CISCO SYSTEMS INC (CSCO) Fundamental Analysis & Valuation

NASDAQ:CSCO • US17275R1023

Current stock price

88.59 USD
-1.21 (-1.35%)
At close:
88.39 USD
-0.2 (-0.23%)
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

  • CSCO had positive earnings in the past year.
  • 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

1.2 Ratios

  • CSCO has a Return On Assets of 8.98%. This is amongst the best in the industry. CSCO outperforms 82.61% of its industry peers.
  • CSCO has a better Return On Equity (23.21%) than 84.78% of its industry peers.
  • CSCO has a Return On Invested Capital of 13.41%. This is amongst the best in the industry. CSCO outperforms 82.61% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for CSCO is above the industry average of 10.41%.
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

  • With an excellent Profit Margin value of 18.76%, CSCO belongs to the best of the industry, outperforming 91.30% of the companies in the same industry.
  • In the last couple of years the Profit Margin of CSCO has declined.
  • Looking at the Operating Margin, with a value of 23.18%, CSCO belongs to the top of the industry, outperforming 89.13% of the companies in the same industry.
  • In the last couple of years the Operating Margin of CSCO has declined.
  • Looking at the Gross Margin, with a value of 64.81%, CSCO belongs to the top of the industry, outperforming 86.96% of the companies in the same industry.
  • In the last couple of years the Gross Margin of CSCO has remained more or less at the same level.
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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3

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.
  • Compared to 1 year ago, CSCO has an improved debt to assets ratio.
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

  • CSCO has a debt to FCF ratio of 2.46. This is a good value and a sign of high solvency as CSCO would need 2.46 years to pay back of all of its debts.
  • CSCO has a Debt to FCF ratio (2.46) which is comparable to the rest of the industry.
  • A Debt/Equity ratio of 0.45 indicates that CSCO is not too dependend on debt financing.
  • CSCO's Debt to Equity ratio of 0.45 is on the low side compared to the rest of the industry. CSCO is outperformed by 73.91% of its industry peers.
  • Although CSCO's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. 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 RankSector Rank
Debt/Equity 0.45
Debt/FCF 2.46
Altman-Z N/A
ROIC/WACC1.37
WACC9.77%
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.
  • The Current ratio of CSCO (0.96) is worse than 89.13% of its industry peers.
  • A Quick Ratio of 0.85 indicates that CSCO may have some problems paying its short term obligations.
  • CSCO's Quick ratio of 0.85 is on the low side compared to the rest of the industry. CSCO is outperformed by 86.96% of its industry peers.
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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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%.
  • 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 10.36% on average over the next years. This is quite good.
  • Based on estimates for the next years, CSCO will show a small growth in Revenue. The Revenue will grow by 5.95% on average per year.
EPS Next Y11.48%
EPS Next 2Y10.04%
EPS Next 3Y9.47%
EPS Next 5Y10.36%
Revenue Next Year8.74%
Revenue Next 2Y6.65%
Revenue Next 3Y5.98%
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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4

4. CSCO Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 22.20, CSCO is valued on the expensive side.
  • Based on the Price/Earnings ratio, CSCO is valued a bit cheaper than the industry average as 76.09% of the companies are valued more expensively.
  • CSCO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.47, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 19.25, the valuation of CSCO can be described as rather expensive.
  • CSCO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CSCO is cheaper than 78.26% of the companies in the same industry.
  • CSCO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.62.
Industry RankSector Rank
PE 22.2
Fwd PE 19.25
CSCO Price Earnings VS Forward Price EarningsCSCO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, CSCO is valued a bit cheaper than 67.39% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of CSCO is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 28.59
EV/EBITDA 22.24
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)1.93
PEG (5Y)6.35
EPS Next 2Y10.04%
EPS Next 3Y9.47%

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7

5. CSCO Dividend Analysis

5.1 Amount

  • CSCO has a Yearly Dividend Yield of 1.99%. 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 1.91. CSCO pays more dividend than 84.78% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.81, CSCO has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 1.99%

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 Years14
Div Non Decr Years14
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 2Y10.04%
EPS Next 3Y9.47%
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 (4/23/2026, 8:01:06 PM)

After market: 88.39 -0.2 (-0.23%)

88.59

-1.21 (-1.35%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-11
Earnings (Next)05-12
Inst Owners81.8%
Inst Owner Change-1.96%
Ins Owners0.03%
Ins Owner Change-5.3%
Market Cap349.92B
Revenue(TTM)59.05B
Net Income(TTM)11.08B
Analysts78.75
Price Target90.17 (1.78%)
Short Float %1.42%
Short Ratio2.23
Dividend
Industry RankSector Rank
Dividend Yield 1.99%
Yearly Dividend1.62
Dividend Growth(5Y)2.65%
DP58.56%
Div Incr Years14
Div Non Decr Years14
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)0.57%
PT rev (3m)4.02%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)0.32%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.81%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)2.33%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)1.39%
Valuation
Industry RankSector Rank
PE 22.2
Fwd PE 19.25
P/S 5.93
P/FCF 28.59
P/OCF 26.26
P/B 7.33
P/tB N/A
EV/EBITDA 22.24
EPS(TTM)3.99
EY4.5%
EPS(NY)4.6
Fwd EY5.19%
FCF(TTM)3.1
FCFY3.5%
OCF(TTM)3.37
OCFY3.81%
SpS14.95
BVpS12.08
TBVpS-5.02
PEG (NY)1.93
PEG (5Y)6.35
Graham Number32.9343 (-62.82%)
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
WACC9.77%
ROIC/WACC1.37
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 Y11.48%
EPS Next 2Y10.04%
EPS Next 3Y9.47%
EPS Next 5Y10.36%
Revenue 1Y (TTM)9%
Revenue growth 3Y3.19%
Revenue growth 5Y2.82%
Sales Q2Q%9.71%
Revenue Next Year8.74%
Revenue Next 2Y6.65%
Revenue Next 3Y5.98%
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 5 / 10 to CSCO.


What is the valuation status for CSCO stock?

ChartMill assigns a valuation rating of 4 / 10 to CISCO SYSTEMS INC (CSCO). This can be considered as Fairly Valued.


What is the profitability of CSCO stock?

CISCO SYSTEMS INC (CSCO) has a profitability rating of 8 / 10.


Can you provide the expected EPS growth for CSCO stock?

The Earnings per Share (EPS) of CISCO SYSTEMS INC (CSCO) is expected to grow by 11.48% in the next year.


How sustainable is the dividend of CISCO SYSTEMS INC (CSCO) stock?

The dividend rating of CISCO SYSTEMS INC (CSCO) is 7 / 10 and the dividend payout ratio is 58.56%.