CISCO SYSTEMS INC (CSCO) Stock Fundamental Analysis

NASDAQ:CSCO • US17275R1023

78.205 USD
+1.36 (+1.76%)
Last: Feb 18, 2026, 01:23 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to CSCO. CSCO was compared to 48 industry peers in the Communications Equipment industry. While CSCO belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CSCO has a correct valuation and a medium growth rate. Finally CSCO also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • CSCO had positive earnings in the past year.
  • 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.
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

  • CSCO has a better Return On Assets (8.98%) than 83.33% of its industry peers.
  • 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.
  • Looking at the Return On Invested Capital, with a value of 13.41%, 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 above the industry average of 11.27%.
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 has a Profit Margin of 18.76%. This is amongst the best in the industry. CSCO outperforms 93.75% of its industry peers.
  • CSCO's Profit Margin has declined in the last couple of years.
  • The Operating Margin of CSCO (23.18%) is better than 91.67% of its industry peers.
  • In the last couple of years the Operating Margin of CSCO has declined.
  • CSCO has a Gross Margin of 64.81%. This is amongst the best in the industry. CSCO outperforms 87.50% of its industry peers.
  • 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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ROAROEROICOperating and Profit MarginShow most profitable peers

4

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
  • The debt/assets ratio for CSCO has been reduced compared to a year ago.
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.
  • Looking at the Debt to FCF ratio, with a value of 2.46, CSCO is in the better half of the industry, outperforming 60.42% of the companies in the same industry.
  • A Debt/Equity ratio of 0.45 indicates that CSCO is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.45, CSCO is doing worse than 72.92% 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 RankSector Rank
Debt/Equity 0.45
Debt/FCF 2.46
Altman-Z N/A
ROIC/WACC1.43
WACC9.38%
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

  • CSCO has a Current 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.
  • The Current ratio of CSCO (0.96) is worse than 87.50% of its industry peers.
  • A Quick Ratio of 0.85 indicates that CSCO may have some problems paying 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. Growth

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.
  • 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.
  • CSCO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.00%.
  • CSCO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.82% yearly.
EPS 1Y (TTM)10.83%
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 10.07% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 5.76% on average over the next years.
EPS Next Y10.59%
EPS Next 2Y9.4%
EPS Next 3Y8.63%
EPS Next 5Y10.07%
Revenue Next Year8.56%
Revenue Next 2Y6.99%
Revenue Next 3Y6.42%
Revenue Next 5Y5.76%

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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Find the best growth stocksShow best growing peers

5

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 19.60 indicates a rather expensive valuation of CSCO.
  • Based on the Price/Earnings ratio, CSCO is valued a bit cheaper than the industry average as 77.08% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of CSCO to the average of the S&P500 Index (27.16), we can say CSCO is valued slightly cheaper.
  • CSCO is valuated rather expensively with a Price/Forward Earnings ratio of 17.20.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of CSCO indicates a somewhat cheap valuation: CSCO is cheaper than 75.00% of the companies listed in the same industry.
  • CSCO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.10.
Industry RankSector Rank
PE 19.6
Fwd PE 17.2
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

  • 62.50% of the companies in the same industry are more expensive than CSCO, based on the Enterprise Value to EBITDA ratio.
  • 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 RankSector Rank
P/FCF 25.24
EV/EBITDA 19.1
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.
  • CSCO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.85
PEG (5Y)5.61
EPS Next 2Y9.4%
EPS Next 3Y8.63%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. Dividend

5.1 Amount

  • CSCO has a Yearly Dividend Yield of 2.19%. Purely for dividend investing, there may be better candidates out there.
  • CSCO's Dividend Yield is rather good when compared to the industry average which is at 0.77. CSCO pays more dividend than 85.42% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, CSCO has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.19%

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 2Y9.4%
EPS Next 3Y8.63%
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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Find the best dividend stocksShow peers with best dividend

CISCO SYSTEMS INC

NASDAQ:CSCO (2/18/2026, 1:23:07 PM)

78.205

+1.36 (+1.76%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-11
Earnings (Next)05-12
Inst Owners81.27%
Inst Owner Change-0.12%
Ins Owners0.03%
Ins Owner Change1.94%
Market Cap308.99B
Revenue(TTM)59.05B
Net Income(TTM)11.08B
Analysts78.71
Price Target88.11 (12.67%)
Short Float %1.33%
Short Ratio2.33
Dividend
Industry RankSector Rank
Dividend Yield 2.19%
Yearly Dividend1.62
Dividend Growth(5Y)2.65%
DP58.56%
Div Incr Years13
Div Non Decr Years13
Ex-Date01-02
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)1.64%
PT rev (3m)13.27%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.72%
EPS NY rev (1m)0%
EPS NY rev (3m)1.94%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.2%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)1.79%
Valuation
Industry RankSector Rank
PE 19.6
Fwd PE 17.2
P/S 5.23
P/FCF 25.24
P/OCF 23.19
P/B 6.47
P/tB N/A
EV/EBITDA 19.1
EPS(TTM)3.99
EY5.1%
EPS(NY)4.55
Fwd EY5.82%
FCF(TTM)3.1
FCFY3.96%
OCF(TTM)3.37
OCFY4.31%
SpS14.95
BVpS12.08
TBVpS-5.02
PEG (NY)1.85
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
WACC9.38%
ROIC/WACC1.43
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 Y10.59%
EPS Next 2Y9.4%
EPS Next 3Y8.63%
EPS Next 5Y10.07%
Revenue 1Y (TTM)9%
Revenue growth 3Y3.19%
Revenue growth 5Y2.82%
Sales Q2Q%9.71%
Revenue Next Year8.56%
Revenue Next 2Y6.99%
Revenue Next 3Y6.42%
Revenue Next 5Y5.76%
EBIT growth 1Y17.55%
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-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 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 19.6 and the Price/Book (PB) ratio is 6.47.


Can you provide the financial health for CSCO stock?

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