CISCO SYSTEMS INC (CIS.DE) Stock Fundamental Analysis
FRA:CIS - Deutsche Boerse Ag - US17275R1023 - Common Stock - Currency: EUR
CIS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 25 industry peers in the Communications Equipment industry. While CIS has a great profitability rating, there are quite some concerns on its financial health. CIS has a valuation in line with the averages, but it does not seem to be growing.
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.
Each year in the past 5 years CIS had a positive operating cash flow.
1.2 Ratios
CIS's Return On Assets of 7.62% is amongst the best of the industry. CIS outperforms 96.00% of its industry peers.
The Return On Equity of CIS (20.75%) is better than 92.00% of its industry peers.
The Return On Invested Capital of CIS (10.24%) is better than 96.00% of its industry peers.
CIS had an Average Return On Invested Capital over the past 3 years of 15.60%. This is significantly above the industry average of 6.88%.
The last Return On Invested Capital (10.24%) for CIS is well below the 3 year average (15.60%), which needs to be investigated, but indicates that CIS had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.62% | ||
| ROE | 20.75% | ||
| ROIC | 10.24% |
ROA(3y)11.08%
ROA(5y)11.19%
ROE(3y)26.95%
ROE(5y)27.21%
ROIC(3y)15.6%
ROIC(5y)15.96%
1.3 Margins
The Profit Margin of CIS (17.73%) is better than 96.00% of its industry peers.
CIS's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 21.95%, CIS belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of CIS has declined.
Looking at the Gross Margin, with a value of 64.92%, CIS is in the better half of the industry, outperforming 80.00% 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 | 21.95% | ||
| PM (TTM) | 17.73% | ||
| GM | 64.92% |
OM growth 3Y-4.32%
OM growth 5Y-2.87%
PM growth 3Y-3.37%
PM growth 5Y-3.05%
GM growth 3Y0.37%
GM growth 5Y0.56%
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.
Compared to 1 year ago, CIS has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.58 indicates that CIS is not a great score, but indicates only limited risk for bankruptcy at the moment.
CIS has a Altman-Z score of 2.58. This is in the better half of the industry: CIS outperforms 80.00% of its industry peers.
The Debt to FCF ratio of CIS is 2.80, which is a good value as it means it would take CIS, 2.80 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CIS (2.80) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.70 indicates that CIS is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.70, CIS is not doing good in the industry: 68.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 2.8 | ||
| Altman-Z | 2.58 |
ROIC/WACC1.13
WACC9.1%
2.3 Liquidity
CIS has a Current Ratio of 0.88. 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 0.88, CIS is not doing good in the industry: 88.00% of the companies in the same industry are doing better.
CIS has a Quick Ratio of 0.88. 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 Quick ratio, with a value of 0.80, CIS is doing worse than 84.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
CIS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.53%.
Measured over the past 5 years, CIS shows a small growth in Earnings Per Share. The EPS has been growing by 3.84% on average per year.
CIS shows a decrease in Revenue. In the last year, the revenue decreased by -8.72%.
The Revenue has been growing slightly by 0.72% on average over the past years.
EPS 1Y (TTM)-14.53%
EPS 3Y5.02%
EPS 5Y3.84%
EPS Q2Q%-18.02%
Revenue 1Y (TTM)-8.72%
Revenue growth 3Y2.6%
Revenue growth 5Y0.72%
Sales Q2Q%-5.64%
3.2 Future
Based on estimates for the next years, CIS will show a small growth in Earnings Per Share. The EPS will grow by 4.42% on average per year.
The Revenue is expected to grow by 4.03% on average over the next years.
EPS Next Y-0.09%
EPS Next 2Y3.85%
EPS Next 3Y5.28%
EPS Next 5Y4.42%
Revenue Next Year4.2%
Revenue Next 2Y4.51%
Revenue Next 3Y4.5%
Revenue Next 5Y4.03%
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 stable.
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 17.39.
CIS's Price/Earnings ratio is a bit cheaper when compared to the industry. CIS is cheaper than 80.00% of the companies in the same industry.
CIS is valuated rather cheaply when we compare the Price/Earnings ratio to 28.47, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 15.27, which indicates a correct valuation of CIS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CIS is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of CIS to the average of the S&P500 Index (92.74), we can say CIS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.39 | ||
| Fwd PE | 15.27 |
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 | 21.44 | ||
| EV/EBITDA | 16.23 |
4.3 Compensation for Growth
CIS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.53
EPS Next 2Y3.85%
EPS Next 3Y5.28%
5. Dividend
5.1 Amount
CIS has a Yearly Dividend Yield of 2.65%. 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 3.61.
Compared to an average S&P500 Dividend Yield of 2.28, CIS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.65% |
5.2 History
The dividend of CIS has a limited annual growth rate of 3.23%.
Dividend Growth(5Y)3.23%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
CIS pays out 68.09% 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.
