CISCO SYSTEMS INC (CSCO) Fundamental Analysis & Valuation

NASDAQ:CSCO • US17275R1023

Current stock price

78.65 USD
+0.72 (+0.92%)
Last:

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.
  • 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

  • CSCO has a better Return On Assets (8.98%) than 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 10.22%.
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 has a better Profit Margin (18.76%) than 91.67% of its industry peers.
  • In the last couple of years the Profit Margin of CSCO has declined.
  • The Operating Margin of CSCO (23.18%) is better than 91.67% of its industry peers.
  • CSCO's Operating Margin has declined in the last couple of years.
  • CSCO has a better Gross Margin (64.81%) than 87.50% of its industry peers.
  • CSCO's Gross Margin has been stable in the last couple of years.
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

  • CSCO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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
  • CSCO has a better debt/assets ratio than last year.
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 better Debt to FCF ratio (2.46) than 60.42% of its industry peers.
  • A Debt/Equity ratio of 0.45 indicates that CSCO is not too dependend on debt financing.
  • With a Debt to Equity ratio value of 0.45, CSCO is not doing good in the industry: 72.92% of the companies in the same industry are doing better.
  • 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/WACC1.56
WACC8.58%
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.
  • With a Current ratio value of 0.96, CSCO is not doing good in the industry: 87.50% of the companies in the same industry are doing better.
  • 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.
  • 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.
  • The Earnings Per Share has been growing slightly by 3.50% on average over the past years.
  • Looking at the last year, CSCO shows a quite strong growth in Revenue. The Revenue has grown by 9.00% in the last year.
  • 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 Y11.5%
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

  • 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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5

4. CSCO Valuation Analysis

4.1 Price/Earnings Ratio

  • CSCO is valuated rather expensively with a Price/Earnings ratio of 19.71.
  • Based on the Price/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/Earnings ratio to 25.51, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 17.09, the valuation of CSCO can be described as rather expensive.
  • Based on the Price/Forward Earnings ratio, CSCO is valued a bit cheaper than the industry average as 79.17% of the companies are valued more expensively.
  • When comparing the Price/Forward Earnings ratio of CSCO to the average of the S&P500 Index (22.76), we can say CSCO is valued slightly cheaper.
Industry RankSector Rank
PE 19.71
Fwd PE 17.09
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CSCO indicates a somewhat cheap valuation: CSCO is cheaper than 62.50% of the companies listed in the same industry.
  • 60.42% of the companies in the same industry are more expensive than CSCO, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 25.38
EV/EBITDA 19.35
CSCO Per share dataCSCO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10

4.3 Compensation for Growth

  • CSCO's 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)1.71
PEG (5Y)5.64
EPS Next 2Y10.06%
EPS Next 3Y9.49%

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7

5. CSCO Dividend Analysis

5.1 Amount

  • CSCO has a Yearly Dividend Yield of 2.04%.
  • 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 paid a dividend for at least 10 years, which is 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
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

  • CSCO pays out 58.56% of its income as dividend. 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 2Y10.06%
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 (4/2/2026, 3:36:04 PM)

78.65

+0.72 (+0.92%)

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 Cap310.66B
Revenue(TTM)59.05B
Net Income(TTM)11.08B
Analysts78.71
Price Target89.85 (14.24%)
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 19.71
Fwd PE 17.09
P/S 5.26
P/FCF 25.38
P/OCF 23.31
P/B 6.51
P/tB N/A
EV/EBITDA 19.35
EPS(TTM)3.99
EY5.07%
EPS(NY)4.6
Fwd EY5.85%
FCF(TTM)3.1
FCFY3.94%
OCF(TTM)3.37
OCFY4.29%
SpS14.95
BVpS12.08
TBVpS-5.02
PEG (NY)1.71
PEG (5Y)5.64
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
WACC8.58%
ROIC/WACC1.56
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 for CSCO stock?

ChartMill assigns a valuation rating of 5 / 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 11.5% 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%.