CSCOCisco
Is the business good?
The checks split: 7 of 9 health tests passed and earnings fully cash-backed (1.1×), but margins compressing.
High fundamental quality. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
Margin-driven, fat margins on slower asset turns. ROE 24% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is CSCO?
Cisco earns 21% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 12 points above what the capital costs: growth creates value
- Operating margin
- 24%
Operating margin · Communication Equipment median 5.0% · 12 months to Q4 2026
- Cash conversion
- 1.11×
Cash conversion · 1.32× a year ago · operating cash flow covers the operating profit after tax
- R&D as % of revenue
- 15%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2021 | 26% |
| FY2022 | 27% |
| FY2023 | 26% |
| FY2024 | 23% |
| FY2025 | 21% |
| FY2026 | 24% |
Details›
- Gross margin12 months to Q4 2026
- 65%
- Operating margin12 months to Q4 2026
- 24%
- Net margin12 months to Q4 2026
- 21%
- Free cash flow margin
- 20%
- R&D as % of revenue
- 15%
- Revenue, trailing twelve months
- $63.3B
- Free cash flow, trailing twelve months
- $12.8B
- Net income, trailing twelve months
- $13.3B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 21%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Communication Equipment
The closest names by size in the same industry