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Is this Large Market Cap Stock target price reasonable for Cerner Corporation (NASDAQ:CERN)?

The company in question is, Cerner Corporation (NASDAQ:CERN) currently with a stock price of 61.47 (-0.84% today). The market cap for Cerner Corporation is 21033.83, and is in the sector Technology, and Healthcare Information Services industry. The target price for Cerner Corporation is 64.95. Currently Cerner Corporation is trading with a P/E of 37.39, and a forward P/E of 23.01. Average volume for Cerner Corporation is 2025.72 and so far today it is 633496.

Performance in the last year for Cerner Corporation has been -13.96%. For EPS growth, Cerner Corporation has seen a growth of 2.50%, and is looking to grow in the next year to 14.49%. More long term stats show that EPS growth has been 17.20% over the last five years and could be 16.05% for the next five years. Cerner Corporation has seen sales growth quarter over quarter at 14.30%, with EPS growth quarter over quarter at 37.80%. The 20-day simple moving average is 8.63%, with the 200-day simple moving average coming to 7.05%.

Since the IPO date for Cerner Corporation on the 3/26/1990, Cerner Corporation has seen performance year to date to be 3.02%. With Cerner Corporation trading at 61.47, the dividend yield is *TBA, and the EPS is 1.66.

So could Cerner Corporation, be undervalued? Well as said before P/E is 37.39. The PEG is 2.33, P/S is 4.61 and the P/B is at 5.38. The P/cash is 41.78, with P/free cash flow at 54.99.

Cerner Corporation ability to deal with debt shows that the current ratio is 2.2, and the quick ratio is 2.2. This is with long term debt/equity at 0.14, and total debt/equity at 0.15.

In terms of margins, Cerner Corporation has a gross margin of 83.40%, an operating margin of 18.20% and a profit margin of 12.70%.Payout ratio for Cerner Corporation is 0.00%. Return on assets come to 10.40% with return on investment coming to 12.00%.

Insider ownership for Cerner Corporation, is at 2.20% and institutional ownership comes to 81.00%. Outstanding shares are at 339.31. While shares float is 299.27. The float short is currently 5.78%, and short ratio is 8.54.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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