77.75 USD
+0.88 (+1.14%)
77.81 USD
+0.06 (+0.08%)
CSCO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 48 industry peers in the Communications Equipment industry. CSCO has an excellent profitability rating, but there are some minor concerns on its financial health. CSCO is not valued too expensively and it also shows a decent growth rate.
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.
Each year in the past 5 years CSCO has been profitable.
Each year in the past 5 years CSCO had a positive operating cash flow.
1.2 Ratios
CSCO's Return On Assets of 8.53% is amongst the best of the industry. CSCO outperforms 83.33% of its industry peers.
CSCO has a better Return On Equity (22.04%) than 87.50% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.86%, CSCO belongs to the top of the industry, outperforming 85.42% of the companies in the same industry.
CSCO had an Average Return On Invested Capital over the past 3 years of 14.02%. This is in line with the industry average of 12.32%.
| 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 CSCO (17.90%) is better than 91.67% of its industry peers.
CSCO's Profit Margin has declined in the last couple of years.
CSCO has a Operating Margin of 22.52%. This is amongst the best in the industry. CSCO outperforms 91.67% of its industry peers.
In the last couple of years the Operating Margin of CSCO has declined.
Looking at the Gross Margin, with a value of 64.85%, CSCO belongs to the top of the industry, outperforming 89.58% of the companies in the same industry.
In the last couple of years the Gross Margin of CSCO has remained more or less at the same level.
| 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
CSCO 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 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.
2.2 Solvency
CSCO has a debt to FCF ratio of 2.21. This is a good value and a sign of high solvency as CSCO would need 2.21 years to pay back of all of its debts.
The Debt to FCF ratio of CSCO (2.21) is better than 64.58% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that CSCO is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.46, CSCO is doing worse than 70.83% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for CSCO, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.21 | ||
| Altman-Z | N/A |
ROIC/WACC1.41
WACC9.14%
2.3 Liquidity
CSCO has a Current Ratio of 0.93. This is a bad value and indicates that CSCO is not financially healthy enough and could expect problems in meeting its short term obligations.
CSCO's Current ratio of 0.93 is on the low side compared to the rest of the industry. CSCO is outperformed by 91.67% of its industry peers.
A Quick Ratio of 0.83 indicates that CSCO may have some problems paying its short term obligations.
CSCO has a Quick ratio of 0.83. This is amonst the worse of the industry: CSCO underperforms 85.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
CSCO 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.
The Revenue has grown by 8.91% in the past year. This is quite good.
Measured over the past years, CSCO 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, CSCO 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 Y8.49%
EPS Next 2Y8.04%
EPS Next 3Y8.78%
EPS Next 5Y10.07%
Revenue Next Year5.35%
Revenue Next 2Y4.98%
Revenue Next 3Y5.82%
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
With a Price/Earnings ratio of 19.99, CSCO is valued on the expensive side.
CSCO's Price/Earnings ratio is a bit cheaper when compared to the industry. CSCO is cheaper than 70.83% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.37. CSCO is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 17.53, the valuation of CSCO can be described as rather expensive.
70.83% of the companies in the same industry are more expensive than CSCO, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 36.20. CSCO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.99 | ||
| Fwd PE | 17.53 |
4.2 Price Multiples
CSCO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CSCO is cheaper than 60.42% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CSCO is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.13 | ||
| 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 decent profitability rating of CSCO may justify a higher PE ratio.
PEG (NY)2.35
PEG (5Y)5.72
EPS Next 2Y8.04%
EPS Next 3Y8.78%
5. Dividend
5.1 Amount
CSCO has a Yearly Dividend Yield of 2.16%.
Compared to an average industry Dividend Yield of 3.35, CSCO pays a better dividend. On top of this CSCO pays more dividend than 85.42% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, CSCO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
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
5.3 Sustainability
62.56% of the earnings are spent on dividend by CSCO. This is not a sustainable payout ratio.
The dividend of CSCO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP62.56%
EPS Next 2Y8.04%
EPS Next 3Y8.78%
77.75
+0.88 (+1.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners80.81%
Inst Owner Change-0.36%
Ins Owners0.05%
Ins Owner Change1.01%
Market Cap307.20B
Revenue(TTM)57.70B
Net Income(TTM)10.33B
Analysts77.5
Price Target85.79 (10.34%)
Short Float %1.36%
Short Ratio2.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
Yearly Dividend1.62
Dividend Growth(5Y)2.65%
DP62.56%
Div Incr Years13
Div Non Decr Years13
Ex-Date
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)10.72%
PT rev (3m)10.72%
EPS NQ rev (1m)3.39%
EPS NQ rev (3m)2.71%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)3.41%
Revenue NQ rev (3m)3.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.99 | ||
| Fwd PE | 17.53 | ||
| P/S | 5.32 | ||
| P/FCF | 24.13 | ||
| P/OCF | 22.35 | ||
| P/B | 6.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.99 |
EPS(TTM)3.89
EY5%
EPS(NY)4.44
Fwd EY5.7%
FCF(TTM)3.22
FCFY4.14%
OCF(TTM)3.48
OCFY4.47%
SpS14.6
BVpS11.86
TBVpS-5.3
PEG (NY)2.35
PEG (5Y)5.72
Graham Number32.22
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
WACC9.14%
ROIC/WACC1.41
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 Y8.49%
EPS Next 2Y8.04%
EPS Next 3Y8.78%
EPS Next 5Y10.07%
Revenue 1Y (TTM)8.91%
Revenue growth 3Y3.19%
Revenue growth 5Y2.82%
Sales Q2Q%7.53%
Revenue Next Year5.35%
Revenue Next 2Y4.98%
Revenue Next 3Y5.82%
Revenue Next 5Y6.28%
EBIT growth 1Y11.75%
EBIT growth 3Y-3.72%
EBIT growth 5Y-2.35%
EBIT Next Year15.46%
EBIT Next 3Y9.8%
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 / CSCO FAQ
What is the ChartMill fundamental rating of CISCO SYSTEMS INC (CSCO) stock?
ChartMill assigns a fundamental rating of 5 / 10 to CSCO.
Can you provide the valuation status for CISCO SYSTEMS INC?
ChartMill assigns a valuation rating of 5 / 10 to CISCO SYSTEMS INC (CSCO). This can be considered as Fairly Valued.
Can you provide the profitability details for CISCO SYSTEMS INC?
CISCO SYSTEMS INC (CSCO) has a profitability rating of 7 / 10.
What is the valuation of CISCO SYSTEMS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CISCO SYSTEMS INC (CSCO) is 19.99 and the Price/Book (PB) ratio is 6.55.
What is the earnings growth outlook for CISCO SYSTEMS INC?
The Earnings per Share (EPS) of CISCO SYSTEMS INC (CSCO) is expected to grow by 8.49% in the next year.