CISCO SYSTEMS INC (CIS.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:CIS - US17275R1023 - Common Stock
65.56 EUR
+0.11 (+0.17%)
Overall CIS gets a fundamental rating of 5 out of 10. We evaluated CIS against 28 industry peers in the Communications Equipment industry. CIS has an excellent profitability rating, but there are some minor concerns on its financial health. CIS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year CIS was profitable.
CIS had a positive operating cash flow in the past year.
Each year in the past 5 years CIS has been profitable.
Each year in the past 5 years CIS had a positive operating cash flow.
1.2 Ratios
CIS's Return On Assets of 8.53% is amongst the best of the industry. CIS outperforms 82.14% of its industry peers.
With an excellent Return On Equity value of 22.04%, CIS belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
CIS has a better Return On Invested Capital (12.86%) than 82.14% of its industry peers.
CIS had an Average Return On Invested Capital over the past 3 years of 14.02%. This is above the industry average of 10.09%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.53% | ||
| ROE | 22.04% | ||
| ROIC | 12.86% |
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
The Profit Margin of CIS (17.90%) is better than 92.86% of its industry peers.
In the last couple of years the Profit Margin of CIS has declined.
Looking at the Operating Margin, with a value of 22.52%, CIS belongs to the top of the industry, outperforming 96.43% of the companies in the same industry.
CIS's Operating Margin has declined in the last couple of years.
CIS has a Gross Margin of 64.85%. This is amongst the best in the industry. CIS outperforms 82.14% of its industry peers.
CIS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.52% | ||
| PM (TTM) | 17.9% | ||
| GM | 64.85% |
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), CIS is creating some value.
CIS has less shares outstanding than it did 1 year ago.
CIS has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CIS has been reduced compared to a year ago.
2.2 Solvency
CIS has a debt to FCF ratio of 2.21. This is a good value and a sign of high solvency as CIS would need 2.21 years to pay back of all of its debts.
The Debt to FCF ratio of CIS (2.21) is better than 75.00% of its industry peers.
CIS has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.46, CIS is in line with its industry, outperforming 42.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.21 | ||
| Altman-Z | N/A |
ROIC/WACC1.4
WACC9.21%
2.3 Liquidity
A Current Ratio of 0.93 indicates that CIS may have some problems paying its short term obligations.
The Current ratio of CIS (0.93) is worse than 85.71% of its industry peers.
A Quick Ratio of 0.83 indicates that CIS may have some problems paying its short term obligations.
CIS has a Quick ratio of 0.83. This is amonst the worse of the industry: CIS underperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
CIS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.20%, which is quite good.
Measured over the past 5 years, CIS shows a small growth in Earnings Per Share. The EPS has been growing by 3.50% on average per year.
The Revenue has grown by 8.91% in the past year. This is quite good.
The Revenue has been growing slightly by 2.82% on average over the past years.
EPS 1Y (TTM)10.2%
EPS 3Y4.19%
EPS 5Y3.5%
EPS Q2Q%9.89%
Revenue 1Y (TTM)8.91%
Revenue growth 3Y3.19%
Revenue growth 5Y2.82%
Sales Q2Q%7.53%
3.2 Future
CIS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.07% yearly.
CIS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.28% yearly.
EPS Next Y8.49%
EPS Next 2Y8.04%
EPS Next 3Y8.78%
EPS Next 5Y10.07%
Revenue Next Year5.35%
Revenue Next 2Y4.98%
Revenue Next 3Y5.82%
Revenue Next 5Y6.28%
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.
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 19.63, the valuation of CIS can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of CIS indicates a somewhat cheap valuation: CIS is cheaper than 75.00% of the companies listed in the same industry.
CIS is valuated rather cheaply when we compare the Price/Earnings ratio to 26.11, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 17.21, which indicates a rather expensive current valuation of CIS.
Based on the Price/Forward Earnings ratio, CIS is valued a bit cheaper than the industry average as 64.29% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.21, CIS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.63 | ||
| Fwd PE | 17.21 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CIS.
CIS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.69 | ||
| EV/EBITDA | 19.6 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CIS does not grow enough to justify the current Price/Earnings ratio.
CIS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.31
PEG (5Y)5.61
EPS Next 2Y8.04%
EPS Next 3Y8.78%
5. Dividend
5.1 Amount
CIS has a Yearly Dividend Yield of 2.16%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.63, CIS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, CIS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
5.2 History
The dividend of CIS has a limited annual growth rate of 2.65%.
Dividend Growth(5Y)2.65%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
62.56% of the earnings are spent on dividend by CIS. This is not a sustainable payout ratio.
