75.19 USD
-0.06 (-0.08%)
75.19 USD
0 (0%)
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
- 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.
- Each year in the past 5 years CSCO had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 8.53%, CSCO belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
- CSCO has a Return On Equity of 22.04%. This is amongst the best in the industry. CSCO outperforms 87.50% of its industry peers.
- CSCO has a better Return On Invested Capital (12.86%) than 85.42% 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 12.15%.
| 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.
- The Operating Margin of CSCO (22.52%) is better than 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 87.50% of the companies in the same industry.
- CSCO's Gross Margin has been stable in the last couple of years.
| 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
- 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.
- Compared to 5 years ago, CSCO has less shares outstanding
- CSCO has a better debt/assets ratio than last year.
2.2 Solvency
- The Debt to FCF ratio of CSCO is 2.21, which is a good value as it means it would take CSCO, 2.21 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of CSCO (2.21) is better than 62.50% of its industry peers.
- CSCO has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
- With a Debt to Equity ratio value of 0.46, CSCO is not doing good in the industry: 70.83% 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/WACC1.36
WACC9.47%
2.3 Liquidity
- A Current Ratio of 0.93 indicates that CSCO may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.93, CSCO is doing worse than 89.58% of the companies in the same industry.
- 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 87.50% 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.
- Measured over the past 5 years, CSCO shows a small growth in Earnings Per Share. The EPS has been growing by 3.50% on average per year.
- The Revenue has grown by 8.91% in the past year. This is quite good.
- The Revenue has been growing slightly by 2.82% on average over the past years.
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
- 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.
- The Revenue is expected to grow by 6.28% on average over the next years.
EPS Next Y10.59%
EPS Next 2Y9.4%
EPS Next 3Y8.63%
EPS Next 5Y10.07%
Revenue Next Year7.24%
Revenue Next 2Y6.15%
Revenue Next 3Y5.75%
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
- Based on the Price/Earnings ratio of 19.33, the valuation of CSCO can be described as rather expensive.
- Based on the Price/Earnings ratio, CSCO is valued a bit cheaper than 72.92% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.38. CSCO is valued slightly cheaper when compared to this.
- A Price/Forward Earnings ratio of 16.53 indicates a correct valuation of CSCO.
- Based on the Price/Forward Earnings ratio, CSCO is valued a bit cheaper than 77.08% of the companies in the same industry.
- CSCO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.33 | ||
| Fwd PE | 16.53 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CSCO is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of CSCO indicates a somewhat cheap valuation: CSCO is cheaper than 68.75% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.33 | ||
| EV/EBITDA | 19.34 |
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)1.83
PEG (5Y)5.53
EPS Next 2Y9.4%
EPS Next 3Y8.63%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.18%, CSCO has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.77, 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 1.84, CSCO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
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
- CSCO pays out 62.56% of its income as dividend. 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 2Y9.4%
EPS Next 3Y8.63%
75.19
-0.06 (-0.08%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)11-12 2025-11-12/amc
Earnings (Next)02-10 2026-02-10/amc
Inst Owners81.27%
Inst Owner Change-0.1%
Ins Owners0.03%
Ins Owner Change1.11%
Market Cap297.08B
Revenue(TTM)57.70B
Net Income(TTM)10.33B
Analysts77.42
Price Target86.68 (15.28%)
Short Float %1.39%
Short Ratio2.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
Yearly Dividend1.62
Dividend Growth(5Y)2.65%
DP62.56%
Div Incr Years13
Div Non Decr Years13
Ex-Date01-02 2026-01-02 (0.41)
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)0.56%
PT rev (3m)11.87%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.32%
EPS NY rev (1m)0%
EPS NY rev (3m)1.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.33 | ||
| Fwd PE | 16.53 | ||
| P/S | 5.15 | ||
| P/FCF | 23.33 | ||
| P/OCF | 21.62 | ||
| P/B | 6.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.34 |
EPS(TTM)3.89
EY5.17%
EPS(NY)4.55
Fwd EY6.05%
FCF(TTM)3.22
FCFY4.29%
OCF(TTM)3.48
OCFY4.63%
SpS14.6
BVpS11.86
TBVpS-5.3
PEG (NY)1.83
PEG (5Y)5.53
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
WACC9.47%
ROIC/WACC1.36
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 Y10.59%
EPS Next 2Y9.4%
EPS Next 3Y8.63%
EPS Next 5Y10.07%
Revenue 1Y (TTM)8.91%
Revenue growth 3Y3.19%
Revenue growth 5Y2.82%
Sales Q2Q%7.53%
Revenue Next Year7.24%
Revenue Next 2Y6.15%
Revenue Next 3Y5.75%
Revenue Next 5Y6.28%
EBIT growth 1Y11.75%
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-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.
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 7 / 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 19.33 and the Price/Book (PB) ratio is 6.34.
Can you provide the financial health for CSCO stock?
The financial health rating of CISCO SYSTEMS INC (CSCO) is 4 / 10.