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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 67.35 (0.71% today). The market cap for Cerner Corporation is 21124.23, and is in the sector Technology, and Healthcare Information Services industry. The target price for Cerner Corporation is 69.42. Currently Cerner Corporation is trading with a P/E of 36.84, and a forward P/E of 24.86. Average volume for Cerner Corporation is 2159.41 and so far today it is 792565.

Performance in the last year for Cerner Corporation has been 2.40%. For EPS growth, Cerner Corporation has seen a growth of 2.50%, and is looking to grow in the next year to 14.03%. More long term stats show that EPS growth has been 17.20% over the last five years and could be 15.90% for the next five years. Cerner Corporation has seen sales growth quarter over quarter at 8.00%, with EPS growth quarter over quarter at 48.20%. The 20-day simple moving average is 14.94%, with the 200-day simple moving average coming to 17.40%.

Since the IPO date for Cerner Corporation on the 3/26/1990, Cerner Corporation has seen performance year to date to be 11.14%. With Cerner Corporation trading at 67.35, the dividend yield is *TBA, and the EPS is 1.82.

So could Cerner Corporation, be undervalued? Well as said before P/E is 36.84. The PEG is 2.32, P/S is 4.54 and the P/B is at 5.57. The P/cash is 33.54, with P/free cash flow at *TBA.

Cerner Corporation ability to deal with debt shows that the current ratio is 2.4, and the quick ratio is 2.4. This is with long term debt/equity at 0.13, and total debt/equity at 0.14.

In terms of margins, Cerner Corporation has a gross margin of 83.40%, an operating margin of 19.30% and a profit margin of 13.50%.Payout ratio for Cerner Corporation is 0.00%. Return on assets come to 11.20% with return on investment coming to 12.00%.

Insider ownership for Cerner Corporation, is at 2.20% and institutional ownership comes to 81.80%. Outstanding shares are at 315.9. While shares float is 299.44. The float short is currently 6.45%, and short ratio is 8.94.

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.

About the author

Mark Hines

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