CISCO SYSTEMS INC (CSCO) Stock Fundamental Analysis
NASDAQ:CSCO - US17275R1023 - Common Stock
68.3925 USD
0 (0%)
CSCO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 48 industry peers in the Communications Equipment industry. While CSCO has a great profitability rating, there are some minor concerns on its financial health. CSCO has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
CSCO had positive earnings in the past year.
CSCO had a positive operating cash flow in the past year.
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 8.53% is amongst the best of the industry. CSCO outperforms 83.33% of its industry peers.
With an excellent Return On Equity value of 22.19%, CSCO belongs to the best of the industry, outperforming 89.58% of the companies in the same industry.
The Return On Invested Capital of CSCO (12.90%) is better than 85.42% of its industry peers.
CSCO had an Average Return On Invested Capital over the past 3 years of 14.79%. This is in line with the industry average of 13.48%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.53% | ||
| ROE | 22.19% | ||
| ROIC | 12.9% |
ROA(3y)9.74%
ROA(5y)10.53%
ROE(3y)24.44%
ROE(5y)25.74%
ROIC(3y)14.79%
ROIC(5y)15.83%
1.3 Margins
With an excellent Profit Margin value of 18.45%, CSCO belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
In the last couple of years the Profit Margin of CSCO has declined.
CSCO has a better Operating Margin (22.69%) than 91.67% of its industry peers.
CSCO's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 65.56%, CSCO belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
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 | 22.69% | ||
| PM (TTM) | 18.45% | ||
| GM | 65.56% |
OM growth 3Y-5.86%
OM growth 5Y-4.51%
PM growth 3Y-6.96%
PM growth 5Y-4.1%
GM growth 3Y1.58%
GM growth 5Y0.4%
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.
The number of shares outstanding for CSCO has been reduced compared to 1 year ago.
Compared to 5 years ago, CSCO has less shares outstanding
CSCO has a better debt/assets ratio than last year.
2.2 Solvency
CSCO has a debt to FCF ratio of 2.11. This is a good value and a sign of high solvency as CSCO would need 2.11 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.11, CSCO is in the better half of the industry, outperforming 60.42% of the companies in the same industry.
A Debt/Equity ratio of 0.49 indicates that CSCO is not too dependend on debt financing.
CSCO has a Debt to Equity ratio of 0.49. This is in the lower half of the industry: CSCO underperforms 64.58% of its industry peers.
Although CSCO 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 | 0.49 | ||
| Debt/FCF | 2.11 | ||
| Altman-Z | N/A |
ROIC/WACC1.27
WACC10.15%
2.3 Liquidity
A Current Ratio of 1.01 indicates that CSCO should not have too much problems paying its short term obligations.
CSCO has a Current ratio of 1.01. This is amonst the worse of the industry: CSCO underperforms 85.42% of its industry peers.
CSCO has a Quick Ratio of 1.01. 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 0.92. This is in the lower half of the industry: CSCO underperforms 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.88% over the past year.
Measured over the past 5 years, CSCO shows a small growth in Earnings Per Share. The EPS has been growing by 3.50% on average per year.
The Revenue has been growing slightly by 5.30% in the past year.
The Revenue has been growing slightly by 2.82% on average over the past years.
EPS 1Y (TTM)1.88%
EPS 3Y4.19%
EPS 5Y3.5%
EPS Q2Q%13.79%
Revenue 1Y (TTM)5.3%
Revenue growth 3Y3.19%
Revenue growth 5Y2.82%
Sales Q2Q%7.56%
3.2 Future
CSCO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.38% yearly.
The Revenue is expected to grow by 4.95% on average over the next years.
EPS Next Y8.5%
EPS Next 2Y8.04%
EPS Next 3Y8%
EPS Next 5Y8.38%
Revenue Next Year5.33%
Revenue Next 2Y4.95%
Revenue Next 3Y4.84%
Revenue Next 5Y4.95%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
With a Price/Earnings ratio of 18.00, CSCO is valued on the expensive side.
CSCO's Price/Earnings ratio is a bit cheaper when compared to the industry. CSCO is cheaper than 72.92% of the companies in the same industry.
CSCO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.08.
A Price/Forward Earnings ratio of 16.59 indicates a correct valuation of CSCO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CSCO indicates a somewhat cheap valuation: CSCO is cheaper than 72.92% of the companies listed in the same industry.
CSCO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.67.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18 | ||
| Fwd PE | 16.59 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CSCO indicates a somewhat cheap valuation: CSCO is cheaper than 66.67% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CSCO indicates a somewhat cheap valuation: CSCO is cheaper than 62.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.38 | ||
| EV/EBITDA | 17.56 |
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 decent profitability rating of CSCO may justify a higher PE ratio.
PEG (NY)2.12
PEG (5Y)5.15
EPS Next 2Y8.04%
EPS Next 3Y8%
5. Dividend
5.1 Amount
CSCO has a Yearly Dividend Yield of 2.45%.
Compared to an average industry Dividend Yield of 3.78, CSCO pays a better dividend. On top of this CSCO pays more dividend than 85.42% of the companies listed in the same industry.
CSCO's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
5.2 History
The dividend of CSCO has a limited annual growth rate of 2.65%.
CSCO has been paying a dividend for at least 10 years, so it has a reliable track record.
