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Cerner

Nasdaq:CERN
Snowflake Description

Excellent balance sheet and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CERN
Nasdaq
$23B
Market Cap
  1. Home
  2. US
  3. Healthcare
Company description

Cerner Corporation provides health care information technology solutions and tech-enabled services in the United States and internationally. The last earnings update was 60 days ago. More info.


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CERN Share Price and Events
7 Day Returns
0.8%
NasdaqGS:CERN
0.5%
US Healthcare Services
1.4%
US Market
1 Year Returns
19.4%
NasdaqGS:CERN
29.3%
US Healthcare Services
4.9%
US Market
CERN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Cerner (CERN) 0.8% 0.9% 25.8% 19.4% 29.4% 37.8%
US Healthcare Services 0.5% 5.7% 19.9% 29.3% 80.5% 66.3%
US Market 1.4% 3.8% 3.5% 4.9% 44.8% 40.1%
1 Year Return vs Industry and Market
  • CERN underperformed the Healthcare Services industry which returned 29.3% over the past year.
  • CERN outperformed the Market in United States of America which returned 4.9% over the past year.
Price Volatility
CERN
Industry
5yr Volatility vs Market

CERN Value

 Is Cerner undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Cerner to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Cerner.

NasdaqGS:CERN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 19 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.2%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:CERN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Healthcare Services Unlevered Beta Simply Wall St/ S&P Global 1.11
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.107 (1 + (1- 21%) (2.51%))
1.086
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.09
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.086 * 5.96%)
9.2%

Discounted Cash Flow Calculation for NasdaqGS:CERN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Cerner is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:CERN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.2%)
2019 658.85 Analyst x6 603.32
2020 890.81 Analyst x6 746.98
2021 1,037.95 Analyst x2 797.01
2022 1,185.90 Analyst x2 833.87
2023 1,283.40 Analyst x2 826.37
2024 1,364.90 Est @ 6.35% 804.78
2025 1,436.76 Est @ 5.26% 775.75
2026 1,501.47 Est @ 4.5% 742.37
2027 1,561.11 Est @ 3.97% 706.80
2028 1,617.29 Est @ 3.6% 670.53
Present value of next 10 years cash flows $7,507.78
NasdaqGS:CERN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $1,617.29 × (1 + 2.73%) ÷ (9.2% – 2.73%)
$25,664.62
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $25,664.62 ÷ (1 + 9.2%)10
$10,640.50
NasdaqGS:CERN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $7,507.78 + $10,640.50
$18,148.28
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $18,148.28 / 325.42
$55.77
NasdaqGS:CERN Discount to Share Price
Calculation Result
Value per share (USD) From above. $55.77
Current discount Discount to share price of $71.25
= -1 x ($71.25 - $55.77) / $55.77
-27.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Cerner is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Cerner's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Cerner's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:CERN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-30) in USD $1.94
NasdaqGS:CERN Share Price ** NasdaqGS (2019-06-25) in USD $71.25
United States of America Healthcare Services Industry PE Ratio Median Figure of 13 Publicly-Listed Healthcare Services Companies 57.35x
United States of America Market PE Ratio Median Figure of 3,095 Publicly-Listed Companies 17.73x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Cerner.

NasdaqGS:CERN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:CERN Share Price ÷ EPS (both in USD)

= 71.25 ÷ 1.94

36.74x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cerner is good value based on earnings compared to the US Healthcare Services industry average.
  • Cerner is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Cerner's expected growth come at a high price?
Raw Data
NasdaqGS:CERN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 36.74x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts
10.8%per year
United States of America Healthcare Services Industry PEG Ratio Median Figure of 12 Publicly-Listed Healthcare Services Companies 2.61x
United States of America Market PEG Ratio Median Figure of 2,133 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

NasdaqGS:CERN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 36.74x ÷ 10.8%

