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CISCO SYSTEMS INC (CSCO) Stock Fundamental Analysis

NASDAQ:CSCO - Nasdaq - US17275R1023 - Common Stock - Currency: USD

69.37  +0.78 (+1.14%)

After market: 69.81 +0.44 (+0.63%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to CSCO. CSCO was compared to 50 industry peers in the Communications Equipment industry. CSCO has an excellent profitability rating, but there are some minor concerns on its financial health. CSCO has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

In the past year CSCO was profitable.
CSCO had a positive operating cash flow in the past year.
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.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

1.2 Ratios

With an excellent Return On Assets value of 8.17%, CSCO belongs to the best of the industry, outperforming 86.00% of the companies in the same industry.
CSCO has a Return On Equity of 21.32%. This is amongst the best in the industry. CSCO outperforms 90.00% of its industry peers.
CSCO has a Return On Invested Capital of 11.30%. This is amongst the best in the industry. CSCO outperforms 82.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CSCO is in line with the industry average of 13.82%.
The last Return On Invested Capital (11.30%) for CSCO is well below the 3 year average (15.60%), which needs to be investigated, but indicates that CSCO had better years and this may not be a problem.
Industry RankSector Rank
ROA 8.17%
ROE 21.32%
ROIC 11.3%
ROA(3y)11.08%
ROA(5y)11.19%
ROE(3y)26.95%
ROE(5y)27.21%
ROIC(3y)15.6%
ROIC(5y)15.96%
CSCO Yearly ROA, ROE, ROICCSCO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1.3 Margins

CSCO has a better Profit Margin (17.60%) than 92.00% of its industry peers.
CSCO's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 21.81%, CSCO belongs to the best of the industry, outperforming 92.00% of the companies in the same industry.
In the last couple of years the Operating Margin of CSCO has declined.
With an excellent Gross Margin value of 65.24%, CSCO belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
CSCO's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 21.81%
PM (TTM) 17.6%
GM 65.24%
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%
CSCO Yearly Profit, Operating, Gross MarginsCSCO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

5

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.
Compared to 1 year ago, CSCO has less shares outstanding
The number of shares outstanding for CSCO has been reduced compared to 5 years ago.
The debt/assets ratio for CSCO is higher compared to a year ago.
CSCO Yearly Shares OutstandingCSCO Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B
CSCO Yearly Total Debt VS Total AssetsCSCO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B 100B

2.2 Solvency

CSCO has an Altman-Z score of 3.02. This indicates that CSCO is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.02, CSCO is doing good in the industry, outperforming 70.00% of the companies in the same industry.
The Debt to FCF ratio of CSCO is 2.29, which is a good value as it means it would take CSCO, 2.29 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CSCO (2.29) is better than 68.00% of its industry peers.
CSCO has a Debt/Equity ratio of 0.59. This is a neutral value indicating CSCO is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.59, CSCO is not doing good in the industry: 70.00% 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 0.59
Debt/FCF 2.29
Altman-Z 3.02
ROIC/WACC1.19
WACC9.51%
CSCO Yearly LT Debt VS Equity VS FCFCSCO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

2.3 Liquidity

CSCO has a Current Ratio of 0.95. 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 has a Current ratio of 0.95. This is amonst the worse of the industry: CSCO underperforms 84.00% of its industry peers.
CSCO has a Quick Ratio of 0.95. This is a bad value and indicates that CSCO is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.87, CSCO is doing worse than 76.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.95
Quick Ratio 0.87
CSCO Yearly Current Assets VS Current LiabilitesCSCO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B

4

3. Growth

3.1 Past

CSCO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.00%.
Measured over the past 5 years, CSCO shows a small growth in Earnings Per Share. The EPS has been growing by 3.84% on average per year.
Looking at the last year, CSCO shows a small growth in Revenue. The Revenue has grown by 0.47% in the last year.
CSCO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.72% yearly.
EPS 1Y (TTM)-8%
EPS 3Y5.02%
EPS 5Y3.84%
EPS Q2Q%9.09%
Revenue 1Y (TTM)0.47%
Revenue growth 3Y2.6%
Revenue growth 5Y0.72%
Sales Q2Q%11.39%

3.2 Future

The Earnings Per Share is expected to grow by 6.50% on average over the next years.
The Revenue is expected to grow by 4.73% on average over the next years.
EPS Next Y3.63%
EPS Next 2Y4.92%
EPS Next 3Y5.99%
EPS Next 5Y6.5%
Revenue Next Year5.43%
Revenue Next 2Y5.33%
Revenue Next 3Y5.11%
Revenue Next 5Y4.73%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 20B 40B 60B
CSCO Yearly EPS VS EstimatesCSCO Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1 2 3 4 5

5

4. Valuation

4.1 Price/Earnings Ratio

CSCO is valuated rather expensively with a Price/Earnings ratio of 18.85.
Based on the Price/Earnings ratio, CSCO is valued a bit cheaper than 74.00% of the companies in the same industry.
CSCO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.45.
Based on the Price/Forward Earnings ratio of 16.89, the valuation of CSCO can be described as correct.
68.00% of the companies in the same industry are more expensive than CSCO, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, CSCO is valued a bit cheaper.
Industry RankSector Rank
PE 18.85
Fwd PE 16.89
CSCO Price Earnings VS Forward Price EarningsCSCO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

