CISCO SYSTEMS INC (CSCO) Fundamental Analysis & Valuation

NASDAQ:CSCO • US17275R1023

Current stock price

80.68 USD
+0.25 (+0.31%)
At close:
80.68 USD
0 (0%)
After Hours:

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

8

1. CSCO Profitability Analysis

1.1 Basic Checks

  • In the past year CSCO was profitable.
  • In the past year CSCO had a positive cash flow from operations.
  • Each year in the past 5 years CSCO has been profitable.
  • Each year in the past 5 years CSCO had a positive operating cash flow.
CSCO Yearly Net Income VS EBIT VS OCF VS FCFCSCO 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 2025 5B 10B 15B

1.2 Ratios

  • CSCO has a better Return On Assets (8.98%) than 82.98% of its industry peers.
  • The Return On Equity of CSCO (23.21%) is better than 85.11% of its industry peers.
  • CSCO has a Return On Invested Capital of 13.41%. This is amongst the best in the industry. CSCO outperforms 85.11% of its industry peers.
  • CSCO had an Average Return On Invested Capital over the past 3 years of 14.02%. This is above the industry average of 10.21%.
Industry RankSector Rank
ROA 8.98%
ROE 23.21%
ROIC 13.41%
ROA(3y)9.67%
ROA(5y)10.49%
ROE(3y)24.29%
ROE(5y)25.65%
ROIC(3y)14.02%
ROIC(5y)15.13%
CSCO Yearly ROA, ROE, ROICCSCO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • The Profit Margin of CSCO (18.76%) is better than 91.49% of its industry peers.
  • In the last couple of years the Profit Margin of CSCO has declined.
  • CSCO's Operating Margin of 23.18% is amongst the best of the industry. CSCO outperforms 91.49% of its industry peers.
  • In the last couple of years the Operating Margin of CSCO has declined.
  • Looking at the Gross Margin, with a value of 64.81%, CSCO belongs to the top of the industry, outperforming 87.23% 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 RankSector Rank
OM 23.18%
PM (TTM) 18.76%
GM 64.81%
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%
CSCO Yearly Profit, Operating, Gross MarginsCSCO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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3

2. CSCO 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.
  • Compared to 5 years ago, CSCO has less shares outstanding
  • Compared to 1 year ago, CSCO has an improved debt to assets ratio.
CSCO Yearly Shares OutstandingCSCO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B
CSCO Yearly Total Debt VS Total AssetsCSCO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B 100B

2.2 Solvency

  • CSCO has a debt to FCF ratio of 2.46. This is a good value and a sign of high solvency as CSCO would need 2.46 years to pay back of all of its debts.
  • CSCO's Debt to FCF ratio of 2.46 is in line compared to the rest of the industry. CSCO outperforms 59.57% of its industry peers.
  • CSCO has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
  • CSCO has a Debt to Equity ratio of 0.45. This is in the lower half of the industry: CSCO underperforms 74.47% 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 0.45
Debt/FCF 2.46
Altman-Z N/A
ROIC/WACC1.56
WACC8.59%
CSCO Yearly LT Debt VS Equity VS FCFCSCO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B

2.3 Liquidity

  • CSCO has a Current Ratio of 0.96. This is a bad value and indicates that CSCO is not financially healthy enough and could expect problems in meeting its short term obligations.
  • With a Current ratio value of 0.96, CSCO is not doing good in the industry: 89.36% of the companies in the same industry are doing better.
  • CSCO has a Quick Ratio of 0.96. 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 Quick ratio of 0.85 is on the low side compared to the rest of the industry. CSCO is outperformed by 87.23% of its industry peers.
Industry RankSector Rank
Current Ratio 0.96
Quick Ratio 0.85
CSCO Yearly Current Assets VS Current LiabilitesCSCO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B

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

5

3. CSCO Growth Analysis

3.1 Past

  • CSCO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.83%, which is quite good.
  • The Earnings Per Share has been growing slightly by 3.50% on average over the past years.
  • The Revenue has grown by 9.00% in the past year. This is quite good.
  • The Revenue has been growing slightly by 2.82% on average over the past years.
EPS 1Y (TTM)10.83%
EPS 3Y4.19%
EPS 5Y3.5%
EPS Q2Q%10.64%
Revenue 1Y (TTM)9%
Revenue growth 3Y3.19%
Revenue growth 5Y2.82%
Sales Q2Q%9.71%

