CISCO SYSTEMS INC (CSCO) Stock Fundamental Analysis

NASDAQ:CSCO • US17275R1023

78.96 USD
-0.46 (-0.58%)
At close: Mar 3, 2026
78.9 USD
-0.06 (-0.08%)
After Hours: 3/3/2026, 8:03:35 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

CSCO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 48 industry peers in the Communications Equipment industry. While CSCO has a great profitability rating, 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.
  • CSCO had a positive operating cash flow in the past year.
  • CSCO had positive earnings in each of the past 5 years.
  • In the past 5 years CSCO always reported a positive cash flow from operatings.
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 83.33% of its industry peers.
  • 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.
  • Measured over the past 3 years, the Average Return On Invested Capital for CSCO is above the industry average of 10.81%.
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.
  • 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.
  • CSCO's Operating Margin has declined in the last couple of years.
  • 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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ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CSCO is creating some value.
  • Compared to 1 year ago, CSCO has less shares outstanding
  • 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.
  • CSCO has a Debt to FCF ratio of 2.46. This is in the better half of the industry: CSCO outperforms 60.42% of its industry peers.
  • 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/WACC1.42
WACC9.45%
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.
  • CSCO's Current ratio of 0.96 is on the low side compared to the rest of the industry. CSCO is outperformed by 87.50% of its industry peers.
  • CSCO has a Quick 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 Quick ratio (0.85) than 85.42% 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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an nice 10.83% 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 9.00% in the past year. This is quite good.
  • 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

  • CSCO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.07% yearly.
  • CSCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.76% yearly.
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.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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

  • With a Price/Earnings ratio of 19.79, CSCO is valued on the expensive side.
  • Based on the Price/Earnings ratio, CSCO is valued a bit cheaper than 79.17% of the companies in the same industry.
  • CSCO is valuated rather cheaply when we compare the Price/Earnings ratio to 26.83, which is the current average of the S&P500 Index.
  • CSCO is valuated rather expensively with a Price/Forward Earnings ratio of 17.36.
  • 79.17% of the companies in the same industry are more expensive than CSCO, based on the Price/Forward Earnings ratio.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 24.95, CSCO is valued a bit cheaper.
Industry RankSector Rank
PE 19.79
Fwd PE 17.36
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

  • CSCO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CSCO is cheaper than 68.75% 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 62.50% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 25.49
EV/EBITDA 19.72
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)1.87
PEG (5Y)5.66
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

  • With a Yearly Dividend Yield of 2.15%, CSCO has a reasonable but not impressive dividend return.
  • CSCO's Dividend Yield is rather good when compared to the industry average which is at 0.75. CSCO pays more dividend than 85.42% of the companies in the same industry.
  • CSCO's Dividend Yield is comparable with the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 2.15%

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.
  • 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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CISCO SYSTEMS INC

NASDAQ:CSCO (3/3/2026, 8:03:35 PM)

After market: 78.9 -0.06 (-0.08%)

78.96

-0.46 (-0.58%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-11
Earnings (Next)05-12
Inst Owners81.27%
Inst Owner Change0.68%
Ins Owners0.03%
Ins Owner Change1.57%
Market Cap311.98B
Revenue(TTM)59.05B
Net Income(TTM)11.08B
Analysts78.71
Price Target89.66 (13.55%)
Short Float %1.4%
Short Ratio2.33
Dividend
Industry RankSector Rank
Dividend Yield 2.15%
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)3.43%
PT rev (3m)4.51%
EPS NQ rev (1m)0.28%
EPS NQ rev (3m)0.28%
EPS NY rev (1m)0%
EPS NY rev (3m)1.94%
Revenue NQ rev (1m)2.32%
Revenue NQ rev (3m)2.32%
Revenue NY rev (1m)1.24%
Revenue NY rev (3m)3.04%
Valuation
Industry RankSector Rank
PE 19.79
Fwd PE 17.36
P/S 5.28
P/FCF 25.49
P/OCF 23.41
P/B 6.54
P/tB N/A
EV/EBITDA 19.72
EPS(TTM)3.99
EY5.05%
EPS(NY)4.55
Fwd EY5.76%
FCF(TTM)3.1
FCFY3.92%
OCF(TTM)3.37
OCFY4.27%
SpS14.95
BVpS12.08
TBVpS-5.02
PEG (NY)1.87
PEG (5Y)5.66
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
WACC9.45%
ROIC/WACC1.42
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 Year19.86%
EBIT Next 3Y10.35%
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 19.79 and the Price/Book (PB) ratio is 6.54.


Can you provide the financial health for CSCO stock?

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