CSCO has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)2.65%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
CSCO pays out 61.58% of its income as dividend. This is not a sustainable payout ratio.
CSCO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP61.58%
EPS Next 2Y8.04%
EPS Next 3Y8%
NASDAQ:CSCO (8/27/2025, 2:51:09 PM)
68.3925
0 (0%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners81.26%
Inst Owner Change-1.14%
Ins Owners0.03%
Ins Owner Change-3.05%
Market Cap270.83B
Analysts78.79
Price Target77.48 (13.29%)
Short Float %1.2%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
Yearly Dividend1.62
Dividend Growth(5Y)2.65%
DP61.58%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.01%
Min EPS beat(2)-0.5%
Max EPS beat(2)2.52%
EPS beat(4)3
Avg EPS beat(4)1.46%
Min EPS beat(4)-0.5%
Max EPS beat(4)2.52%
EPS beat(8)7
Avg EPS beat(8)2.32%
EPS beat(12)11
Avg EPS beat(12)2.22%
EPS beat(16)12
Avg EPS beat(16)1.69%
Revenue beat(2)0
Avg Revenue beat(2)-1.53%
Min Revenue beat(2)-1.58%
Max Revenue beat(2)-1.48%
Revenue beat(4)0
Avg Revenue beat(4)-1.41%
Min Revenue beat(4)-1.58%
Max Revenue beat(4)-1.14%
Revenue beat(8)0
Avg Revenue beat(8)-1.3%
Revenue beat(12)1
Avg Revenue beat(12)-1.04%
Revenue beat(16)2
Avg Revenue beat(16)-1.32%
PT rev (1m)6.38%
PT rev (3m)11%
EPS NQ rev (1m)1.24%
EPS NQ rev (3m)2.25%
EPS NY rev (1m)0.41%
EPS NY rev (3m)0.35%
Revenue NQ rev (1m)0.94%
Revenue NQ rev (3m)1.5%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18 | ||
| Fwd PE | 16.59 | ||
| P/S | 4.78 | ||
| P/FCF | 20.38 | ||
| P/OCF | 19.08 | ||
| P/B | 5.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.56 |
EPS(TTM)3.8
EY5.56%
EPS(NY)4.12
Fwd EY6.03%
FCF(TTM)3.36
FCFY4.91%
OCF(TTM)3.58
OCFY5.24%
SpS14.31
BVpS11.9
TBVpS-5.35
PEG (NY)2.12
PEG (5Y)5.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.53% | ||
| ROE | 22.19% | ||
| ROCE | 14.69% | ||
| ROIC | 12.9% | ||
| ROICexc | 15.81% | ||
| ROICexgc | 366.62% | ||
| OM | 22.69% | ||
| PM (TTM) | 18.45% | ||
| GM | 65.56% | ||
| FCFM | 23.45% |
ROA(3y)9.74%
ROA(5y)10.53%
ROE(3y)24.44%
ROE(5y)25.74%
ROIC(3y)14.79%
ROIC(5y)15.83%
ROICexc(3y)20.5%
ROICexc(5y)22.42%
ROICexgc(3y)289.78%
ROICexgc(5y)250.68%
ROCE(3y)17.43%
ROCE(5y)18.42%
ROICexcg growth 3Y37.98%
ROICexcg growth 5Y6.94%
ROICexc growth 3Y-13.9%
ROICexc growth 5Y-12.52%
OM growth 3Y-5.86%
OM growth 5Y-4.51%
PM growth 3Y-6.96%
PM growth 5Y-4.1%
GM growth 3Y1.58%
GM growth 5Y0.4%
F-Score7
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.11 | ||
| Debt/EBITDA | 1.46 | ||
| Cap/Depr | 32.2% | ||
| Cap/Sales | 1.6% | ||
| Interest Coverage | 8.57 | ||
| Cash Conversion | 90.59% | ||
| Profit Quality | 127.12% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z | N/A |
F-Score7
WACC10.15%
ROIC/WACC1.27
Cap/Depr(3y)36.04%
Cap/Depr(5y)33.93%
Cap/Sales(3y)1.44%
Cap/Sales(5y)1.33%
Profit Quality(3y)125.66%
Profit Quality(5y)124.86%
High Growth Momentum
Growth
EPS 1Y (TTM)1.88%
EPS 3Y4.19%
EPS 5Y3.5%
EPS Q2Q%13.79%
EPS Next Y8.5%
EPS Next 2Y8.04%
EPS Next 3Y8%
EPS Next 5Y8.38%
Revenue 1Y (TTM)5.3%
Revenue growth 3Y3.19%
Revenue growth 5Y2.82%
Sales Q2Q%7.56%
Revenue Next Year5.33%
Revenue Next 2Y4.95%
Revenue Next 3Y4.84%
Revenue Next 5Y4.95%
EBIT growth 1Y-1.07%
EBIT growth 3Y-2.85%
EBIT growth 5Y-1.82%
EBIT Next Year15.24%
EBIT Next 3Y7.56%
EBIT Next 5YN/A
FCF growth 1Y30.15%
FCF growth 3Y1.39%
FCF growth 5Y-1.94%
OCF growth 1Y30.45%
OCF growth 3Y2.38%
OCF growth 5Y-1.65%