3.2 Future

  • Based on estimates for the next years, CSCO will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.36% on average per year.
  • CSCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.95% yearly.
EPS Next Y11.5%
EPS Next 2Y10.06%
EPS Next 3Y9.49%
EPS Next 5Y10.36%
Revenue Next Year8.74%
Revenue Next 2Y7.23%
Revenue Next 3Y6.45%
Revenue Next 5Y5.95%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better 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 Yearly Revenue VS EstimatesCSCO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 20B 40B 60B
CSCO Yearly EPS VS EstimatesCSCO Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6

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4

4. CSCO Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 20.22, 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 76.60% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 26.21, CSCO is valued a bit cheaper.
  • The Price/Forward Earnings ratio is 17.53, which indicates a rather expensive current valuation of CSCO.
  • Based on the Price/Forward Earnings ratio, CSCO is valued a bit cheaper than the industry average as 76.60% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 23.13. CSCO is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 20.22
Fwd PE 17.53
CSCO Price Earnings VS Forward Price EarningsCSCO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • 63.83% of the companies in the same industry are more expensive than CSCO, based on the Enterprise Value to EBITDA ratio.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as CSCO.
Industry RankSector Rank
P/FCF 26.03
EV/EBITDA 19.96
CSCO Per share dataCSCO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10

4.3 Compensation for Growth

  • CSCO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • CSCO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.76
PEG (5Y)5.78
EPS Next 2Y10.06%
EPS Next 3Y9.49%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. CSCO Dividend Analysis

5.1 Amount

  • CSCO has a Yearly Dividend Yield of 2.10%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 0.79, CSCO pays a better dividend. On top of this CSCO pays more dividend than 87.23% of the companies listed in the same industry.
  • CSCO's Dividend Yield is comparable with the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 2.1%

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 Years14
Div Non Decr Years14
CSCO Yearly Dividends per shareCSCO Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5

5.3 Sustainability

  • CSCO pays out 58.56% of its income as dividend. This is a bit on the high side, but may be sustainable.
  • CSCO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP58.56%
EPS Next 2Y10.06%
EPS Next 3Y9.49%
CSCO Yearly Income VS Free CF VS DividendCSCO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B
CSCO Dividend Payout.CSCO Dividend Payout, showing the Payout Ratio.CSCO Dividend Payout.PayoutRetained Earnings

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CSCO Fundamentals: All Metrics, Ratios and Statistics

CISCO SYSTEMS INC

NASDAQ:CSCO (4/7/2026, 4:22:00 PM)

After market: 80.68 0 (0%)

