CISCO SYSTEMS INC (CSCO) Stock Fundamental Analysis

NASDAQ:CSCO • US17275R1023

79.025 USD
-0.17 (-0.22%)
Last: Feb 23, 2026, 09:57 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

CSCO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 48 industry peers in the Communications Equipment industry. While CSCO belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CSCO is not valued too expensively and it also shows a decent growth rate. Finally CSCO also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • In the past year CSCO was profitable.
  • In the past year CSCO had a positive cash flow from operations.
  • CSCO had positive earnings in each of the past 5 years.
  • In the past 5 years CSCO always reported a positive cash flow from operatings.
CSCO Yearly Net Income VS EBIT VS OCF VS FCFCSCO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 8.98%, CSCO belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
  • With an excellent Return On Equity value of 23.21%, CSCO belongs to the best of the industry, outperforming 85.42% of the companies in the same industry.
  • CSCO has a Return On Invested Capital of 13.41%. This is amongst the best in the industry. CSCO outperforms 85.42% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for CSCO is above the industry average of 11.26%.
Industry RankSector Rank
ROA 8.98%
ROE 23.21%
ROIC 13.41%
ROA(3y)9.67%
ROA(5y)10.49%
ROE(3y)24.29%
ROE(5y)25.65%
ROIC(3y)14.02%
ROIC(5y)15.13%
CSCO Yearly ROA, ROE, ROICCSCO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • The Profit Margin of CSCO (18.76%) is better than 93.75% of its industry peers.
  • In the last couple of years the Profit Margin of CSCO has declined.
  • CSCO's Operating Margin of 23.18% is amongst the best of the industry. CSCO outperforms 91.67% of its industry peers.
  • In the last couple of years the Operating Margin of CSCO has declined.
  • CSCO's Gross Margin of 64.81% is amongst the best of the industry. CSCO outperforms 87.50% of its industry peers.
  • In the last couple of years the Gross Margin of CSCO has remained more or less at the same level.
Industry RankSector Rank
OM 23.18%
PM (TTM) 18.76%
GM 64.81%
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%
CSCO Yearly Profit, Operating, Gross MarginsCSCO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CSCO is creating some value.
  • The number of shares outstanding for CSCO has been reduced compared to 1 year ago.
  • Compared to 5 years ago, CSCO has less shares outstanding
  • CSCO has a better debt/assets ratio than last year.
CSCO Yearly Shares OutstandingCSCO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B
CSCO Yearly Total Debt VS Total AssetsCSCO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B 100B

2.2 Solvency

  • CSCO has a debt to FCF ratio of 2.46. This is a good value and a sign of high solvency as CSCO would need 2.46 years to pay back of all of its debts.
  • CSCO has a better Debt to FCF ratio (2.46) than 60.42% of its industry peers.
  • CSCO has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
  • CSCO has a worse Debt to Equity ratio (0.45) than 72.92% of its industry peers.
  • Although CSCO does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
Industry RankSector Rank
Debt/Equity 0.45
Debt/FCF 2.46
Altman-Z N/A
ROIC/WACC1.39
WACC9.66%
CSCO Yearly LT Debt VS Equity VS FCFCSCO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B

2.3 Liquidity

  • A Current Ratio of 0.96 indicates that CSCO may have some problems paying its short term obligations.
  • CSCO's Current ratio of 0.96 is on the low side compared to the rest of the industry. CSCO is outperformed by 87.50% of its industry peers.
  • A Quick Ratio of 0.85 indicates that CSCO may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.85, CSCO is doing worse than 85.42% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.96
Quick Ratio 0.85
CSCO Yearly Current Assets VS Current LiabilitesCSCO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an nice 10.83% over the past year.
  • The Earnings Per Share has been growing slightly by 3.50% on average over the past years.
  • The Revenue has grown by 9.00% in the past year. This is quite good.
  • CSCO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.82% yearly.
EPS 1Y (TTM)10.83%
EPS 3Y4.19%
EPS 5Y3.5%
EPS Q2Q%10.64%
Revenue 1Y (TTM)9%
Revenue growth 3Y3.19%
Revenue growth 5Y2.82%
Sales Q2Q%9.71%

