)-0.82%
Min Revenue beat(2)-1.19%
Max Revenue beat(2)-0.45%
Revenue beat(4)0
Avg Revenue beat(4)-1.17%
Min Revenue beat(4)-1.58%
Max Revenue beat(4)-0.45%
Revenue beat(8)0
Avg Revenue beat(8)-1.14%
Revenue beat(12)0
Avg Revenue beat(12)-1.15%
Revenue beat(16)2
Avg Revenue beat(16)-1.18%
PT rev (1m)1.61%
PT rev (3m)13.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.72%
EPS NY rev (1m)0%
EPS NY rev (3m)1.94%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.2%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)1.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.63 | ||
| Fwd PE | 17.2 | ||
| P/S | 5.23 | ||
| P/FCF | 25.24 | ||
| P/OCF | 23.19 | ||
| P/B | 6.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.43 |
EPS(TTM)3.39
EY5.09%
EPS(NY)3.87
Fwd EY5.82%
FCF(TTM)2.64
FCFY3.96%
OCF(TTM)2.87
OCFY4.31%
SpS12.72
BVpS10.28
TBVpS-4.27
PEG (NY)1.85
PEG (5Y)5.61
Graham Number28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.98% | ||
| ROE | 23.21% | ||
| ROCE | 15.81% | ||
| ROIC | 13.41% | ||
| ROICexc | 16.39% | ||
| ROICexgc | 355.28% | ||
| OM | 23.18% | ||
| PM (TTM) | 18.76% | ||
| GM | 64.81% | ||
| FCFM | 20.73% |
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 | 0.45 | ||
| Debt/FCF | 2.46 | ||
| Debt/EBITDA | 1.32 | ||
| Cap/Depr | 42.91% | ||
| Cap/Sales | 1.84% | ||
| Interest Coverage | 9.56 | ||
| Cash Conversion | 82.18% | ||
| Profit Quality | 110.52% | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | N/A |
F-Score7
WACC9.4%
ROIC/WACC1.43
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)10.83%
EPS 3Y4.19%
EPS 5Y3.5%
EPS Q2Q%10.64%
EPS Next Y10.59%
EPS Next 2Y9.4%
EPS Next 3Y8.63%
EPS Next 5Y10.07%
Revenue 1Y (TTM)9%
Revenue growth 3Y3.19%
Revenue growth 5Y2.82%
Sales Q2Q%9.71%
Revenue Next Year7.24%
Revenue Next 2Y6.15%
Revenue Next 3Y5.74%
Revenue Next 5Y5.76%
EBIT growth 1Y17.55%
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-9.71%
FCF growth 3Y1.39%
FCF growth 5Y-1.94%
OCF growth 1Y-7.23%
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.
What is the valuation status for CIS stock?
ChartMill assigns a valuation rating of 4 / 10 to CISCO SYSTEMS INC (CIS.DE). This can be considered as Fairly Valued.
Can you provide the profitability details for CISCO SYSTEMS INC?
CISCO SYSTEMS INC (CIS.DE) has a profitability rating of 7 / 10.
Can you provide the financial health for CIS stock?
The financial health rating of CISCO SYSTEMS INC (CIS.DE) is 4 / 10.
Is the dividend of CISCO SYSTEMS INC sustainable?
The dividend rating of CISCO SYSTEMS INC (CIS.DE) is 6 / 10 and the dividend payout ratio is 58.56%.