Cisco SystemsHAM:CIS -2.12%81 ROA % is 10.87% as of Apr. 2026, which is 8% above its 10-year median of 10.08. GuruFocus rates HAM:CIS with a GF Score™ of 81/100 and a GF Value™ of €57.55 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 2,498 Hardware companies, Cisco Systems ranks better than 87.47% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Cisco Systems's annualizedNet Income for the quarter that ended in Apr. 2026 was €11,536 Mil.
Cisco Systems's average Total Assets over the quarter that ended in Apr. 2026 was €106,165 Mil. Therefore, Cisco Systems's annualized ROA % for the quarter that ended in Apr. 2026 was 10.87%.
The historical rank and industry rank for Cisco Systems's ROA % or its related term are showing as below:
HAM:CIS'
s ROA % Range Over the Past 10 Years
Min: 0.09 Med: 10.08 Max: 12.88
Current: 9.77
During the past 13 years, Cisco Systems's highest ROA % was 12.88%. The lowest was 0.09%. And the median was 10.08%.
HAM:CIS's ROA % is ranked better than 87.47% of 2498
companies
in the Hardware industry
Industry Median: 2.27
vs HAM:CIS: 9.77
Cisco Systems (HAM:CIS) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Apr. 2026) net income data. The Revenue data used here is four times the quarterly (Apr. 2026) revenue data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Cisco Systems ROA % Related Terms
Cisco Systems ROA % Historical Data
* Premium members only.
The historical data trend for Cisco Systems's ROA % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Communication Equipment subindustry, Cisco Systems's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Cisco Systems ROA % vs Hardware Industry
For the Hardware industry and Technology sector, Cisco Systems's ROA % distribution charts can be found below:
* The bar in red indicates where Cisco Systems's ROA % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Apr. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Cisco Systems (HAM:CIS) has a ROA % of 10.87% as of Apr. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Cisco Systems and its competitors. This is near median its historical median of 10.08. Over the past decade, Cisco Systems' ROA % has ranged from 0.09 to 12.88. According to the industry distribution chart, Cisco Systems ranks #313 out of 2498 companies in the Hardware industry, placing it in the top 12.5%.
Is Cisco Systems' ROA % too high?
Cisco Systems' current ROA % of 10.87% is near median its 10-year median of 10.08. Over the past 10 years, this metric has ranged from a low of 0.09 to a high of 12.88. The Hardware industry median ROA % is 2.27. Cisco Systems' value of 10.87% is 378.9% above this industry median. Based on the distribution chart, Cisco Systems ranks #313 out of 2498 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Cisco Systems has a GF Score™ of 81/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cisco Systems' ROA % compare to CIEN and MSI?
According to the Hardware industry distribution chart, Cisco Systems ranks #313 out of 2498 companies for ROA %. This places Cisco Systems in the top 13% of its industry — outperforming the majority of peers. The industry median ROA % is 2.27. Cisco Systems' value of 10.87% is 378.9% above this benchmark. Historically, Cisco Systems' own ROA % has ranged from 0.09 to 12.88 over the past decade. While the company's 10-year median is 10.08 vs. the industry median of 2.27, Cisco Systems has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for a Hardware company?
The median ROA % among Hardware companies is 2.27, based on 2,498 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cisco Systems's current ROA % of 10.87% is 378.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Cisco Systems and its competitors. For the Hardware industry, the median ROA % is 2.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cisco Systems's current ROA % is 10.87%, which is near median its own 10-year median of 10.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cisco Systems stock overvalued right now?
Based on GuruFocus' analysis, Cisco Systems (HAM:CIS) is currently considered Significantly Overvalued. The stock's GF Value™ is €57.55, compared to a current price of €104.48 — trading 81.5% above its estimated fair value. The current ROA % is 10.87%, which is near median its 10-year median of 10.08 and 378.9% above the Hardware industry median of 2.27. Cisco Systems' overall GF Score™ is 81/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Cisco Systems (HAM:CIS), the current ROA % is 10.87% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Cisco Systems (HAM:CIS) Overvalued in 2026?
Based on GuruFocus' analysis, Cisco Systems stock appears to be overvalued.
The current stock price of €104.48 is trading 81.5% above its estimated GF Value™ of €57.55.
GuruFocus considers Cisco Systems to be Significantly Overvalued.
Key valuation signals for HAM:CIS:
ROA %: 10.87% (near median its 10-year median of 10.08)
GF Value™: €57.55 vs. price of €104.48 (81.5% above fair value)
Industry Position: 378.9% above the Hardware median (#313 of 2498)
No single metric tells the full story. See the HAM:CIS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cisco Systems is the largest provider of networking equipment in the world and one of the largest software companies in the world. Its largest businesses are selling networking hardware and software (where it has leading market shares) and cybersecurity software such as firewalls. It also has collaboration products, like its Webex suite, and observability tools. It primarily outsources its manufacturing to third parties and has a large sales and marketing staff—25,000 strong across 90 countries. Overall, Cisco employs 80,000 people and sells its products globally.
81GF Score
Get the complete analysis for HAM:CIS
ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
HAM:CIS has been successfully added to your 