3.41x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cerner is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Cerner's assets?
Raw Data
NasdaqGS:CERN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-30) in USD $15.78
NasdaqGS:CERN Share Price * NasdaqGS (2019-06-25) in USD $71.25
United States of America Healthcare Services Industry PB Ratio Median Figure of 36 Publicly-Listed Healthcare Services Companies 5.15x
United States of America Market PB Ratio Median Figure of 5,255 Publicly-Listed Companies 1.79x
NasdaqGS:CERN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:CERN Share Price ÷ Book Value per Share (both in USD)

= 71.25 ÷ 15.78

4.51x

* Primary Listing of Cerner.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cerner is good value based on assets compared to the US Healthcare Services industry average.
X
Value checks
We assess Cerner's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Healthcare Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Healthcare Services industry average (and greater than 0)? (1 check)
  5. Cerner has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

CERN Future Performance

 How is Cerner expected to perform in the next 1 to 3 years based on estimates from 19 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
10.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Cerner expected to grow at an attractive rate?
  • Cerner's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Cerner's earnings growth is positive but not above the United States of America market average.
  • Cerner's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:CERN Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:CERN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts 10.8%
NasdaqGS:CERN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 19 Analysts 5.9%
United States of America Healthcare Services Industry Earnings Growth Rate Market Cap Weighted Average 24.2%
United States of America Healthcare Services Industry Revenue Growth Rate Market Cap Weighted Average 11.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:CERN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:CERN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 7,225 2,107 1,084 2
2022-12-31 6,830 1,975 997 2
2021-12-31 6,493 1,797 866 6
2020-12-31 6,126 1,605 842 19
2019-12-31 5,736 1,419 720 19
NasdaqGS:CERN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-30 5,463 1,362 636
2018-12-29 5,366 1,454 630
2018-09-29 5,213 1,396 835
2018-06-30 5,149 1,421 843
2018-03-31 5,175 1,413 854
2017-12-30 5,142 1,308 867
2017-09-30 5,061 1,297 680
2017-07-01 4,948 1,245 673
2017-04-01 4,849 1,213 659
2016-12-31 4,796 1,246 636
2016-10-01 4,633 1,261 653
2016-07-02 4,579 1,221 630
2016-04-02 4,494 1,069 579

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Cerner's earnings are expected to grow by 10.8% yearly, however this is not considered high growth (20% yearly).
  • Cerner's revenue is expected to grow by 5.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:CERN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below

All data from Cerner Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:CERN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 3.75 3.75 3.75 1.00
2022-12-31 3.39 3.39 3.39 1.00
2021-12-31 2.90 2.90 2.90 1.00
2020-12-31 2.75 3.16 2.60 11.00
2019-12-31 2.22 2.52 2.04 11.00
NasdaqGS:CERN Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-30 1.94
2018-12-29 1.91
2018-09-29 2.52
2018-06-30 2.54
2018-03-31 2.57
2017-12-30 2.62
2017-09-30 2.05
2017-07-01 2.02
2017-04-01 1.97
2016-12-31 1.88
2016-10-01 1.92
2016-07-02 1.85
2016-04-02 1.69

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Cerner is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Cerner's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Cerner has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

CERN Past Performance

  How has Cerner performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Cerner's growth in the last year to its industry (Healthcare Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Cerner's year on year earnings growth rate has been positive over the past 5 years.
  • Cerner's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Cerner's 1-year earnings growth is negative, it can't be compared to the US Healthcare Services industry average.
Earnings and Revenue History
Cerner's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Cerner Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:CERN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-30 5,463.34 636.28 2,935.31 702.41
2018-12-29 5,366.33 630.06 2,883.17 683.66
2018-09-29 5,212.98 835.40 2,802.22 664.67
2018-06-30 5,148.92 843.44 2,742.29 646.21
2018-03-31 5,174.65 853.77 2,665.74 620.76
2017-12-30 5,142.27 866.98 2,632.09 605.05
2017-09-30 5,061.23 680.01 2,573.80 588.54
2017-07-01 4,947.56 672.57 2,524.74 571.46
2017-04-01 4,849.42 659.34 2,481.01 563.79
2016-12-31 4,796.47 636.48 2,428.38 551.42
2016-10-01 4,632.81 652.90 2,378.46 546.71
2016-07-02 4,579.44 630.20 2,334.30 542.77
2016-04-02 4,493.52 578.79 2,263.99 546.06
2016-01-02 4,352.47 539.36 2,170.02 539.80
2015-10-03 4,103.40 521.13 2,024.13 505.44
2015-07-04 3,811.85 502.85 1,870.84 469.66
2015-04-04 3,526.64 516.84 1,724.84 428.53
2015-01-03 3,312.82 525.43 1,612.96 392.81
2014-09-27 3,181.14 437.62 1,659.41 378.34
2014-06-28 3,074.88 423.97 1,613.13 364.31
2014-03-29 2,939.30 407.84 1,552.17 349.27
2013-12-28 2,840.64 398.35 1,468.43 338.79
2013-09-28 2,760.62 450.10 1,322.41 324.97
2013-06-29 2,711.67 433.64 1,267.51 320.06
2013-03-30 2,645.86 418.56 1,214.76 311.29
2012-12-29 2,610.13 397.23 1,184.21 301.37
2012-09-29 2,517.72 376.62 1,138.53 296.07
2012-06-30 2,415.68 356.56 1,095.65 290.52