CIS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP62.56%
EPS Next 2Y8.04%
EPS Next 3Y8.78%
FRA:CIS (12/2/2025, 4:14:30 PM)
65.56
+0.11 (+0.17%)
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 Cap259.03B
Revenue(TTM)57.70B
Net Income(TTM)10.33B
Analysts77.5
Price Target74.05 (12.95%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
Yearly Dividend1.4
Dividend Growth(5Y)2.65%
DP62.56%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.32%
Min EPS beat(2)-0.5%
Max EPS beat(2)-0.13%
EPS beat(4)2
Avg EPS beat(4)0.81%
Min EPS beat(4)-0.5%
Max EPS beat(4)2.52%
EPS beat(8)6
Avg EPS beat(8)1.6%
EPS beat(12)10
Avg EPS beat(12)2.14%
EPS beat(16)12
Avg EPS beat(16)1.69%
Revenue beat(2)0
Avg Revenue beat(2)-1.39%
Min Revenue beat(2)-1.58%
Max Revenue beat(2)-1.19%
Revenue beat(4)0
Avg Revenue beat(4)-1.35%
Min Revenue beat(4)-1.58%
Max Revenue beat(4)-1.14%
Revenue beat(8)0
Avg Revenue beat(8)-1.25%
Revenue beat(12)0
Avg Revenue beat(12)-1.18%
Revenue beat(16)2
Avg Revenue beat(16)-1.24%
PT rev (1m)12%
PT rev (3m)11.84%
EPS NQ rev (1m)3.39%
EPS NQ rev (3m)2.67%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)3.41%
Revenue NQ rev (3m)3.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.63 | ||
| Fwd PE | 17.21 | ||
| P/S | 5.23 | ||
| P/FCF | 23.69 | ||
| P/OCF | 21.95 | ||
| P/B | 6.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.6 |
EPS(TTM)3.34
EY5.09%
EPS(NY)3.81
Fwd EY5.81%
FCF(TTM)2.77
FCFY4.22%
OCF(TTM)2.99
OCFY4.56%
SpS12.54
BVpS10.19
TBVpS-4.55
PEG (NY)2.31
PEG (5Y)5.61
Graham Number27.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.53% | ||
| ROE | 22.04% | ||
| ROCE | 15.17% | ||
| ROIC | 12.86% | ||
| ROICexc | 15.76% | ||
| ROICexgc | 528.93% | ||
| OM | 22.52% | ||
| PM (TTM) | 17.9% | ||
| GM | 64.85% | ||
| FCFM | 22.07% |
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.21 | ||
| Debt/EBITDA | 1.37 | ||
| Cap/Depr | 38.47% | ||
| Cap/Sales | 1.75% | ||
| Interest Coverage | 8.27 | ||
| Cash Conversion | 87.98% | ||
| Profit Quality | 123.27% | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | N/A |
F-Score7
WACC9.21%
ROIC/WACC1.4
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)10.2%
EPS 3Y4.19%
EPS 5Y3.5%
EPS Q2Q%9.89%
EPS Next Y8.49%
EPS Next 2Y8.04%
EPS Next 3Y8.78%
EPS Next 5Y10.07%
Revenue 1Y (TTM)8.91%
Revenue growth 3Y3.19%
Revenue growth 5Y2.82%
Sales Q2Q%7.53%
Revenue Next Year5.35%
Revenue Next 2Y4.98%
Revenue Next 3Y5.82%
Revenue Next 5Y6.28%
EBIT growth 1Y11.75%
EBIT growth 3Y-3.72%
EBIT growth 5Y-2.35%
EBIT Next Year15.46%
EBIT Next 3Y9.8%
EBIT Next 5Y9.13%
FCF growth 1Y-27.19%
FCF growth 3Y1.39%
FCF growth 5Y-1.94%
OCF growth 1Y-24.88%
OCF growth 3Y2.38%
OCF growth 5Y-1.65%
CISCO SYSTEMS INC / CIS.DE FAQ
What is the fundamental rating for CIS stock?
ChartMill assigns a fundamental rating of 5 / 10 to CIS.DE.
Can you provide the valuation status for CISCO SYSTEMS INC?
ChartMill assigns a valuation rating of 4 / 10 to CISCO SYSTEMS INC (CIS.DE). This can be considered as Fairly Valued.
What is the profitability of CIS stock?
CISCO SYSTEMS INC (CIS.DE) has a profitability rating of 8 / 10.
What are the PE and PB ratios of CISCO SYSTEMS INC (CIS.DE) stock?
The Price/Earnings (PE) ratio for CISCO SYSTEMS INC (CIS.DE) is 19.63 and the Price/Book (PB) ratio is 6.44.
Is the dividend of CISCO SYSTEMS INC sustainable?
The dividend rating of CISCO SYSTEMS INC (CIS.DE) is 4 / 10 and the dividend payout ratio is 62.56%.