CISCO SYSTEMS INC (1CSCO.MI) Stock Fundamental Analysis
BIT:1CSCO - Euronext Milan - US17275R1023 - Common Stock - Currency: EUR
1CSCO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 25 industry peers in the Communications Equipment industry. 1CSCO has an excellent profitability rating, but there are some minor concerns on its financial health. 1CSCO has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
1CSCO had positive earnings in the past year.
In the past year 1CSCO had a positive cash flow from operations.
1CSCO had positive earnings in each of the past 5 years.
Each year in the past 5 years 1CSCO had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 8.17%, 1CSCO belongs to the best 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.
1CSCO has a Return On Invested Capital of 11.30%. This is amongst the best in the industry. 1CSCO outperforms 84.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1CSCO is significantly above the industry average of 8.88%.
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
1CSCO has a better Profit Margin (17.60%) than 92.00% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1CSCO is still creating some value.
1CSCO has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, 1CSCO has less shares outstanding
Compared to 1 year ago, 1CSCO has a worse debt to assets ratio.
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.
1CSCO's Altman-Z score of 2.87 is fine compared to the rest of the industry. 1CSCO outperforms 68.00% of its industry peers.
The Debt to FCF ratio of 1CSCO is 2.29, which is a good value as it means it would take 1CSCO, 2.29 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.29, 1CSCO is doing good in the industry, outperforming 72.00% of the companies in the same industry.
A Debt/Equity ratio of 0.59 indicates that 1CSCO is somewhat dependend on debt financing.
1CSCO has a Debt to Equity ratio of 0.59. This is comparable to the rest of the industry: 1CSCO outperforms 44.00% of its industry peers.
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.
A Quick Ratio of 0.87 indicates that 1CSCO may have some problems paying 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
The earnings per share for 1CSCO have decreased by -8.00% in the last year.
1CSCO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.84% yearly.
1CSCO shows a small growth in Revenue. In the last year, the Revenue has grown by 0.47%.
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
Based on estimates for the next years, 1CSCO will show a small growth in Earnings Per Share. The EPS will grow by 6.50% on average per year.
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.
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 17.59, which indicates a rather expensive current valuation of 1CSCO.
1CSCO's Price/Earnings ratio is a bit cheaper when compared to the industry. 1CSCO is cheaper than 80.00% of the companies in the same industry.
1CSCO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.91.
The Price/Forward Earnings ratio is 15.77, which indicates a correct valuation of 1CSCO.
Based on the Price/Forward Earnings ratio, 1CSCO is valued a bit cheaper than the industry average as 76.00% of the companies are valued more expensively.
1CSCO is valuated cheaply when we compare the Price/Forward Earnings ratio to 37.11, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.59 | ||
| Fwd PE | 15.77 |
4.2 Price Multiples
1CSCO's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as 1CSCO.
| 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.
1CSCO has an outstanding profitability rating, which 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%.
1CSCO's Dividend Yield is a higher than the industry average which is at 6.47.
1CSCO's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| 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
65.54% of the earnings are spent on dividend by 1CSCO. This is not a sustainable payout ratio.
The dividend of 1CSCO is growing, but earnings are growing more, so the dividend growth is 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%