84.82 USD
+2.46 (+2.99%)
At close: Feb 6, 2026
84.7765 USD
-0.04 (-0.05%)
After Hours: 2/6/2026, 10:26:14 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. While CSCO belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CSCO is not valued too expensively and it also shows a decent growth rate.
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.
- CSCO had a positive operating cash flow in each of the past 5 years.
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 22.04%, CSCO belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
- CSCO has a Return On Invested Capital of 12.86%. This is amongst the best in the industry. CSCO outperforms 85.42% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for CSCO is above the industry average of 11.74%.
| 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.
- In the last couple of years the Profit Margin of CSCO has declined.
- CSCO has a better Operating Margin (22.52%) 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 64.85%. 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 | 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.
- 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.
- CSCO has a better Debt to FCF ratio (2.21) than 62.50% of its industry peers.
- CSCO has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.46, CSCO is doing worse than 70.83% of the companies in the same industry.
- 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/WACC1.32
WACC9.71%
2.3 Liquidity
- CSCO has a Current Ratio of 0.93. 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 0.93, CSCO is not doing good in the industry: 91.67% of the companies in the same industry are doing better.
- 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.
- CSCO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.91%.
- 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
- 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.
- CSCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.28% yearly.
EPS Next Y10.59%
EPS Next 2Y9.4%
EPS Next 3Y8.63%
EPS Next 5Y10.07%
Revenue Next Year7.24%
Revenue Next 2Y6.15%
Revenue Next 3Y5.74%
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
- The Price/Earnings ratio is 21.80, which indicates a rather expensive current valuation of CSCO.
- 70.83% of the companies in the same industry are more expensive than CSCO, based on the Price/Earnings ratio.
- CSCO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.93.
- A Price/Forward Earnings ratio of 18.65 indicates a rather expensive 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 68.75% 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 27.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.8 | ||
| Fwd PE | 18.65 |
4.2 Price Multiples
- CSCO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CSCO is 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 64.58% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.32 | ||
| EV/EBITDA | 21.77 |
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 excellent profitability rating of CSCO may justify a higher PE ratio.
PEG (NY)2.06
PEG (5Y)6.24
EPS Next 2Y9.4%
EPS Next 3Y8.63%
5. Dividend
5.1 Amount
- CSCO has a Yearly Dividend Yield of 1.99%.
- Compared to an average industry Dividend Yield of 0.78, CSCO pays a better dividend. On top of this CSCO pays more dividend than 85.42% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, CSCO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
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
- CSCO pays out 62.56% 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.
DP62.56%
EPS Next 2Y9.4%
EPS Next 3Y8.63%
84.82
+2.46 (+2.99%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)11-12 2025-11-12/amc
Earnings (Next)02-11 2026-02-11/amc
Inst Owners81.27%
Inst Owner Change-1.95%
Ins Owners0.03%
Ins Owner Change1.11%
Market Cap335.13B
Revenue(TTM)57.70B
Net Income(TTM)10.33B
Analysts77.42
Price Target88.11 (3.88%)
Short Float %1.46%
Short Ratio2.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
Yearly Dividend1.62
Dividend Growth(5Y)2.65%
DP62.56%
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)-0.32%
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)1.64%
PT rev (3m)13.27%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.39%
EPS NY rev (1m)0%
EPS NY rev (3m)1.94%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.41%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)1.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.8 | ||
| Fwd PE | 18.65 | ||
| P/S | 5.81 | ||
| P/FCF | 26.32 | ||
| P/OCF | 24.38 | ||
| P/B | 7.15 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.77 |
EPS(TTM)3.89
EY4.59%
EPS(NY)4.55
Fwd EY5.36%
FCF(TTM)3.22
FCFY3.8%
OCF(TTM)3.48
OCFY4.1%
SpS14.6
BVpS11.86
TBVpS-5.3
PEG (NY)2.06
PEG (5Y)6.24
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
WACC9.71%
ROIC/WACC1.32
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 3Y8.63%
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 3Y5.74%
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 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 21.8 and the Price/Book (PB) ratio is 7.15.
Can you provide the financial health for CSCO stock?
The financial health rating of CISCO SYSTEMS INC (CSCO) is 4 / 10.