CISCO SYSTEMS INC (1CSCO.MI) Stock Fundamental Analysis
Europe - BIT:1CSCO - US17275R1023 - Common Stock
59.57 EUR
+0.69 (+1.17%)
Overall 1CSCO gets a fundamental rating of 5 out of 10. We evaluated 1CSCO against 29 industry peers in the Communications Equipment industry. 1CSCO scores excellent on profitability, but 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.
1CSCO had a positive operating cash flow in the past year.
In the past 5 years 1CSCO has always been profitable.
In the past 5 years 1CSCO always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.32%, 1CSCO is in the better half of the industry, outperforming 75.86% of the companies in the same industry.
1CSCO has a Return On Equity of 21.73%. This is in the better half of the industry: 1CSCO outperforms 79.31% of its industry peers.
1CSCO has a Return On Invested Capital of 11.70%. This is in the better half of the industry: 1CSCO outperforms 75.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1CSCO is in line with the industry average of 12.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.32% | ||
| ROE | 21.73% | ||
| ROIC | 11.7% |
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
1CSCO has a better Profit Margin (17.97%) than 93.10% of its industry peers.
1CSCO's Profit Margin has declined in the last couple of years.
1CSCO's Operating Margin of 22.09% is amongst the best of the industry. 1CSCO outperforms 93.10% of its industry peers.
In the last couple of years the Operating Margin of 1CSCO has declined.
Looking at the Gross Margin, with a value of 64.94%, 1CSCO belongs to the top of the industry, outperforming 82.76% of the companies in the same industry.
In the last couple of years the Gross Margin of 1CSCO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.09% | ||
| PM (TTM) | 17.97% | ||
| GM | 64.94% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1CSCO is creating some value.
The number of shares outstanding for 1CSCO has been reduced compared to 1 year ago.
The number of shares outstanding for 1CSCO has been reduced compared to 5 years ago.
The debt/assets ratio for 1CSCO has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.98 indicates that 1CSCO is not a great score, but indicates only limited risk for bankruptcy at the moment.
1CSCO has a debt to FCF ratio of 2.11. This is a good value and a sign of high solvency as 1CSCO would need 2.11 years to pay back of all of its debts.
1CSCO has a Debt to FCF ratio of 2.11. This is in the better half of the industry: 1CSCO outperforms 68.97% of its industry peers.
1CSCO has a Debt/Equity ratio of 0.56. This is a neutral value indicating 1CSCO is somewhat dependend on debt financing.
1CSCO's Debt to Equity ratio of 0.56 is in line compared to the rest of the industry. 1CSCO outperforms 41.38% 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 | 0.56 | ||
| Debt/FCF | 2.11 | ||
| Altman-Z | 2.98 |
ROIC/WACC1.29
WACC9.1%
2.3 Liquidity
1CSCO has a Current Ratio of 1.00. 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 worse Current ratio (1.00) than 86.21% of its industry peers.
A Quick Ratio of 0.91 indicates that 1CSCO may have some problems paying its short term obligations.
1CSCO has a worse Quick ratio (0.91) than 72.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.88% over the past year.
1CSCO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.50% yearly.
The Revenue has been growing slightly by 5.30% in the past year.
1CSCO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.82% yearly.
EPS 1Y (TTM)1.88%
EPS 3Y4.19%
EPS 5Y3.5%
EPS Q2Q%13.79%
Revenue 1Y (TTM)5.3%
Revenue growth 3Y3.19%
Revenue growth 5Y2.82%
Sales Q2Q%7.56%
3.2 Future
1CSCO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.38% yearly.
1CSCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.95% yearly.
EPS Next Y8.49%
EPS Next 2Y8.04%
EPS Next 3Y7.97%
EPS Next 5Y8.38%
Revenue Next Year5.35%
Revenue Next 2Y4.98%
Revenue Next 3Y4.85%
Revenue Next 5Y4.95%
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
A Price/Earnings ratio of 18.22 indicates a rather expensive valuation of 1CSCO.
Compared to the rest of the industry, the Price/Earnings ratio of 1CSCO indicates a somewhat cheap valuation: 1CSCO is cheaper than 75.86% of the companies listed in the same industry.
1CSCO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.91.
1CSCO is valuated correctly with a Price/Forward Earnings ratio of 16.78.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1CSCO indicates a somewhat cheap valuation: 1CSCO is cheaper than 65.52% of the companies listed in the same industry.
1CSCO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.22 | ||
| Fwd PE | 16.78 |
4.2 Price Multiples
1CSCO's Enterprise Value to EBITDA ratio is in line with the industry average.
1CSCO's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.58 | ||
| EV/EBITDA | 17.89 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1CSCO does not grow enough to justify the current Price/Earnings ratio.
1CSCO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.15
PEG (5Y)5.21
EPS Next 2Y8.04%
EPS Next 3Y7.97%
5. Dividend
5.1 Amount
1CSCO has a Yearly Dividend Yield of 2.33%.
Compared to an average industry Dividend Yield of 5.17, 1CSCO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, 1CSCO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
5.2 History
The dividend of 1CSCO has a limited annual growth rate of 2.65%.
