CERNER CORP's gross profit margin for the second quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. CERNER CORP is extremely liquid. Currently, the Quick Ratio is 2.38 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 10.46% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
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|Income Statement||Q2 FY14||Q2 FY13|
|Net Sales ($mil)||851.76||707.56|
|Net Income ($mil)||129.03||112.91|
|Balance Sheet||Q2 FY14||Q2 FY13|
|Cash & Equiv. ($mil)||988.79||969.52|
|Total Assets ($mil)||4265.28||3843.94|
|Total Debt ($mil)||155.37||181.9|
|Profitability||Q2 FY14||Q2 FY13|
|Gross Profit Margin||46.13||48.08|
|Return on Assets||9.93||11.28|
|Return on Equity||13.0||14.69|
|Debt||Q2 FY14||Q2 FY13|
|Share Data||Q2 FY14||Q2 FY13|
|Shares outstanding (mil)||341.01||343.03|
|Div / share||0.0||0.0|
|Book value / share||9.56||8.6|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1725066.0||2008988.0|
BUY. The current P/E ratio indicates a significant discount compared to an average of 607.45 for the Health Care Technology industry and a significant premium compared to the S&P 500 average of 18.06. For additional comparison, its price-to-book ratio of 5.93 indicates a significant premium versus the S&P 500 average of 2.49 and a discount versus the industry average of 6.15. The current price-to-sales ratio is well above the S&P 500 average and above the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, CERNER CORP proves to trade at a discount to investment alternatives within the industry.
|CERN 46.82||Peers 607.45||CERN 27.34||Peers 29.72|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
CERN is trading at a significant discount to its peers.
Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
CERN is trading at a valuation on par to its peers.
|CERN 29.05||Peers 41.64||CERN 1.00||Peers 1.64|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.
CERN is trading at a discount to its peers.
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
CERN trades at a significant discount to its peers.
|CERN 5.93||Peers 6.15||CERN -1.23||Peers 38.84|
Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
CERN is trading at a valuation on par with its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, CERN is expected to significantly trail its peers on the basis of its earnings growth rate.
|CERN 6.11||Peers 5.75||CERN 13.88||Peers 15.12|
Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
CERN is trading at a valuation on par with its industry on this measurement.
Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.
CERN is keeping pace with its peers on the basis of sales growth.
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