Cerner Corp

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CERN : NASDAQ : Technology
$64.75 | %
Today's Range: 62.16 - 66.2734
Avg. Daily Volume: 2759600.0
04/28/17 - 4:00 PM ET

Financial Analysis


The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. CERNER CORP has strong liquidity. Currently, the Quick Ratio is 1.82 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 5.01% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)1260.491138.14
EBITDA ($mil)0.0337.46
EBIT ($mil)0.0218.33
Net Income ($mil)173.21150.36


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)531.91503.45
Total Assets ($mil)5803.215594.49
Total Debt ($mil)550.15595.44
Equity ($mil)4112.883916.33


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin0.046.18
EBITDA Margin0.029.65
Operating Margin0.019.18
Sales Turnover0.850.82
Return on Assets11.3610.34
Return on Equity16.0314.77
Debt Q1 FY17 Q1 FY16
Current Ratio2.192.23
Debt/Capital0.120.13
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)329.64337.91
Div / share0.00.0
EPS0.520.43
Book value / share12.4811.59
Institutional Own % n/a n/a
Avg Daily Volume2740977.03617571.0

Valuation


BUY. This stock's P/E ratio indicates a significant discount compared to an average of 228.18 for the Health Care Technology industry and a premium compared to the S&P 500 average of 25.27. For additional comparison, its price-to-book ratio of 4.81 indicates a significant premium versus the S&P 500 average of 3.03 and a discount versus the industry average of 5.68. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, CERNER CORP proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CERN 31.12 Peers 228.18   CERN 17.37 Peers 26.38

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 significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
CERN 21.84 Peers 38.33   CERN 0.89 Peers 0.96

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 significant discount to its peers.

 

Average. 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 valuation on par to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CERN 4.81 Peers 5.68   CERN 16.26 Peers -52.81

Discount. 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 discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

CERN is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CERN 4.02 Peers 5.58   CERN 7.69 Peers 20.37

Discount. 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 significant discount to 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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