CISCO SYSTEMS INC (CIS.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:CIS - US17275R1023 - Common Stock
66.165 EUR
+0.06 (+0.08%)
Taking everything into account, CIS scores 5 out of 10 in our fundamental rating. CIS was compared to 31 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.
CIS had a positive operating cash flow in the past year.
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
CIS has a better Return On Assets (8.53%) than 83.87% of its industry peers.
CIS's Return On Equity of 22.04% is amongst the best of the industry. CIS outperforms 90.32% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.86%, CIS belongs to the top of the industry, outperforming 83.87% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CIS is above the industry average of 9.92%.
| 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 93.55% of its industry peers.
In the last couple of years the Profit Margin of CIS has declined.
With an excellent Operating Margin value of 22.52%, CIS belongs to the best of the industry, outperforming 96.77% of the companies in the same industry.
CIS's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 64.85%, CIS belongs to the top of the industry, outperforming 87.10% of the companies in the same industry.
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.
Compared to 1 year ago, CIS has less shares outstanding
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
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 77.42% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that CIS is not too dependend on debt financing.
CIS has a Debt to Equity ratio (0.46) which 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/WACC1.33
WACC9.68%
2.3 Liquidity
CIS has a Current Ratio of 0.93. This is a bad value and indicates that CIS is not financially healthy enough and could expect problems in meeting its short term obligations.
CIS has a worse Current ratio (0.93) than 83.87% of its industry peers.
CIS has a Quick Ratio of 0.93. This is a bad value and indicates that CIS is not financially healthy enough and could expect problems in meeting its short term obligations.
CIS has a Quick ratio of 0.83. This is amonst the worse of the industry: CIS underperforms 83.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
CIS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.20%, which is quite good.
The Earnings Per Share has been growing slightly by 3.50% on average over the past years.
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
The Earnings Per Share is expected to grow by 10.07% 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 6.28% yearly.
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.
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
A Price/Earnings ratio of 19.99 indicates a rather expensive valuation of CIS.
Based on the Price/Earnings ratio, CIS is valued a bit cheaper than 77.42% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.84. CIS is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 17.12, which indicates a rather expensive current valuation of CIS.
Based on the Price/Forward Earnings ratio, CIS is valued a bit cheaper than the industry average as 70.97% of the companies are valued more expensively.
CIS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.99 | ||
| Fwd PE | 17.12 |
4.2 Price Multiples
CIS's Enterprise Value to EBITDA ratio is in line with the industry average.
CIS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.16 | ||
| EV/EBITDA | 19.99 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of CIS may justify a higher PE ratio.
PEG (NY)1.89
PEG (5Y)5.72
EPS Next 2Y9.4%
EPS Next 3Y8.67%
5. Dividend
5.1 Amount
CIS has a Yearly Dividend Yield of 2.10%.
Compared to an average industry Dividend Yield of 2.62, CIS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, CIS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
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 (12/30/2025, 1:44:25 PM)
66.165
+0.06 (+0.08%)
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 Cap261.42B
Revenue(TTM)57.70B
Net Income(TTM)10.33B
Analysts77.42
Price Target73.77 (11.49%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
Yearly Dividend1.37
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)-0.38%
PT rev (3m)13.97%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.86%
EPS NY rev (1m)1.94%
EPS NY rev (3m)1.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.19%
Revenue NY rev (1m)1.79%
Revenue NY rev (3m)1.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.99 | ||
| Fwd PE | 17.12 | ||
| P/S | 5.33 | ||
| P/FCF | 24.16 | ||
| P/OCF | 22.38 | ||
| P/B | 6.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.99 |
EPS(TTM)3.31
EY5%
EPS(NY)3.87
Fwd EY5.84%
FCF(TTM)2.74
FCFY4.14%
OCF(TTM)2.96
OCFY4.47%
SpS12.41
BVpS10.08
TBVpS-4.51
PEG (NY)1.89
PEG (5Y)5.72
Graham Number27.4
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
WACC9.68%
ROIC/WACC1.33
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 19.99 and the Price/Book (PB) ratio is 6.56.
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%.