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Cerner has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Cerner used its assets more efficiently than the US Healthcare Services industry average last year based on Return on Assets.
  • Cerner's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Cerner's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Healthcare Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Cerner has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

CERN Health

 How is Cerner's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Cerner's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Cerner is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Cerner's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Cerner's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 5.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Cerner Company Filings, last reported 2 months ago.

NasdaqGS:CERN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-30 5,129.15 438.82 903.67
2018-12-29 4,928.39 438.80 775.41
2018-09-29 5,065.73 438.78 813.55
2018-06-30 4,878.85 438.76 885.56
2018-03-31 4,900.49 438.67 921.36
2017-12-30 4,785.35 513.65 805.77
2017-09-30 4,564.00 521.02 852.05
2017-07-01 4,355.50 524.92 636.99
2017-04-01 4,112.88 532.75 531.91
2016-12-31 3,927.95 513.31 356.45
2016-10-01 4,278.04 535.92 692.68
2016-07-02 4,053.98 546.17 629.89
2016-04-02 3,916.33 553.68 503.45
2016-01-02 3,870.38 512.73 513.18
2015-10-03 3,837.33 630.67 464.54
2015-07-04 3,863.99 622.76 558.05
2015-04-04 3,710.42 626.17 684.16
2015-01-03 3,565.97 130.33 1,420.87
2014-09-27 3,396.21 146.80 1,331.76
2014-06-28 3,259.77 155.37 988.79
2014-03-29 3,246.40 160.48 1,031.26
2013-12-28 3,167.66 165.82 879.38
2013-09-28 3,077.39 182.90 921.83
2013-06-29 2,951.01 181.90 969.52
2013-03-30 2,899.24 182.38 1,005.15
2012-12-29 2,833.65 196.14 1,036.79
2012-09-29 2,696.68 196.66 1,039.00
2012-06-30 2,568.52 176.08 980.00
  • Cerner's level of debt (8.6%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (4.9% vs 8.6% today).
  • Debt is well covered by operating cash flow (310.4%, greater than 20% of total debt).
  • Cerner earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Cerner's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Cerner has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

CERN Dividends

 What is Cerner's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.01%
Current annual income from Cerner dividends. Estimated to be 0% next year.
If you bought $2,000 of Cerner shares you are expected to receive $20 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Cerner's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).
  • Cerner's dividend is below the markets top 25% of dividend payers in United States of America (3.73%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:CERN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
Global Healthcare Services Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 1.1%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2012 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:CERN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 3.00
2020-12-31 0.00 3.00
2019-12-31 0.00 3.00
NasdaqGS:CERN Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-30 0.720 1.007

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • It is too early to tell whether Cerner has stable dividend payments.
  • Cerner only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of Cerner's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Cerner has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Cerner's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Cerner's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Cerner afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Cerner has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

CERN Management

 What is the CEO of Cerner's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
David Shafer
COMPENSATION $9,699,361
AGE 61
TENURE AS CEO 1.3 years
CEO Bio

