Cerner Corporation [NASDAQ:CERN]: Analyst Rating and Earnings
Professional stock traders oftentimes make sure they verify what some leading Wall Street voices have to say about a potential buy. Currently, in relation to Cerner Corporation [CERN], the latest Wall Street average recommendation we can view is from the fiscal quarter that will be ending in the month of December. On average, stock market experts give CERN an Outperform rating. Its stock price has been found in the range of 48.78 to 69.34. This is compared to its latest closing price of $67.83.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Cerner Corporation [CERN] is sitting at 2.09. This is compared to 1 month ago, when its average rating was 2.14.
For the quarter ending in Mar-19 Cerner Corporation [CERN] generated $1.39 billion in sales. That’s 0.18% higher than the average estimate of $1.39 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep on the lookout for this organization’s next scheduled financial results, which are expected to be made public on Thu 1 Aug (In 78 Days).
Fundamental Analysis of Cerner Corporation [CERN]
Now let’s turn to look at profitability: with a current Operating Margin for Cerner Corporation [CERN] sitting at +14.44 and its Gross Margin at +76.99, this company’s Net Margin is now 11.60%. These measurements indicate that Cerner Corporation [CERN] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 14.50, and its Return on Invested Capital has reached 11.20%. Its Return on Equity is 12.97, and its Return on Assets is 9.56. These metrics show a mixed bag, which means that this investment’s attractiveness can be quickly increased or decreased in the short term, depending on future updates CERN financial performance.
Turning to investigate this organization’s capital structure, Cerner Corporation [CERN] has generated a Total Debt to Total Equity ratio of 9.00. Similarly, its Total Debt to Total Capital is 8.26, while its Total Debt to Total Assets stands at 6.61. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 8.90, and its Long-Term Debt to Total Capital is 8.17. This company has a healthy balance between its debt and its current holdings, suggesting it is a reliable investment due to its ability to leverage debt in an efficient way.
What about valuation? This company’s Enterprise Value to EBITDA is 15.59 and its Total Debt to EBITDA Value is 0.31. The Enterprise Value to Sales for this firm is now 4.05, and its Total Debt to Enterprise Value stands at 0.03. Cerner Corporation [CERN] has a Price to Book Ratio of 3.42, a Price to Cash Flow Ratio of 11.93 and P/E Ratio of 35.59. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.
Shifting the focus to workforce efficiency, Cerner Corporation [CERN] earns $183,778 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 4.82 and its Total Asset Turnover is 0.81. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 2.38 and its Current Ratio is 2.41. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Cerner Corporation [CERN] has 323.77M shares outstanding, amounting to a total market cap of $21.96B. Its stock price has been found in the range of 48.78 to 69.34. At its current price, it has moved by -0.80% from its 52-week high, and it has moved 41.01% from its 52-week low.
This stock’s Beta value is currently 1.00, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 68.85. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Cerner Corporation [CERN] a Reliable Buy?
Shares of Cerner Corporation [CERN], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.