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Is Cerner Corporation(NASDAQ: CERN), a large market cap stock a smart buy?

With a market cap of has a large market cap size. Cerner Corporation (NASDAQ: CERN) has been on the stock market since its IPO date on the 3/26/1990. Cerner Corporation is in the Healthcare Information Services industry and Technology sector. Average volume for Cerner Corporation, is 1916.21, and so far today it has a volume of 1740000. Performance year to date since the 3/26/1990 is 4.29%.

To help you determine whether Cerner Corporation is undervalued the following values will help you decide. P/E is 34.57 and forward P/E is 23.36. PEG perhaps more useful shows that Cerner Corporation has a value for PEG of 2.24. P/S ratio is 4.55 and the P/B ratio is 5.23. The P/Cash and P/Free cash flow is 33.64 and 43.68 respectively.

At the current price Cerner Corporation is trading at, 62.75 (-0.37% today), Cerner Corporation has a dividend yield of *TBA, and this is covered by a payout ratio of 0.00%. Earnings per share (EPS) is 1.82, and this is looking to grow in the next year to 13.86% after growing 2.50% this past year. EPS growth quarter over quarter is 48.20%, and 8.00% for sales growth quarter over quarter.

The number of shares outstanding is 337.71, and the number of shares float is 298.9. The senior management bring insider ownership to 2.20%, and institutional ownership is at 83.30%. The float short is 5.61%, with the short ratio at a value of 8.75. Management has seen a return on assets of 11.20%, and also a return on investment of 12.00%.

The ability for Cerner Corporation, to deal with debt, means it current ratio is 2.4, and quick ratio is 2.4. Long term debt/equity is 0.13 and total debt/equity is 0.14. In terms of margins, Cerner Corporation has a gross margin of 83.40%, with its operating margin at 19.30%, and Cerner Corporation has a profit margin of 13.50%.

The 52 week high is -8.14%, with 26.54% being its 52 week low. The 20 day simple moving average is -1.64% and the 200 day simple moving average is 8.37%.

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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