Mr. David Brent Shafer serves as Chairman and Chief Executive Officer at Cerner Corporation since Febraury 1, 2018. Mr. Shafer served as Executive Vice President of North American Market at Koninklijke Philips N.V. since July 29, 2016. Mr. Shafer served as the Chief Executive Officer of Philips Electronics North America Corporation since February 2014 until July 29, 2016. Mr. Shafer corporate responsibilities includes: Strengthening culture of entrepreneurship and growing revenue and market share in the United States and Canada. He has strong market and business experience to the role through various senior leadership positions with Philips and other companies including GE, Johnson & Johnson, Intermountain Healthcare Primary Children’s, Inc. and Hewlett-Packard. Mr. Shafer served as the Chief Executive Officer of the Global Business -Philips Home Healthcare Solutions of Murrysville at Koninklijke Philips N.V. since May 3, 2010 until May 2014, where he improved the value of the portfolio and broadened the business group into new markets. He was with Philips Medical Systems International B.V. since 2005. He served as Unit Chief Executive Officer of Philips Medical Systems International B.V. since May 19, 2005. Mr. Shafer served as President and Chief Executive Officer of Global Sales and Service Business for Philips Healthcare. He served as an Executive Vice President of North America Region of Philips Medical Systems International B.V. from May 19, 2005 to May 2010 and served as its President of North America Region until May 2010. He served as Head of North America Sales and Service Division at Philips Medical Systems International B.V. He served as Chief Executive Officer of the North America region for Royal Philips Electronics from January 2009 until May 2010. He served as Vice President and General Manager of Patient Care Environment Division for Hill-Rom Company, Inc. Previously, he served HILL-ROM as Vice President of the Americas and Asia Pacific sales divisions. He began his career with Johnson & Johnson (Critikon Division) and worked for Hewlett-Packard Medical Products Group in several key sales management positions. In 1996, he joined GE Medical Systems, where he held various sales, marketing and general management positions, including in X-ray and cardiology. Mr. Shafer serves as a Member of Board of Governors at National Electrical Manufacturers Association.

CEO Compensation
  • Insufficient data for David to compare compensation growth.
  • David's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Cerner management team in years:

9.1
Average Tenure
57
Average Age
  • The average tenure for the Cerner management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

David Shafer

TITLE
Chairman & CEO
COMPENSATION
$10M
AGE
61
TENURE
1.3 yrs

Marc Naughton

TITLE
Executive VP & CFO
COMPENSATION
$3M
AGE
63
TENURE
23.6 yrs

Mike Nill

TITLE
Executive VP & COO
COMPENSATION
$4M
AGE
53
TENURE
8.1 yrs

Jeff Townsend

TITLE
Executive VP & Chief of Innovation
COMPENSATION
$4M
AGE
54
TENURE
21.3 yrs

John Peterzalek

TITLE
Executive VP & Chief Client Officer
COMPENSATION
$5M
AGE
57

Mike Robin

TITLE
Partner and Vice President
TENURE
3.2 yrs

Michael Battaglioli

TITLE
VP & Chief Accounting Officer
AGE
50
TENURE
10.1 yrs

Bill Graff

TITLE
Chief Information Officer
TENURE
3.2 yrs

Allan Kells

TITLE
Vice President

Randy Sims

TITLE
Executive VP
AGE
57
TENURE
22.3 yrs
Board of Directors Tenure

Average tenure and age of the Cerner board of directors in years:

0.8
Average Tenure
62
Average Age
  • The average tenure for the Cerner board of directors is less than 3 years, this suggests a new board.
Board of Directors