66.00% of the companies in the same industry are more expensive than CSCO, based on the Enterprise Value to EBITDA ratio.
66.00% of the companies in the same industry are more expensive than CSCO, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 21.46
EV/EBITDA 18.28
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.
The excellent profitability rating of CSCO may justify a higher PE ratio.
PEG (NY)5.19
PEG (5Y)4.91
EPS Next 2Y4.92%
EPS Next 3Y5.99%

6

5. Dividend

5.1 Amount

CSCO has a Yearly Dividend Yield of 2.36%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.45, CSCO pays a better dividend. On top of this CSCO pays more dividend than 88.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, CSCO has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.36%

5.2 History

The dividend of CSCO has a limited annual growth rate of 3.23%.
CSCO has been paying a dividend for at least 10 years, so it has a reliable track record.
CSCO has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.23%
Div Incr Years13
Div Non Decr Years13
CSCO Yearly Dividends per shareCSCO Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5

5.3 Sustainability

CSCO pays out 65.54% of its income as dividend. This is not a sustainable payout ratio.
CSCO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP65.54%
EPS Next 2Y4.92%
EPS Next 3Y5.99%
CSCO Yearly Income VS Free CF VS DividendCSCO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B
CSCO Dividend Payout.CSCO Dividend Payout, showing the Payout Ratio.CSCO Dividend Payout.PayoutRetained Earnings

CISCO SYSTEMS INC

NASDAQ:CSCO (7/3/2025, 7:14:13 PM)

After market: 69.81 +0.44 (+0.63%)

69.37

+0.78 (+1.14%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)05-14 2025-05-14/amc
Earnings (Next)08-12 2025-08-12/amc
Inst Owners81.14%
Inst Owner Change-46.7%
Ins Owners0.03%
Ins Owner Change-3.07%
Market Cap274.71B
Analysts79.35
Price Target72.15 (4.01%)
Short Float %1.05%
Short Ratio1.99
Dividend
Industry RankSector Rank
Dividend Yield 2.36%
Yearly Dividend1.58
Dividend Growth(5Y)3.23%
DP65.54%
Div Incr Years13
Div Non Decr Years13
Ex-Date07-03 2025-07-03 (0.41)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.94%
Min EPS beat(2)1.37%
Max EPS beat(2)2.52%
EPS beat(4)4
Avg EPS beat(4)1.74%
Min EPS beat(4)0.58%
Max EPS beat(4)2.52%
EPS beat(8)8
Avg EPS beat(8)3.07%
EPS beat(12)11
Avg EPS beat(12)2.24%
EPS beat(16)12
Avg EPS beat(16)1.71%
Revenue beat(2)0
Avg Revenue beat(2)-1.31%
Min Revenue beat(2)-1.48%
Max Revenue beat(2)-1.14%
Revenue beat(4)0
Avg Revenue beat(4)-1.32%
Min Revenue beat(4)-1.48%
Max Revenue beat(4)-1.14%
Revenue beat(8)0
Avg Revenue beat(8)-1.22%
Revenue beat(12)2
Avg Revenue beat(12)-0.83%
Revenue beat(16)2
Avg Revenue beat(16)-1.3%
PT rev (1m)3.36%
PT rev (3m)0.84%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.04%
EPS NY rev (1m)0.49%
EPS NY rev (3m)1.91%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)0.63%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.38%
Valuation
Industry RankSector Rank
PE 18.85
Fwd PE 16.89
P/S 4.94
P/FCF 21.46
P/OCF 20.07
P/B 5.98
P/tB N/A
EV/EBITDA 18.28
EPS(TTM)3.68
EY5.3%
EPS(NY)4.11
Fwd EY5.92%
FCF(TTM)3.23
FCFY4.66%
OCF(TTM)3.46
OCFY4.98%
SpS14.05
BVpS11.6
TBVpS-5.74
PEG (NY)5.19
PEG (5Y)4.91
Profitability
Industry RankSector Rank
ROA 8.17%
ROE 21.32%
ROCE 14.23%
ROIC 11.3%
ROICexc 13.7%
ROICexgc 196.3%
OM 21.81%
PM (TTM) 17.6%
GM 65.24%
FCFM 23.02%
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-Score7
Asset Turnover0.46
Health
Industry RankSector Rank
Debt/Equity 0.59
Debt/FCF 2.29
Debt/EBITDA 1.79
Cap/Depr 29.54%
Cap/Sales 1.59%
Interest Coverage 7.57
Cash Conversion 90.46%
Profit Quality 130.75%
Current Ratio 0.95
Quick Ratio 0.87
Altman-Z 3.02
F-Score7
WACC9.51%
ROIC/WACC1.19
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)-8%
EPS 3Y5.02%
EPS 5Y3.84%
EPS Q2Q%9.09%
EPS Next Y3.63%
EPS Next 2Y4.92%
EPS Next 3Y5.99%
EPS Next 5Y6.5%
Revenue 1Y (TTM)0.47%
Revenue growth 3Y2.6%
Revenue growth 5Y0.72%
Sales Q2Q%11.39%
Revenue Next Year5.43%
Revenue Next 2Y5.33%
Revenue Next 3Y5.11%
Revenue Next 5Y4.73%
EBIT growth 1Y-17.55%
EBIT growth 3Y-1.84%
EBIT growth 5Y-2.17%
EBIT Next Year17.34%
EBIT Next 3Y7.96%
EBIT Next 5YN/A
FCF growth 1Y-23.98%
FCF growth 3Y-11.56%
FCF growth 5Y-7.31%
OCF growth 1Y-22.21%
OCF growth 3Y-11.04%
OCF growth 5Y-7.23%