Cerner Corp

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CERN : NASDAQ : Technology
$51.72 up 0.08 | 0.15%
Today's Range: 50.83 - 51.85
Avg. Daily Volume: 3654600.0
01/20/17 - 2:22 PM ET

Financial Analysis


CERNER CORP's gross profit margin for the third quarter of its fiscal year 2016 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 is extremely liquid. Currently, the Quick Ratio is 2.03 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 11.48% 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 FY16 Q3 FY15
Net Sales ($mil)1184.561127.89
EBITDA ($mil)370.06340.37
EBIT ($mil)242.77224.81
Net Income ($mil)169.98147.28


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)692.68464.54
Total Assets ($mil)5948.535522.93
Total Debt ($mil)572.54630.67
Equity ($mil)4278.043837.33


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin47.0947.23
EBITDA Margin31.2430.17
Operating Margin20.4919.93
Sales Turnover0.790.76
Return on Assets10.979.43
Return on Equity15.2613.58
Debt Q3 FY16 Q3 FY15
Current Ratio2.412.15
Debt/Capital0.120.14
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)339.47342.05
Div / share0.00.0
EPS0.490.42
Book value / share12.611.22
Institutional Own % n/a n/a
Avg Daily Volume3450433.01722515.0

Valuation


HOLD. The current P/E ratio indicates a significant discount compared to an average of 94.54 for the Health Care Technology industry and a value on par with the S&P 500 average of 25.49. To use another comparison, its price-to-book ratio of 4.07 indicates a premium versus the S&P 500 average of 2.84 and a discount versus the industry average of 5.25. 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 27.29 Peers 94.54   CERN 14.78 Peers 23.10

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 19.96 Peers 41.03   CERN 0.55 Peers 0.69

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.

 

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CERN 4.07 Peers 5.25   CERN 26.17 Peers 29.11

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.

 

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

However, CERN is expected to trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CERN 3.70 Peers 5.53   CERN 12.88 Peers 23.39

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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