CISCO SYSTEMS INC (CIS.DE) Stock Fundamental Analysis
Europe - FRA:CIS - US17275R1023 - Common Stock
59.085 EUR
+0.11 (+0.18%)
CIS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 29 industry peers in the Communications Equipment industry. While CIS belongs to the best of the industry regarding profitability, 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.
CIS had positive earnings in each of the past 5 years.
Each year in the past 5 years CIS had a positive operating cash flow.
1.2 Ratios
CIS's Return On Assets of 8.32% is amongst the best of the industry. CIS outperforms 82.76% of its industry peers.
The Return On Equity of CIS (21.73%) is better than 86.21% of its industry peers.
CIS's Return On Invested Capital of 11.70% is fine compared to the rest of the industry. CIS outperforms 75.86% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CIS is above the industry average of 11.63%.
| 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
CIS has a Profit Margin of 17.97%. This is amongst the best in the industry. CIS outperforms 93.10% of its industry peers.
CIS's Profit Margin has declined in the last couple of years.
CIS has a better Operating Margin (22.09%) than 93.10% of its industry peers.
In the last couple of years the Operating Margin of CIS has declined.
CIS has a better Gross Margin (64.94%) than 82.76% of its industry peers.
In the last couple of years the Gross Margin of CIS 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CIS is still creating some value.
Compared to 1 year ago, CIS has less shares outstanding
Compared to 5 years ago, CIS has less shares outstanding
Compared to 1 year ago, CIS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.95 indicates that CIS is not a great score, but indicates only limited risk for bankruptcy at the moment.
CIS has a better Altman-Z score (2.95) than 65.52% of its industry peers.
The Debt to FCF ratio of CIS is 2.11, which is a good value as it means it would take CIS, 2.11 years of fcf income to pay off all of its debts.
CIS has a Debt to FCF ratio of 2.11. This is in the better half of the industry: CIS outperforms 72.41% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that CIS is somewhat dependend on debt financing.
CIS has a Debt to Equity ratio of 0.56. This is comparable to the rest of the industry: CIS outperforms 41.38% of its industry peers.
Even though the debt/equity ratio score it not favorable for CIS, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.11 | ||
| Altman-Z | 2.95 |
ROIC/WACC1.27
WACC9.24%
2.3 Liquidity
A Current Ratio of 1.00 indicates that CIS may have some problems paying its short term obligations.
CIS has a Current ratio of 1.00. This is amonst the worse of the industry: CIS underperforms 89.66% of its industry peers.
A Quick Ratio of 0.91 indicates that CIS may have some problems paying its short term obligations.
CIS 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
CIS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.88%.
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.
Looking at the last year, CIS shows a small growth in Revenue. The Revenue has grown by 5.30% in the last year.
Measured over the past years, CIS shows a small growth in Revenue. The Revenue has been growing by 2.82% on average per year.
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
Based on estimates for the next years, CIS will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.38% on average per year.
CIS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.95% yearly.
EPS Next Y8.52%
EPS Next 2Y8.05%
EPS Next 3Y6.64%
EPS Next 5Y8.38%
Revenue Next Year5.34%
Revenue Next 2Y4.96%
Revenue Next 3Y4.92%
Revenue Next 5Y4.95%
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 18.01, the valuation of CIS can be described as rather expensive.
CIS's Price/Earnings ratio is a bit cheaper when compared to the industry. CIS is cheaper than 75.86% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.34, CIS is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 16.58, the valuation of CIS can be described as correct.
Based on the Price/Forward Earnings ratio, CIS is valued a bit cheaper than 68.97% of the companies in the same industry.
CIS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.01 | ||
| Fwd PE | 16.58 |
4.2 Price Multiples
CIS's Enterprise Value to EBITDA is on the same level as the industry average.
CIS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.34 | ||
| EV/EBITDA | 17.65 |
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.
The decent profitability rating of CIS may justify a higher PE ratio.
PEG (NY)2.11
PEG (5Y)5.15
EPS Next 2Y8.05%
EPS Next 3Y6.64%
5. Dividend
5.1 Amount
CIS has a Yearly Dividend Yield of 2.34%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.78, CIS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, CIS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
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
CIS pays out 63.23% of its income as dividend. This is not a sustainable payout ratio.
CIS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP63.23%
EPS Next 2Y8.05%
EPS Next 3Y6.64%
FRA:CIS (10/14/2025, 5:26:21 PM)
59.085
+0.11 (+0.18%)
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 Cap233.57B
Analysts77.5
Price Target66.12 (11.91%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
Yearly Dividend1.4
Dividend Growth(5Y)2.65%
DP63.23%
Div Incr Years6
Div Non Decr Years6
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)-0.15%
PT rev (3m)5.61%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.17%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.93%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.01 | ||
| Fwd PE | 16.58 | ||
| P/S | 4.77 | ||
| P/FCF | 20.34 | ||
| P/OCF | 19.04 | ||
| P/B | 5.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.65 |
EPS(TTM)3.28
EY5.55%
EPS(NY)3.56
Fwd EY6.03%
FCF(TTM)2.91
FCFY4.92%
OCF(TTM)3.1
OCFY5.25%
SpS12.39
BVpS10.24
TBVpS-4.69
PEG (NY)2.11
PEG (5Y)5.15
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%
ROICexcg growth 3Y7.78%
ROICexcg 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 | 2.95 |
F-Score8
WACC9.24%
ROIC/WACC1.27
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 Y8.52%
EPS Next 2Y8.05%
EPS Next 3Y6.64%
EPS Next 5Y8.38%
Revenue 1Y (TTM)5.3%
Revenue growth 3Y3.19%
Revenue growth 5Y2.82%
Sales Q2Q%7.56%
Revenue Next Year5.34%
Revenue Next 2Y4.96%
Revenue Next 3Y4.92%
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%