Cerner Corp

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CERN : NASDAQ : Technology
$56.4 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 2800100.0
03/22/17 - 4:00 PM ET

Financial Analysis


CERNER CORP's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. CERNER CORP has strong liquidity. Currently, the Quick Ratio is 1.54 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.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 1.48% 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 FY16 Q4 FY15
Net Sales ($mil)1257.821175.29
EBITDA ($mil)381.62356.67
EBIT ($mil)248.77233.52
Net Income ($mil)149.69166.11


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)356.45513.18
Total Assets ($mil)5629.965561.98
Total Debt ($mil)563.75605.15
Equity ($mil)3927.953870.38


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin45.9747.24
EBITDA Margin30.3330.34
Operating Margin19.7819.87
Sales Turnover0.850.8
Return on Assets11.39.69
Return on Equity16.213.93
Debt Q4 FY16 Q4 FY15
Current Ratio1.922.35
Debt/Capital0.130.14
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)329.64339.96
Div / share0.00.0
EPS0.440.48
Book value / share11.9211.38
Institutional Own % n/a n/a
Avg Daily Volume2710500.03086521.0

Valuation


HOLD. This stock's P/E ratio indicates a significant discount compared to an average of 217.53 for the Health Care Technology industry and a premium compared to the S&P 500 average of 26.73. For additional comparison, its price-to-book ratio of 4.73 indicates a significant premium versus the S&P 500 average of 2.98 and a discount versus the industry average of 5.38. 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 30.63 Peers 217.53   CERN 16.07 Peers 23.99

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 20.45 Peers 34.85   CERN 0.87 Peers 0.88

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 4.73 Peers 5.38   CERN 18.70 Peers -51.96

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 3.87 Peers 5.18   CERN 8.38 Peers 18.99

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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