CISCO SYSTEMS INC - CDR (CSCO.CA) Fundamental Analysis & Valuation

TSX:CSCO • CA17278B1040

Current stock price

44.17 CAD
+12.21 (+38.2%)
Last:

This CSCO.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. CSCO.CA Profitability Analysis

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.
  • CSCO had a positive operating cash flow in each of the past 5 years.
CSCO.CA Yearly Net Income VS EBIT VS OCF VS FCFCSCO.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

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's Return On Equity of 20.18% is amongst the best of the industry. CSCO outperforms 92.31% of its industry peers.
  • CSCO has a Return On Invested Capital of 10.52%. This is amongst the best in the industry. CSCO outperforms 92.31% of its industry peers.
  • CSCO had an Average Return On Invested Capital over the past 3 years of 15.60%. This is above the industry average of 13.42%.
  • The last Return On Invested Capital (10.52%) for CSCO is well below the 3 year average (15.60%), which needs to be investigated, but indicates that CSCO had better years and this may not be a problem.
Industry RankSector 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%
CSCO.CA Yearly ROA, ROE, ROICCSCO.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

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.
  • In the last couple of years the Profit Margin of CSCO has declined.
  • Looking at the Operating Margin, with a value of 21.49%, CSCO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
  • In the last couple of years the Operating Margin of CSCO has declined.
  • With a decent Gross Margin value of 65.13%, CSCO is doing good in the industry, outperforming 76.92% of the companies in the same industry.
  • CSCO's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
CSCO.CA Yearly Profit, Operating, Gross MarginsCSCO.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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4

2. CSCO.CA Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CSCO is 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.
  • CSCO has a worse debt/assets ratio than last year.
CSCO.CA Yearly Shares OutstandingCSCO.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B
CSCO.CA Yearly Total Debt VS Total AssetsCSCO.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B 100B

2.2 Solvency

  • CSCO has an Altman-Z score of 1.42. This is a bad value and indicates that CSCO is not financially healthy and even has some risk of bankruptcy.
  • The Altman-Z score of CSCO (1.42) is comparable to the rest of the industry.
  • The Debt to FCF ratio of CSCO is 2.42, which is a good value as it means it would take CSCO, 2.42 years of fcf income to pay off 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.
  • CSCO has a Debt to Equity ratio of 0.67. This is in the lower half of the industry: CSCO underperforms 61.54% of its industry peers.
  • Although CSCO's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. 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 RankSector Rank
Debt/Equity 0.67
Debt/FCF 2.42
Altman-Z 1.42
ROIC/WACC1.2
WACC8.74%
CSCO.CA Yearly LT Debt VS Equity VS FCFCSCO.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

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 has a Current ratio of 0.87. This is in the lower half of the industry: CSCO underperforms 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 of 0.79. This is comparable to the rest of the industry: CSCO outperforms 46.15% of its industry peers.
Industry RankSector Rank
Current Ratio 0.87
Quick Ratio 0.79
CSCO.CA Yearly Current Assets VS Current LiabilitesCSCO.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. CSCO.CA Growth Analysis

3.1 Past

  • CSCO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.62%.
  • Measured over the past 5 years, CSCO 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, CSCO shows a decrease in Revenue. The Revenue has decreased by -5.34% in the last year.
  • 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

  • CSCO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.42% yearly.
  • Based on estimates for the next years, CSCO will show a small growth in Revenue. The Revenue will grow by 4.03% on average per year.
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.
  • 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.
CSCO.CA Yearly Revenue VS EstimatesCSCO.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 20B 40B 60B
CSCO.CA Yearly EPS VS EstimatesCSCO.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1 2 3 4

