CISCO SYSTEMS INC (1CSCO.MI) Stock Fundamental Analysis
BIT:1CSCO - Euronext Milan - US17275R1023 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to 1CSCO. 1CSCO was compared to 25 industry peers in the Communications Equipment industry. While 1CSCO has a great profitability rating, there are some minor concerns on its financial health. 1CSCO is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1CSCO was profitable.
In the past year 1CSCO had a positive cash flow from operations.
Each year in the past 5 years 1CSCO has been profitable.
1CSCO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.17%, 1CSCO belongs to the top of the industry, outperforming 84.00% of the companies in the same industry.
1CSCO's Return On Equity of 21.32% is amongst the best of the industry. 1CSCO outperforms 88.00% of its industry peers.
The Return On Invested Capital of 1CSCO (11.30%) is better than 84.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1CSCO is significantly above the industry average of 10.25%.
The last Return On Invested Capital (11.30%) for 1CSCO is well below the 3 year average (15.60%), which needs to be investigated, but indicates that 1CSCO had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.17% | ||
| ROE | 21.32% | ||
| ROIC | 11.3% |
ROA(3y)11.08%
ROA(5y)11.19%
ROE(3y)26.95%
ROE(5y)27.21%
ROIC(3y)15.6%
ROIC(5y)15.96%
1.3 Margins
With an excellent Profit Margin value of 17.60%, 1CSCO belongs to the best of the industry, outperforming 92.00% of the companies in the same industry.
In the last couple of years the Profit Margin of 1CSCO has declined.
With an excellent Operating Margin value of 21.81%, 1CSCO belongs to the best of the industry, outperforming 92.00% of the companies in the same industry.
1CSCO's Operating Margin has declined in the last couple of years.
1CSCO has a Gross Margin of 65.24%. This is in the better half of the industry: 1CSCO outperforms 80.00% of its industry peers.
1CSCO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.81% | ||
| PM (TTM) | 17.6% | ||
| GM | 65.24% |
OM growth 3Y-4.32%
OM growth 5Y-2.87%
PM growth 3Y-3.37%
PM growth 5Y-3.05%
GM growth 3Y0.37%
GM growth 5Y0.56%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1CSCO is creating some value.
1CSCO has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, 1CSCO has less shares outstanding
The debt/assets ratio for 1CSCO is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.87 indicates that 1CSCO is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.87, 1CSCO is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
1CSCO has a debt to FCF ratio of 2.29. This is a good value and a sign of high solvency as 1CSCO would need 2.29 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.29, 1CSCO is in the better half of the industry, outperforming 72.00% of the companies in the same industry.
1CSCO has a Debt/Equity ratio of 0.59. This is a neutral value indicating 1CSCO is somewhat dependend on debt financing.
1CSCO has a Debt to Equity ratio (0.59) which is comparable to the rest of the industry.
Although 1CSCO does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 2.29 | ||
| Altman-Z | 2.87 |
ROIC/WACC1.16
WACC9.71%
2.3 Liquidity
A Current Ratio of 0.95 indicates that 1CSCO may have some problems paying its short term obligations.
With a Current ratio value of 0.95, 1CSCO is not doing good in the industry: 84.00% of the companies in the same industry are doing better.
1CSCO has a Quick Ratio of 0.95. This is a bad value and indicates that 1CSCO is not financially healthy enough and could expect problems in meeting its short term obligations.
1CSCO has a Quick ratio of 0.87. This is in the lower half of the industry: 1CSCO underperforms 76.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
1CSCO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.00%.
Measured over the past 5 years, 1CSCO shows a small growth in Earnings Per Share. The EPS has been growing by 3.84% on average per year.
Looking at the last year, 1CSCO shows a small growth in Revenue. The Revenue has grown by 0.47% in the last year.
The Revenue has been growing slightly by 0.72% on average over the past years.
EPS 1Y (TTM)-8%
EPS 3Y5.02%
EPS 5Y3.84%
EPS Q2Q%9.09%
Revenue 1Y (TTM)0.47%
Revenue growth 3Y2.6%
Revenue growth 5Y0.72%
Sales Q2Q%11.39%
3.2 Future
1CSCO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.50% yearly.
1CSCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.73% yearly.
EPS Next Y3.63%
EPS Next 2Y4.93%
EPS Next 3Y6.03%
EPS Next 5Y6.5%
Revenue Next Year5.43%
Revenue Next 2Y5.31%
Revenue Next 3Y5.12%
Revenue Next 5Y4.73%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 17.59, the valuation of 1CSCO can be described as rather expensive.
Based on the Price/Earnings ratio, 1CSCO is valued a bit cheaper than 80.00% of the companies in the same industry.
1CSCO is valuated rather cheaply when we compare the Price/Earnings ratio to 27.69, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 15.77, which indicates a correct valuation of 1CSCO.
76.00% of the companies in the same industry are more expensive than 1CSCO, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of 1CSCO to the average of the S&P500 Index (37.36), we can say 1CSCO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.59 | ||
| Fwd PE | 15.77 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1CSCO.
1CSCO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.03 | ||
| EV/EBITDA | 17.07 |
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 1CSCO may justify a higher PE ratio.
