CERN Investment Analysis Report & Stock Research, Cerner Corp.

Cerner Corporation (CERN)

CERN Stock Report

2-Year Price History

View Larger CERN Chart
NASDAQ:CERN
$88.55
(3/19 11:15AM)
+1.3%
Open$89.57 Mkt Cap$7.2 Billion
High$89.95 52Wk High$91.49
Low$87.75 52Wk Low$41.60
Volume696,156 Avg Vol 10D419,000

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CERN Revenue

Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years. For, CERN the high and low end of the Price to Sales per share ratios are 3.65x and 1.89x respectively.

Notice that CERN's current Price to Sales per share ratio is 4.17x, which is significantly above its historical average. This places CERN at the upper end of its historical range relative to sales per share and makes it difficult to suggest an attractive price outlook. At current sales per share levels, we would need to see a decline in the Price to Sales ratio of 50% merely to return CERN to its historical average.

CERN Cash Earnings

Cash Earnings is always one of the most important factors to review for a company and, more importantly, an investment in a stock. CERN is above their historical average multiples of Cash Earnings, as calculated by our proprietary analysis. It is incredibly important to understand that for CERN, the current level of Cash Earnings compared to its historical levels helps identify where CERN is in relation to what the investing community was willing to pay for this level of Cash Earnings in the past. With a historical high Cash Earnings per share ratio of 21.00 and a historical low Cash Earnings per share ratio of 11.29, an investor can relate where value becomes optimal.

So when we look at CERN, what does this slightly higher than historical level of Price to Cash Earnings mean? From the Ockham perspective, it basically represents that the market has a higher stock price attributed to this level of Cash Earnings than compared to normal. So while we view this as a negative from a valuation perspective, it certainly doesn't mean that CERN couldn't rapidly improve in its value from other factors or a decline in stock price. The current Price to Cash Earnings level of 18.21 is 12% above the historical norm as calculated at Ockham. So a decline in stock price, or more hopefully, an increase in CERN's Cash Earnings levels would improve our outlook for the stock.

CERN Dividends

When determining a company's future prospects for success, Ockham Research sees analysis of dividend payments as a key additional factor. Even though it isn't imperative for CERN to shell out a dividend in order to receive a positive rating, it can be helpful to further our analysis. Although they may currently pay a dividend, our data source has no historical record of it for CERN. Since we cannot apply our historical trend analysis to dividends for CERN we have a neutral score for the dividend portion of our analysis.

Peer Comparison

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Cerner Corp. Industry Grouping

(3/18/2010)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not including CERN) 109.38 7.69 » 326.25 4.23 1.81 » 14.94 11.29% 18.24%
*10 year range does not include current year values
Fiserv, Inc. FISV $7.8 Billion $51.08 9.50 4.66 » 23.84 1.88 0.92 » 4.49 1.80% 18.96%
Check Point Software Technologies, Ltd. CHKP $7.2 Billion $34.44 19.31 9.44 » 82.76 8.16 4.36 » 52.25 13.32% 16.12%
BMC Software, Inc. BMC $7.2 Billion $39.22 13.01 8.83 » 29.11 3.75 1.97 » 4.70 5.70% 18.02%
Cerner Corp. CERN $7.2 Billion $87.44 18.21 5.19 » 439.29 4.17 0.69 » 4.24 12.53% 12.22%
Autodesk, Inc. ADSK $6.8 Billion $29.42 486.00 8.42 » 490.50 3.91 1.22 » 7.29 19.46% 28.94%
McAfee, Inc. MFE $6.6 Billion $41.53 19.06 7.10 » 1005.05 3.42 0.60 » 5.99 16.18% 9.18%
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Squawk On The Street

Holding CERN Stock? See What Is Being Discussed on Squawk On The Street

Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on CERN from Squawk On The Street.

