CISCO SYSTEMS INC (CIS.DE) Stock Fundamental Analysis
Europe - FRA:CIS - US17275R1023 - Common Stock
61.27 EUR
-0.29 (-0.47%)
We assign a fundamental rating of 5 out of 10 to CIS. CIS was compared to 27 industry peers in the Communications Equipment industry. While CIS has a great profitability rating, 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
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.
Each year in the past 5 years CIS had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.32%, CIS is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
The Return On Equity of CIS (21.73%) is better than 81.48% of its industry peers.
CIS has a Return On Invested Capital of 11.70%. This is in the better half of the industry: CIS outperforms 77.78% 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 10.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.32% | ||
| ROE | 21.73% | ||
| ROIC | 11.7% |
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 17.97%, 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 Profit Margin of CIS has declined.
Looking at the Operating Margin, with a value of 22.09%, CIS belongs to the top of the industry, outperforming 96.30% of the companies in the same industry.
CIS's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 64.94%, CIS belongs to the best 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 | 22.09% | ||
| PM (TTM) | 17.97% | ||
| GM | 64.94% |
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.
The number of shares outstanding for CIS has been reduced compared to 1 year ago.
The number of shares outstanding for CIS has been reduced compared to 5 years ago.
Compared to 1 year ago, CIS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.03 indicates that CIS is not in any danger for bankruptcy at the moment.
The Altman-Z score of CIS (3.03) is better than 70.37% of its industry peers.
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 has a Debt to FCF ratio of 2.11. This is in the better half of the industry: CIS outperforms 74.07% of its industry peers.
CIS has a Debt/Equity ratio of 0.56. This is a neutral value indicating CIS is somewhat dependend on debt financing.
The Debt to Equity ratio of CIS (0.56) 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 | 0.56 | ||
| Debt/FCF | 2.11 | ||
| Altman-Z | 3.03 |
ROIC/WACC1.3
WACC9%
2.3 Liquidity
CIS has a Current Ratio of 1.00. This is a bad value and indicates that CIS is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.00, CIS is doing worse than 85.19% of the companies in the same industry.
A Quick Ratio of 0.91 indicates that CIS may have some problems paying its short term obligations.
CIS's Quick ratio of 0.91 is on the low side compared to the rest of the industry. CIS is outperformed by 74.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
CIS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.88%.
The Earnings Per Share has been growing slightly by 3.50% on average over the past years.
The Revenue has been growing slightly by 5.30% in the past year.
Measured over the past years, CIS shows a small growth in Revenue. The Revenue has been growing by 2.82% on average per year.
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.
The Revenue is expected to grow by 4.95% on average over the next years.
EPS Next Y8.49%
EPS Next 2Y8.04%
EPS Next 3Y7.97%
EPS Next 5Y8.38%
Revenue Next Year5.35%
Revenue Next 2Y4.98%
Revenue Next 3Y4.85%
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.
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 18.62, the valuation of CIS can be described as rather expensive.
85.19% 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 25.83, which is the current average of the S&P500 Index.
CIS is valuated rather expensively with a Price/Forward Earnings ratio of 17.14.
77.78% of the companies in the same industry are more expensive than CIS, based on the Price/Forward Earnings ratio.
CIS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 32.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.62 | ||
| Fwd PE | 17.14 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as CIS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.02 | ||
| EV/EBITDA | 18.36 |
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)2.19
PEG (5Y)5.33
EPS Next 2Y8.04%
EPS Next 3Y7.97%
5. Dividend
5.1 Amount
CIS has a Yearly Dividend Yield of 2.25%. Purely for dividend investing, there may be better candidates out there.
CIS's Dividend Yield is a higher than the industry average which is at 5.15.
CIS's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
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 63.23% 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.
DP63.23%
EPS Next 2Y8.04%
EPS Next 3Y7.97%
FRA:CIS (11/7/2025, 7:00:00 PM)
61.27
-0.29 (-0.47%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners80.81%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap242.21B
Revenue(TTM)56.65B
Net Income(TTM)10.18B
Analysts77.5
Price Target65.9 (7.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
Yearly Dividend1.4
Dividend Growth(5Y)2.65%
DP63.23%
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)1.81%
PT rev (3m)4.44%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)1.3%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.39%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.92%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.62 | ||
| Fwd PE | 17.14 | ||
| P/S | 4.93 | ||
| P/FCF | 21.02 | ||
| P/OCF | 19.68 | ||
| P/B | 5.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.36 |
EPS(TTM)3.29
EY5.37%
EPS(NY)3.57
Fwd EY5.83%
FCF(TTM)2.91
FCFY4.76%
OCF(TTM)3.11
OCFY5.08%
SpS12.43
BVpS10.27
TBVpS-4.71
PEG (NY)2.19
PEG (5Y)5.33
Graham Number27.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.32% | ||
| ROE | 21.73% | ||
| ROCE | 14.35% | ||
| ROIC | 11.7% | ||
| ROICexc | 14.23% | ||
| ROICexgc | 168.77% | ||
| OM | 22.09% | ||
| PM (TTM) | 17.97% | ||
| GM | 64.94% | ||
| FCFM | 23.45% |
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-Score8
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.11 | ||
| Debt/EBITDA | 1.72 | ||
| Cap/Depr | 32.2% | ||
| Cap/Sales | 1.6% | ||
| Interest Coverage | 8.34 | ||
| Cash Conversion | 92.6% | ||
| Profit Quality | 130.53% | ||
| Current Ratio | 1 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 3.03 |
F-Score8
WACC9%
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)126.8%
Profit Quality(5y)125.54%
High Growth Momentum
Growth
EPS 1Y (TTM)1.88%
EPS 3Y4.19%
EPS 5Y3.5%
EPS Q2Q%13.79%
EPS Next Y8.49%
EPS Next 2Y8.04%
EPS Next 3Y7.97%
EPS Next 5Y8.38%
Revenue 1Y (TTM)5.3%
Revenue growth 3Y3.19%
Revenue growth 5Y2.82%
Sales Q2Q%7.56%
Revenue Next Year5.35%
Revenue Next 2Y4.98%
Revenue Next 3Y4.85%
Revenue Next 5Y4.95%
EBIT growth 1Y-3.69%
EBIT growth 3Y-3.72%
EBIT growth 5Y-2.35%
EBIT Next Year15.46%
EBIT Next 3Y7.42%
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%
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.
Can you provide the valuation status for CISCO SYSTEMS INC?
ChartMill assigns a valuation rating of 4 / 10 to CISCO SYSTEMS INC (CIS.DE). This can be considered as Fairly Valued.
What is the profitability of CIS stock?
CISCO SYSTEMS INC (CIS.DE) has a profitability rating of 7 / 10.
What are the PE and PB ratios of CISCO SYSTEMS INC (CIS.DE) stock?
The Price/Earnings (PE) ratio for CISCO SYSTEMS INC (CIS.DE) is 18.62 and the Price/Book (PB) ratio is 5.96.
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 63.23%.