78.42 USD
+1.47 (+1.91%)
78.58 USD
+0.16 (+0.2%)
Overall CSCO gets a fundamental rating of 5 out of 10. We evaluated CSCO against 48 industry peers in the Communications Equipment industry. CSCO has an excellent profitability rating, but there are some minor concerns on its financial health. CSCO has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year CSCO was profitable.
CSCO had a positive operating cash flow in the past year.
Each year in the past 5 years CSCO has been profitable.
CSCO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.53%, CSCO belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
Looking at the Return On Equity, with a value of 22.04%, CSCO belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
CSCO's Return On Invested Capital of 12.86% is amongst the best of the industry. CSCO outperforms 85.42% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CSCO is in line with the industry average of 12.35%.
| 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
Looking at the Profit Margin, with a value of 17.90%, CSCO belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
CSCO's Profit Margin has declined in the last couple of years.
The Operating Margin of CSCO (22.52%) is better than 91.67% of its industry peers.
In the last couple of years the Operating Margin of CSCO has declined.
CSCO's Gross Margin of 64.85% is amongst the best of the industry. CSCO outperforms 87.50% of its industry peers.
CSCO'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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CSCO is creating some value.
Compared to 1 year ago, CSCO has less shares outstanding
The number of shares outstanding for CSCO has been reduced compared to 5 years ago.
The debt/assets ratio for CSCO has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of CSCO is 2.21, which is a good value as it means it would take CSCO, 2.21 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.21, CSCO is in the better half of the industry, outperforming 60.42% of the companies in the same industry.
A Debt/Equity ratio of 0.46 indicates that CSCO is not too dependend on debt financing.
CSCO has a Debt to Equity ratio of 0.46. This is in the lower half of the industry: CSCO underperforms 72.92% of its industry peers.
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 | 0.46 | ||
| Debt/FCF | 2.21 | ||
| Altman-Z | N/A |
ROIC/WACC1.4
WACC9.22%
2.3 Liquidity
A Current Ratio of 0.93 indicates that CSCO may have some problems paying its short term obligations.
CSCO's Current ratio of 0.93 is on the low side compared to the rest of the industry. CSCO is outperformed by 91.67% of its industry peers.
A Quick Ratio of 0.83 indicates that CSCO may have some problems paying its short term obligations.
CSCO has a Quick ratio of 0.83. This is amonst the worse of the industry: CSCO underperforms 87.50% 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.
CSCO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.50% yearly.
The Revenue has grown by 8.91% in the past year. This is quite good.
CSCO 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
Based on estimates for the next years, CSCO will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.07% on average per year.
Based on estimates for the next years, CSCO will show a small growth in Revenue. The Revenue will grow by 6.28% on average per year.
EPS Next Y10.59%
EPS Next 2Y9.4%
EPS Next 3Y8.67%
EPS Next 5Y10.07%
Revenue Next Year7.24%
Revenue Next 2Y6.15%
Revenue Next 3Y5.75%
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
A Price/Earnings ratio of 20.16 indicates a rather expensive valuation of CSCO.
Compared to the rest of the industry, the Price/Earnings ratio of CSCO indicates a somewhat cheap valuation: CSCO is cheaper than 70.83% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CSCO to the average of the S&P500 Index (26.38), we can say CSCO is valued slightly cheaper.
With a Price/Forward Earnings ratio of 17.24, CSCO is valued on the expensive side.
Based on the Price/Forward Earnings ratio, CSCO is valued a bit cheaper than 72.92% of the companies in the same industry.
CSCO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.16 | ||
| Fwd PE | 17.24 |
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 62.50% of the companies listed in the same industry.
CSCO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CSCO is cheaper than 60.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.33 | ||
| EV/EBITDA | 19.78 |
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)1.9
PEG (5Y)5.77
EPS Next 2Y9.4%
EPS Next 3Y8.67%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.07%, CSCO has a reasonable but not impressive dividend return.
CSCO's Dividend Yield is rather good when compared to the industry average which is at 0.76. CSCO pays more dividend than 85.42% of the companies in the same industry.
CSCO's Dividend Yield is comparable with the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
5.2 History
The dividend of CSCO has a limited annual growth rate of 2.65%.
CSCO has paid a dividend for at least 10 years, which is 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
62.56% 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.
