CISCO SYSTEMS INC (CIS.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:CIS • US17275R1023
66.13 EUR
+0.77 (+1.18%)
Last: Jan 30, 2026, 07:00 PM
We assign a fundamental rating of 5 out of 10 to CIS. CIS was compared to 32 industry peers in the Communications Equipment industry. While CIS has a great profitability rating, 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.
- CIS had a positive operating cash flow in the past year.
- In the past 5 years CIS has always been profitable.
- CIS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- CIS's Return On Assets of 8.53% is fine compared to the rest of the industry. CIS outperforms 77.42% of its industry peers.
- With an excellent Return On Equity value of 22.04%, CIS belongs to the best of the industry, outperforming 87.10% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 12.86%, CIS belongs to the top of the industry, outperforming 87.10% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for CIS is above the industry average of 11.48%.
| 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
- CIS's Profit Margin of 17.90% is amongst the best of the industry. CIS outperforms 90.32% of its industry peers.
- CIS's Profit Margin has declined in the last couple of years.
- CIS has a Operating Margin of 22.52%. This is amongst the best in the industry. CIS outperforms 93.55% of its industry peers.
- In the last couple of years the Operating Margin of CIS has declined.
- The Gross Margin of CIS (64.85%) is better than 80.65% 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
- 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
- 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
- The Debt to FCF ratio of CIS is 2.21, which is a good value as it means it would take CIS, 2.21 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of CIS (2.21) is better than 70.97% 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.
- The Debt to Equity ratio of CIS (0.46) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.21 | ||
| Altman-Z | N/A |
ROIC/WACC1.3
WACC9.86%
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 87.10% 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 worse Quick ratio (0.83) than 83.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 10.20% over the past year.
- CIS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.50% yearly.
- CIS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.91%.
- CIS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.82% yearly.
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
- The Earnings Per Share is expected to grow by 10.07% on average over the next years. This is quite good.
- CIS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.28% yearly.
EPS Next Y10.59%
EPS Next 2Y9.4%
EPS Next 3Y8.63%
EPS Next 5Y10.07%
Revenue Next Year7.24%
Revenue Next 2Y6.15%
Revenue Next 3Y5.74%
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.
- 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 20.29, CIS is valued on the expensive side.
- Based on the Price/Earnings ratio, CIS is valued a bit cheaper than the industry average as 77.42% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 28.32, CIS is valued a bit cheaper.
- The Price/Forward Earnings ratio is 17.33, which indicates a rather expensive current valuation of CIS.
- Based on the Price/Forward Earnings ratio, CIS is valued a bit cheaper than 74.19% of the companies in the same industry.
- CIS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.29 | ||
| Fwd PE | 17.33 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as CIS.
- The rest of the industry has a similar Price/Free Cash Flow ratio as CIS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.46 | ||
| EV/EBITDA | 20.26 |
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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.92
PEG (5Y)5.8
EPS Next 2Y9.4%
EPS Next 3Y8.63%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.09%, CIS has a reasonable but not impressive dividend return.
- CIS's Dividend Yield is a higher than the industry average which is at 2.64.
- Compared to an average S&P500 Dividend Yield of 1.83, CIS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
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 62.56% 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.
DP62.56%
EPS Next 2Y9.4%
EPS Next 3Y8.63%
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.
What is the valuation status for CIS stock?
ChartMill assigns a valuation rating of 4 / 10 to CISCO SYSTEMS INC (CIS.DE). This can be considered as Fairly Valued.
Can you provide the profitability details for CISCO SYSTEMS INC?
CISCO SYSTEMS INC (CIS.DE) has a profitability rating of 8 / 10.
Can you provide the financial health for CIS stock?
The financial health rating of CISCO SYSTEMS INC (CIS.DE) is 4 / 10.
Is the dividend of CISCO SYSTEMS INC sustainable?
The dividend rating of CISCO SYSTEMS INC (CIS.DE) is 5 / 10 and the dividend payout ratio is 62.56%.