Market Cap
US$21.2b
Last Updated
2021/02/28 00:21 UTC
Data Sources
Company Financials +
Executive Summary
Cerner Corporation, together with its subsidiaries, provides health care information technology solutions and tech-enabled services in the United States and internationally. More Details
Rewards
Risk Analysis
CERN passed our risk checks.
Snowflake Analysis
Solid track record with excellent balance sheet.
Similar Companies
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 +/- 3% a week.
Volatility Over Time: CERN's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
-3.4%
CERN
-11.4%
US Healthcare Services
-3.6%
US Market
1 Year Return
-0.2%
CERN
63.7%
US Healthcare Services
36.4%
US Market
Return vs Industry: CERN underperformed the US Healthcare Services industry which returned 63.8% over the past year.
Return vs Market: CERN underperformed the US Market which returned 38.5% over the past year.
Shareholder returns
| CERN | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.4% | -11.4% | -3.6% |
| 30 Day | -14.3% | -6.9% | 0.9% |
| 90 Day | -6.7% | 9.5% | 6.7% |
| 1 Year | 0.9%-0.2% | 64.2%63.7% | 39.4%36.4% |
| 3 Year | 11.9%9.9% | 140.6%138.8% | 53.4%43.5% |
| 5 Year | 36.4%33.9% | 264.6%260.5% | 117.3%93.0% |
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 St
Have Cerner Corporation (NASDAQ:CERN) Insiders Been Selling Their Stock?2 weeks ago | Simply Wall St
We Think Cerner (NASDAQ:CERN) Can Manage Its Debt With Ease3 weeks ago | Simply Wall St
Cerner Corporation's (NASDAQ:CERN) 1.1% Dividend Yield Looks Pretty InterestingValuation
Is Cerner undervalued compared to its fair value and its price relative to the market?
26.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CERN ($69.14) is trading below our estimate of fair value ($94.31)
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 (27.2x) compared to the US Healthcare Services industry average (128.8x).
PE vs Market: CERN is poor value based on its PE Ratio (27.2x) compared to the US market (21.3x).
Price to Earnings Growth Ratio
PEG Ratio: CERN is poor value based on its PEG Ratio (2.9x)
Price to Book Ratio
PB vs Industry: CERN is good value based on its PB Ratio (4.7x) compared to the US Healthcare Services industry average (5.4x).
Next Steps
Future Growth
How is Cerner forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?
9.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CERN's forecast earnings growth (9.3% per year) is above the savings rate (2%).
Earnings vs Market: CERN's earnings (9.3% per year) are forecast to grow slower than the US market (20.3% per year).
High Growth Earnings: CERN's earnings are forecast to grow, but not significantly.
Revenue vs Market: CERN's revenue (5.3% per year) is forecast to grow slower than the US market (10.4% per year).
High Growth Revenue: CERN's revenue (5.3% 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 (24.2%)
Next Steps
Past Performance
How has Cerner performed over the past 5 years?
0.08%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CERN has high quality earnings.
Growing Profit Margin: CERN's current net profit margins (14.2%) are higher than last year (9.3%).
Past Earnings Growth Analysis
Earnings Trend: CERN's earnings have grown by 0.08% per year over the past 5 years.
Accelerating Growth: CERN's earnings growth over the past year (47.6%) exceeds its 5-year average (0.08% per year).
Earnings vs Industry: CERN earnings growth over the past year (47.6%) exceeded the Healthcare Services industry -23.6%.
Return on Equity
High ROE: CERN's Return on Equity (17.4%) is considered low.
Next Steps
Financial Health
How is Cerner's financial position?
Financial Position Analysis
Short Term Liabilities: CERN's short term assets ($2.7B) exceed its short term liabilities ($1.2B).
Long Term Liabilities: CERN's short term assets ($2.7B) exceed its long term liabilities ($1.9B).
Debt to Equity History and Analysis
Debt Level: CERN's debt to equity ratio (30.6%) is considered satisfactory.
Reducing Debt: CERN's debt to equity ratio has increased from 13.2% to 30.6% over the past 5 years.
Debt Coverage: CERN's debt is well covered by operating cash flow (104.6%).