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8

4. CSCO.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 8.64, the valuation of CSCO can be described as reasonable.
  • Based on the Price/Earnings ratio, CSCO is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
  • CSCO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.64.
  • With a Price/Forward Earnings ratio of 7.60, the valuation of CSCO can be described as very cheap.
  • CSCO's Price/Forward Earnings ratio is rather cheap when compared to the industry. CSCO is cheaper than 100.00% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 21.36, CSCO is valued rather cheaply.
Industry RankSector Rank
PE 8.64
Fwd PE 7.6
CSCO.CA Price Earnings VS Forward Price EarningsCSCO.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, CSCO is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of CSCO indicates a rather cheap valuation: CSCO is cheaper than 92.31% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 9.67
EV/EBITDA 5.64
CSCO.CA Per share dataCSCO.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10 15

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • The excellent profitability rating of CSCO may justify a higher PE ratio.
PEG (NY)5.12
PEG (5Y)2.25
EPS Next 2Y4.73%
EPS Next 3Y5.94%

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5

5. CSCO.CA Dividend Analysis

5.1 Amount

  • CSCO has a Yearly Dividend Yield of 2.54%. Purely for dividend investing, there may be better candidates out there.
  • CSCO's Dividend Yield is rather good when compared to the industry average which is at 0.92. CSCO pays more dividend than 84.62% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.80, CSCO pays a bit more dividend than the S&P500 average.
Industry RankSector 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
CSCO.CA Yearly Dividends per shareCSCO.CA Yearly Dividends per shareYearly Dividends per share 2022 2023 2024 2025 0.2 0.4 0.6

5.3 Sustainability

  • 69.73% of the earnings are spent on dividend by CSCO. This is not a sustainable payout ratio.
  • The dividend of CSCO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP69.73%
EPS Next 2Y4.73%
EPS Next 3Y5.94%
CSCO.CA Yearly Income VS Free CF VS DividendCSCO.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B
CSCO.CA Dividend Payout.CSCO.CA Dividend Payout, showing the Payout Ratio.CSCO.CA Dividend Payout.PayoutRetained Earnings

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CSCO.CA Fundamentals: All Metrics, Ratios and Statistics

CISCO SYSTEMS INC - CDR

TSX:CSCO (5/1/2026, 7:00:00 PM)

44.17

+12.21 (+38.2%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Industry Strength92.55
Industry Growth94.41
Earnings (Last)02-12
Earnings (Next)05-13
Inst Owners79.84%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap175.92B
Revenue(TTM)54.18B
Net Income(TTM)9.19B
Analysts74.19
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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-DateN/A
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 RankSector Rank
PE 8.64
Fwd PE 7.6
P/S 2.29
P/FCF 9.67
P/OCF 9.11
P/B 2.72
P/tB N/A
EV/EBITDA 5.64
EPS(TTM)5.11
EY11.57%
EPS(NY)5.81
Fwd EY13.15%
FCF(TTM)4.57
FCFY10.34%
OCF(TTM)4.85
OCFY10.98%
SpS19.31
BVpS16.23
TBVpS-8.31
PEG (NY)5.12
PEG (5Y)2.25
Graham Number0 (-100%)
Profitability
Industry RankSector 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%
ROICexgc growth 3Y-12.42%
ROICexgc 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 RankSector 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%

CISCO SYSTEMS INC - CDR / CSCO.CA Fundamental Analysis FAQ

What is the ChartMill fundamental rating of CISCO SYSTEMS INC - CDR (CSCO.CA) stock?

ChartMill assigns a fundamental rating of 6 / 10 to CSCO.CA.


What is the valuation status for CSCO stock?

ChartMill assigns a valuation rating of 8 / 10 to CISCO SYSTEMS INC - CDR (CSCO.CA). This can be considered as Undervalued.


What is the profitability of CSCO stock?

CISCO SYSTEMS INC - CDR (CSCO.CA) has a profitability rating of 8 / 10.


Can you provide the expected EPS growth for CSCO stock?

The Earnings per Share (EPS) of CISCO SYSTEMS INC - CDR (CSCO.CA) is expected to grow by 1.69% in the next year.


How sustainable is the dividend of CISCO SYSTEMS INC - CDR (CSCO.CA) stock?

The dividend rating of CISCO SYSTEMS INC - CDR (CSCO.CA) is 4 / 10 and the dividend payout ratio is 69.73%.