CISCO SYSTEMS INC - CDR (CSCO.CA) Stock Fundamental Analysis
TSX:CSCO - CA17278B1040
32.81 CAD
+0.85 (+2.66%)
CSCO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 12 industry peers in the Communications Equipment industry. While CSCO belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CSCO is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
CSCO had positive earnings in the past year.
In the past year CSCO had a positive cash flow from operations.
In the past 5 years CSCO has always been profitable.
In the past 5 years CSCO always reported a positive cash flow from operatings.
1.2 Ratios
CSCO's Return On Assets of 7.57% is amongst the best of the industry. CSCO outperforms 92.31% of its industry peers.
CSCO has a better Return On Equity (20.18%) than 92.31% of its industry peers.
With an excellent Return On Invested Capital value of 10.52%, CSCO belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CSCO is significantly above the industry average of 10.00%.
The 3 year average ROIC (15.60%) for CSCO is well above the current ROIC(10.52%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.57% | ||
| ROE | 20.18% | ||
| ROIC | 10.52% |
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 16.96%, CSCO belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
CSCO's Profit Margin has declined in the last couple of years.
CSCO has a better Operating Margin (21.49%) than 100.00% of its industry peers.
In the last couple of years the Operating Margin of CSCO has declined.
The Gross Margin of CSCO (65.13%) is better than 76.92% of its industry peers.
In the last couple of years the Gross Margin of CSCO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.49% | ||
| PM (TTM) | 16.96% | ||
| GM | 65.13% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CSCO is still creating some value.
CSCO has less shares outstanding than it did 1 year ago.
The number of shares outstanding for CSCO has been reduced compared to 5 years ago.
The debt/assets ratio for CSCO is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.42, we must say that CSCO is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of CSCO (1.42) is comparable to the rest of the industry.
CSCO has a debt to FCF ratio of 2.42. This is a good value and a sign of high solvency as CSCO would need 2.42 years to pay back of all of its debts.
The Debt to FCF ratio of CSCO (2.42) is better than 61.54% of its industry peers.
CSCO has a Debt/Equity ratio of 0.67. This is a neutral value indicating CSCO is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.67, CSCO is doing worse than 61.54% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for CSCO, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 2.42 | ||
| Altman-Z | 1.42 |
ROIC/WACC1.2
WACC8.74%
2.3 Liquidity
CSCO has a Current Ratio of 0.87. This is a bad value and indicates that CSCO is not financially healthy enough and could expect problems in meeting its short term obligations.
CSCO's Current ratio of 0.87 is on the low side compared to the rest of the industry. CSCO is outperformed by 61.54% of its industry peers.
CSCO has a Quick Ratio of 0.87. This is a bad value and indicates that CSCO is not financially healthy enough and could expect problems in meeting its short term obligations.
CSCO has a Quick ratio (0.79) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
The earnings per share for CSCO have decreased strongly by -12.62% in the last year.
CSCO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.84% yearly.
CSCO shows a decrease in Revenue. In the last year, the revenue decreased by -5.34%.
Measured over the past years, CSCO shows a small growth in Revenue. The Revenue has been growing by 0.72% on average per year.
EPS 1Y (TTM)-12.62%
EPS 3Y5.02%
EPS 5Y3.84%
EPS Q2Q%8.05%
Revenue 1Y (TTM)-5.34%
Revenue growth 3Y2.6%
Revenue growth 5Y0.72%
Sales Q2Q%9.38%
3.2 Future
The Earnings Per Share is expected to grow by 4.42% on average over the next years.
CSCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.03% yearly.
EPS Next Y1.69%
EPS Next 2Y4.73%
EPS Next 3Y5.94%
EPS Next 5Y4.42%
Revenue Next Year5.02%
Revenue Next 2Y5.09%
Revenue Next 3Y4.96%
Revenue Next 5Y4.03%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
A Price/Earnings ratio of 6.42 indicates a rather cheap valuation of CSCO.
100.00% of the companies in the same industry are more expensive than CSCO, based on the Price/Earnings ratio.
CSCO is valuated cheaply when we compare the Price/Earnings ratio to 27.06, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 5.65, the valuation of CSCO can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CSCO indicates a rather cheap valuation: CSCO is cheaper than 100.00% of the companies listed in the same industry.
CSCO is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.42 | ||
| Fwd PE | 5.65 |
4.2 Price Multiples
CSCO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CSCO is cheaper than 84.62% of the companies in the same industry.
