Cerner Corporation, together with its subsidiaries, provides health care information technology solutions and tech-enabled services in the United States and internationally. More Details
Good value with proven track record.
Share Price & News
How has Cerner's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CERN is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.
Volatility Over Time: CERN's weekly volatility (2%) has been stable over the past year.
7 Day Return
US Healthcare Services
1 Year Return
US Healthcare Services
Return vs Industry: CERN underperformed the US Healthcare Services industry which returned 23.5% over the past year.
Return vs Market: CERN underperformed the US Market which returned 39.7% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Cerner's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall StAre Investors Undervaluing Cerner Corporation (NASDAQ:CERN) By 34%?
3 weeks ago | Simply Wall StCerner (NASDAQ:CERN) Has A Rock Solid Balance Sheet
1 month ago | Simply Wall StDoes Cerner Corporation (NASDAQ:CERN) Have A Place In Your Dividend Portfolio?
Is Cerner undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CERN ($79.3) is trading below our estimate of fair value ($121.1)
Significantly Below Fair Value: CERN is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CERN is good value based on its PE Ratio (30.1x) compared to the US Healthcare Services industry average (110.3x).
PE vs Market: CERN is poor value based on its PE Ratio (30.1x) compared to the US market (19.6x).
Price to Earnings Growth Ratio
PEG Ratio: CERN is poor value based on its PEG Ratio (2.4x)
Price to Book Ratio
PB vs Industry: CERN is good value based on its PB Ratio (5.5x) compared to the US Healthcare Services industry average (6.7x).
How is Cerner forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CERN's forecast earnings growth (12.7% per year) is above the savings rate (2%).
Earnings vs Market: CERN's earnings (12.7% per year) are forecast to grow slower than the US market (15.6% per year).
High Growth Earnings: CERN's earnings are forecast to grow, but not significantly.
Revenue vs Market: CERN's revenue (5.7% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: CERN's revenue (5.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CERN's Return on Equity is forecast to be high in 3 years time (28.8%)
How has Cerner performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CERN has a large one-off gain of $179.4M impacting its March 31 2021 financial results.
Growing Profit Margin: CERN's current net profit margins (14.7%) are higher than last year (8.9%).
Past Earnings Growth Analysis
Earnings Trend: CERN's earnings have grown by 0.1% per year over the past 5 years.
Accelerating Growth: CERN's earnings growth over the past year (57.8%) exceeds its 5-year average (0.1% per year).
Earnings vs Industry: CERN earnings growth over the past year (57.8%) exceeded the Healthcare Services industry 26.9%.
Return on Equity
High ROE: CERN's Return on Equity (18.7%) is considered low.
How is Cerner's financial position?
Financial Position Analysis
Short Term Liabilities: CERN's short term assets ($3.1B) exceed its short term liabilities ($1.5B).
Long Term Liabilities: CERN's short term assets ($3.1B) exceed its long term liabilities ($2.1B).
Debt to Equity History and Analysis
Debt Level: CERN's debt to equity ratio (40.5%) is considered high.
Reducing Debt: CERN's debt to equity ratio has increased from 12.8% to 40.5% over the past 5 years.
Debt Coverage: CERN's debt is well covered by operating cash flow (91.8%).
Interest Coverage: CERN's interest payments on its debt are well covered by EBIT (4752.7x coverage).
What is Cerner current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: CERN's dividend (1.11%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.27%).
High Dividend: CERN's dividend (1.11%) is low compared to the top 25% of dividend payers in the US market (3.36%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, CERN has been paying a dividend for less than 10 years.
Growing Dividend: CERN's dividend payments have increased, but the company has only paid a dividend for 2 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (30.3%), CERN's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CERN's dividends in 3 years are forecast to be well covered by earnings (23.1% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
David Shafer (63 yo)
Mr. David Brent Shafer has been Chairman and Chief Executive Officer of Cerner Corporation since February 1, 2018. Mr. Shafer served as Executive Vice President of North American Market at Koninklijke Phil...
CEO Compensation Analysis
Compensation vs Market: David's total compensation ($USD9.82M) is about average for companies of similar size in the US market ($USD11.27M).
Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.
Experienced Management: CERN's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.
Experienced Board: CERN's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CERN insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Cerner Corporation's company bio, employee growth, exchange listings and data sources
- Name: Cerner Corporation
- Ticker: CERN
- Exchange: NasdaqGS
- Founded: 1979
- Industry: Health Care Technology
- Sector: Healthcare
- Market Cap: US$23.894b
- Shares outstanding: 301.32m
- Website: https://www.cerner.com
Number of Employees
- Cerner Corporation
- 2800 Rockcreek Parkway
- North Kansas City
- United States
Cerner Corporation, together with its subsidiaries, provides health care information technology solutions and tech-enabled services in the United States and internationally. The company offers Cerner Mille...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/06/17 05:07|
|End of Day Share Price||2021/06/16 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.