77.03 USD
-0.38 (-0.49%)
77.0918 USD
+0.06 (+0.08%)
CSCO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 48 industry peers in the Communications Equipment industry. CSCO scores excellent on profitability, but there are some minor concerns on its financial health. CSCO has a correct valuation and a medium growth rate.
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.
In the past 5 years CSCO always reported a positive cash flow from operatings.
1.2 Ratios
CSCO has a Return On Assets of 8.53%. This is amongst the best in the industry. CSCO outperforms 83.33% of its industry peers.
Looking at the Return On Equity, with a value of 22.04%, CSCO belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
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 better Profit Margin (17.90%) than 91.67% of its industry peers.
In the last couple of years the Profit Margin of CSCO has declined.
With an excellent Operating Margin value of 22.52%, CSCO belongs to the best 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 87.50% of its industry peers.
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
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
CSCO has less shares outstanding than it did 5 years ago.
CSCO has a better debt/assets ratio than last year.
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.
CSCO has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
CSCO's Debt to Equity ratio of 0.46 is on the low side compared to the rest of the industry. CSCO is outperformed by 72.92% of its industry peers.
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/WACC1.33
WACC9.68%
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.
CSCO has a worse Current ratio (0.93) than 91.67% of its industry peers.
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 has a Quick ratio of 0.83. This is amonst the worse of the industry: CSCO underperforms 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.
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
Based on estimates for the next years, CSCO will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.07% on average per year.
CSCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.28% yearly.
EPS Next Y10.59%
EPS Next 2Y9.4%
EPS Next 3Y8.67%
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
The Price/Earnings ratio is 19.80, which indicates a rather expensive current valuation of CSCO.
Based on the Price/Earnings ratio, CSCO is valued a bit cheaper than the industry average as 70.83% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of CSCO to the average of the S&P500 Index (26.51), we can say CSCO is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 16.94, the valuation of CSCO can be described as correct.
75.00% of the companies in the same industry are more expensive than CSCO, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.13. CSCO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.8 | ||
| Fwd PE | 16.94 |
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 60.42% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.9 | ||
| 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.
CSCO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.87
PEG (5Y)5.66
EPS Next 2Y9.4%
EPS Next 3Y8.67%
5. Dividend
5.1 Amount
CSCO has a Yearly Dividend Yield of 2.10%.
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.
CSCO's Dividend Yield is comparable with the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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.
CSCO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP62.56%
EPS Next 2Y9.4%
EPS Next 3Y8.67%
77.03
-0.38 (-0.49%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners81.22%
Inst Owner Change-0.31%
Ins Owners0.03%
Ins Owner Change1.11%
Market Cap304.35B
Revenue(TTM)57.70B
Net Income(TTM)10.33B
Analysts77.42
Price Target86.68 (12.53%)
Short Float %1.39%
Short Ratio2.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
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)1.05%
PT rev (3m)11.87%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.86%
EPS NY rev (1m)1.94%
EPS NY rev (3m)1.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.19%
Revenue NY rev (1m)1.79%
Revenue NY rev (3m)1.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.8 | ||
| Fwd PE | 16.94 | ||
| P/S | 5.28 | ||
| P/FCF | 23.9 | ||
| P/OCF | 22.14 | ||
| P/B | 6.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.9 |
EPS(TTM)3.89
EY5.05%
EPS(NY)4.55
Fwd EY5.9%
FCF(TTM)3.22
FCFY4.18%
OCF(TTM)3.48
OCFY4.52%
SpS14.6
BVpS11.86
TBVpS-5.3
PEG (NY)1.87
PEG (5Y)5.66
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
WACC9.68%
ROIC/WACC1.33
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 3Y8.67%
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 4 / 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 19.8 and the Price/Book (PB) ratio is 6.49.
Can you provide the financial health for CSCO stock?
The financial health rating of CISCO SYSTEMS INC (CSCO) is 4 / 10.