Cerner Corporation, together with its subsidiaries, provides health care information technology solutions and tech-enabled services in the United States and internationally.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$71.81|
|52 Week High||US$67.96|
|52 Week Low||US$84.20|
|1 Month Change||-1.58%|
|3 Month Change||-8.42%|
|1 Year Change||-2.59%|
|3 Year Change||29.27%|
|5 Year Change||22.96%|
|Change since IPO||35,252.79%|
Recent News & Updates
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.
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...
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...
|CERN||US Healthcare Services||US Market|
Return vs Industry: CERN underperformed the US Healthcare Services industry which returned -0.3% over the past year.
Return vs Market: CERN underperformed the US Market which returned 31.1% over the past year.
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
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
|CERN fundamental statistics|
Is CERN overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|CERN income statement (TTM)|
|Cost of Revenue||US$958.54m|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Oct 29, 2021
|Earnings per share (EPS)||2.38|
|Net Profit Margin||12.54%|
How did CERN perform over the long term?See historical performance and comparison
1.2%Current Dividend Yield
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 ($71.81) is trading below our estimate of fair value ($124.59)
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 (30.2x) compared to the US Healthcare Services industry average (91.6x).
PE vs Market: CERN is poor value based on its PE Ratio (30.2x) compared to the US market (18.3x).
Price to Earnings Growth Ratio
PEG Ratio: CERN is poor value based on its PEG Ratio (2x)
Price to Book Ratio
PB vs Industry: CERN is good value based on its PB Ratio (5.3x) compared to the US Healthcare Services industry average (6.3x).
How is Cerner forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CERN's forecast earnings growth (15.2% per year) is above the savings rate (2%).
Earnings vs Market: CERN's earnings (15.2% 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%)
How has Cerner performed over the past 5 years?
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.
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).
What is Cerner current dividend yield, its reliability and sustainability?
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 (1.27%).
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).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
David Feinberg (59 yo)
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...
Experienced Management: CERN's management team is considered experienced (2.1 years average tenure).
Experienced Board: CERN's board of directors are not considered experienced ( 2.5 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 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$21.226b
- Shares outstanding: 295.59m
- Website: https://www.cerner.com
Number of Employees
- Cerner Corporation
- 2800 Rockcreek Parkway
- North Kansas City
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/10/22 22:55|
|End of Day Share Price||2021/10/22 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.