CISCO SYSTEMS INC (CSCO) Fundamental Analysis & Valuation

NASDAQ:CSCO • US17275R1023

Current stock price

77.04 USD
-2.88 (-3.6%)
At close:
77.76 USD
+0.72 (+0.93%)
Pre-Market:

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.
  • 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.
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

  • Looking at the Return On Assets, with a value of 8.98%, CSCO belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 23.21%, CSCO belongs to the top 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.
  • CSCO had an Average Return On Invested Capital over the past 3 years of 14.02%. This is above the industry average of 10.22%.
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's Profit Margin of 18.76% is amongst the best of the industry. CSCO outperforms 91.67% of its industry peers.
  • In the last couple of years the Profit Margin of CSCO has declined.
  • CSCO has a Operating Margin of 23.18%. This is amongst the best in the industry. CSCO outperforms 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 64.81%, CSCO belongs to the top of the industry, outperforming 87.50% 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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4

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.
  • 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
  • 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.
  • With a decent Debt to FCF ratio value of 2.46, CSCO is doing good in 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.
  • CSCO has a worse Debt to Equity ratio (0.45) than 72.92% of its industry peers.
  • 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/WACC1.55
WACC8.66%
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.
  • CSCO has a worse Current ratio (0.96) 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.
  • Looking at the Quick ratio, with a value of 0.85, CSCO is doing worse than 85.42% of the companies in the same industry.
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. 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.
  • 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.
  • Looking at the last year, CSCO shows a quite strong growth in Revenue. The Revenue has grown by 9.00% in the last year.
  • Measured over the past years, CSCO shows a small growth in Revenue. The Revenue has been growing by 2.82% on average per year.
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

  • Based on estimates for the next years, CSCO will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.36% on average per year.
  • 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 Y11.5%
EPS Next 2Y10.06%
EPS Next 3Y9.49%
EPS Next 5Y10.36%
Revenue Next Year8.73%
Revenue Next 2Y7.24%
Revenue Next 3Y6.47%
Revenue Next 5Y5.95%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • 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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5

4. CSCO Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 19.31, the valuation of CSCO can be described as rather expensive.
  • 75.00% of the companies in the same industry are more expensive than CSCO, based on the Price/Earnings ratio.
  • Compared to an average S&P500 Price/Earnings ratio of 24.75, CSCO is valued a bit cheaper.
  • The Price/Forward Earnings ratio is 16.74, which 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's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.10.
Industry RankSector Rank
PE 19.31
Fwd PE 16.74
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

  • Based on the Enterprise Value to EBITDA ratio, CSCO is valued a bit cheaper than 62.50% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, CSCO is valued a bit cheaper than the industry average as 60.42% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 24.86
EV/EBITDA 19.14
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 PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • CSCO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.68
PEG (5Y)5.52
EPS Next 2Y10.06%
EPS Next 3Y9.49%

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

7

5. CSCO Dividend Analysis

5.1 Amount

  • CSCO has a Yearly Dividend Yield of 2.04%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 0.76, CSCO pays a better dividend. On top of this CSCO pays more dividend than 87.50% of the companies listed in the same industry.
  • CSCO's Dividend Yield is comparable with the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 2.04%

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
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.
  • CSCO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP58.56%
EPS Next 2Y10.06%
EPS Next 3Y9.49%
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 (3/30/2026, 8:00:01 PM)

Premarket: 77.76 +0.72 (+0.93%)

77.04

-2.88 (-3.6%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-11
Earnings (Next)05-12
Inst Owners81.84%
Inst Owner Change2.38%
Ins Owners0.03%
Ins Owner Change-5.33%
Market Cap304.30B
Revenue(TTM)59.05B
Net Income(TTM)11.08B
Analysts78.71
Price Target89.85 (16.63%)
Short Float %1.65%
Short Ratio2.56
Dividend
Industry RankSector Rank
Dividend Yield 2.04%
Yearly Dividend1.62
Dividend Growth(5Y)2.65%
DP58.56%
Div Incr Years13
Div Non Decr Years13
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)1.98%
PT rev (3m)3.66%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.28%
EPS NY rev (1m)0.83%
EPS NY rev (3m)0.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.32%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)1.39%
Valuation
Industry RankSector Rank
PE 19.31
Fwd PE 16.74
P/S 5.15
P/FCF 24.86
P/OCF 22.84
P/B 6.38
P/tB N/A
EV/EBITDA 19.14
EPS(TTM)3.99
EY5.18%
EPS(NY)4.6
Fwd EY5.98%
FCF(TTM)3.1
FCFY4.02%
OCF(TTM)3.37
OCFY4.38%
SpS14.95
BVpS12.08
TBVpS-5.02
PEG (NY)1.68
PEG (5Y)5.52
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
WACC8.66%
ROIC/WACC1.55
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 Y11.5%
EPS Next 2Y10.06%
EPS Next 3Y9.49%
EPS Next 5Y10.36%
Revenue 1Y (TTM)9%
Revenue growth 3Y3.19%
Revenue growth 5Y2.82%
Sales Q2Q%9.71%
Revenue Next Year8.73%
Revenue Next 2Y7.24%
Revenue Next 3Y6.47%
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 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 19.31 and the Price/Book (PB) ratio is 6.38.


Can you provide the financial health for CSCO stock?

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