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Cerner Corporation (NASDAQ: CERN) – Is this large market cap stock undervalued?

Cerner Corporation (NASDAQ: CERN), is firmly in the large market cap category with market cap of 20516.14. To be considered a large market cap stock companies have to be valued at more than $10 billion. The current price for Cerner Corporation is 61.09 (with a change from open of 0.81%), this in conjunction with a target price of 69.14. Volume today has so far reached 935153, with an average volume of about 1725.64. The GAP for this stock, is -0.69%.

The P/E ratio is 33.62, bringing the forward P/E to a value of 22.71. The current EPS for Cerner Corporation, is 1.82, with a EPS growth for this year coming to a value of 2.50%. Performance has been interesting with performance year to date coming to 1.41%.

Looking further into the growth statistics for Cerner Corporation, EPS is looking like it will grow 13.90% in the next year. Looking even further it is projected to be 15.44%. Quarter over quarter is 48.20% for EPS growth and for sales growth quarter over quarter it is 8.00%. Looking at past EPS growth statistics we see that for the past five years it has been 17.20%. Sales growth for the past five years has in fact been 19.10%.

Looking at the ownership, we see that the insider ownership is at 2.20% and institutional ownership is 83.30%. Shares outstanding is 336.22, while shares float is at a value of 298.9. Float short for Cerner Corporation is 5.90% and the short ratio is 10.22.

In terms of debt, long term debt/equity is 0.13, while the total debt/equity comes to 0.14. The ability to meet these debts, means that the current ratio is 2.4, and the quick ratio is 2.4. The most recent gross margin is 83.40% and their operating margin is 19.30%. The profit margin is 13.50%.

Cerner Corporation has seen returns on assets of 11.20%, and on investment, 12.00%. Return on equity is 16.10%. Price/Earnings to growth ratio is 2.18. Price/Sales ratio is at a value of 4.41, with Price/book ratio coming to 5.09 and Price/cash is 32.57, and finally Price/Free cash Flow is 42.29.

The simple moving averages are -4.17% and 5.34% for 20 day and 200 day simple moving average respectively. For the 52 week high and low the 52 week high is -10.57% and the 52 week low is 23.19%.

Cerner Corporation has a dividend yield of *TBA, with a current price of 61.09. The ability to pay this means the payout ratio is 0.00%. This is in an industry, Healthcare Information Services, with equally high dividends from other companies in this sector, which it is Technology. Cerner Corporation is based in USA.

Performance in the Healthcare Information Services industry means that Cerner Corporation has seen performance for the past week of -0.38%, with performance for the month coming to -1.49%. Looking at the data for the quarter it is at a value of 0.36%, and for the half year the performance is -6.22%. Volatility for this week is 1.61% and for the month this is 1.40%.

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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