76 USD
-1.55 (-2%)
76.02 USD
+0.02 (+0.03%)
We assign a fundamental rating of 5 out of 10 to CSCO. CSCO was compared to 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 decent growth rate and is not valued too expensively.
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.
CSCO had positive earnings in each of the past 5 years.
Each year in the past 5 years CSCO had a positive operating cash flow.
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.
The Return On Equity of CSCO (22.04%) is better than 87.50% of its industry peers.
With an excellent Return On Invested Capital value of 12.86%, CSCO belongs to the best of the industry, outperforming 85.42% of the companies in the same industry.
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
CSCO's Profit Margin of 17.90% is amongst the best of the industry. CSCO outperforms 91.67% of its industry peers.
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.
CSCO's Operating Margin has declined in the last couple of years.
CSCO has a better Gross Margin (64.85%) than 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
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.
CSCO has a better debt/assets ratio than last year.
2.2 Solvency
CSCO has a debt to FCF ratio of 2.21. This is a good value and a sign of high solvency as CSCO would need 2.21 years to pay back of 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's Debt to Equity ratio of 0.46 is on the low side compared to the rest of the industry. CSCO is outperformed by 72.92% 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 | 0.46 | ||
| Debt/FCF | 2.21 | ||
| Altman-Z | N/A |
ROIC/WACC1.39
WACC9.26%
2.3 Liquidity
A Current Ratio of 0.93 indicates that CSCO may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.93, CSCO is doing worse than 91.67% of the companies in the same industry.
A Quick Ratio of 0.83 indicates that CSCO may have some problems paying its short term obligations.
With a Quick ratio value of 0.83, CSCO is not doing good in the industry: 87.50% of the companies in the same industry are doing better.
| 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.
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 grown by 8.91% in the past year. This is quite good.
Measured over the past years, CSCO shows a small growth in Revenue. The Revenue has been growing by 2.82% on average per year.
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
CSCO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.07% yearly.
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.
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 19.54, CSCO is valued on the expensive side.
70.83% of the companies in the same industry are more expensive than CSCO, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of CSCO to the average of the S&P500 Index (26.22), we can say CSCO is valued slightly cheaper.
A Price/Forward Earnings ratio of 16.71 indicates a correct valuation of CSCO.
CSCO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CSCO is cheaper than 70.83% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.58. CSCO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.54 | ||
| Fwd PE | 16.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CSCO is valued a bit cheaper than 60.42% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CSCO is valued a bit cheaper than the industry average as 60.42% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.58 | ||
| EV/EBITDA | 19.54 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CSCO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.84
PEG (5Y)5.59
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 0.75. CSCO pays more dividend than 85.42% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, CSCO has a dividend comparable with the average S&P500 company.
| 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 their dividend for at least 10 years, which is a reliable track record.
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%
76
-1.55 (-2%)
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 Cap300.28B
Revenue(TTM)57.70B
Net Income(TTM)10.33B
Analysts77.42
Price Target86.2 (13.42%)
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 | 19.54 | ||
| Fwd PE | 16.71 | ||
| P/S | 5.2 | ||
| P/FCF | 23.58 | ||
| P/OCF | 21.85 | ||
| P/B | 6.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.54 |
EPS(TTM)3.89
EY5.12%
EPS(NY)4.55
Fwd EY5.98%
FCF(TTM)3.22
FCFY4.24%
OCF(TTM)3.48
OCFY4.58%
SpS14.6
BVpS11.86
TBVpS-5.3
PEG (NY)1.84
PEG (5Y)5.59
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
WACC9.26%
ROIC/WACC1.39
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 5 / 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 19.54 and the Price/Book (PB) ratio is 6.41.
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.