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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 61.48 (-0.87% today). The market cap for Cerner Corporation is 21013.25, and is in the sector Technology, and Healthcare Information Services industry. The target price for Cerner Corporation is 69.63. Currently Cerner Corporation is trading with a P/E of 33.87, and a forward P/E of 22.89. Average volume for Cerner Corporation is 1980.61 and so far today it is 1357200.

Performance in the last year for Cerner Corporation has been -2.78%. For EPS growth, Cerner Corporation has seen a growth of 2.50%, and is looking to grow in the next year to 13.81%. 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 -3.42%, with the 200-day simple moving average coming to 6.26%.

Since the IPO date for Cerner Corporation on the 3/26/1990, Cerner Corporation has seen performance year to date to be 2.18%. With Cerner Corporation trading at 61.48, the dividend yield is *TBA, and the EPS is 1.82.

So could Cerner Corporation, be undervalued? Well as said before P/E is 33.87. The PEG is 2.13, P/S is 4.51 and the P/B is at 5.12. The P/cash is 33.36, with P/free cash flow at 43.32.

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 83.30%. Outstanding shares are at 341.79. While shares float is 298.9. The float short is currently 5.61%, and short ratio is 8.46.

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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Tony Dabbs

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