CERNER CORP's gross profit margin for the fourth quarter of its fiscal year 2015 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 has strong liquidity. Currently, the Quick Ratio is 1.99 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 8.53% 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||Q4 FY15||Q4 FY14|
|Net Sales ($mil)||1175.29||926.03|
|Net Income ($mil)||166.11||147.87|
|Balance Sheet||Q4 FY15||Q4 FY14|
|Cash & Equiv. ($mil)||513.18||1420.87|
|Total Assets ($mil)||5561.98||4530.57|
|Total Debt ($mil)||605.15||130.33|
|Profitability||Q4 FY15||Q4 FY14|
|Gross Profit Margin||47.24||46.64|
|Return on Assets||9.69||11.59|
|Return on Equity||13.93||14.73|
|Debt||Q4 FY15||Q4 FY14|
|Share Data||Q4 FY15||Q4 FY14|
|Shares outstanding (mil)||339.96||342.33|
|Div / share||0.0||0.0|
|Book value / share||11.38||10.42|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2645286.0||2438241.0|
BUY. The current P/E ratio indicates a significant discount compared to an average of 85.78 for the Health Care Technology industry and a significant premium compared to the S&P 500 average of 23.99. For additional comparison, its price-to-book ratio of 5.06 indicates a significant premium versus the S&P 500 average of 2.74 and a discount versus the industry average of 5.51. 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 37.19||Peers 85.78||CERN 20.68||Peers 23.28|
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.
Discount. 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 discount to its peers.
|CERN 21.35||Peers 32.11||CERN 0.71||Peers 0.87|
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 5.06||Peers 5.51||CERN 3.33||Peers 134.00|
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 4.43||Peers 4.43||CERN 30.05||Peers 30.22|
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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