DP62.56%
EPS Next 2Y9.4%
EPS Next 3Y8.67%
78.42
+1.47 (+1.91%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners81.22%
Inst Owner Change-0.31%
Ins Owners0.03%
Ins Owner Change1.05%
Market Cap309.84B
Revenue(TTM)57.70B
Net Income(TTM)10.33B
Analysts77.42
Price Target86.2 (9.92%)
Short Float %1.3%
Short Ratio2.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
Yearly Dividend1.62
Dividend Growth(5Y)2.65%
DP62.56%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.32%
Min EPS beat(2)-0.5%
Max EPS beat(2)-0.13%
EPS beat(4)2
Avg EPS beat(4)0.81%
Min EPS beat(4)-0.5%
Max EPS beat(4)2.52%
EPS beat(8)6
Avg EPS beat(8)1.6%
EPS beat(12)10
Avg EPS beat(12)2.14%
EPS beat(16)12
Avg EPS beat(16)1.69%
Revenue beat(2)0
Avg Revenue beat(2)-1.39%
Min Revenue beat(2)-1.58%
Max Revenue beat(2)-1.19%
Revenue beat(4)0
Avg Revenue beat(4)-1.35%
Min Revenue beat(4)-1.58%
Max Revenue beat(4)-1.14%
Revenue beat(8)0
Avg Revenue beat(8)-1.25%
Revenue beat(12)0
Avg Revenue beat(12)-1.18%
Revenue beat(16)2
Avg Revenue beat(16)-1.24%
PT rev (1m)10.83%
PT rev (3m)11.25%
EPS NQ rev (1m)3.32%
EPS NQ rev (3m)2.86%
EPS NY rev (1m)1.94%
EPS NY rev (3m)1.92%
Revenue NQ rev (1m)3.32%
Revenue NQ rev (3m)3.19%
Revenue NY rev (1m)1.79%
Revenue NY rev (3m)1.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.16 | ||
| Fwd PE | 17.24 | ||
| P/S | 5.37 | ||
| P/FCF | 24.33 | ||
| P/OCF | 22.54 | ||
| P/B | 6.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.78 |
EPS(TTM)3.89
EY4.96%
EPS(NY)4.55
Fwd EY5.8%
FCF(TTM)3.22
FCFY4.11%
OCF(TTM)3.48
OCFY4.44%
SpS14.6
BVpS11.86
TBVpS-5.3
PEG (NY)1.9
PEG (5Y)5.77
Graham Number32.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.53% | ||
| ROE | 22.04% | ||
| ROCE | 15.17% | ||
| ROIC | 12.86% | ||
| ROICexc | 15.76% | ||
| ROICexgc | 528.93% | ||
| OM | 22.52% | ||
| PM (TTM) | 17.9% | ||
| GM | 64.85% | ||
| FCFM | 22.07% |
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.21 | ||
| Debt/EBITDA | 1.37 | ||
| Cap/Depr | 38.47% | ||
| Cap/Sales | 1.75% | ||
| Interest Coverage | 8.27 | ||
| Cash Conversion | 87.98% | ||
| Profit Quality | 123.27% | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | N/A |
F-Score7
WACC9.22%
ROIC/WACC1.4
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)10.2%
EPS 3Y4.19%
EPS 5Y3.5%
EPS Q2Q%9.89%
EPS Next Y10.59%
EPS Next 2Y9.4%
EPS Next 3Y8.67%
EPS Next 5Y10.07%
Revenue 1Y (TTM)8.91%
Revenue growth 3Y3.19%
Revenue growth 5Y2.82%
Sales Q2Q%7.53%
Revenue Next Year7.24%
Revenue Next 2Y6.15%
Revenue Next 3Y5.75%
Revenue Next 5Y6.28%
EBIT growth 1Y11.75%
EBIT growth 3Y-3.72%
EBIT growth 5Y-2.35%
EBIT Next Year17.41%
EBIT Next 3Y9.5%
EBIT Next 5Y9.13%
FCF growth 1Y-27.19%
FCF growth 3Y1.39%
FCF growth 5Y-1.94%
OCF growth 1Y-24.88%
OCF growth 3Y2.38%
OCF growth 5Y-1.65%
CISCO SYSTEMS INC / CSCO FAQ
What is the ChartMill fundamental rating of CISCO SYSTEMS INC (CSCO) stock?
ChartMill assigns a fundamental rating of 5 / 10 to CSCO.
Can you provide the valuation status for CISCO SYSTEMS INC?
ChartMill assigns a valuation rating of 4 / 10 to CISCO SYSTEMS INC (CSCO). This can be considered as Fairly Valued.
Can you provide the profitability details for CISCO SYSTEMS INC?
CISCO SYSTEMS INC (CSCO) has a profitability rating of 7 / 10.
What is the valuation of CISCO SYSTEMS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CISCO SYSTEMS INC (CSCO) is 20.16 and the Price/Book (PB) ratio is 6.61.
What is the earnings growth outlook for CISCO SYSTEMS INC?
The Earnings per Share (EPS) of CISCO SYSTEMS INC (CSCO) is expected to grow by 10.59% in the next year.