Interest Coverage: CERN's interest payments on its debt are well covered by EBIT (4642.7x coverage).
Balance Sheet
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Dividend
What is Cerner current dividend yield, its reliability and sustainability?
1.27%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CERN's dividend (1.27%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.34%).
High Dividend: CERN's dividend (1.27%) is low compared to the top 25% of dividend payers in the US market (3.76%).
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 (29.9%), 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 (23.7% payout ratio).
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Management
How experienced are the management team and are they aligned to shareholders interests?
3.0yrs
Average management tenure
CEO
David Shafer (63 yo)
3yrs
Tenure
US$12,538,797
Compensation
Mr. David Brent Shafer has been Chairman and Chief Executive Officer of Cerner Corporation since February 1, 2018. Mr. Shafer served as Executive Vice President of North American Market at Koninklijke Phil...
CEO Compensation Analysis
Compensation vs Market: David's total compensation ($USD12.54M) is about average for companies of similar size in the US market ($USD10.54M).
Compensation vs Earnings: David's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 3yrs | US$12.54m | 0.00012% $ 25.4k | |
| President | 1yr | US$6.70m | 0.00062% $ 131.3k | |
| Executive Advisor | no data | US$4.20m | 0.0077% $ 1.6m | |
| Executive Senior Advisor | no data | US$4.41m | 0.0082% $ 1.7m | |
| Partner and Vice President | 4.83yrs | no data | no data | |
| Executive VP & CFO | no data | no data | 0.0035% $ 737.0k | |
| VP & Chief Accounting Officer | 11.75yrs | no data | 0.0012% $ 258.4k | |
| Executive VP & CTO | 0.67yr | no data | no data | |
| Senior VP & Chief Information Officer | 4.83yrs | no data | no data | |
| Vice President | no data | no data | no data | |
| Executive VP & Chief Legal Officer | 0.083yr | no data | 0.00026% $ 55.1k | |
| Director of External Communications & Public Relations | no data | no data | no data |
3.0yrs
Average Tenure
53yo
Average Age
Experienced Management: CERN's management team is considered experienced (3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 3yrs | US$12.54m | 0.00012% $ 25.4k | |
| Lead Independent Director | 1.83yrs | US$371.73k | 0.0087% $ 1.8m | |
| Independent Director | 7.17yrs | US$345.48k | 0.011% $ 2.4m | |
| Independent Director | 33yrs | US$356.73k | 0.018% $ 3.8m | |
| Independent Director | 1.83yrs | US$568.54k | 0.0061% $ 1.3m | |
| Independent Director | 10.75yrs | US$344.23k | 0.0084% $ 1.8m | |
| Independent Director | 1.83yrs | US$585.42k | 0.0066% $ 1.4m | |
| Independent Director | 1.83yrs | US$572.29k | 0.0011% $ 235.1k | |
| Independent Director | 1.83yrs | US$572.29k | 0.0037% $ 783.6k | |
| Independent Director | 3.92yrs | US$337.54k | 0.0039% $ 819.6k | |
| Independent Director | 0.25yr | no data | 0.0016% $ 345.2k |
1.8yrs
Average Tenure
65yo
Average Age
Experienced Board: CERN's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CERN insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Cerner Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Cerner Corporation
- Ticker: CERN
- Exchange: NasdaqGS
- Founded: 1979
- Industry: Health Care Technology
- Sector: Healthcare
- Market Cap: US$21.177b
- Shares outstanding: 306.29m
- Website: https://www.cerner.com
Number of Employees
Location
- Cerner Corporation
- 2800 Rockcreek Parkway
- North Kansas City
- Missouri
- 64117-2551
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CERN | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Dec 1986 |
| CRE | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Dec 1986 |
| 0R00 | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Dec 1986 |
| CERN * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Dec 1986 |
| CERN | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Dec 1986 |
| CRE | ETLX (Eurotlx) | Yes | Common Stock | IT | EUR | Dec 1986 |
| C1ER34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 2 REPR 1 SHS UNSPON | BR | BRL | Jan 2020 |
Biography
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 | 2021/02/28 00:21 |
| End of Day Share Price | 2021/02/26 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.