CSCO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CSCO is cheaper than 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.19 | ||
| EV/EBITDA | 5.64 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CSCO does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of CSCO may justify a higher PE ratio.
PEG (NY)3.8
PEG (5Y)1.67
EPS Next 2Y4.73%
EPS Next 3Y5.94%
5. Dividend
5.1 Amount
CSCO has a Yearly Dividend Yield of 2.54%.
Compared to an average industry Dividend Yield of 4.63, CSCO pays a better dividend. On top of this CSCO pays more dividend than 84.62% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, CSCO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
5.2 History
The dividend of CSCO has a limited annual growth rate of 3.23%.
CSCO has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)3.23%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
69.73% of the earnings are spent on dividend by CSCO. This is not a sustainable payout ratio.
CSCO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP69.73%
EPS Next 2Y4.73%
EPS Next 3Y5.94%
TSX:CSCO (9/5/2025, 7:00:00 PM)
32.81
+0.85 (+2.66%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners79.84%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap130.67B
Analysts74.19
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
Yearly Dividend1.58
Dividend Growth(5Y)3.23%
DP69.73%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.92%
Min EPS beat(2)1.37%
Max EPS beat(2)2.47%
EPS beat(4)4
Avg EPS beat(4)2.27%
Min EPS beat(4)0.58%
Max EPS beat(4)4.64%
EPS beat(8)8
Avg EPS beat(8)2.87%
EPS beat(12)10
Avg EPS beat(12)1.93%
EPS beat(16)11
Avg EPS beat(16)1.51%
Revenue beat(2)0
Avg Revenue beat(2)-1.3%
Min Revenue beat(2)-1.46%
Max Revenue beat(2)-1.14%
Revenue beat(4)0
Avg Revenue beat(4)-1.11%
Min Revenue beat(4)-1.46%
Max Revenue beat(4)-0.63%
Revenue beat(8)0
Avg Revenue beat(8)-1.13%
Revenue beat(12)2
Avg Revenue beat(12)-1.18%
Revenue beat(16)2
Avg Revenue beat(16)-1.21%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.42 | ||
| Fwd PE | 5.65 | ||
| P/S | 1.7 | ||
| P/FCF | 7.19 | ||
| P/OCF | 6.77 | ||
| P/B | 2.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.64 |
EPS(TTM)5.11
EY15.57%
EPS(NY)5.81
Fwd EY17.7%
FCF(TTM)4.57
FCFY13.92%
OCF(TTM)4.85
OCFY14.78%
SpS19.31
BVpS16.23
TBVpS-8.31
PEG (NY)3.8
PEG (5Y)1.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.57% | ||
| ROE | 20.18% | ||
| ROCE | 14.31% | ||
| ROIC | 10.52% | ||
| ROICexc | 12.87% | ||
| ROICexgc | 147.93% | ||
| OM | 21.49% | ||
| PM (TTM) | 16.96% | ||
| GM | 65.13% | ||
| FCFM | 23.65% |
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-Score5
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 2.42 | ||
| Debt/EBITDA | 2.05 | ||
| Cap/Depr | 24.52% | ||
| Cap/Sales | 1.46% | ||
| Interest Coverage | 10.13 | ||
| Cash Conversion | 91.42% | ||
| Profit Quality | 139.44% | ||
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 1.42 |
F-Score5
WACC8.74%
ROIC/WACC1.2
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)-12.62%
EPS 3Y5.02%
EPS 5Y3.84%
EPS Q2Q%8.05%
EPS Next Y1.69%
EPS Next 2Y4.73%
EPS Next 3Y5.94%
EPS Next 5Y4.42%
Revenue 1Y (TTM)-5.34%
Revenue growth 3Y2.6%
Revenue growth 5Y0.72%
Sales Q2Q%9.38%
Revenue Next Year5.02%
Revenue Next 2Y5.09%
Revenue Next 3Y4.96%
Revenue Next 5Y4.03%
EBIT growth 1Y-27.31%
EBIT growth 3Y-1.84%
EBIT growth 5Y-2.17%
EBIT Next Year15.52%
EBIT Next 3Y6.99%
EBIT Next 5YN/A
FCF growth 1Y-17.08%
FCF growth 3Y-11.56%
FCF growth 5Y-7.31%
OCF growth 1Y-15.19%
OCF growth 3Y-11.04%
OCF growth 5Y-7.23%