CISCO SYSTEMS INC (CIS.DE) Stock Fundamental Analysis
FRA:CIS - Deutsche Boerse Ag - US17275R1023 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to CIS. CIS was compared to 25 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
CIS had positive earnings in the past year.
In the past year CIS had a positive cash flow from operations.
CIS had positive earnings in each of the past 5 years.
In the past 5 years CIS always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of CIS (8.17%) is better than 80.00% of its industry peers.
CIS has a better Return On Equity (21.32%) than 84.00% of its industry peers.
CIS has a better Return On Invested Capital (11.30%) than 80.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CIS is significantly above the industry average of 9.99%.
The last Return On Invested Capital (11.30%) for CIS is well below the 3 year average (15.60%), which needs to be investigated, but indicates that CIS 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 CIS (17.60%) is better than 88.00% of its industry peers.
In the last couple of years the Profit Margin of CIS has declined.
CIS has a Operating Margin of 21.81%. This is amongst the best in the industry. CIS outperforms 88.00% of its industry peers.
In the last couple of years the Operating Margin of CIS has declined.
With a decent Gross Margin value of 65.24%, CIS is doing good in the industry, outperforming 76.00% of the companies in the same industry.
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 | 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
CIS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, CIS has less shares outstanding
The number of shares outstanding for CIS has been reduced compared to 5 years ago.
The debt/assets ratio for CIS is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.01 indicates that CIS is not in any danger for bankruptcy at the moment.
The Altman-Z score of CIS (3.01) is better than 72.00% of its industry peers.
The Debt to FCF ratio of CIS is 2.29, which is a good value as it means it would take CIS, 2.29 years of fcf income to pay off all of its debts.
CIS has a better Debt to FCF ratio (2.29) than 68.00% of its industry peers.
A Debt/Equity ratio of 0.59 indicates that CIS is somewhat dependend on debt financing.
The Debt to Equity ratio of CIS (0.59) is worse than 60.00% 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 | 0.59 | ||
| Debt/FCF | 2.29 | ||
| Altman-Z | 3.01 |
ROIC/WACC1.16
WACC9.72%
2.3 Liquidity
CIS has a Current Ratio of 0.95. This is a bad value and indicates that CIS is not financially healthy enough and could expect problems in meeting its short term obligations.
CIS has a worse Current ratio (0.95) than 88.00% of its industry peers.
CIS has a Quick Ratio of 0.95. This is a bad value and indicates that CIS is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.87, CIS is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
CIS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.00%.
Measured over the past 5 years, CIS shows a small growth in Earnings Per Share. The EPS has been growing by 3.84% on average per year.
Looking at the last year, CIS shows a small growth in Revenue. The Revenue has grown by 0.47% in the last year.
CIS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.72% yearly.
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.
Based on estimates for the next years, CIS will show a small growth in Revenue. The Revenue will grow by 4.73% on average per year.
EPS Next Y3.63%
EPS Next 2Y4.92%
EPS Next 3Y5.99%
EPS Next 5Y6.5%
Revenue Next Year5.43%
Revenue Next 2Y5.33%
Revenue Next 3Y5.11%
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
With a Price/Earnings ratio of 18.52, CIS is valued on the expensive side.
Based on the Price/Earnings ratio, CIS is valued a bit cheaper than 76.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. CIS is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 16.59, which indicates a correct valuation of CIS.
Based on the Price/Forward Earnings ratio, CIS is valued a bit cheaper than 72.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. CIS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.52 | ||
| Fwd PE | 16.59 |
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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.06 | ||
| EV/EBITDA | 18.22 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CIS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)5.1
PEG (5Y)4.83
EPS Next 2Y4.92%
EPS Next 3Y5.99%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.36%, CIS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.67, CIS pays a bit more dividend than its industry peers.
CIS's Dividend Yield is comparable with the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
5.2 History
The dividend of CIS has a limited annual growth rate of 3.23%.
Dividend Growth(5Y)3.23%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
CIS pays out 65.54% of its income as dividend. This is not a sustainable payout ratio.
The dividend of CIS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP65.54%
EPS Next 2Y4.92%
EPS Next 3Y5.99%
FRA:CIS (7/11/2025, 7:00:00 PM)
58.16
-0.88 (-1.49%)
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 Cap230.31B
Analysts79.35
Price Target62.6 (7.63%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
Yearly Dividend1.34
Dividend Growth(5Y)3.23%
DP65.54%
Div Incr Years6
Div Non Decr Years6
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)1.3%
PT rev (3m)-4.68%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.04%
EPS NY rev (1m)0.49%
EPS NY rev (3m)1.91%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)0.63%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.52 | ||
| Fwd PE | 16.59 | ||
| P/S | 4.85 | ||
| P/FCF | 21.06 | ||
| P/OCF | 19.7 | ||
| P/B | 5.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.22 |
EPS(TTM)3.14
EY5.4%
EPS(NY)3.51
Fwd EY6.03%
FCF(TTM)2.76
FCFY4.75%
OCF(TTM)2.95
OCFY5.08%
SpS12
BVpS9.91
TBVpS-4.9
PEG (NY)5.1
PEG (5Y)4.83
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 | 3.01 |
F-Score7
WACC9.72%
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 2Y4.92%
EPS Next 3Y5.99%
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 2Y5.33%
Revenue Next 3Y5.11%
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%