PEG (NY)4.85
PEG (5Y)4.59
EPS Next 2Y4.93%
EPS Next 3Y6.03%
5. Dividend
5.1 Amount
1CSCO has a Yearly Dividend Yield of 2.39%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.46, 1CSCO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, 1CSCO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
5.2 History
The dividend of 1CSCO has a limited annual growth rate of 3.23%.
Dividend Growth(5Y)3.23%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1CSCO pays out 65.54% of its income as dividend. This is not a sustainable payout ratio.
1CSCO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP65.54%
EPS Next 2Y4.93%
EPS Next 3Y6.03%
BIT:1CSCO (7/2/2025, 7:00:00 PM)
55.42
-0.29 (-0.52%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners81.14%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap219.46B
Analysts79.35
Price Target62.89 (13.48%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
Yearly Dividend1.35
Dividend Growth(5Y)3.23%
DP65.54%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.94%
Min EPS beat(2)1.37%
Max EPS beat(2)2.52%
EPS beat(4)4
Avg EPS beat(4)1.74%
Min EPS beat(4)0.58%
Max EPS beat(4)2.52%
EPS beat(8)8
Avg EPS beat(8)3.07%
EPS beat(12)11
Avg EPS beat(12)2.24%
EPS beat(16)12
Avg EPS beat(16)1.71%
Revenue beat(2)0
Avg Revenue beat(2)-1.31%
Min Revenue beat(2)-1.48%
Max Revenue beat(2)-1.14%
Revenue beat(4)0
Avg Revenue beat(4)-1.32%
Min Revenue beat(4)-1.48%
Max Revenue beat(4)-1.14%
Revenue beat(8)0
Avg Revenue beat(8)-1.22%
Revenue beat(12)2
Avg Revenue beat(12)-0.83%
Revenue beat(16)2
Avg Revenue beat(16)-1.3%
PT rev (1m)0.47%
PT rev (3m)-4.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.04%
EPS NY rev (1m)0.48%
EPS NY rev (3m)1.91%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)0.62%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.59 | ||
| Fwd PE | 15.77 | ||
| P/S | 4.61 | ||
| P/FCF | 20.03 | ||
| P/OCF | 18.73 | ||
| P/B | 5.58 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.07 |
EPS(TTM)3.15
EY5.68%
EPS(NY)3.51
Fwd EY6.34%
FCF(TTM)2.77
FCFY4.99%
OCF(TTM)2.96
OCFY5.34%
SpS12.02
BVpS9.93
TBVpS-4.91
PEG (NY)4.85
PEG (5Y)4.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.17% | ||
| ROE | 21.32% | ||
| ROCE | 14.23% | ||
| ROIC | 11.3% | ||
| ROICexc | 13.7% | ||
| ROICexgc | 196.3% | ||
| OM | 21.81% | ||
| PM (TTM) | 17.6% | ||
| GM | 65.24% | ||
| FCFM | 23.02% |
ROA(3y)11.08%
ROA(5y)11.19%
ROE(3y)26.95%
ROE(5y)27.21%
ROIC(3y)15.6%
ROIC(5y)15.96%
ROICexc(3y)22.29%
ROICexc(5y)24.14%
ROICexgc(3y)203.21%
ROICexgc(5y)218.11%
ROCE(3y)19.37%
ROCE(5y)19.54%
ROICexcg growth 3Y-12.42%
ROICexcg growth 5Y-32.21%
ROICexc growth 3Y-16.83%
ROICexc growth 5Y-15.54%
OM growth 3Y-4.32%
OM growth 5Y-2.87%
PM growth 3Y-3.37%
PM growth 5Y-3.05%
GM growth 3Y0.37%
GM growth 5Y0.56%
F-Score7
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 2.29 | ||
| Debt/EBITDA | 1.79 | ||
| Cap/Depr | 29.54% | ||
| Cap/Sales | 1.59% | ||
| Interest Coverage | 7.57 | ||
| Cash Conversion | 90.46% | ||
| Profit Quality | 130.75% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 2.87 |
F-Score7
WACC9.71%
ROIC/WACC1.16
Cap/Depr(3y)33.43%
Cap/Depr(5y)36.01%
Cap/Sales(3y)1.22%
Cap/Sales(5y)1.32%
Profit Quality(3y)119.27%
Profit Quality(5y)125.58%
High Growth Momentum
Growth
EPS 1Y (TTM)-8%
EPS 3Y5.02%
EPS 5Y3.84%
EPS Q2Q%9.09%
EPS Next Y3.63%
EPS Next 2Y4.93%
EPS Next 3Y6.03%
EPS Next 5Y6.5%
Revenue 1Y (TTM)0.47%
Revenue growth 3Y2.6%
Revenue growth 5Y0.72%
Sales Q2Q%11.39%
Revenue Next Year5.43%
Revenue Next 2Y5.31%
Revenue Next 3Y5.12%
Revenue Next 5Y4.73%
EBIT growth 1Y-17.55%
EBIT growth 3Y-1.84%
EBIT growth 5Y-2.17%
EBIT Next Year17.34%
EBIT Next 3Y7.96%
EBIT Next 5YN/A
FCF growth 1Y-23.98%
FCF growth 3Y-11.56%
FCF growth 5Y-7.31%
OCF growth 1Y-22.21%
OCF growth 3Y-11.04%
OCF growth 5Y-7.23%