CISCO SYSTEMS INC (CIS.DE) Stock Fundamental Analysis
Europe - FRA:CIS - US17275R1023 - Common Stock
57.56 EUR
-0.35 (-0.6%)
We assign a fundamental rating of 5 out of 10 to CIS. CIS was compared to 27 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
CIS had positive earnings in the past year.
In the past year CIS had a positive cash flow from operations.
CIS had positive earnings in each of the past 5 years.
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 belongs to the top of the industry, outperforming 85.19% of the companies in the same industry.
Looking at the Return On Equity, with a value of 22.19%, CIS belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
CIS has a Return On Invested Capital of 12.90%. This is amongst the best in the industry. CIS outperforms 85.19% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CIS is above the industry average of 11.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.53% | ||
| ROE | 22.19% | ||
| ROIC | 12.9% |
ROA(3y)9.74%
ROA(5y)10.53%
ROE(3y)24.44%
ROE(5y)25.74%
ROIC(3y)14.79%
ROIC(5y)15.83%
1.3 Margins
With an excellent Profit Margin value of 18.45%, CIS belongs to the best of the industry, outperforming 96.30% of the companies in the same industry.
CIS's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 22.69%, CIS belongs to the best of the industry, outperforming 96.30% of the companies in the same industry.
In the last couple of years the Operating Margin of CIS has declined.
Looking at the Gross Margin, with a value of 65.56%, CIS belongs to the top of the industry, outperforming 81.48% 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 | 22.69% | ||
| PM (TTM) | 18.45% | ||
| GM | 65.56% |
OM growth 3Y-5.86%
OM growth 5Y-4.51%
PM growth 3Y-6.96%
PM growth 5Y-4.1%
GM growth 3Y1.58%
GM growth 5Y0.4%
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.
CIS has less shares outstanding than it did 1 year ago.
CIS has less shares outstanding than it did 5 years ago.
CIS has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of CIS is 2.11, which is a good value as it means it would take CIS, 2.11 years of fcf income to pay off all of its debts.
CIS's Debt to FCF ratio of 2.11 is fine compared to the rest of the industry. CIS outperforms 70.37% of its industry peers.
A Debt/Equity ratio of 0.49 indicates that CIS is not too dependend on debt financing.
The Debt to Equity ratio of CIS (0.49) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.11 | ||
| Altman-Z | N/A |
ROIC/WACC1.3
WACC9.92%
2.3 Liquidity
CIS has a Current Ratio of 1.01. This is a normal value and indicates that CIS is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of CIS (1.01) is worse than 85.19% of its industry peers.
CIS has a Quick Ratio of 1.01. This is a bad value and indicates that CIS is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.92, CIS is not doing good in the industry: 70.37% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.88% over the past year.
The Earnings Per Share has been growing slightly by 3.50% on average over the past years.
CIS shows a small growth in Revenue. In the last year, the Revenue has grown by 5.30%.
The Revenue has been growing slightly by 2.82% on average over the past years.
EPS 1Y (TTM)1.88%
EPS 3Y4.19%
EPS 5Y3.5%
EPS Q2Q%13.79%
Revenue 1Y (TTM)5.3%
Revenue growth 3Y3.19%
Revenue growth 5Y2.82%
Sales Q2Q%7.56%
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 Y8.5%
EPS Next 2Y8.04%
EPS Next 3Y6.5%
EPS Next 5Y8.38%
Revenue Next Year5.33%
Revenue Next 2Y4.95%
Revenue Next 3Y4.84%
Revenue Next 5Y4.95%
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
With a Price/Earnings ratio of 17.88, CIS is valued on the expensive side.
77.78% of the companies in the same industry are more expensive than CIS, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.38, CIS is valued a bit 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 74.07% of the companies in the same industry.
CIS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.88 | ||
| Fwd PE | 16.5 |
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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.24 | ||
| EV/EBITDA | 17.54 |
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)2.1
PEG (5Y)5.11
EPS Next 2Y8.04%
EPS Next 3Y6.5%
5. Dividend
5.1 Amount
CIS has a Yearly Dividend Yield of 2.42%.
Compared to an average industry Dividend Yield of 6.04, CIS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, CIS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
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
61.58% of the earnings are spent on dividend by CIS. This is not a sustainable payout ratio.