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6:05P, Mar. 18,2010 CERN $87.44 Cerner Corp.
Tech Trader Daily-Barron's

First CERN News on Tech Trader Daily-Barron's in More Than a Month

It's been at least a month since we noticed any major news coverage of CERN, so the story in Tech Trader Daily-Barron's may get the ball rolling.

Cerner Corporation receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral. We noticed recently that in comparison to all other stocks we analyze in the news; CERN has received less coverage from the financial media in business television and blogs.

“… CERNER (CERN) shares have been added to the S&P 500, replacing BJ Services, which is being acquired by Baker Hughes. In late trading: MSTR is up $3. 18, or 3. 7%, to $88. 20. …”

12:31P, Nov. 03,2009 CERN $76.02 Cerner Corp.
Fox Business

Cerner Corporation (CERN) Discussed on Fox Business's Fox Business

Cerner Corporation is in the news. Find out how this impacts CERN trading on Ockham Research.

Improve their i.T.'s. This is what cernor does. That's going to benefit a company like CERNER. The p. E. Ratio, a little more expensetive than the other two. >> cheryl: what about dividend-paying stocks. A lot of folks, older folks in particular like dividend-paying, like the safety of that. Are we seeing a disappearance of that? >> I don't think so. We have a model portfolio that is a dividend-growth portfolio.

“… idend-paying, like the safety of that. Are we seeing a disappearance of that? >> I don't think so. We have a model portfolio that is a dividend-growth portfolio. …”

2:04P, Oct. 29,2009 CERN $78.54 Cerner Corp.
Fox Business

Cerner Corporation (CERN) Discussed on Fox Business's Fox Business

Cerner Corporation is in the news. Find out how this impacts CERN trading on Ockham Research.

Microscope again, again in light of the developments in washington. Also because of earners. We good revenue guidance for CERNER on light side. But it beat expectations. We hear from af thena later but they're moving due to earning report. Expedia saw the profit rise 23%. Symantec, this company price target is raised to five different brokerage firm.

“… profit rise 23%. Symantec, this company price target is raised to five different brokerage firm. …”

12:20P, Oct. 29,2009 CERN $78.89 Cerner Corp.
Fox Business

Cerner Corporation (CERN) Discussed on Fox Business's Fox Business

Cerner Corporation is in the news. Find out how this impacts CERN trading on Ockham Research.

Good ones. Here's a look at some of the names that reported. Akamai, CERN re r, a few of the names that will also report. Watching a lot of strength in the chinese internet sector this sector is quite hot. There's no other way to put it. You can see how shares of chanda as well as the company doing beta testing with one of its interactive games. If you were invested in it,

“… hares of chanda as well as the company doing beta testing with one of its interactive games. If you were invested in it, …”

11:05A, Oct. 16,2009 CERN $84.05 Cerner Corp.
Fox Business

Cerner Corporation (CERN) Discussed on Fox Business's Fox Business

Cerner Corporation is in the news. Find out how this impacts CERN trading on Ockham Research.

>> brian: spend more money apparently the way we do it. >> for two of our holdings are CERNER and mckesson and they've been strong contributors, we were in there ahead of the announcement in february. >> dagen: do you see government involvement existing and continuing involvement in financial services business ahead when-- are you still light in financial >> yes and yes, and really, what we see happening is much more of

“… and continuing involvement in financial services business ahead when-- are you still light in financial >> yes and yes, and really, what we see happening is much more of …”

5:15P, Sep. 21,2009 CERN $73.89 Cerner Corp.
Fast Money

Cerner Corporation (CERN) Discussed on CNBC's Fast Money

Cerner Corporation is in the news. Find out how this impacts CERN trading on Ockham Research.

