CERNER CORP's gross profit margin for the third quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. CERNER CORP has strong liquidity. Currently, the Quick Ratio is 1.81 which shows the ability to cover 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 12.98% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
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|Income Statement||Q3 FY15||Q3 FY14|
|Net Sales ($mil)||1127.89||840.15|
|Net Income ($mil)||147.28||129.0|
|Balance Sheet||Q3 FY15||Q3 FY14|
|Cash & Equiv. ($mil)||464.54||1331.76|
|Total Assets ($mil)||5522.93||4392.64|
|Total Debt ($mil)||630.67||146.8|
|Profitability||Q3 FY15||Q3 FY14|
|Gross Profit Margin||47.23||47.62|
|Return on Assets||9.43||9.96|
|Return on Equity||13.58||12.88|
|Debt||Q3 FY15||Q3 FY14|
|Share Data||Q3 FY15||Q3 FY14|
|Shares outstanding (mil)||342.05||341.4|
|Div / share||0.0||0.0|
|Book value / share||11.22||9.95|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2243480.0||2497457.0|
BUY. The current P/E ratio indicates a significant discount compared to an average of 88.90 for the Health Care Technology industry and a significant premium compared to the S&P 500 average of 21.13. For additional comparison, its price-to-book ratio of 5.21 indicates a significant premium versus the S&P 500 average of 2.51 and a discount versus the industry average of 5.50. 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 39.26||Peers 88.90||CERN 24.52||Peers 25.33|
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 24.78||Peers 34.50||CERN 1.03||Peers 1.27|
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 discount to its peers.
|CERN 5.21||Peers 5.50||CERN 19.20||Peers 256.97|
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 4.79||Peers 4.61||CERN 27.62||Peers 21.62|
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.
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.
CERN has a sales growth rate that significantly exceeds its peers.
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