Dividend Growth(5Y)2.65%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1CSCO pays out 63.23% of its income as dividend. This is not a sustainable payout ratio.
The dividend of 1CSCO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP63.23%
EPS Next 2Y8.04%
EPS Next 3Y7.97%
BIT:1CSCO (10/17/2025, 7:00:00 PM)
59.57
+0.69 (+1.17%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners80.81%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap235.49B
Revenue(TTM)56.65B
Net Income(TTM)10.18B
Analysts77.5
Price Target66.21 (11.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
Yearly Dividend1.39
Dividend Growth(5Y)2.65%
DP63.23%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.01%
Min EPS beat(2)-0.5%
Max EPS beat(2)2.52%
EPS beat(4)3
Avg EPS beat(4)1.46%
Min EPS beat(4)-0.5%
Max EPS beat(4)2.52%
EPS beat(8)7
Avg EPS beat(8)2.32%
EPS beat(12)11
Avg EPS beat(12)2.22%
EPS beat(16)12
Avg EPS beat(16)1.69%
Revenue beat(2)0
Avg Revenue beat(2)-1.53%
Min Revenue beat(2)-1.58%
Max Revenue beat(2)-1.48%
Revenue beat(4)0
Avg Revenue beat(4)-1.41%
Min Revenue beat(4)-1.58%
Max Revenue beat(4)-1.14%
Revenue beat(8)0
Avg Revenue beat(8)-1.3%
Revenue beat(12)1
Avg Revenue beat(12)-1.04%
Revenue beat(16)2
Avg Revenue beat(16)-1.32%
PT rev (1m)0.4%
PT rev (3m)5.28%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)1.3%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.39%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.92%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.22 | ||
| Fwd PE | 16.78 | ||
| P/S | 4.83 | ||
| P/FCF | 20.58 | ||
| P/OCF | 19.27 | ||
| P/B | 5.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.89 |
EPS(TTM)3.27
EY5.49%
EPS(NY)3.55
Fwd EY5.96%
FCF(TTM)2.89
FCFY4.86%
OCF(TTM)3.09
OCFY5.19%
SpS12.34
BVpS10.2
TBVpS-4.68
PEG (NY)2.15
PEG (5Y)5.21
Graham Number27.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.32% | ||
| ROE | 21.73% | ||
| ROCE | 14.35% | ||
| ROIC | 11.7% | ||
| ROICexc | 14.23% | ||
| ROICexgc | 168.77% | ||
| OM | 22.09% | ||
| PM (TTM) | 17.97% | ||
| GM | 64.94% | ||
| FCFM | 23.45% |
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-Score8
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.11 | ||
| Debt/EBITDA | 1.72 | ||
| Cap/Depr | 32.2% | ||
| Cap/Sales | 1.6% | ||
| Interest Coverage | 8.34 | ||
| Cash Conversion | 92.6% | ||
| Profit Quality | 130.53% | ||
| Current Ratio | 1 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 2.98 |
F-Score8
WACC9.1%
ROIC/WACC1.29
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)1.88%
EPS 3Y4.19%
EPS 5Y3.5%
EPS Q2Q%13.79%
EPS Next Y8.49%
EPS Next 2Y8.04%
EPS Next 3Y7.97%
EPS Next 5Y8.38%
Revenue 1Y (TTM)5.3%
Revenue growth 3Y3.19%
Revenue growth 5Y2.82%
Sales Q2Q%7.56%
Revenue Next Year5.35%
Revenue Next 2Y4.98%
Revenue Next 3Y4.85%
Revenue Next 5Y4.95%
EBIT growth 1Y-3.69%
EBIT growth 3Y-3.72%
EBIT growth 5Y-2.35%
EBIT Next Year15.46%
EBIT Next 3Y7.42%
EBIT Next 5YN/A
FCF growth 1Y30.15%
FCF growth 3Y1.39%
FCF growth 5Y-1.94%
OCF growth 1Y30.45%
OCF growth 3Y2.38%
OCF growth 5Y-1.65%
CISCO SYSTEMS INC / 1CSCO.MI FAQ
What is the fundamental rating for 1CSCO stock?
ChartMill assigns a fundamental rating of 5 / 10 to 1CSCO.MI.
Can you provide the valuation status for CISCO SYSTEMS INC?
ChartMill assigns a valuation rating of 4 / 10 to CISCO SYSTEMS INC (1CSCO.MI). This can be considered as Fairly Valued.
What is the profitability of 1CSCO stock?
CISCO SYSTEMS INC (1CSCO.MI) has a profitability rating of 7 / 10.
What is the financial health of CISCO SYSTEMS INC (1CSCO.MI) stock?
The financial health rating of CISCO SYSTEMS INC (1CSCO.MI) is 4 / 10.
Is the dividend of CISCO SYSTEMS INC sustainable?
The dividend rating of CISCO SYSTEMS INC (1CSCO.MI) is 4 / 10 and the dividend payout ratio is 63.23%.