CERNER CORP's gross profit margin for the third quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. CERNER CORP is extremely liquid. Currently, the Quick Ratio is 2.90 which clearly shows the ability to cover any short-term cash needs. CERN managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.
During the same period, stockholders' equity ("net worth") has increased by 10.36% 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||Q3 FY14||Q3 FY13|
|Net Sales ($mil)||840.15||727.83|
|Net Income ($mil)||129.0||115.34|
|Balance Sheet||Q3 FY14||Q3 FY13|
|Cash & Equiv. ($mil)||1331.76||921.83|
|Total Assets ($mil)||4392.64||3966.37|
|Total Debt ($mil)||146.8||182.9|
|Profitability||Q3 FY14||Q3 FY13|
|Gross Profit Margin||48.05||47.64|
|Return on Assets||9.96||11.34|
|Return on Equity||12.88||14.62|
|Debt||Q3 FY14||Q3 FY13|
|Share Data||Q3 FY14||Q3 FY13|
|Shares outstanding (mil)||341.4||343.16|
|Div / share||0.0||0.0|
|Book value / share||9.95||8.97|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1449608.0||1781382.0|
BUY. The current P/E ratio indicates a significant discount compared to an average of 939.53 for the Health Care Technology industry and a significant premium compared to the S&P 500 average of 20.19. For additional comparison, its price-to-book ratio of 6.54 indicates a significant premium versus the S&P 500 average of 2.79 and a discount versus the industry average of 6.94. The price-to-sales ratio is well above both the S&P 500 average and 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 52.08||Peers 939.53||CERN 29.12||Peers 29.91|
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 33.38||Peers 49.09||CERN 1.13||Peers 2.77|
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 6.54||Peers 6.94||CERN -1.97||Peers 40.00|
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 6.79||Peers 6.19||CERN 15.79||Peers 32.71|
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.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
CERN significantly trails its peers on the basis of sales growth
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