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 has an excellent profitability rating, but there are some minor concerns on its financial health. CIS has a valuation in line with the averages, but on the other hand it scores bad on growth.
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
CIS has a Return On Assets of 7.57%. This is amongst the best in the industry. CIS outperforms 96.15% of its industry peers.
Looking at the Return On Equity, with a value of 20.18%, CIS belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.52%, CIS belongs to the top of the industry, outperforming 88.46% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CIS is significantly above the industry average of 7.38%.
The 3 year average ROIC (15.60%) for CIS is well above the current ROIC(10.52%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.57% | ||
| ROE | 20.18% | ||
| ROIC | 10.52% |
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
The Profit Margin of CIS (16.96%) is better than 96.15% of its industry peers.
CIS's Profit Margin has declined in the last couple of years.
CIS has a Operating Margin of 21.49%. This is amongst the best in the industry. CIS outperforms 96.15% 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 65.13%, CIS belongs to the top of the industry, outperforming 80.77% 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 | 21.49% | ||
| PM (TTM) | 16.96% | ||
| GM | 65.13% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CIS is creating some value.
The number of shares outstanding for CIS has been reduced compared to 1 year ago.
CIS has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CIS is higher compared to a year ago.
2.2 Solvency
CIS has an Altman-Z score of 2.70. This is not the best score and indicates that CIS is in the grey zone with still only limited risk for bankruptcy at the moment.
CIS has a Altman-Z score of 2.70. This is in the better half of the industry: CIS outperforms 76.92% of its industry peers.
The Debt to FCF ratio of CIS is 2.42, which is a good value as it means it would take CIS, 2.42 years of fcf income to pay off all of its debts.
CIS has a better Debt to FCF ratio (2.42) than 65.38% of its industry peers.
CIS has a Debt/Equity ratio of 0.67. This is a neutral value indicating CIS is somewhat dependend on debt financing.
CIS has a Debt to Equity ratio (0.67) which is comparable to the rest of the industry.
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 | 0.67 | ||
| Debt/FCF | 2.42 | ||
| Altman-Z | 2.7 |
ROIC/WACC1
WACC10.49%
2.3 Liquidity
A Current Ratio of 0.87 indicates that CIS may have some problems paying its short term obligations.
The Current ratio of CIS (0.87) is worse than 84.62% of its industry peers.
A Quick Ratio of 0.79 indicates that CIS may have some problems paying its short term obligations.
CIS has a Quick ratio of 0.79. This is amonst the worse of the industry: CIS underperforms 80.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
The earnings per share for CIS have decreased strongly by -12.62% in the last year.
Measured over the past 5 years, CIS shows a small growth in Earnings Per Share. The EPS has been growing by 3.84% on average per year.
The Revenue has decreased by -5.34% in the past year.
Measured over the past years, CIS shows a small growth in Revenue. The Revenue has been growing by 0.72% on average per year.
EPS 1Y (TTM)-12.62%
EPS 3Y5.02%
EPS 5Y3.84%
EPS Q2Q%8.05%
Revenue 1Y (TTM)-5.34%
Revenue growth 3Y2.6%
Revenue growth 5Y0.72%
Sales Q2Q%9.38%
3.2 Future
Based on estimates for the next years, CIS will show a small growth in Earnings Per Share. The EPS will grow by 4.42% on average per year.
Based on estimates for the next years, CIS will show a small growth in Revenue. The Revenue will grow by 4.03% on average per year.
EPS Next Y1.69%
EPS Next 2Y4.73%
EPS Next 3Y5.94%
EPS Next 5Y4.42%
Revenue Next Year5.02%
Revenue Next 2Y5.09%
Revenue Next 3Y4.96%
Revenue Next 5Y4.03%
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 stable.
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
With a Price/Earnings ratio of 17.45, CIS is valued on the expensive side.
Based on the Price/Earnings ratio, CIS is valued cheaper than 80.77% of the companies in the same industry.
When comparing the Price/Earnings ratio of CIS to the average of the S&P500 Index (29.35), we can say CIS is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 15.37, the valuation of CIS can be described as correct.
CIS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CIS is cheaper than 69.23% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CIS to the average of the S&P500 Index (22.10), we can say CIS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.45 | ||
| Fwd PE | 15.37 |
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 | 19.53 | ||
| EV/EBITDA | 16.48 |
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)10.34
PEG (5Y)4.55
EPS Next 2Y4.73%
EPS Next 3Y5.94%
5. Dividend
5.1 Amount
CIS has a Yearly Dividend Yield of 2.59%.