Rather save their gunpowder in case there's something bigger they might want to do. But I think the two are not mutually exclusive going >> on the topic of other acquisitions, toni, I want to do a little rumor patrol if n. That the markets were moving stocks higher that were perceived as potential targets. CERNER, cpsi, and eclipsys. Are any of those targets? >> not for dell. The adage of one in the sector going they'll all go certainly doesn't hold true with dell, and i'm not even sure in the broader hardware space whether those >> toni mentioned the storage space. Talking about entap look at entap today goldman sachs put tonight conviction buy list. They are very late. Although I don't think he covers this stock's up about 140% in the last couple months p I still like entap here. Trades at a dweechbt valuation. Big short interest. I think entap is one of those stocks you still want to be in. >> the issue with network appliances it's levered to an economic recovery. You were having the debate we play, dell or ibm or hp, here's how I think about it. If you're looking for names that are really levered to an economic recovery, and are ultimately more beta plays, then dell and network appliance are going to do better, and they if you're cautious about the market and you're looking for quality names at low prices, hmm and ibm are trading on ten-year plus lows on relative multiples. Those are names you want to play. So a lot of it depends on your market outlook. I think valuations across the board, all three of the names that you mentioned are really attractive, and so owning more than one of them is certainly something that you can do. Again, whether you're looking to play more beta or not I think narrows your selection. >> toni, great to have you with us on the fast line. Thanks so much for your time. We do want to head back to scott cohn at englewood cliffs. We've got some more breaking news this time on bank of >> not best of days for bank of the securities and exchange commission was trying to settle with them over the merrill lynch judge rakoff a week ago threw that out. Now the s.E.C. Is preparing to go to trial and preparing to do it vigorously, they say, in a statement just out. This case would go to trial now on february 1st. And the next thing that will happen, according to a schedule that bank of america and the s.E.C. Have both agreed on-s that bank of america will have to file a response to the s.E.C.'s complaint. Later this week, september 25th. So on friday they will have to and then this case would be set and what a trial that would be. On whether bank of america misled investors about the losses at merrill lynch, the bonuses that were to be paid out ahead of the merger closing. That trial would take place on february 1st, and the s.E.C. Says it's going forward, in their words, vigorously. >> all right, scott. Karen, you wanted to get in >> well, I just think the s.E.C. Has such egg on their face over as well as a number of missteps so I think they have no choice but to pursue this vigorously. Here's the thing they don't understand.

“… cks higher that were perceived as potential targets. CERNER, cpsi, and eclipsys. Are any of those targets? >> not for dell. The adage of one in the sector going they'll all go certainly doesn't hold true with dell, and i'm not even sure in the broader hardware space whether those >> toni mentioned the storage space. Talking about entap look at entap today goldman sachs put tonight conviction buy list. They are very late. Although I don't think he covers this stock's up about 140% in the last couple months p I still like entap here. Trades at a dweechbt valuation. Big short interest. I think entap is one of those stocks you still want to be in. >> the issue with network appliances it's levered to an economic recovery. You were having the debate we play, dell or ibm or hp, here's how I think about it. If you're looking for names that are really levered to an economic recovery, and are ultimately more beta plays, then dell and network appliance are going to do better, and they if you're cautious about the market and you're looking for quality names at low prices, hmm and ibm are trading on ten-year plus lows on relative multiples. Those are names you want to play. So a lot of it depends on your market outlook. I think valuations across the board, all three of the names that you mentioned are really attractive, and so owning more than one of them is certainly something that you can do. Again, whether you're looking to play more beta or not I think narrows your selection. >> toni, great to have you with us on the fast line. Thanks so much for your time. We do want to head back to scott cohn at englewood cliffs. We've got some more breaking news this time on bank of >> not best of days for bank of the securities and exchange commission was trying to settle with them over the merrill lynch judge rakoff a week ago threw that out. Now the s.E.C. Is preparing to go to trial and preparing to do it vigorously, they say, in a statement just out. This case would go to trial now on february 1st. And the next thing that will happen, according to a schedule that bank of america and the s.E.C. Have both agreed on-s that bank of america will have to file a response to the s.E.C.'s complaint. Later this week, september 25th. So on friday they will have to and then this case would be set and what a trial that would be. On whether bank of america misled investors about the losses at merrill lynch, the bonuses that were to be paid out ahead of the merger closing. That trial would take place on february 1st, and the s.E.C. Says it's going forward, in their words, vigorously. >> all right, scott. Karen, you wanted to get in >> well, I just think the s.E.C. Has such egg on their face over as well as a number of missteps so I think they have no choice but to pursue this vigorously. Here's the thing they don't understand. …”

