Cerner Corp

Find Ratings Reports
CERN : NASDAQ : Technology
$62.07 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 2,054,200
07/25/16 - 4:00 PM ET

Financial Analysis


CERNER CORP's gross profit margin for the first 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 has strong liquidity. Currently, the Quick Ratio is 1.86 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 5.54% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)1138.14996.09
EBITDA ($mil)337.47292.74
EBIT ($mil)218.35192.29
Net Income ($mil)150.36110.93


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)503.45684.16
Total Assets ($mil)5594.495352.61
Total Debt ($mil)595.44626.17
Equity ($mil)3916.333710.42


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin46.1846.22
EBITDA Margin29.6529.38
Operating Margin19.1819.3
Sales Turnover0.820.68
Return on Assets10.349.65
Return on Equity14.7713.92
Debt Q1 FY16 Q1 FY15
Current Ratio2.232.41
Debt/Capital0.130.14
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)337.91343.94
Div / share0.00.0
EPS0.430.32
Book value / share11.5910.79
Institutional Own % n/a n/a
Avg Daily Volume2056168.02690294.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 112.16 for the Health Care Technology industry and a significant premium compared to the S&P 500 average of 25.05. For additional comparison, its price-to-book ratio of 5.35 indicates a significant premium versus the S&P 500 average of 2.81 and a discount versus the industry average of 5.75. 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 37.34 Peers 112.16   CERN 19.79 Peers 23.36

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
CERN 23.09 Peers 34.52   CERN 0.71 Peers 1.17

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CERN 5.35 Peers 5.75   CERN 12.16 Peers 5.78

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.

 

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 4.59 Peers 5.74   CERN 26.37 Peers 35.95

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 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

 

 

Latest Stock Upgrades/Downgrades