CISCO SYSTEMS INC (CSCO) Fundamental Analysis & Valuation

NASDAQ:CSCO • US17275R1023

Current stock price

78.33 USD
+0.59 (+0.76%)
At close:
78.25 USD
-0.08 (-0.1%)
After Hours:

This CSCO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. CSCO Profitability Analysis

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.
  • CSCO had a positive operating cash flow in each of the past 5 years.
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.
  • With an excellent Return On Invested Capital value of 13.41%, CSCO belongs to the best 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 above the industry average of 10.40%.
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

  • CSCO's Profit Margin of 18.76% is amongst the best of the industry. CSCO outperforms 91.67% of its industry peers.
  • In the last couple of years the Profit Margin of CSCO has declined.
  • CSCO has a Operating Margin of 23.18%. This is amongst the best in the industry. CSCO outperforms 91.67% of its industry peers.
  • CSCO's Operating Margin has declined in the last couple of years.
  • With an excellent Gross Margin value of 64.81%, CSCO belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
  • CSCO's Gross Margin has been stable in the last couple of years.
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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4

2. CSCO Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CSCO is creating some value.
  • CSCO has less shares outstanding than it did 1 year ago.
  • CSCO has less shares outstanding than it did 5 years ago.
  • 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

  • The Debt to FCF ratio of CSCO is 2.46, which is a good value as it means it would take CSCO, 2.46 years of fcf income to pay off all of its debts.
  • CSCO has a better Debt to FCF ratio (2.46) than 60.42% of its industry peers.
  • A Debt/Equity ratio of 0.45 indicates that CSCO is not too dependend on debt financing.
  • With a Debt to Equity ratio value of 0.45, CSCO is not doing good in the industry: 72.92% of the companies in the same industry are doing better.
  • 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 RankSector Rank
Debt/Equity 0.45
Debt/FCF 2.46
Altman-Z N/A
ROIC/WACC1.38
WACC9.72%
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.
  • CSCO has a Quick Ratio of 0.96. 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 Quick ratio value of 0.85, CSCO is not doing good in the industry: 85.42% of the companies in the same industry are doing better.
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. CSCO Growth Analysis

3.1 Past

  • CSCO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.83%, which is quite good.
  • CSCO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.50% yearly.
  • CSCO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.00%.
  • The Revenue has been growing slightly by 2.82% on average over the past years.
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

  • The Earnings Per Share is expected to grow by 10.36% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 5.95% on average over the next years.
EPS Next Y11.5%
EPS Next 2Y10.06%
EPS Next 3Y9.49%
EPS Next 5Y10.36%
Revenue Next Year8.73%
Revenue Next 2Y7.24%
Revenue Next 3Y6.47%
Revenue Next 5Y5.95%

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.
  • 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.
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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5

4. CSCO Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 19.63, the valuation of CSCO can be described as rather expensive.
  • 79.17% of the companies in the same industry are more expensive than CSCO, based on the Price/Earnings ratio.
  • Compared to an average S&P500 Price/Earnings ratio of 25.71, CSCO is valued a bit cheaper.
  • The Price/Forward Earnings ratio is 17.02, which indicates a rather expensive current valuation of CSCO.
  • Based on the Price/Forward Earnings ratio, CSCO is valued a bit cheaper than the industry average as 79.17% of the companies are valued more expensively.
  • CSCO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.83, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 19.63
Fwd PE 17.02
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

  • Based on the Enterprise Value to EBITDA ratio, CSCO is valued a bit cheaper than the industry average as 68.75% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, CSCO is valued a bit cheaper than the industry average as 64.58% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 25.28
EV/EBITDA 19.45
CSCO Per share dataCSCO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10

4.3 Compensation for Growth

  • CSCO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The excellent profitability rating of CSCO may justify a higher PE ratio.
PEG (NY)1.71
PEG (5Y)5.61
EPS Next 2Y10.06%
EPS Next 3Y9.49%

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7

5. CSCO Dividend Analysis

5.1 Amount

  • CSCO has a Yearly Dividend Yield of 2.16%.
  • Compared to an average industry Dividend Yield of 0.77, CSCO pays a better dividend. On top of this CSCO pays more dividend than 87.50% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.91, CSCO has a dividend comparable with the average S&P500 company.
Industry RankSector 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
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

  • 58.56% of the earnings are spent on dividend by CSCO. This is a bit on the high side, but may be sustainable.
  • The dividend of CSCO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP58.56%
EPS Next 2Y10.06%
EPS Next 3Y9.49%
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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CSCO Fundamentals: All Metrics, Ratios and Statistics

CISCO SYSTEMS INC

NASDAQ:CSCO (3/13/2026, 8:18:46 PM)

After market: 78.25 -0.08 (-0.1%)

78.33

+0.59 (+0.76%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-11
Earnings (Next)05-12
Inst Owners81.84%
Inst Owner Change2.38%
Ins Owners0.03%
Ins Owner Change1.61%
Market Cap309.39B
Revenue(TTM)59.05B
Net Income(TTM)11.08B
Analysts78.71
Price Target89.66 (14.46%)
Short Float %1.4%
Short Ratio2.33
Dividend
Industry RankSector Rank
Dividend Yield 2.16%
Yearly Dividend1.62
Dividend Growth(5Y)2.65%
DP58.56%
Div Incr Years13
Div Non Decr Years13
Ex-Date04-02
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)1.76%
PT rev (3m)4.01%
EPS NQ rev (1m)0.28%
EPS NQ rev (3m)0.28%
EPS NY rev (1m)0.83%
EPS NY rev (3m)0.83%
Revenue NQ rev (1m)2.32%
Revenue NQ rev (3m)2.32%
Revenue NY rev (1m)1.4%
Revenue NY rev (3m)1.39%
Valuation
Industry RankSector Rank
PE 19.63
Fwd PE 17.02
P/S 5.24
P/FCF 25.28
P/OCF 23.22
P/B 6.48
P/tB N/A
EV/EBITDA 19.45
EPS(TTM)3.99
EY5.09%
EPS(NY)4.6
Fwd EY5.88%
FCF(TTM)3.1
FCFY3.96%
OCF(TTM)3.37
OCFY4.31%
SpS14.95
BVpS12.08
TBVpS-5.02
PEG (NY)1.71
PEG (5Y)5.61
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
WACC9.72%
ROIC/WACC1.38
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 Y11.5%
EPS Next 2Y10.06%
EPS Next 3Y9.49%
EPS Next 5Y10.36%
Revenue 1Y (TTM)9%
Revenue growth 3Y3.19%
Revenue growth 5Y2.82%
Sales Q2Q%9.71%
Revenue Next Year8.73%
Revenue Next 2Y7.24%
Revenue Next 3Y6.47%
Revenue Next 5Y5.95%
EBIT growth 1Y17.55%
EBIT growth 3Y-3.72%
EBIT growth 5Y-2.35%
EBIT Next Year19.86%
EBIT Next 3Y10.35%
EBIT Next 5Y9.54%
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 Fundamental Analysis 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 19.63 and the Price/Book (PB) ratio is 6.48.


Can you provide the financial health for CSCO stock?

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