CISCO SYSTEMS INC (CSCO) Stock Fundamental Analysis
USA - NASDAQ:CSCO - US17275R1023 - Common Stock
78.585 USD
+1.21 (+1.57%)
We assign a fundamental rating of 5 out of 10 to CSCO. CSCO was compared to 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
CSCO had positive earnings in the past year.
CSCO had a positive operating cash flow in the past year.
In the past 5 years CSCO has always been profitable.
CSCO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.53%, CSCO belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
The Return On Equity of CSCO (22.04%) is better 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.
The Average Return On Invested Capital over the past 3 years for CSCO is in line with the industry average of 12.78%.
| 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
CSCO has a Profit Margin of 17.90%. This is amongst the best in the industry. CSCO outperforms 91.67% of its industry peers.
CSCO's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 22.52%, CSCO belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
In the last couple of years the Operating Margin of CSCO has declined.
CSCO has a Gross Margin of 64.85%. This is amongst the best in the industry. CSCO outperforms 89.58% 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 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CSCO is still creating some value.
The number of shares outstanding for CSCO has been reduced compared to 1 year ago.
The number of shares outstanding for CSCO has been reduced compared to 5 years ago.
The debt/assets ratio for CSCO has been reduced compared to a year ago.
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.
CSCO has a Debt to FCF ratio of 2.21. This is in the better half of the industry: CSCO outperforms 62.50% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that CSCO is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.46, CSCO is not doing good in the industry: 72.92% of the companies in the same industry are doing better.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.21 | ||
| Altman-Z | N/A |
ROIC/WACC1.4
WACC9.21%
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.
With a Current ratio value of 0.93, CSCO is not doing good in the industry: 89.58% of the companies in the same industry are doing better.
CSCO has a Quick 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 Quick ratio of 0.83 is on the low side compared to the rest of the industry. CSCO is outperformed by 83.33% 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.
CSCO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.50% yearly.
Looking at the last year, CSCO shows a quite strong growth in Revenue. The Revenue has grown by 8.91% in the last year.
CSCO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.82% yearly.
EPS 1Y (TTM)10.2%
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 8.38% on average over the next years. This is quite good.
Based on estimates for the next years, CSCO will show a small growth in Revenue. The Revenue will grow by 4.95% on average per year.
EPS Next Y8.49%
EPS Next 2Y8.04%
EPS Next 3Y6.78%
EPS Next 5Y8.38%
Revenue Next Year5.35%
Revenue Next 2Y4.98%
Revenue Next 3Y5.04%
Revenue Next 5Y4.95%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.20 indicates a rather expensive valuation of CSCO.
Based on the Price/Earnings ratio, CSCO is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
CSCO is valuated rather cheaply when we compare the Price/Earnings ratio to 25.46, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 17.72, the valuation of CSCO can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CSCO indicates a somewhat cheap valuation: CSCO is cheaper than 66.67% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.39, CSCO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.2 | ||
| Fwd PE | 17.72 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CSCO is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CSCO indicates a somewhat cheap valuation: CSCO is cheaper than 64.58% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.4 | ||
| EV/EBITDA | 19.9 |
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)2.38
PEG (5Y)5.78
EPS Next 2Y8.04%
EPS Next 3Y6.78%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.11%, CSCO has a reasonable but not impressive dividend return.
CSCO's Dividend Yield is rather good when compared to the industry average which is at 3.30. CSCO pays more dividend than 85.42% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, CSCO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.11% |
5.2 History
The dividend of CSCO has a limited annual growth rate of 2.65%.
CSCO has been paying a dividend for at least 10 years, so it has 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.
CSCO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP62.56%
EPS Next 2Y8.04%
EPS Next 3Y6.78%
NASDAQ:CSCO (11/19/2025, 2:58:33 PM)
78.585
+1.21 (+1.57%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners80.81%
Inst Owner Change-0.22%
Ins Owners0.05%
Ins Owner Change22.39%
Market Cap310.66B
Revenue(TTM)57.70B
Net Income(TTM)10.33B
Analysts77.5
Price Target85.79 (9.17%)
Short Float %1.22%
Short Ratio2.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.11% |
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)0.38%
PT rev (3m)5.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.08%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.39%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)-0.33%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.2 | ||
| Fwd PE | 17.72 | ||
| P/S | 5.38 | ||
| P/FCF | 24.4 | ||
| P/OCF | 22.6 | ||
| P/B | 6.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.9 |
EPS(TTM)3.89
EY4.95%
EPS(NY)4.44
Fwd EY5.64%
FCF(TTM)3.22
FCFY4.1%
OCF(TTM)3.48
OCFY4.42%
SpS14.59
BVpS11.86
TBVpS-5.3
PEG (NY)2.38
PEG (5Y)5.78
Graham Number32.21
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
WACC9.21%
ROIC/WACC1.4
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 3Y6.78%
EPS Next 5Y8.38%
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 3Y5.04%
Revenue Next 5Y4.95%
EBIT growth 1Y11.75%
EBIT growth 3Y-3.72%
EBIT growth 5Y-2.35%
EBIT Next Year15.46%
EBIT Next 3Y7.57%
EBIT Next 5YN/A
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 4 / 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 20.2 and the Price/Book (PB) ratio is 6.63.
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.