CISCO SYSTEMS INC (CIS.DE) Stock Fundamental Analysis
FRA:CIS - Deutsche Boerse Ag - US17275R1023 - Common Stock - Currency: EUR
Taking everything into account, CIS scores 5 out of 10 in our fundamental rating. CIS was compared to 26 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
In the past year CIS was profitable.
In the past year CIS had a positive cash flow from operations.
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 8.17% is amongst the best of the industry. CIS outperforms 92.31% of its industry peers.
CIS has a better Return On Equity (21.32%) than 92.31% of its industry peers.
CIS has a Return On Invested Capital of 11.30%. This is amongst the best in the industry. CIS outperforms 84.62% of its industry peers.
CIS had an Average Return On Invested Capital over the past 3 years of 15.60%. This is significantly above the industry average of 9.08%.
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
Looking at the Profit Margin, with a value of 17.60%, CIS belongs to the top of the industry, outperforming 96.15% of the companies in the same industry.
In the last couple of years the Profit Margin of CIS has declined.
The Operating Margin of CIS (21.81%) is better than 96.15% of its industry peers.
In the last couple of years the Operating Margin of CIS has declined.
CIS has a Gross Margin of 65.24%. This is amongst the best in the industry. CIS outperforms 80.77% 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 | 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.
The number of shares outstanding for CIS has been reduced compared to 1 year ago.
CIS has less shares outstanding than it did 5 years ago.
CIS has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.98 indicates that CIS is not a great score, but indicates only limited risk for bankruptcy at the moment.
CIS has a Altman-Z score of 2.98. This is in the better half of the industry: CIS outperforms 73.08% 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 73.08% of its industry peers.
CIS has a Debt/Equity ratio of 0.59. This is a neutral value indicating CIS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.59, CIS is in line with its industry, outperforming 46.15% of the companies in the same industry.
Although CIS 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 | 2.98 |
ROIC/WACC1.27
WACC8.88%
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.
Looking at the Current ratio, with a value of 0.95, CIS is doing worse than 84.62% of the companies in the same industry.
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: 69.23% 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.
CIS shows a small growth in Revenue. In the last year, the Revenue has grown by 0.47%.
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
Based on estimates for the next years, CIS will show a small growth in Earnings Per Share. The EPS will grow by 6.50% on average per year.
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 2Y4.93%
EPS Next 3Y6.03%
EPS Next 5Y6.5%
Revenue Next Year5.45%
Revenue Next 2Y5.28%
Revenue Next 3Y5.12%
Revenue Next 5Y4.73%
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
The Price/Earnings ratio is 18.43, which indicates a rather expensive current valuation of CIS.
73.08% of the companies in the same industry are more expensive than CIS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.03. CIS is valued slightly cheaper when compared to this.
CIS is valuated correctly with a Price/Forward Earnings ratio of 16.51.
Based on the Price/Forward Earnings ratio, CIS is valued a bit cheaper than the industry average as 69.23% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.28, CIS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.43 | ||
| Fwd PE | 16.51 |
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 | 20.97 | ||
| EV/EBITDA | 17.99 |
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)5.08
PEG (5Y)4.8
EPS Next 2Y4.93%
EPS Next 3Y6.03%
5. Dividend
5.1 Amount
CIS has a Yearly Dividend Yield of 2.41%. Purely for dividend investing, there may be better candidates out there.
CIS's Dividend Yield is a higher than the industry average which is at 6.25.
Compared to an average S&P500 Dividend Yield of 2.40, CIS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
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
65.54% 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.
DP65.54%
EPS Next 2Y4.93%
EPS Next 3Y6.03%
FRA:CIS (8/5/2025, 5:18:04 PM)
58.61
-0.39 (-0.66%)
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 Cap232.10B
Analysts79.35
Price Target63.1 (7.66%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
Yearly Dividend1.39
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)0.8%
PT rev (3m)2.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.06%
EPS NY rev (1m)0%
EPS NY rev (3m)1.99%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)0.68%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.43 | ||
| Fwd PE | 16.51 | ||
| P/S | 4.83 | ||
| P/FCF | 20.97 | ||
| P/OCF | 19.61 | ||
| P/B | 5.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.99 |
EPS(TTM)3.18
EY5.43%
EPS(NY)3.55
Fwd EY6.06%
FCF(TTM)2.8
FCFY4.77%
OCF(TTM)2.99
OCFY5.1%
SpS12.15
BVpS10.03
TBVpS-4.96
PEG (NY)5.08
PEG (5Y)4.8
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 | 2.98 |
F-Score7
WACC8.88%
ROIC/WACC1.27
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 Year5.45%
Revenue Next 2Y5.28%
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%