Cisco SystemsXSWX:CSCO 81 3-Year ROIIC % is 0.17 as of Jul. 2025, which is 98% below its 10-year median of 7.01. GuruFocus rates XSWX:CSCO with a GF Score™ of 81/100 and a GF Value™ of CHF55.37. The stock has 9 warning signs investors should review. Among 2,369 Hardware companies, Cisco Systems ranks worse than 53.74% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Cisco Systems's 3-Year ROIIC % for the quarter that ended in Jul. 2025 was 0.17%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Cisco Systems's 3-Year ROIIC % or its related term are showing as below:
XSWX:CSCO's 3-Year ROIIC % is ranked worse than 53.74% of 2369
companies
in the Hardware industry
Industry Median: 2.36
vs XSWX:CSCO: 0.17
Cisco Systems (XSWX:CSCO) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Cisco Systems 3-Year ROIIC % Related Terms
Cisco Systems 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Cisco Systems's 3-Year ROIIC % 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.
XSWX:CSCO vs CIEN, MSI, LITE: 3-Year ROIIC % Comparison
For the Communication Equipment subindustry, Cisco Systems's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Hardware Industry
For the Hardware industry and Technology sector, Cisco Systems's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Cisco Systems's 3-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Cisco Systems (XSWX:CSCO) has a 3-Year ROIIC % of 0.17 as of Jul. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Cisco Systems and its competitors. This is 98% below median its historical median of 7.01. According to the industry distribution chart, Cisco Systems ranks #1273 out of 2369 companies in the Hardware industry, placing it in the top 53.7%.
Is Cisco Systems' 3-Year ROIIC % too high?
Cisco Systems' current 3-Year ROIIC % of 0.17 is 98% below median its 10-year median of 7.01. The Hardware industry median 3-Year ROIIC % is 2.36. Cisco Systems' value of 0.17 is 92.8% below this industry median. Based on the distribution chart, Cisco Systems ranks #1273 out of 2369 companies in the Hardware industry, which is below the industry midpoint. Overall, Cisco Systems has a GF Score™ of 81/100, reflecting its overall financial health beyond just this single metric.
How does Cisco Systems' 3-Year ROIIC % compare to CIEN and MSI?
According to the Hardware industry distribution chart, Cisco Systems ranks #1273 out of 2369 companies for 3-Year ROIIC %. This places Cisco Systems in the lower half of its industry. The industry median 3-Year ROIIC % is 2.36. Cisco Systems' value of 0.17 is 92.8% below this benchmark. While the company's 10-year median is 7.01 vs. the industry median of 2.36, Cisco Systems has consistently been below 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 3-Year ROIIC % for a Hardware company?
The median 3-Year ROIIC % among Hardware companies is 2.36, based on 2,369 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cisco Systems's current 3-Year ROIIC % of 0.17 is 92.8% below 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Cisco Systems and its competitors. For the Hardware industry, the median 3-Year ROIIC % is 2.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cisco Systems's current 3-Year ROIIC % is 0.17, which is 98% below median its own 10-year median of 7.01. 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?
Cisco Systems (XSWX:CSCO) has a current 3-Year ROIIC % of 0.17. The stock's GF Value™ is CHF55.37, compared to a current price of CHF94.69 — trading 71% above its estimated fair value. The current 3-Year ROIIC % is 0.17, which is 98% below median its 10-year median of 7.01 and 92.8% below the Hardware industry median of 2.36. 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Cisco Systems (XSWX:CSCO), the current 3-Year ROIIC % is 0.17 as of Jul. 2025. 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 (XSWX:CSCO) Overvalued in 2026?
Based on GuruFocus' analysis, Cisco Systems stock appears to be overvalued.
The current stock price of CHF94.69 is trading 71% above its estimated GF Value™ of CHF55.37.
Key valuation signals for XSWX:CSCO:
3-Year ROIIC %: 0.17 (98% below median its 10-year median of 7.01)
GF Value™: CHF55.37 vs. price of CHF94.69 (71% above fair value)
Industry Position: 92.8% below the Hardware median (#1273 of 2369)
No single metric tells the full story. See the XSWX:CSCO 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
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