73.88 USD
-0.08 (-0.11%)
73.95 USD
+0.07 (+0.09%)
Taking everything into account, CSCO scores 5 out of 10 in our fundamental rating. 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 is not valued too expensively and it also shows a decent growth rate.
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.
In the past 5 years CSCO always reported a positive cash flow from operatings.
1.2 Ratios
CSCO's Return On Assets of 8.53% is amongst the best of the industry. CSCO outperforms 83.33% of its industry peers.
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.
Looking at the Return On Invested Capital, with a value of 12.86%, 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 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
With an excellent Profit Margin value of 17.90%, 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 Profit Margin of CSCO has declined.
Looking at the Operating Margin, with a value of 22.52%, CSCO belongs to the top 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 better Gross Margin (64.85%) than 87.50% of its industry peers.
In the last couple of years the Gross Margin of CSCO has remained more or less at the same level.
| 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
Compared to 5 years ago, CSCO has less shares outstanding
Compared to 1 year ago, CSCO has an improved debt to assets ratio.
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.
A Debt/Equity ratio of 0.46 indicates that CSCO is not too dependend on debt financing.
The Debt to Equity ratio of CSCO (0.46) is worse than 70.83% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.21 | ||
| Altman-Z | N/A |
ROIC/WACC1.38
WACC9.33%
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 Current ratio of 0.93. This is amonst the worse of the industry: CSCO underperforms 89.58% 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.
Looking at the Quick ratio, with a value of 0.83, CSCO is doing worse than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
CSCO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.20%, 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 8.91%.
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)10.2%
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
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.99, which indicates a rather expensive current valuation of CSCO.
72.92% 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 27.19, CSCO is valued a bit cheaper.
CSCO is valuated correctly with a Price/Forward Earnings ratio of 16.24.
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 23.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.99 | ||
| Fwd PE | 16.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CSCO is valued a bit cheaper than the industry average as 60.42% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CSCO is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.93 | ||
| EV/EBITDA | 19.03 |
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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.79
PEG (5Y)5.43
EPS Next 2Y9.4%
EPS Next 3Y8.67%
5. Dividend
5.1 Amount
CSCO has a Yearly Dividend Yield of 2.13%.
CSCO's Dividend Yield is rather good when compared to the industry average which is at 0.78. CSCO pays more dividend than 85.42% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, CSCO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
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
5.3 Sustainability
62.56% of the earnings are spent on dividend by CSCO. 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%
73.88
-0.08 (-0.11%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners81.27%
Inst Owner Change0%
Ins Owners0.03%
Ins Owner Change1.11%
Market Cap291.91B
Revenue(TTM)57.70B
Net Income(TTM)10.33B
Analysts77.42
Price Target86.68 (17.33%)
Short Float %1.39%
Short Ratio2.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
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)0%
EPS NY rev (3m)1.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.99 | ||
| Fwd PE | 16.24 | ||
| P/S | 5.06 | ||
| P/FCF | 22.93 | ||
| P/OCF | 21.24 | ||
| P/B | 6.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.03 |
EPS(TTM)3.89
EY5.27%
EPS(NY)4.55
Fwd EY6.16%
FCF(TTM)3.22
FCFY4.36%
OCF(TTM)3.48
OCFY4.71%
SpS14.6
BVpS11.86
TBVpS-5.3
PEG (NY)1.79
PEG (5Y)5.43
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
WACC9.33%
ROIC/WACC1.38
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 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 18.99 and the Price/Book (PB) ratio is 6.23.
Can you provide the financial health for CSCO stock?
The financial health rating of CISCO SYSTEMS INC (CSCO) is 4 / 10.