80.68

+0.25 (+0.31%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-11
Earnings (Next)05-12
Inst Owners81.84%
Inst Owner Change0%
Ins Owners0.03%
Ins Owner Change-5.33%
Market Cap318.68B
Revenue(TTM)59.05B
Net Income(TTM)11.08B
Analysts78.75
Price Target89.85 (11.37%)
Short Float %1.65%
Short Ratio2.56
Dividend
Industry RankSector Rank
Dividend Yield 2.1%
Yearly Dividend1.62
Dividend Growth(5Y)2.65%
DP58.56%
Div Incr Years14
Div Non Decr Years14
Ex-Date04-02
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.17%
Min EPS beat(2)-0.21%
Max EPS beat(2)-0.13%
EPS beat(4)1
Avg EPS beat(4)0.42%
Min EPS beat(4)-0.5%
Max EPS beat(4)2.52%
EPS beat(8)5
Avg EPS beat(8)1.34%
EPS beat(12)9
Avg EPS beat(12)2.05%
EPS beat(16)11
Avg EPS beat(16)1.55%
Revenue beat(2)0
Avg Revenue beat(2)-0.82%
Min Revenue beat(2)-1.19%
Max Revenue beat(2)-0.45%
Revenue beat(4)0
Avg Revenue beat(4)-1.17%
Min Revenue beat(4)-1.58%
Max Revenue beat(4)-0.45%
Revenue beat(8)0
Avg Revenue beat(8)-1.14%
Revenue beat(12)0
Avg Revenue beat(12)-1.15%
Revenue beat(16)2
Avg Revenue beat(16)-1.18%
PT rev (1m)0.22%
PT rev (3m)3.66%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)0.32%
EPS NY rev (1m)0%
EPS NY rev (3m)0.83%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)2.33%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)1.39%
Valuation
Industry RankSector Rank
PE 20.22
Fwd PE 17.53
P/S 5.4
P/FCF 26.03
P/OCF 23.92
P/B 6.68
P/tB N/A
EV/EBITDA 19.96
EPS(TTM)3.99
EY4.95%
EPS(NY)4.6
Fwd EY5.71%
FCF(TTM)3.1
FCFY3.84%
OCF(TTM)3.37
OCFY4.18%
SpS14.95
BVpS12.08
TBVpS-5.02
PEG (NY)1.76
PEG (5Y)5.78
Graham Number32.93
Profitability
Industry RankSector Rank
ROA 8.98%
ROE 23.21%
ROCE 15.81%
ROIC 13.41%
ROICexc 16.39%
ROICexgc 355.28%
OM 23.18%
PM (TTM) 18.76%
GM 64.81%
FCFM 20.73%
ROA(3y)9.67%
ROA(5y)10.49%
ROE(3y)24.29%
ROE(5y)25.65%
ROIC(3y)14.02%
ROIC(5y)15.13%
ROICexc(3y)19.45%
ROICexc(5y)21.44%
ROICexgc(3y)218.06%
ROICexgc(5y)205%
ROCE(3y)17.32%
ROCE(5y)18.35%
ROICexgc growth 3Y7.78%
ROICexgc growth 5Y-7.79%
ROICexc growth 3Y-15.92%
ROICexc growth 5Y-13.75%
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%
F-Score7
Asset Turnover0.48
Health
Industry RankSector Rank
Debt/Equity 0.45
Debt/FCF 2.46
Debt/EBITDA 1.32
Cap/Depr 42.91%
Cap/Sales 1.84%
Interest Coverage 9.56
Cash Conversion 82.18%
Profit Quality 110.52%
Current Ratio 0.96
Quick Ratio 0.85
Altman-Z N/A
F-Score7
WACC8.59%
ROIC/WACC1.56
Cap/Depr(3y)36.04%
Cap/Depr(5y)33.93%
Cap/Sales(3y)1.44%
Cap/Sales(5y)1.33%
Profit Quality(3y)126.8%
Profit Quality(5y)125.54%
High Growth Momentum
Growth
EPS 1Y (TTM)10.83%
EPS 3Y4.19%
EPS 5Y3.5%
EPS Q2Q%10.64%
EPS Next Y11.5%
EPS Next 2Y10.06%
EPS Next 3Y9.49%
EPS Next 5Y10.36%
Revenue 1Y (TTM)9%
Revenue growth 3Y3.19%
Revenue growth 5Y2.82%
Sales Q2Q%9.71%
Revenue Next Year8.74%
Revenue Next 2Y7.23%
Revenue Next 3Y6.45%
Revenue Next 5Y5.95%
EBIT growth 1Y17.55%
EBIT growth 3Y-3.72%
EBIT growth 5Y-2.35%
EBIT Next Year19.86%
EBIT Next 3Y10.35%
EBIT Next 5Y9.54%
FCF growth 1Y-9.71%
FCF growth 3Y1.39%
FCF growth 5Y-1.94%
OCF growth 1Y-7.23%
OCF growth 3Y2.38%
OCF growth 5Y-1.65%

CISCO SYSTEMS INC / CSCO Fundamental Analysis FAQ

What is the ChartMill fundamental rating of CISCO SYSTEMS INC (CSCO) stock?

ChartMill assigns a fundamental rating of 5 / 10 to CSCO.


What is the valuation status for CSCO stock?

ChartMill assigns a valuation rating of 4 / 10 to CISCO SYSTEMS INC (CSCO). This can be considered as Fairly Valued.


What is the profitability of CSCO stock?

CISCO SYSTEMS INC (CSCO) 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 (CSCO) is expected to grow by 11.5% in the next year.


How sustainable is the dividend of CISCO SYSTEMS INC (CSCO) stock?

The dividend rating of CISCO SYSTEMS INC (CSCO) is 7 / 10 and the dividend payout ratio is 58.56%.