The dividend of CIS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP61.58%
EPS Next 2Y8.04%
EPS Next 3Y6.5%
FRA:CIS (9/19/2025, 7:00:00 PM)
57.56
-0.35 (-0.6%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners81.26%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap227.55B
Analysts77.5
Price Target64.73 (12.46%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
Yearly Dividend1.38
Dividend Growth(5Y)2.65%
DP61.58%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.01%
Min EPS beat(2)-0.5%
Max EPS beat(2)2.52%
EPS beat(4)3
Avg EPS beat(4)1.46%
Min EPS beat(4)-0.5%
Max EPS beat(4)2.52%
EPS beat(8)7
Avg EPS beat(8)2.32%
EPS beat(12)11
Avg EPS beat(12)2.22%
EPS beat(16)12
Avg EPS beat(16)1.69%
Revenue beat(2)0
Avg Revenue beat(2)-1.53%
Min Revenue beat(2)-1.58%
Max Revenue beat(2)-1.48%
Revenue beat(4)0
Avg Revenue beat(4)-1.41%
Min Revenue beat(4)-1.58%
Max Revenue beat(4)-1.14%
Revenue beat(8)0
Avg Revenue beat(8)-1.3%
Revenue beat(12)1
Avg Revenue beat(12)-1.04%
Revenue beat(16)2
Avg Revenue beat(16)-1.32%
PT rev (1m)2.15%
PT rev (3m)3.51%
EPS NQ rev (1m)1.25%
EPS NQ rev (3m)1.37%
EPS NY rev (1m)0.41%
EPS NY rev (3m)0.35%
Revenue NQ rev (1m)0.93%
Revenue NQ rev (3m)1.06%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.88 | ||
| Fwd PE | 16.5 | ||
| P/S | 4.75 | ||
| P/FCF | 20.24 | ||
| P/OCF | 18.95 | ||
| P/B | 5.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.54 |
EPS(TTM)3.22
EY5.59%
EPS(NY)3.49
Fwd EY6.06%
FCF(TTM)2.84
FCFY4.94%
OCF(TTM)3.04
OCFY5.28%
SpS12.13
BVpS10.08
TBVpS-4.54
PEG (NY)2.1
PEG (5Y)5.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.53% | ||
| ROE | 22.19% | ||
| ROCE | 14.69% | ||
| ROIC | 12.9% | ||
| ROICexc | 15.81% | ||
| ROICexgc | 366.62% | ||
| OM | 22.69% | ||
| PM (TTM) | 18.45% | ||
| GM | 65.56% | ||
| FCFM | 23.45% |
ROA(3y)9.74%
ROA(5y)10.53%
ROE(3y)24.44%
ROE(5y)25.74%
ROIC(3y)14.79%
ROIC(5y)15.83%
ROICexc(3y)20.5%
ROICexc(5y)22.42%
ROICexgc(3y)289.78%
ROICexgc(5y)250.68%
ROCE(3y)17.43%
ROCE(5y)18.42%
ROICexcg growth 3Y37.98%
ROICexcg growth 5Y6.94%
ROICexc growth 3Y-13.9%
ROICexc growth 5Y-12.52%
OM growth 3Y-5.86%
OM growth 5Y-4.51%
PM growth 3Y-6.96%
PM growth 5Y-4.1%
GM growth 3Y1.58%
GM growth 5Y0.4%
F-Score7
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.11 | ||
| Debt/EBITDA | 1.46 | ||
| Cap/Depr | 32.2% | ||
| Cap/Sales | 1.6% | ||
| Interest Coverage | 8.57 | ||
| Cash Conversion | 90.59% | ||
| Profit Quality | 127.12% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z | N/A |
F-Score7
WACC9.92%
ROIC/WACC1.3
Cap/Depr(3y)36.04%
Cap/Depr(5y)33.93%
Cap/Sales(3y)1.44%
Cap/Sales(5y)1.33%
Profit Quality(3y)125.66%
Profit Quality(5y)124.86%
High Growth Momentum
Growth
EPS 1Y (TTM)1.88%
EPS 3Y4.19%
EPS 5Y3.5%
EPS Q2Q%13.79%
EPS Next Y8.5%
EPS Next 2Y8.04%
EPS Next 3Y6.5%
EPS Next 5Y8.38%
Revenue 1Y (TTM)5.3%
Revenue growth 3Y3.19%
Revenue growth 5Y2.82%
Sales Q2Q%7.56%
Revenue Next Year5.33%
Revenue Next 2Y4.95%
Revenue Next 3Y4.84%
Revenue Next 5Y4.95%
EBIT growth 1Y-1.07%
EBIT growth 3Y-2.85%
EBIT growth 5Y-1.82%
EBIT Next Year15.2%
EBIT Next 3Y7.55%
EBIT Next 5YN/A
FCF growth 1Y30.15%
FCF growth 3Y1.39%
FCF growth 5Y-1.94%
OCF growth 1Y30.45%
OCF growth 3Y2.38%
OCF growth 5Y-1.65%