Compared to an average industry Dividend Yield of 3.51, CIS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, CIS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
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
69.73% 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.
DP69.73%
EPS Next 2Y4.73%
EPS Next 3Y5.94%
FRA:CIS (3/7/2025, 7:00:00 PM)
57.92
-1.05 (-1.78%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners79.84%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap230.42B
Analysts75.33
Price Target67.17 (15.97%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
Yearly Dividend1.46
Dividend Growth(5Y)3.23%
DP69.73%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.92%
Min EPS beat(2)1.37%
Max EPS beat(2)2.47%
EPS beat(4)4
Avg EPS beat(4)2.27%
Min EPS beat(4)0.58%
Max EPS beat(4)4.64%
EPS beat(8)8
Avg EPS beat(8)2.87%
EPS beat(12)10
Avg EPS beat(12)1.93%
EPS beat(16)11
Avg EPS beat(16)1.51%
Revenue beat(2)0
Avg Revenue beat(2)-1.3%
Min Revenue beat(2)-1.46%
Max Revenue beat(2)-1.14%
Revenue beat(4)0
Avg Revenue beat(4)-1.11%
Min Revenue beat(4)-1.46%
Max Revenue beat(4)-0.63%
Revenue beat(8)0
Avg Revenue beat(8)-1.13%
Revenue beat(12)2
Avg Revenue beat(12)-1.18%
Revenue beat(16)2
Avg Revenue beat(16)-1.21%
PT rev (1m)10.23%
PT rev (3m)11.73%
EPS NQ rev (1m)1.98%
EPS NQ rev (3m)1.98%
EPS NY rev (1m)1.78%
EPS NY rev (3m)1.82%
Revenue NQ rev (1m)1.31%
Revenue NQ rev (3m)1.31%
Revenue NY rev (1m)0.76%
Revenue NY rev (3m)0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.45 | ||
| Fwd PE | 15.37 | ||
| P/S | 4.62 | ||
| P/FCF | 19.53 | ||
| P/OCF | 18.39 | ||
| P/B | 5.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.48 |
EPS(TTM)3.32
EY5.73%
EPS(NY)3.77
Fwd EY6.51%
FCF(TTM)2.97
FCFY5.12%
OCF(TTM)3.15
OCFY5.44%
SpS12.54
BVpS10.54
TBVpS-5.4
PEG (NY)10.34
PEG (5Y)4.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.57% | ||
| ROE | 20.18% | ||
| ROCE | 14.31% | ||
| ROIC | 10.52% | ||
| ROICexc | 12.87% | ||
| ROICexgc | 147.93% | ||
| OM | 21.49% | ||
| PM (TTM) | 16.96% | ||
| GM | 65.13% | ||
| FCFM | 23.65% |
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-Score5
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 2.42 | ||
| Debt/EBITDA | 2.05 | ||
| Cap/Depr | 24.52% | ||
| Cap/Sales | 1.46% | ||
| Interest Coverage | 10.13 | ||
| Cash Conversion | 91.42% | ||
| Profit Quality | 139.44% | ||
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 2.7 |
F-Score5
WACC10.49%
ROIC/WACC1
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)-12.62%
EPS 3Y5.02%
EPS 5Y3.84%
EPS Q2Q%8.05%
EPS Next Y1.69%
EPS Next 2Y4.73%
EPS Next 3Y5.94%
EPS Next 5Y4.42%
Revenue 1Y (TTM)-5.34%
Revenue growth 3Y2.6%
Revenue growth 5Y0.72%
Sales Q2Q%9.38%
Revenue Next Year5.02%
Revenue Next 2Y5.09%
Revenue Next 3Y4.96%
Revenue Next 5Y4.03%
EBIT growth 1Y-27.31%
EBIT growth 3Y-1.84%
EBIT growth 5Y-2.17%
EBIT Next Year15.52%
EBIT Next 3Y6.99%
EBIT Next 5YN/A
FCF growth 1Y-17.08%
FCF growth 3Y-11.56%
FCF growth 5Y-7.31%
OCF growth 1Y-15.19%
OCF growth 3Y-11.04%
OCF growth 5Y-7.23%