CISCO SYSTEMS INC (CIS.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:CIS - US17275R1023 - Common Stock
68.18 EUR
+1.57 (+2.36%)
Overall CIS gets a fundamental rating of 5 out of 10. We evaluated CIS against 31 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 is not valued too expensively and it also shows a decent 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
CIS has a better Return On Assets (8.53%) than 80.65% of its industry peers.
CIS has a better Return On Equity (22.04%) than 83.87% of its industry peers.
CIS's Return On Invested Capital of 12.86% is amongst the best of the industry. CIS outperforms 80.65% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CIS is above the industry average of 10.27%.
| 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 Profit Margin of 17.90%. This is amongst the best in the industry. CIS outperforms 90.32% of its industry peers.
In the last couple of years the Profit Margin of CIS has declined.
Looking at the Operating Margin, with a value of 22.52%, CIS belongs to the top of the industry, outperforming 93.55% of the companies in the same industry.
In the last couple of years the Operating Margin of CIS has declined.
With an excellent Gross Margin value of 64.85%, CIS belongs to the best of the industry, outperforming 80.65% 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 | 22.52% | ||
| 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.
CIS has less shares outstanding than it did 1 year ago.
CIS has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CIS has been reduced compared to a year ago.
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.
The Debt to FCF ratio of CIS (2.21) is better than 74.19% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that CIS is not too dependend on debt financing.
The Debt to Equity ratio of CIS (0.46) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.21 | ||
| Altman-Z | N/A |
ROIC/WACC1.39
WACC9.28%
2.3 Liquidity
A Current Ratio of 0.93 indicates that CIS may have some problems paying its short term obligations.
With a Current ratio value of 0.93, CIS is not doing good in the industry: 87.10% of the companies in the same industry are doing better.
A Quick Ratio of 0.83 indicates that CIS may have some problems paying its short term obligations.
CIS has a worse Quick ratio (0.83) than 87.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.20% over the past year.
CIS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.50% yearly.
Looking at the last year, CIS shows a quite strong growth in Revenue. The Revenue has grown by 8.91% in the last year.
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
Based on estimates for the next years, CIS will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.07% on average per year.
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.
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
The Price/Earnings ratio is 20.41, which indicates a rather expensive current valuation of CIS.
Based on the Price/Earnings ratio, CIS is valued a bit cheaper than the industry average as 74.19% of the companies are valued more expensively.
CIS is valuated rather cheaply when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 17.47, CIS is valued on the expensive side.
Based on the Price/Forward Earnings ratio, CIS is valued a bit cheaper than the industry average as 67.74% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of CIS to the average of the S&P500 Index (23.56), we can say CIS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.41 | ||
| Fwd PE | 17.47 |
4.2 Price Multiples
CIS's Enterprise Value to EBITDA ratio is in line with the industry average.
CIS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.66 | ||
| EV/EBITDA | 20.42 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CIS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.93
PEG (5Y)5.84
EPS Next 2Y9.4%
EPS Next 3Y8.67%
5. Dividend
5.1 Amount
CIS has a Yearly Dividend Yield of 2.11%. 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 5.26.
Compared to an average S&P500 Dividend Yield of 2.31, CIS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.11% |
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
62.56% 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.
DP62.56%
EPS Next 2Y9.4%
EPS Next 3Y8.67%
FRA:CIS (12/8/2025, 7:00:00 PM)
68.18
+1.57 (+2.36%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners81.22%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap269.39B
Revenue(TTM)57.70B
Net Income(TTM)10.33B
Analysts77.42
Price Target73.75 (8.17%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.11% |
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)11.91%
PT rev (3m)11.38%
EPS NQ rev (1m)3.32%
EPS NQ rev (3m)2.67%
EPS NY rev (1m)1.94%
EPS NY rev (3m)1.92%
Revenue NQ rev (1m)3.32%
Revenue NQ rev (3m)3.19%
Revenue NY rev (1m)1.79%
Revenue NY rev (3m)1.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.41 | ||
| Fwd PE | 17.47 | ||
| P/S | 5.44 | ||
| P/FCF | 24.66 | ||
| P/OCF | 22.84 | ||
| P/B | 6.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.42 |
EPS(TTM)3.34
EY4.9%
EPS(NY)3.9
Fwd EY5.72%
FCF(TTM)2.77
FCFY4.06%
OCF(TTM)2.98
OCFY4.38%
SpS12.53
BVpS10.18
TBVpS-4.55
PEG (NY)1.93
PEG (5Y)5.84
Graham Number27.66
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
WACC9.28%
ROIC/WACC1.39
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 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 8 / 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 20.41 and the Price/Book (PB) ratio is 6.7.
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%.