CISCO SYSTEMS INC (CIS.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:CIS - US17275R1023 - Common Stock
64.18 EUR
+1.28 (+2.03%)
Taking everything into account, CIS scores 6 out of 10 in our fundamental rating. CIS was compared to 32 industry peers in the Communications Equipment industry. CIS has an excellent profitability rating, but there are some minor concerns on its financial health. CIS is not valued too expensively and it also shows a decent growth rate.
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.
Each year in the past 5 years CIS had a positive operating cash flow.
1.2 Ratios
CIS has a better Return On Assets (8.53%) than 81.25% of its industry peers.
CIS has a better Return On Equity (22.04%) than 87.50% of its industry peers.
The Return On Invested Capital of CIS (12.86%) is better than 81.25% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CIS is above the industry average of 11.49%.
| 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
CIS has a better Profit Margin (17.90%) than 90.63% of its industry peers.
CIS's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 22.52%, CIS belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
CIS's Operating Margin has declined in the last couple of years.
CIS's Gross Margin of 64.85% is amongst the best of the industry. CIS outperforms 87.50% of its industry peers.
CIS's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for CIS has been reduced compared to 1 year ago.
Compared to 5 years ago, CIS has less shares outstanding
Compared to 1 year ago, CIS has an improved debt to assets ratio.
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 better Debt to FCF ratio (2.21) than 71.88% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that CIS is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.46, CIS perfoms like the industry average, outperforming 46.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.21 | ||
| Altman-Z | N/A |
ROIC/WACC1.33
WACC9.67%
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.
The Current ratio of CIS (0.93) is worse than 81.25% 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.
The Quick ratio of CIS (0.83) is worse than 78.13% 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.
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.
CIS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.91%.
The Revenue has been growing slightly by 2.82% on average over the past years.
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 10.07% on average over the next years. This is quite good.
Based on estimates for the next years, CIS will show a small growth in Revenue. The Revenue will grow by 6.28% on average per year.
EPS Next Y10.59%
EPS Next 2Y9.4%
EPS Next 3Y8.67%
EPS Next 5Y10.07%
Revenue Next Year7.24%
Revenue Next 2Y6.15%
Revenue Next 3Y5.75%
Revenue Next 5Y6.28%
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 19.27, which indicates a rather expensive current valuation of CIS.
CIS's Price/Earnings ratio is rather cheap when compared to the industry. CIS is cheaper than 81.25% of the companies in the same industry.
When comparing the Price/Earnings ratio of CIS to the average of the S&P500 Index (27.30), we can say CIS is valued slightly cheaper.
With a Price/Forward Earnings ratio of 16.50, CIS is valued correctly.
Based on the Price/Forward Earnings ratio, CIS is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.04, CIS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.27 | ||
| Fwd PE | 16.5 |
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.
65.63% of the companies in the same industry are more expensive than CIS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.28 | ||
| EV/EBITDA | 18.92 |
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.
CIS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.82
PEG (5Y)5.51
EPS Next 2Y9.4%
EPS Next 3Y8.67%
5. Dividend
5.1 Amount
CIS has a Yearly Dividend Yield of 2.22%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.52, CIS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.92, CIS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
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.
CIS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP62.56%
EPS Next 2Y9.4%
EPS Next 3Y8.67%
FRA:CIS (1/13/2026, 5:02:00 PM)
64.18
+1.28 (+2.03%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners81.27%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap253.58B
Revenue(TTM)57.70B
Net Income(TTM)10.33B
Analysts77.42
Price Target73.77 (14.94%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
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)0.03%
PT rev (3m)11.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.32%
EPS NY rev (1m)0%
EPS NY rev (3m)1.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.27 | ||
| Fwd PE | 16.5 | ||
| P/S | 5.14 | ||
| P/FCF | 23.28 | ||
| P/OCF | 21.57 | ||
| P/B | 6.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.92 |
EPS(TTM)3.33
EY5.19%
EPS(NY)3.89
Fwd EY6.06%
FCF(TTM)2.76
FCFY4.29%
OCF(TTM)2.98
OCFY4.64%
SpS12.49
BVpS10.15
TBVpS-4.54
PEG (NY)1.82
PEG (5Y)5.51
Graham Number27.57
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
WACC9.67%
ROIC/WACC1.33
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 Y10.59%
EPS Next 2Y9.4%
EPS Next 3Y8.67%
EPS Next 5Y10.07%
Revenue 1Y (TTM)8.91%
Revenue growth 3Y3.19%
Revenue growth 5Y2.82%
Sales Q2Q%7.53%
Revenue Next Year7.24%
Revenue Next 2Y6.15%
Revenue Next 3Y5.75%
Revenue Next 5Y6.28%
EBIT growth 1Y11.75%
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-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 6 / 10 to CIS.DE.
What is the valuation status for CIS stock?
ChartMill assigns a valuation rating of 5 / 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 8 / 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 4 / 10 and the dividend payout ratio is 62.56%.