CISCO SYSTEMS INC (CIS.DE) Stock Fundamental Analysis
FRA:CIS • US17275R1023
66.85 EUR
+0.54 (+0.81%)
Last: Mar 2, 2026, 07:00 PM
Taking everything into account, CIS scores 5 out of 10 in our fundamental rating. CIS was compared to 28 industry peers in the Communications Equipment industry. While CIS belongs to the best of the industry regarding profitability, 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.
- 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
- CIS has a Return On Assets of 8.98%. This is in the better half of the industry: CIS outperforms 75.00% of its industry peers.
- CIS has a better Return On Equity (23.21%) than 78.57% of its industry peers.
- CIS has a Return On Invested Capital of 13.41%. This is amongst the best in the industry. CIS outperforms 85.71% 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 9.83%.
| 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 100.00% of the companies in the same industry.
- CIS's Profit Margin has declined in the last couple of years.
- CIS has a better Operating Margin (23.18%) than 96.43% of its industry peers.
- CIS's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 64.81%, CIS is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
- CIS's Gross Margin has been stable in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CIS 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.
- CIS has a better debt/assets ratio than last year.
2.2 Solvency
- CIS has a debt to FCF ratio of 2.46. This is a good value and a sign of high solvency as CIS would need 2.46 years to pay back of all of its debts.
- The Debt to FCF ratio of CIS (2.46) is better than 67.86% 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.
- CIS's Debt to Equity ratio of 0.45 is on the low side compared to the rest of the industry. CIS is outperformed by 60.71% of its industry peers.
- Although CIS 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 | 0.45 | ||
| Debt/FCF | 2.46 | ||
| Altman-Z | N/A |
ROIC/WACC1.44
WACC9.33%
2.3 Liquidity
- CIS has a Current Ratio of 0.96. 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's Current ratio of 0.96 is on the low side compared to the rest of the industry. CIS is outperformed by 78.57% of its industry peers.
- A Quick Ratio of 0.85 indicates that CIS may have some problems paying its short term obligations.
- CIS has a worse Quick ratio (0.85) than 75.00% of its industry peers.
| 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.
- Measured over the past 5 years, CIS shows a small growth in Earnings Per Share. The EPS has been growing by 3.50% on average per year.
- Looking at the last year, CIS shows a quite strong growth in Revenue. The Revenue has grown by 9.00% in the last year.
- CIS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.82% yearly.
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.
- Based on estimates for the next years, CIS will show a small growth in Revenue. The Revenue will grow by 5.76% on average per year.
EPS Next Y10.59%
EPS Next 2Y9.4%
EPS Next 3Y8.63%
EPS Next 5Y10.07%
Revenue Next Year8.56%
Revenue Next 2Y6.99%
Revenue Next 3Y6.42%
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.
- 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 19.78, the valuation of CIS can be described as rather expensive.
- Based on the Price/Earnings ratio, CIS is valued cheaper than 82.14% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.13. CIS is valued slightly cheaper when compared to this.
- CIS is valuated rather expensively with a Price/Forward Earnings ratio of 17.35.
- Based on the Price/Forward Earnings ratio, CIS is valued a bit cheaper than the industry average as 78.57% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 28.11. CIS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.78 | ||
| Fwd PE | 17.35 |
4.2 Price Multiples
- CIS's Enterprise Value to EBITDA is on the same level as the industry average.
- CIS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.47 | ||
| EV/EBITDA | 19.44 |
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 decent profitability rating of CIS may justify a higher PE ratio.
PEG (NY)1.87
PEG (5Y)5.66
EPS Next 2Y9.4%
EPS Next 3Y8.63%
5. Dividend
5.1 Amount
- CIS has a Yearly Dividend Yield of 2.15%.
- Compared to an average industry Dividend Yield of 2.74, CIS pays a bit more dividend than its industry peers.
- CIS's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.15% |
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.
- The dividend of CIS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP58.56%
EPS Next 2Y9.4%
EPS Next 3Y8.63%
FRA:CIS (3/2/2026, 7:00:00 PM)
66.85
+0.54 (+0.81%)
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 Cap264.13B
Revenue(TTM)59.05B
Net Income(TTM)11.08B
Analysts78.71
Price Target75.83 (13.43%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.15% |
Yearly Dividend1.37
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)2.93%
PT rev (3m)2.4%
EPS NQ rev (1m)0.28%
EPS NQ rev (3m)0.28%
EPS NY rev (1m)0%
EPS NY rev (3m)1.94%
Revenue NQ rev (1m)2.32%
Revenue NQ rev (3m)2.32%
Revenue NY rev (1m)1.24%
Revenue NY rev (3m)3.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.78 | ||
| Fwd PE | 17.35 | ||
| P/S | 5.28 | ||
| P/FCF | 25.47 | ||
| P/OCF | 23.4 | ||
| P/B | 6.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.44 |
EPS(TTM)3.38
EY5.06%
EPS(NY)3.85
Fwd EY5.76%
FCF(TTM)2.62
FCFY3.93%
OCF(TTM)2.86
OCFY4.27%
SpS12.66
BVpS10.23
TBVpS-4.25
PEG (NY)1.87
PEG (5Y)5.66
Graham Number27.89
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
WACC9.33%
ROIC/WACC1.44
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 Year8.56%
Revenue Next 2Y6.99%
Revenue Next 3Y6.42%
Revenue Next 5Y5.76%
EBIT growth 1Y17.55%
EBIT growth 3Y-3.72%
EBIT growth 5Y-2.35%
EBIT Next Year19.86%
EBIT Next 3Y10.35%
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 5 / 10 and the dividend payout ratio is 58.56%.