CERNER CORP (CERN) Fundamental Analysis & Valuation

NASDAQ:CERN • US1567821046

Current stock price

94.92
-0.05 (-0.05%)
At close:
94.95
+0.03 (+0.03%)
After Hours:

This CERN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

0

1. CERN Profitability Analysis

1.1 Basic Checks

  • CERN had positive earnings in the past year.
CERN Yearly Net Income VS EBIT VS OCF VS FCFCERN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 500M 1B 1.5B

1.2 Ratios

Industry RankSector Rank
ROA 7.99%
ROE 15.08%
ROIC N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
CERN Yearly ROA, ROE, ROICCERN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 5 10 15

1.3 Margins

Industry RankSector Rank
OM 15.88%
PM (TTM) 10.15%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
CERN Yearly Profit, Operating, Gross MarginsCERN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 20 40 60 80

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3

2. CERN Health Analysis

2.1 Basic Checks

  • Compared to 1 year ago, CERN has less shares outstanding
  • Compared to 1 year ago, CERN has a worse debt to assets ratio.
CERN Yearly Shares OutstandingCERN Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 100M 200M 300M
CERN Yearly Total Debt VS Total AssetsCERN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2B 4B 6B

2.2 Solvency

  • CERN has an Altman-Z score of 7.44. This indicates that CERN is financially healthy and has little risk of bankruptcy at the moment.
  • CERN has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
Industry RankSector Rank
Debt/Equity 0.41
Debt/FCF N/A
Altman-Z 7.44
ROIC/WACCN/A
WACCN/A
CERN Yearly LT Debt VS Equity VS FCFCERN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 1B 2B 3B 4B

2.3 Liquidity

  • A Current Ratio of 1.79 indicates that CERN should not have too much problems paying its short term obligations.
  • CERN has a Quick Ratio of 1.77. This is a normal value and indicates that CERN is financially healthy and should not expect problems in meeting its short term obligations.
Industry RankSector Rank
Current Ratio 1.79
Quick Ratio 1.77
CERN Yearly Current Assets VS Current LiabilitesCERN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 500M 1B 1.5B 2B 2.5B

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5

3. CERN Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 20.42% over the past year.
  • CERN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.72% yearly.
  • CERN shows a small growth in Revenue. In the last year, the Revenue has grown by 5.93%.
  • The Revenue has been growing slightly by 3.75% on average over the past years.
EPS 1Y (TTM)20.42%
EPS 3Y10.84%
EPS 5Y7.72%
EPS Q2Q%17.11%
Revenue 1Y (TTM)5.93%
Revenue growth 3Y2.42%
Revenue growth 5Y3.75%
Sales Q2Q%3.03%

3.2 Future

  • Based on estimates for the next years, CERN will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.02% on average per year.
  • The Revenue is expected to grow by 3.66% on average over the next years.
EPS Next Y12.81%
EPS Next 2Y11.82%
EPS Next 3Y10.84%
EPS Next 5Y10.02%
Revenue Next Year3.95%
Revenue Next 2Y4.31%
Revenue Next 3Y4.05%
Revenue Next 5Y3.66%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
CERN Yearly Revenue VS EstimatesCERN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2B 4B 6B
CERN Yearly EPS VS EstimatesCERN Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4 5

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1

4. CERN Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 27.28, the valuation of CERN can be described as expensive.
  • CERN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.71, which is the current average of the S&P500 Index.
  • CERN is valuated rather expensively with a Price/Forward Earnings ratio of 22.66.
  • When comparing the Price/Forward Earnings ratio of CERN to the average of the S&P500 Index (23.83), we can say CERN is valued inline with the index average.
Industry RankSector Rank
PE 27.28
Fwd PE 22.66
CERN Price Earnings VS Forward Price EarningsCERN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA 17.46
CERN Per share dataCERN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.13
PEG (5Y)3.53
EPS Next 2Y11.82%
EPS Next 3Y10.84%

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2

5. CERN Dividend Analysis

5.1 Amount

  • CERN has a Yearly Dividend Yield of 1.14%.
  • With a Dividend Yield of 1.14, CERN pays less dividend than the S&P500 average, which is at 1.91.
Industry RankSector Rank
Dividend Yield 1.14%

5.2 History

  • CERN has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr YearsN/A
Div Non Decr YearsN/A
CERN Yearly Dividends per shareCERN Yearly Dividends per shareYearly Dividends per share 2019 2020 2021 2022 0.2 0.4 0.6 0.8

5.3 Sustainability

  • CERN pays out 47.36% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP47.36%
EPS Next 2Y11.82%
EPS Next 3Y10.84%
CERN Yearly Income VS Free CF VS DividendCERN Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 200M 400M 600M 800M 1B
CERN Dividend Payout.CERN Dividend Payout, showing the Payout Ratio.CERN Dividend Payout.PayoutRetained Earnings

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CERN Fundamentals: All Metrics, Ratios and Statistics

CERNER CORP

NASDAQ:CERN (6/7/2022, 8:00:00 PM)

After market: 94.95 +0.03 (+0.03%)

94.92

-0.05 (-0.05%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)05-03
Earnings (Next)07-28
Inst Owners0%
Inst Owner Change0%
Ins Owners0.45%
Ins Owner Change0%
Market Cap27.92B
Revenue(TTM)5.81B
Net Income(TTM)589.47M
Analysts71.43
Price Target96.34 (1.5%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.14%
Yearly Dividend0.93
Dividend Growth(5Y)N/A
DP47.36%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 27.28
Fwd PE 22.66
P/S 4.81
P/FCF N/A
P/OCF N/A
P/B 7.14
P/tB N/A
EV/EBITDA 17.46
EPS(TTM)3.48
EY3.67%
EPS(NY)4.19
Fwd EY4.41%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS19.74
BVpS13.29
TBVpSN/A
PEG (NY)2.13
PEG (5Y)3.53
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 7.99%
ROE 15.08%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM 15.88%
PM (TTM) 10.15%
GM N/A
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y0%
ROICexgc growth 5Y0%
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.79
Health
Industry RankSector Rank
Debt/Equity 0.41
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.79
Quick Ratio 1.77
Altman-Z 7.44
F-Score5
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)20.42%
EPS 3Y10.84%
EPS 5Y7.72%
EPS Q2Q%17.11%
EPS Next Y12.81%
EPS Next 2Y11.82%
EPS Next 3Y10.84%
EPS Next 5Y10.02%
Revenue 1Y (TTM)5.93%
Revenue growth 3Y2.42%
Revenue growth 5Y3.75%
Sales Q2Q%3.03%
Revenue Next Year3.95%
Revenue Next 2Y4.31%
Revenue Next 3Y4.05%
Revenue Next 5Y3.66%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1YN/A
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1YN/A
OCF growth 3YN/A
OCF growth 5YN/A

CERNER CORP / CERN Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for CERNER CORP?

ChartMill assigns a fundamental rating of 5 / 10 to CERN.


What is the valuation status for CERN stock?

ChartMill assigns a valuation rating of 2 / 10 to CERNER CORP (CERN). This can be considered as Overvalued.


How profitable is CERNER CORP (CERN) stock?

CERNER CORP (CERN) has a profitability rating of 7 / 10.


What is the valuation of CERNER CORP based on its PE and PB ratios?

The Price/Earnings (PE) ratio for CERNER CORP (CERN) is 27.28 and the Price/Book (PB) ratio is 7.14.


What is the expected EPS growth for CERNER CORP (CERN) stock?

The Earnings per Share (EPS) of CERNER CORP (CERN) is expected to grow by 12.81% in the next year.