12:44P, Aug. 31,2009 CERN $61.69 Cerner Corp.
Fox Business

Cerner Corporation (CERN) Discussed on Fox Business's Fox Business

Cerner Corporation is in the news. Find out how this impacts CERN trading on Ockham Research.

Information technology is an important initiative of the obama administration. There is a lot of funding ready to be handed out to hospitals and even to doctors' practices we would send you to all scripts and we would send you to CERN. We don't own either of them. But we think those are good ways for investors to invest in the future of health care information technology. >> john sullivan, thanks for the we appreciate it. >> thanks for your help. >> those are advices. Well, one is a hummer dealer -- what is a hummer deal tore do faced with higher gas prices, sluggish economy, we'll meet one dealer who is going ahead with both barrels blazing. Yep. Coming up on fox business.

“… of them. But we think those are good ways for investors to invest in the future of health care information technology. >> john sullivan, thanks for the we appreciate it. >> thanks for your help. >> those are advices. Well, one is a hummer dealer -- what is a hummer deal tore do faced with higher gas prices, sluggish economy, we'll meet one dealer who is going ahead with both barrels blazing. Yep. Coming up on fox business. …”

8:19A, Jul. 27,2009 CERN $59.09 Cerner Corp.
Squawk Box

Cerner Corporation (CERN) Discussed on CNBC's Squawk Box

Cerner Corporation is in the news. Find out how this impacts CERN trading on Ockham Research.

The been -- it's not where you'll see the benefit. In the stimulus package that's already passed and in law is where you'll see hcit. We'd send to you CERNER, although that whole sector should benefit dramatically. >> if I took a top-down approach that whatever happens, reform, no reform, there will be government incentives for new

“… atever happens, reform, no reform, there will be government incentives for new …”

2:56P, Jul. 13,2009 CERN $59.09 Cerner Corp.
Street Signs

Cerner Corporation (CERN) Discussed on CNBC's Street Signs

Cerner Corporation is in the news. Find out how this impacts CERN trading on Ockham Research.

But these are the top of the pops, or the hit parade, if you will. And these are companies with a market cap that's bigger than 500 million. CERNER, allscripts, medassets, health management, and qs. All nasdaq stocks, by the way. Back to you. Nesto. Well, up next, as we say it's

“… up next, as we say it's …”

View All Cerner Corp. Stock News

Key Fundamentals

CERN - Cerner Corporation Fundamentals
Price (3/19 11:15AM) $88.55
Volume (3/19 11:15AM) 696,156
Last Close Price $87.44
10 Day Average Volume 419,000
13 Week Price Range $74.39 - $91.49
52 Week Price Range $41.60 - $91.49
LTM Revenue $1.7 Billion
 
Shares Outstanding (12/2009) 81.9 Million
Market Capitalization $7.2 Billion
Shares Held By Institutions 72.3 Million
Institutional Holders 423
% Shares Held By Institutions 89.30%
Earnings Per Share (EPS) $2.31
P/E Ratio 37.90
Book Value Per Share $19.30
 
Gross Margin 52.60%
Annual Dividend 0.00
Dividend Yield 0.00%
Beta 1.07
Fiscal Year Ends December

About Cerner Corp.

Cerner Corporation is considered to operate in the Technology sector. They specifically operate in the Healthcare Infomation Services business segment contained within the Computer Software & Services industry.

The Company designs, develops, markets, installs, hosts and supports healthcare information technology, healthcare devices and content solutions for healthcare organizations and consumers.