CISCO SYSTEMS INC (1CSCO.MI) Stock Fundamental Analysis
BIT:1CSCO - Euronext Milan - US17275R1023 - Common Stock - Currency: EUR
Taking everything into account, 1CSCO scores 5 out of 10 in our fundamental rating. 1CSCO was compared to 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 decent growth rate and is not valued too expensively.
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.
1CSCO had positive earnings in each of the past 5 years.
In the past 5 years 1CSCO always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of 1CSCO (8.17%) is better than 84.00% of its industry peers.
With an excellent Return On Equity value of 21.32%, 1CSCO belongs to the best of the industry, outperforming 88.00% of the companies in the same industry.
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
The Profit Margin of 1CSCO (17.60%) is better than 92.00% of its industry peers.
1CSCO's Profit Margin has declined in the last couple of years.
The Operating Margin of 1CSCO (21.81%) is better than 92.00% of its industry peers.
1CSCO's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 65.24%, 1CSCO is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
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
1CSCO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
A Debt/Equity ratio of 0.59 indicates that 1CSCO is somewhat dependend on debt financing.
1CSCO's Debt to Equity ratio of 0.59 is in line compared 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
1CSCO has a Current 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.
The Current ratio of 1CSCO (0.95) is worse than 84.00% of its industry peers.
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's Quick ratio of 0.87 is on the low side compared to the rest of the industry. 1CSCO is outperformed by 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.
The Earnings Per Share has been growing slightly by 3.84% on average over the past years.
The Revenue has been growing slightly by 0.47% in the past 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
The Earnings Per Share is expected to grow by 6.50% on average over the next years.
The Revenue is expected to grow by 4.73% on average over the next years.
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
A Price/Earnings ratio of 17.59 indicates a rather expensive valuation of 1CSCO.
Based on the Price/Earnings ratio, 1CSCO is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
1CSCO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.04.
Based on the Price/Forward Earnings ratio of 15.77, the valuation of 1CSCO can be described as correct.
1CSCO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1CSCO is cheaper than 76.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 37.64. 1CSCO is valued rather cheaply when compared to this.
| 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
With a Yearly Dividend Yield of 2.39%, 1CSCO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.46, 1CSCO pays a bit more dividend than its industry peers.
1CSCO's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| 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%