DP68.09%
EPS Next 2Y3.85%
EPS Next 3Y5.28%
CISCO SYSTEMS INC
FRA:CIS (2/5/2025, 5:09:06 PM)
59.46
+0.21 (+0.35%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners79.53%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap236.81B
Analysts73.75
Price Target60.93 (2.47%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.65% |
Yearly Dividend1.58
Dividend Growth(5Y)3.23%
DP68.09%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.53%
Min EPS beat(2)0.58%
Max EPS beat(2)2.47%
EPS beat(4)4
Avg EPS beat(4)2.39%
Min EPS beat(4)0.58%
Max EPS beat(4)4.64%
EPS beat(8)8
Avg EPS beat(8)2.81%
EPS beat(12)10
Avg EPS beat(12)1.98%
EPS beat(16)11
Avg EPS beat(16)1.57%
Revenue beat(2)0
Avg Revenue beat(2)-1.33%
Min Revenue beat(2)-1.46%
Max Revenue beat(2)-1.2%
Revenue beat(4)0
Avg Revenue beat(4)-1.15%
Min Revenue beat(4)-1.46%
Max Revenue beat(4)-0.63%
Revenue beat(8)0
Avg Revenue beat(8)-1.09%
Revenue beat(12)2
Avg Revenue beat(12)-1.2%
Revenue beat(16)2
Avg Revenue beat(16)-1.25%
PT rev (1m)0.28%
PT rev (3m)14.18%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.51%
EPS NY rev (1m)0.04%
EPS NY rev (3m)2.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.87%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.39 | ||
| Fwd PE | 15.27 | ||
| P/S | 4.62 | ||
| P/FCF | 21.44 | ||
| P/OCF | 20.11 | ||
| P/B | 5.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.23 |
EPS(TTM)3.42
EY5.75%
EPS(NY)3.89
Fwd EY6.55%
FCF(TTM)2.77
FCFY4.66%
OCF(TTM)2.96
OCFY4.97%
SpS12.87
BVpS11
TBVpS-5.89
PEG (NY)N/A
PEG (5Y)4.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.62% | ||
| ROE | 20.75% | ||
| ROCE | 14.05% | ||
| ROIC | 10.24% | ||
| ROICexc | 12.75% | ||
| ROICexgc | 149.75% | ||
| OM | 21.95% | ||
| PM (TTM) | 17.73% | ||
| GM | 64.92% | ||
| FCFM | 21.55% |
ROA(3y)11.08%
ROA(5y)11.19%
ROE(3y)26.95%
ROE(5y)27.21%
ROIC(3y)15.6%
ROIC(5y)15.96%
ROICexc(3y)22.29%
ROICexc(5y)24.14%
ROICexgc(3y)203.21%
ROICexgc(5y)218.11%
ROCE(3y)19.37%
ROCE(5y)19.54%
ROICexcg growth 3Y-12.42%
ROICexcg growth 5Y-32.21%
ROICexc growth 3Y-16.83%
ROICexc growth 5Y-15.54%
OM growth 3Y-4.32%
OM growth 5Y-2.87%
PM growth 3Y-3.37%
PM growth 5Y-3.05%
GM growth 3Y0.37%
GM growth 5Y0.56%
F-Score5
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 2.8 | ||
| Debt/EBITDA | 2.17 | ||
| Cap/Depr | 26.01% | ||
| Cap/Sales | 1.42% | ||
| Interest Coverage | 11.63 | ||
| Cash Conversion | 83.8% | ||
| Profit Quality | 121.55% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 2.58 |
F-Score5
WACC9.1%
ROIC/WACC1.13
Cap/Depr(3y)33.43%
Cap/Depr(5y)36.01%
Cap/Sales(3y)1.22%
Cap/Sales(5y)1.32%
Profit Quality(3y)119.27%
Profit Quality(5y)125.58%
High Growth Momentum
Growth
EPS 1Y (TTM)-14.53%
EPS 3Y5.02%
EPS 5Y3.84%
EPS Q2Q%-18.02%
EPS Next Y-0.09%
EPS Next 2Y3.85%
EPS Next 3Y5.28%
EPS Next 5Y4.42%
Revenue 1Y (TTM)-8.72%
Revenue growth 3Y2.6%
Revenue growth 5Y0.72%
Sales Q2Q%-5.64%
Revenue Next Year4.2%
Revenue Next 2Y4.51%
Revenue Next 3Y4.5%
Revenue Next 5Y4.03%
EBIT growth 1Y-29.31%
EBIT growth 3Y-1.84%
EBIT growth 5Y-2.17%
EBIT Next Year15.45%
EBIT Next 3Y6.83%
EBIT Next 5YN/A
FCF growth 1Y-13.7%
FCF growth 3Y-11.56%
FCF growth 5Y-7.31%
OCF growth 1Y-11.56%
OCF growth 3Y-11.04%
OCF growth 5Y-7.23%