David Shafer

TITLE
Chairman & CEO
COMPENSATION
$10M
AGE
61
TENURE
1.3 yrs

Gary Bisbee

TITLE
Director
COMPENSATION
$356K
AGE
75
TENURE
31.3 yrs

Linda Dillman

TITLE
Director
COMPENSATION
$350K
AGE
61
TENURE
9.1 yrs

Mitch Daniels

TITLE
Director
COMPENSATION
$345K
AGE
69
TENURE
5.5 yrs

John Greisch

TITLE
Director
AGE
63
TENURE
0.2 yrs

Bill Zollars

TITLE
Lead Independent Director
COMPENSATION
$340K
AGE
70
TENURE
0.2 yrs

Julie Gerberding

TITLE
Director
COMPENSATION
$342K
AGE
63
TENURE
2.3 yrs

R. Wise

TITLE
Director
AGE
53
TENURE
0.2 yrs

Melinda Mount

TITLE
Director
AGE
59
TENURE
0.2 yrs

George Riedel

TITLE
Director
AGE
60
TENURE
0.2 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Cerner individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
13. Jun 19 Sell William Zollars Individual 12. Jun 19 12. Jun 19 -1,400 $72.11 $-100,954
03. Jun 19 Sell Linda Dillman Individual 30. May 19 30. May 19 -4,100 $70.14 $-287,574
30. Apr 19 Buy R. Wise Individual 30. Apr 19 30. Apr 19 7,600 $65.76 $499,776
02. May 19 Buy John Greisch Individual 02. May 19 02. May 19 9,000 $67.57 $608,130
04. Dec 18 Sell Clifford Illig Individual 30. Nov 18 03. Dec 18 -435,000 $58.76 $-25,210,400
20. Nov 18 Sell Clifford Illig Individual 19. Nov 18 19. Nov 18 -5,000 $57.19 $-285,950
02. Nov 18 Sell Clifford Illig Individual 01. Nov 18 02. Nov 18 -250,000 $57.58 $-14,383,030
13. Sep 18 Sell Zane Burke Individual 11. Sep 18 11. Sep 18 -44,939 $63.68 $-2,861,716
30. Aug 18 Sell Zane Burke Individual 28. Aug 18 28. Aug 18 -21,418 $65.44 $-1,401,594
20. Aug 18 Sell Julia Wilson Individual 17. Aug 18 17. Aug 18 -25,574 $65.07 $-1,664,100
10. Aug 18 Sell Clifford Illig Individual 08. Aug 18 09. Aug 18 -378,900 $66.55 $-25,180,095
08. Aug 18 Sell Linda Dillman Individual 06. Aug 18 06. Aug 18 -3,900 $66.54 $-259,506
X
Management checks
We assess Cerner's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Cerner has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

CERN News

Simply Wall St News

What Should We Expect From Cerner Corporation's (NASDAQ:CERN) Earnings In The Next 12 Months?

After Cerner Corporation's (NASDAQ:CERN) earnings announcement in March 2019, the consensus outlook from analysts appear fairly confident, as a 18% increase in profits is expected in the upcoming year, compared with the past 5-year average growth rate of 12%. … To get an idea of the overall earnings growth trend for CERN, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line. … NasdaqGS:CERN Past and Future Earnings, June 19th 2019 This results in an annual growth rate of 11% based on the most recent earnings level of US$630m to the final forecast of US$889m by 2022.

Simply Wall St -

Have Insiders Been Selling Cerner Corporation (NASDAQ:CERN) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Cerner Corporation (NASDAQ:CERN). … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' See our latest analysis for Cerner The Last 12 Months Of Insider Transactions At Cerner The , Clifford Illig, made the biggest insider sale in the last 12 months. … Insiders at Cerner Have Bought Stock Recently There has been significantly more insider buying, than selling, at Cerner, over the last three months.

Simply Wall St -

Do You Like Cerner Corporation (NASDAQ:CERN) At This P/E Ratio?

Cerner has a price to earnings ratio of 35.81, based on the last twelve months. … Check out our latest analysis for Cerner How Do I Calculate Cerner's Price To Earnings Ratio? … The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Cerner: P/E of 35.81 = $69.43 ÷ $1.94 (Based on the trailing twelve months to March 2019.) Is A High P/E Ratio Good?

Simply Wall St -

Is It Time To Consider Buying Cerner Corporation (NASDAQ:CERN)?

If you like the stock, you may want to keep an eye out for a potential price decline in the future. … NasdaqGS:CERN Past and Future Earnings, May 20th 2019 Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. … CERN’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value.

