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CERN

CernerNasdaqGS:CERN Stock Report

Market Cap

US$21.1b

7D

-0.7%

1Y

-3.1%

Updated

18 Oct, 2021

Data

Company Financials +
CERN fundamental analysis
Snowflake Score
Valuation4/6
Future Growth3/6
Past Performance4/6
Financial Health4/6
Dividends2/6

CERN Overview

Cerner Corporation, together with its subsidiaries, provides health care information technology solutions and tech-enabled services in the United States and internationally.

Cerner Competitors

Veeva Systems

NYSE:VEEV

US$47.5b

Teladoc Health

NYSE:TDOC

US$21.6b

Change Healthcare

NasdaqGS:CHNG

US$6.4b

Inovalon Holdings

NasdaqGS:INOV

US$6.3b

Price History & Performance

Summary of all time highs, changes and price drops for Cerner
Historical stock prices
Current Share PriceUS$70.12
52 Week HighUS$67.96
52 Week LowUS$84.20
Beta0.74
1 Month Change-6.56%
3 Month Change-9.88%
1 Year Change-3.10%
3 Year Change11.34%
5 Year Change18.19%
Change since IPO34,420.79%

Recent News & Updates

Oct 13

With More Big Data Analysis, Cerner May Spike By 47%

Cerner solutions offer health information technology services, devices, and hardware. In my opinion, when the management starts seriously attacking international target markets, sales growth could spike up. I took a careful look at the global healthcare IT market, which is expected to grow at a CAGR of 14% from 2021 to 2029. If the volatility in the market increases significantly in the coming years, the beta could increase by almost 20%, which may lead to an increase in the WACC. With that risk in mind, like most analysts out there, I will be using a WACC close to 6%-7%. If Cerner continues to successfully create a cohesive architecture for health care, more patients will have access to information and treatment. That’s not all. I also believe that CERN’s data could be extremely beneficial for many patients all over the country.

Sep 06
Cerner Corporation's (NASDAQ:CERN) Intrinsic Value Is Potentially 57% Above Its Share Price

Cerner Corporation's (NASDAQ:CERN) Intrinsic Value Is Potentially 57% Above Its Share Price

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Cerner Corporation...

Aug 22
Does Cerner (NASDAQ:CERN) Have A Healthy Balance Sheet?

Does Cerner (NASDAQ:CERN) Have A Healthy Balance Sheet?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

CERNUS Healthcare ServicesUS Market
7D-0.7%2.3%2.0%
1Y-3.1%-7.3%27.6%

Return vs Industry: CERN exceeded the US Healthcare Services industry which returned -7.3% over the past year.

Return vs Market: CERN underperformed the US Market which returned 27.6% over the past year.

Price Volatility

Is CERN's price volatile compared to industry and market?
CERN volatility
CERN Beta0.74
Industry Beta0.81
Market Beta1

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.

About the Company

FoundedEmployeesCEOWebsite
197926,400David Feinberghttps://www.cerner.com

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 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 CareAware, an EHR agnostic platform that facilitates connectivity of health care devices to EHRs.

Cerner Fundamentals Summary

How do Cerner's earnings and revenue compare to its market cap?
CERN fundamental statistics
Market CapUS$21.11b
Earnings (TTM)US$703.14m
Revenue (TTM)US$5.61b

29.5x

P/E Ratio

3.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CERN income statement (TTM)
RevenueUS$5.61b
Cost of RevenueUS$958.54m
Gross ProfitUS$4.65b
ExpensesUS$3.95b
EarningsUS$703.14m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 29, 2021

Earnings per share (EPS)2.38
Gross Margin82.91%
Net Profit Margin12.54%
Debt/Equity Ratio46.3%

How did CERN perform over the long term?

See historical performance and comparison

Dividends

1.3%

Current Dividend Yield

36%

Payout Ratio

Valuation

Is Cerner undervalued compared to its fair value and its price relative to the market?

43.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CERN ($71.42) is trading below our estimate of fair value ($124.67)

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 (30x) compared to the US Healthcare Services industry average (91.2x).

PE vs Market: CERN is poor value based on its PE Ratio (30x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: CERN is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: CERN is good value based on its PB Ratio (5.2x) compared to the US Healthcare Services industry average (6.4x).


Future Growth

How is Cerner forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

15.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CERN's forecast earnings growth (15.9% per year) is above the savings rate (2%).

Earnings vs Market: CERN's earnings (15.9% per year) are forecast to grow faster than the US market (15.1% 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 (9.9% 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 (38%)


Past Performance

How has Cerner performed over the past 5 years?

-0.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CERN has high quality earnings.

Growing Profit Margin: CERN's current net profit margins (12.5%) are higher than last year (9.2%).


Past Earnings Growth Analysis

Earnings Trend: CERN's earnings have declined by 0.5% per year over the past 5 years.

Accelerating Growth: CERN's earnings growth over the past year (35.7%) exceeds its 5-year average (-0.5% per year).

Earnings vs Industry: CERN earnings growth over the past year (35.7%) exceeded the Healthcare Services industry 29.1%.


Return on Equity

High ROE: CERN's Return on Equity (17.5%) is considered low.


Financial Health

How is Cerner's financial position?


Financial Position Analysis

Short Term Liabilities: CERN's short term assets ($2.5B) exceed its short term liabilities ($1.5B).

Long Term Liabilities: CERN's short term assets ($2.5B) exceed its long term liabilities ($2.2B).


Debt to Equity History and Analysis

Debt Level: CERN's debt to equity ratio (46.3%) is considered high.

Reducing Debt: CERN's debt to equity ratio has increased from 12.1% to 46.3% over the past 5 years.

Debt Coverage: CERN's debt is well covered by operating cash flow (92%).

Interest Coverage: CERN's interest payments on its debt are well covered by EBIT (5365.3x coverage).


Balance Sheet


Dividend

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

1.25%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CERN's dividend (1.23%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.29%).

High Dividend: CERN's dividend (1.23%) is low compared to the top 25% of dividend payers in the US market (3.49%).


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 (36.4%), 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 (24.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.1yrs

Average management tenure


CEO

David Feinberg (59 yo)

no data

Tenure

Dr. David Todd Feinberg, M.D., MBA, serves as President, Chief Executive Officer and Director at Cerner Corporation since October 1, 2021. He serves as Head of Google’s health efforts as the Vice President...


Leadership Team

Experienced Management: CERN's management team is considered experienced (2.1 years average tenure).


Board Members

Experienced Board: CERN's board of directors are not considered experienced ( 2.5 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 only sold shares 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 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$21.111b
  • Shares outstanding: 295.59m
  • Website: https://www.cerner.com

Number of Employees


Location

  • Cerner Corporation
  • 2800 Rockcreek Parkway
  • North Kansas City
  • Missouri
  • 64117-2551
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/18 22:07
End of Day Share Price2021/10/18 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.