3.2 Future

  • CSCO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.07% yearly.
  • Based on estimates for the next years, CSCO will show a small growth in Revenue. The Revenue will grow by 5.76% on average per year.
EPS Next Y10.59%
EPS Next 2Y9.4%
EPS Next 3Y8.63%
EPS Next 5Y10.07%
Revenue Next Year8.56%
Revenue Next 2Y6.99%
Revenue Next 3Y6.42%
Revenue Next 5Y5.76%

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.
CSCO Yearly Revenue VS EstimatesCSCO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 20B 40B 60B
CSCO Yearly EPS VS EstimatesCSCO Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6

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Find the best growth stocksShow best growing peers

5

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 19.81, the valuation of CSCO can be described as rather expensive.
  • Based on the Price/Earnings ratio, CSCO is valued a bit cheaper than 79.17% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of CSCO to the average of the S&P500 Index (26.99), we can say CSCO is valued slightly cheaper.
  • A Price/Forward Earnings ratio of 17.38 indicates a rather expensive valuation of CSCO.
  • Based on the Price/Forward Earnings ratio, CSCO is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 28.02. CSCO is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 19.81
Fwd PE 17.38
CSCO Price Earnings VS Forward Price EarningsCSCO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CSCO indicates a somewhat cheap valuation: CSCO is cheaper than 64.58% of the companies listed in the same industry.
  • CSCO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CSCO is cheaper than 62.50% of the companies in the same industry.
Industry RankSector Rank
P/FCF 25.51
EV/EBITDA 19.67
CSCO Per share dataCSCO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • CSCO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.87
PEG (5Y)5.66
EPS Next 2Y9.4%
EPS Next 3Y8.63%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. Dividend

5.1 Amount

  • CSCO has a Yearly Dividend Yield of 2.15%.
  • CSCO's Dividend Yield is rather good when compared to the industry average which is at 0.76. CSCO pays more dividend than 85.42% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.81, CSCO has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.15%

5.2 History

  • The dividend of CSCO has a limited annual growth rate of 2.65%.
  • CSCO has paid a dividend for at least 10 years, which is a reliable track record.
  • CSCO has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.65%
Div Incr Years13
Div Non Decr Years13
CSCO Yearly Dividends per shareCSCO Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5

5.3 Sustainability

  • CSCO pays out 58.56% of its income as dividend. This is a bit on the high side, but may be sustainable.
  • CSCO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP58.56%
EPS Next 2Y9.4%
EPS Next 3Y8.63%
CSCO Yearly Income VS Free CF VS DividendCSCO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B
CSCO Dividend Payout.CSCO Dividend Payout, showing the Payout Ratio.CSCO Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

CISCO SYSTEMS INC

NASDAQ:CSCO (2/23/2026, 9:57:02 AM)