Simply Wall St -

If You Had Bought Cerner (NASDAQ:CERN) Shares Five Years Ago You'd Have Made 28%

Better yet, you'd like to see the share price move up more than the market average. … Unfortunately for shareholders, while the Cerner Corporation (NASDAQ:CERN) share price is up 28% in the last five years, that's less than the market return. … While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance.

Simply Wall St -

Do Institutions Own Shares In Cerner Corporation (NASDAQ:CERN)?

Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … We also tend to see lower insider ownership in companies that were previously publicly owned. … Companies of this size are usually well known to retail investors, too.

Simply Wall St -

Why You Should Like Cerner Corporation’s (NASDAQ:CERN) ROCE

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Return On Capital Employed (ROCE): What is it? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

What Should You Know About Cerner Corporation's (NASDAQ:CERN) Future?

After Cerner Corporation's (NASDAQ:CERN) earnings announcement on 29 December 2018, … analyst consensus outlook appear cautiously optimistic, … as a 16% increase in profits is expected in the upcoming year,

Simply Wall St -

Cerner Corporation (NASDAQ:CERN): What Are The Future Prospects?

Want to participate in a short research study? … Help shape the future of investing tools and you could win a $250 gift card! … Cerner Corporation's (NASDAQ:CERN) announced its latest earnings update in December 2018, which

Simply Wall St -

Cerner Corporation (NASDAQ:CERN) Insiders Have Been Selling

Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. … So we'll take a look at whether insiders have been buying or selling shares in Cerner Corporation (NASDAQ:CERN). … So we know that an insider sold shares at around the present share price of US$54.91

Simply Wall St -

CERN Company Info

Description

Cerner Corporation provides health care information technology solutions and tech-enabled services in the United States and internationally. The company offers Cerner Millennium architecture, a person-centric computing framework, which includes clinical, financial, and management information systems that allow providers to access an individual’s electronic health record (EHR) at the point of care, and organizes and delivers information for physicians, nurses, laboratory technicians, pharmacists, front- and back-office professionals, and consumers. It also provides HealtheIntent platform, a cloud-based platform to aggregate, transform, and reconcile data across the continuum of care; and EHR agnostic platform, CareAware that facilitates connectivity of health care devices to EHRs. In addition, the company offers a portfolio of clinical and financial health care information technology solutions, as well as departmental, connectivity, population health, and care coordination solutions. Further, it provides tech-enabled services, such as implementation and training, remote hosting, operational management services, revenue cycle services, support and maintenance, health care data analysis, clinical process optimization, transaction processing, employer health centers, employee wellness programs, and third-party administrator services; and complementary hardware and devices for third parties. The company serves integrated integrated delivery networks, physician groups and networks, managed care organizations, hospitals, medical centers, reference laboratories, home health agencies, blood banks, imaging centers, pharmacies, pharmaceutical manufacturers, employers, governments and public health organizations. It has a strategic collaboration with Christiana Care Health System to provide a weight loss surgery program. Cerner Corporation was founded in 1979 and is headquartered in North Kansas City, Missouri.

Details
Name: Cerner Corporation
CERN
Exchange: NasdaqGS
Founded: 1979
$23,186,217,393
325,420,595
Website: http://www.cerner.com
Address: Cerner Corporation
2800 Rockcreek Parkway,
North Kansas City,
Missouri, 64117,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS CERN Common Stock Nasdaq Global Select US USD 05. Dec 1986
DB CRE Common Stock Deutsche Boerse AG DE EUR 05. Dec 1986
LSE 0R00 Common Stock London Stock Exchange GB USD 05. Dec 1986
WBAG CERN Common Stock Wiener Boerse AG AT EUR 05. Dec 1986
BMV CERN * Common Stock Bolsa Mexicana de Valores MX MXN 05. Dec 1986
Number of employees
Current staff
Staff numbers
29,200
Cerner employees.
Industry
Health Care Technology
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/25 23:34
End of day share price update: 2019/06/25 00:00
Last estimates confirmation: 2019/06/13
Last earnings filing: 2019/04/26
Last earnings reported: 2019/03/30
Last annual earnings reported: 2018/12/29


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.