CISCO SYSTEMS INC (CSCO) Stock Fundamental Analysis
NASDAQ:CSCO • US17275R1023
76.85 USD
+1.85 (+2.47%)
At close: Feb 13, 2026
76.69 USD
-0.16 (-0.21%)
After Hours: 2/13/2026, 8:01:12 PM
CSCO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 48 industry peers in the Communications Equipment industry. CSCO scores excellent on profitability, but there are some minor concerns on its financial health. CSCO has a decent growth rate and is not valued too expensively. CSCO also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year CSCO was profitable.
- In the past year CSCO had a positive cash flow from operations.
- CSCO had positive earnings in each of the past 5 years.
- In the past 5 years CSCO always reported a positive cash flow from operatings.
1.2 Ratios
- CSCO's Return On Assets of 8.98% is amongst the best of the industry. CSCO outperforms 83.33% of its industry peers.
- The Return On Equity of CSCO (23.21%) is better than 85.42% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 13.41%, CSCO belongs to the top of the industry, outperforming 85.42% of the companies in the same industry.
- CSCO had an Average Return On Invested Capital over the past 3 years of 14.02%. This is above the industry average of 11.27%.
| Industry Rank | Sector 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%
1.3 Margins
- CSCO's Profit Margin of 18.76% is amongst the best of the industry. CSCO outperforms 93.75% of its industry peers.
- CSCO's Profit Margin has declined in the last couple of years.
- CSCO has a better Operating Margin (23.18%) than 91.67% of its industry peers.
- In the last couple of years the Operating Margin of CSCO has declined.
- CSCO has a Gross Margin of 64.81%. This is amongst the best in 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 | 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%
2. Health
2.1 Basic Checks
- CSCO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- CSCO has less shares outstanding than it did 1 year ago.
- CSCO has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, CSCO has an improved debt to assets ratio.
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 has a better Debt to FCF ratio (2.46) than 60.42% of its industry peers.
- A Debt/Equity ratio of 0.45 indicates that CSCO is not too dependend on debt financing.
- CSCO has a worse Debt to Equity ratio (0.45) than 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 | 0.45 | ||
| Debt/FCF | 2.46 | ||
| Altman-Z | N/A |
ROIC/WACC1.43
WACC9.38%
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.
- The Current ratio of CSCO (0.96) is worse than 87.50% of its industry peers.
- A Quick Ratio of 0.85 indicates that CSCO may have some problems paying its short term obligations.
- CSCO has a Quick ratio of 0.85. This is amonst the worse of the industry: CSCO underperforms 85.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.85 |
3. Growth
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.
- CSCO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.82% yearly.
EPS 1Y (TTM)10.83%
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
- 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.
- The Revenue is expected to grow by 5.76% on average over the next years.
EPS Next Y10.59%
EPS Next 2Y9.4%
EPS Next 3Y8.63%
EPS Next 5Y10.07%
Revenue Next Year8.56%
Revenue Next 2Y6.99%
Revenue Next 3Y6.42%
Revenue Next 5Y5.76%
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
- A Price/Earnings ratio of 19.26 indicates a rather expensive valuation of CSCO.
- Based on the Price/Earnings ratio, CSCO is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 26.68. CSCO is valued slightly cheaper when compared to this.
- A Price/Forward Earnings ratio of 16.90 indicates a correct valuation of CSCO.
- 75.00% of the companies in the same industry are more expensive than CSCO, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 28.06. CSCO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.26 | ||
| Fwd PE | 16.9 |
4.2 Price Multiples
- 62.50% of the companies in the same industry are more expensive than CSCO, based on the Enterprise Value to EBITDA ratio.
- 64.58% of the companies in the same industry are more expensive than CSCO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.81 | ||
| EV/EBITDA | 19.1 |
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.
- CSCO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.82
PEG (5Y)5.51
EPS Next 2Y9.4%
EPS Next 3Y8.63%
5. Dividend
5.1 Amount
- CSCO has a Yearly Dividend Yield of 2.19%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.77, CSCO pays a better dividend. On top of this CSCO pays more dividend than 85.42% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.84, CSCO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.19% |
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
- 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 2Y9.4%
EPS Next 3Y8.63%
76.85
+1.85 (+2.47%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-11 2026-02-11/amc
Earnings (Next)05-12 2026-05-12/amc
Inst Owners81.27%
Inst Owner Change-0.12%
Ins Owners0.03%
Ins Owner Change1.94%
Market Cap303.64B
Revenue(TTM)59.05B
Net Income(TTM)11.08B
Analysts78.71
Price Target88.11 (14.65%)
Short Float %1.46%
Short Ratio2.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.19% |
Yearly Dividend1.62
Dividend Growth(5Y)2.65%
DP58.56%
Div Incr Years13
Div Non Decr Years13
Ex-Date01-02 2026-01-02 (0.41)
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)1.64%
PT rev (3m)13.27%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.72%
EPS NY rev (1m)0%
EPS NY rev (3m)1.94%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.2%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)1.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.26 | ||
| Fwd PE | 16.9 | ||
| P/S | 5.14 | ||
| P/FCF | 24.81 | ||
| P/OCF | 22.79 | ||
| P/B | 6.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.1 |
EPS(TTM)3.99
EY5.19%
EPS(NY)4.55
Fwd EY5.92%
FCF(TTM)3.1
FCFY4.03%
OCF(TTM)3.37
OCFY4.39%
SpS14.95
BVpS12.08
TBVpS-5.02
PEG (NY)1.82
PEG (5Y)5.51
Graham Number32.93
Profitability
| Industry Rank | Sector 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 Rank | Sector 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
WACC9.38%
ROIC/WACC1.43
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 Y10.59%
EPS Next 2Y9.4%
EPS Next 3Y8.63%
EPS Next 5Y10.07%
Revenue 1Y (TTM)9%
Revenue growth 3Y3.19%
Revenue growth 5Y2.82%
Sales Q2Q%9.71%
Revenue Next Year8.56%
Revenue Next 2Y6.99%
Revenue Next 3Y6.42%
Revenue Next 5Y5.76%
EBIT growth 1Y17.55%
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-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 FAQ
What is the ChartMill fundamental rating of CISCO SYSTEMS INC (CSCO) stock?
ChartMill assigns a fundamental rating of 6 / 10 to CSCO.
What is the valuation status of CISCO SYSTEMS INC (CSCO) stock?
ChartMill assigns a valuation rating of 5 / 10 to CISCO SYSTEMS INC (CSCO). This can be considered as Fairly Valued.
How profitable is CISCO SYSTEMS INC (CSCO) stock?
CISCO SYSTEMS INC (CSCO) has a profitability rating of 8 / 10.
What are the PE and PB ratios of CISCO SYSTEMS INC (CSCO) stock?
The Price/Earnings (PE) ratio for CISCO SYSTEMS INC (CSCO) is 19.26 and the Price/Book (PB) ratio is 6.36.
Can you provide the financial health for CSCO stock?
The financial health rating of CISCO SYSTEMS INC (CSCO) is 4 / 10.