CISCO SYSTEMS INC (CIS.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:CIS - US17275R1023 - Common Stock
66.12 EUR
-0.45 (-0.68%)
Taking everything into account, CIS scores 5 out of 10 in our fundamental rating. CIS was compared to 32 industry peers in the Communications Equipment industry. CIS scores excellent on profitability, 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
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 81.25% of its industry peers.
With an excellent Return On Equity value of 22.04%, CIS belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
The Return On Invested Capital of CIS (12.86%) is better than 81.25% 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 10.60%.
| 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 90.63% 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 93.75% of its industry peers.
CIS's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 64.85%, CIS belongs to the best of the industry, outperforming 84.38% 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
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 75.00% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that CIS is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.46, CIS is in line with its industry, outperforming 46.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.21 | ||
| Altman-Z | N/A |
ROIC/WACC1.37
WACC9.36%
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.
With a Current ratio value of 0.93, CIS is not doing good in the industry: 84.38% 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's Quick ratio of 0.83 is on the low side compared to the rest of the industry. CIS is outperformed by 84.38% 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.
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.
CIS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.82% yearly.
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.
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 3Y8.67%
EPS Next 5Y10.07%
Revenue Next Year7.24%
Revenue Next 2Y6.15%
Revenue Next 3Y5.75%
Revenue Next 5Y6.28%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 20.04 indicates a rather expensive valuation of CIS.
78.13% 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 26.50, CIS is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 17.13, the valuation of CIS can be described as rather expensive.
CIS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CIS is cheaper than 71.88% of the companies in the same industry.
CIS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.93, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.04 | ||
| Fwd PE | 17.13 |
4.2 Price Multiples
CIS's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as CIS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.18 | ||
| EV/EBITDA | 20.03 |
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)1.89
PEG (5Y)5.73
EPS Next 2Y9.4%
EPS Next 3Y8.67%
5. Dividend
5.1 Amount
CIS has a Yearly Dividend Yield of 2.13%.
CIS's Dividend Yield is a higher than the industry average which is at 2.69.
Compared to an average S&P500 Dividend Yield of 1.87, CIS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
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 (12/23/2025, 7:00:00 PM)
66.12
-0.45 (-0.68%)
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 Cap261.25B
Revenue(TTM)57.70B
Net Income(TTM)10.33B
Analysts77.42
Price Target73.75 (11.54%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
Yearly Dividend1.38
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)9.99%
PT rev (3m)13.93%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)2.86%
EPS NY rev (1m)1.94%
EPS NY rev (3m)1.92%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)3.19%
Revenue NY rev (1m)1.79%
Revenue NY rev (3m)1.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.04 | ||
| Fwd PE | 17.13 | ||
| P/S | 5.34 | ||
| P/FCF | 24.18 | ||
| P/OCF | 22.4 | ||
| P/B | 6.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.03 |
EPS(TTM)3.3
EY4.99%
EPS(NY)3.86
Fwd EY5.84%
FCF(TTM)2.73
FCFY4.14%
OCF(TTM)2.95
OCFY4.46%
SpS12.39
BVpS10.07
TBVpS-4.5
PEG (NY)1.89
PEG (5Y)5.73
Graham Number27.34
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
WACC9.36%
ROIC/WACC1.37
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 20.04 and the Price/Book (PB) ratio is 6.57.
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%.