CISCO SYSTEMS INC (CIS.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:CIS - US17275R1023 - Common Stock
65.36 EUR
-0.58 (-0.88%)
Overall CIS gets a fundamental rating of 5 out of 10. We evaluated CIS against 31 industry peers in the Communications Equipment industry. CIS scores excellent on profitability, 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.
- CIS had positive earnings in each of the past 5 years.
- CIS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With an excellent Return On Assets value of 8.53%, CIS belongs to the best of the industry, outperforming 80.65% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 22.04%, CIS belongs to the top of the industry, outperforming 87.10% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 12.86%, CIS belongs to the top of the industry, outperforming 80.65% of the companies in the same industry.
- CIS had an Average Return On Invested Capital over the past 3 years of 14.02%. This is above the industry average of 10.63%.
| 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
- The Profit Margin of CIS (17.90%) is better than 90.32% of its industry peers.
- CIS's Profit Margin has declined in the last couple of years.
- CIS's Operating Margin of 22.52% is amongst the best of the industry. CIS outperforms 93.55% of its industry peers.
- In the last couple of years the Operating Margin of CIS has declined.
- CIS has a better Gross Margin (64.85%) than 83.87% 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
- CIS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
- CIS has a better debt/assets ratio than last year.
2.2 Solvency
- The Debt to FCF ratio of CIS is 2.21, which is a good value as it means it would take CIS, 2.21 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of CIS (2.21) is better than 70.97% of its industry peers.
- CIS has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
- CIS has a Debt to Equity ratio (0.46) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.21 | ||
| Altman-Z | N/A |
ROIC/WACC1.3
WACC9.86%
2.3 Liquidity
- A Current Ratio of 0.93 indicates that CIS may have some problems paying its short term obligations.
- CIS has a worse Current ratio (0.93) than 83.87% of its industry peers.
- A Quick Ratio of 0.83 indicates that CIS may have some problems paying its short term obligations.
- With a Quick ratio value of 0.83, CIS is not doing good in the industry: 80.65% of the companies in the same industry are doing better.
| 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.
- 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.
- Looking at the last year, CIS shows a quite strong growth in Revenue. The Revenue has grown by 8.91% in the last 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)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.
- The Revenue is expected to grow by 6.28% on average over the next years.
EPS Next Y10.59%
EPS Next 2Y9.4%
EPS Next 3Y8.63%
EPS Next 5Y10.07%
Revenue Next Year7.24%
Revenue Next 2Y6.15%
Revenue Next 3Y5.74%
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
- CIS is valuated rather expensively with a Price/Earnings ratio of 20.11.
- Based on the Price/Earnings ratio, CIS is valued a bit cheaper than the industry average as 77.42% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of CIS to the average of the S&P500 Index (28.39), we can say CIS is valued slightly cheaper.
- Based on the Price/Forward Earnings ratio of 17.21, the valuation of CIS can be described as rather expensive.
- 74.19% 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 25.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.11 | ||
| Fwd PE | 17.21 |
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 | 24.28 | ||
| EV/EBITDA | 20.29 |
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)1.9
PEG (5Y)5.75
EPS Next 2Y9.4%
EPS Next 3Y8.63%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.21%, CIS has a reasonable but not impressive dividend return.
- CIS's Dividend Yield is a higher than the industry average which is at 2.62.
- Compared to an average S&P500 Dividend Yield of 1.82, CIS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
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 3Y8.63%
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.
What is the valuation status for CIS stock?
ChartMill assigns a valuation rating of 4 / 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 5 / 10 and the dividend payout ratio is 62.56%.