79.025

-0.17 (-0.22%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-11
Earnings (Next)05-12
Inst Owners81.27%
Inst Owner Change0.64%
Ins Owners0.03%
Ins Owner Change1.56%
Market Cap312.23B
Revenue(TTM)59.05B
Net Income(TTM)11.08B
Analysts78.71
Price Target88.11 (11.5%)
Short Float %1.33%
Short Ratio2.33
Dividend
Industry RankSector Rank
Dividend Yield 2.15%
Yearly Dividend1.62
Dividend Growth(5Y)2.65%
DP58.56%
Div Incr Years13
Div Non Decr Years13
Ex-Date01-02
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.17%
Min EPS beat(2)-0.21%
Max EPS beat(2)-0.13%
EPS beat(4)1
Avg EPS beat(4)0.42%
Min EPS beat(4)-0.5%
Max EPS beat(4)2.52%
EPS beat(8)5
Avg EPS beat(8)1.34%
EPS beat(12)9
Avg EPS beat(12)2.05%
EPS beat(16)11
Avg EPS beat(16)1.55%
Revenue beat(2)0
Avg Revenue beat(2)-0.82%
Min Revenue beat(2)-1.19%
Max Revenue beat(2)-0.45%
Revenue beat(4)0
Avg Revenue beat(4)-1.17%
Min Revenue beat(4)-1.58%
Max Revenue beat(4)-0.45%
Revenue beat(8)0
Avg Revenue beat(8)-1.14%
Revenue beat(12)0
Avg Revenue beat(12)-1.15%
Revenue beat(16)2
Avg Revenue beat(16)-1.18%
PT rev (1m)1.64%
PT rev (3m)2.7%
EPS NQ rev (1m)0.28%
EPS NQ rev (3m)2.01%
EPS NY rev (1m)0%
EPS NY rev (3m)1.94%
Revenue NQ rev (1m)2.32%
Revenue NQ rev (3m)4.57%
Revenue NY rev (1m)1.24%
Revenue NY rev (3m)3.04%
Valuation
Industry RankSector Rank
PE 19.81
Fwd PE 17.38
P/S 5.29
P/FCF 25.51
P/OCF 23.43
P/B 6.54
P/tB N/A
EV/EBITDA 19.67
EPS(TTM)3.99
EY5.05%
EPS(NY)4.55
Fwd EY5.75%
FCF(TTM)3.1
FCFY3.92%
OCF(TTM)3.37
OCFY4.27%
SpS14.95
BVpS12.08
TBVpS-5.02
PEG (NY)1.87
PEG (5Y)5.66
Graham Number32.93
Profitability
Industry RankSector Rank
ROA 8.98%
ROE 23.21%
ROCE 15.81%
ROIC 13.41%
ROICexc 16.39%
ROICexgc 355.28%
OM 23.18%
PM (TTM) 18.76%
GM 64.81%
FCFM 20.73%
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 RankSector Rank
Debt/Equity 0.45
Debt/FCF 2.46
Debt/EBITDA 1.32
Cap/Depr 42.91%
Cap/Sales 1.84%
Interest Coverage 9.56
Cash Conversion 82.18%
Profit Quality 110.52%
Current Ratio 0.96
Quick Ratio 0.85
Altman-Z N/A
F-Score7
WACC9.66%
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)10.83%
EPS 3Y4.19%
EPS 5Y3.5%
EPS Q2Q%10.64%
EPS Next Y10.59%
EPS Next 2Y9.4%
EPS Next 3Y8.63%
EPS Next 5Y10.07%
Revenue 1Y (TTM)9%
Revenue growth 3Y3.19%
Revenue growth 5Y2.82%
Sales Q2Q%9.71%
Revenue Next Year8.56%
Revenue Next 2Y6.99%
Revenue Next 3Y6.42%
Revenue Next 5Y5.76%
EBIT growth 1Y17.55%
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-9.71%
FCF growth 3Y1.39%
FCF growth 5Y-1.94%
OCF growth 1Y-7.23%
OCF growth 3Y2.38%
OCF growth 5Y-1.65%

CISCO SYSTEMS INC / CSCO FAQ

What is the ChartMill fundamental rating of CISCO SYSTEMS INC (CSCO) stock?

ChartMill assigns a fundamental rating of 6 / 10 to CSCO.


What is the valuation status of CISCO SYSTEMS INC (CSCO) stock?

ChartMill assigns a valuation rating of 5 / 10 to CISCO SYSTEMS INC (CSCO). This can be considered as Fairly Valued.


How profitable is CISCO SYSTEMS INC (CSCO) stock?

CISCO SYSTEMS INC (CSCO) has a profitability rating of 8 / 10.


What are the PE and PB ratios of CISCO SYSTEMS INC (CSCO) stock?

The Price/Earnings (PE) ratio for CISCO SYSTEMS INC (CSCO) is 19.81 and the Price/Book (PB) ratio is 6.54.


Can you provide the financial health for CSCO stock?

The financial health rating of CISCO SYSTEMS INC (CSCO) is 4 / 10.