The share price of Cerner Corporation [NASDAQ: CERN] inclined by $73.48, presently trading at $73.07. The company’s shares saw 38.76% gains compared to the lowest price in the period of the last 52 weeks, set at $52.66 recorded on Jan 13, 2020. The last few days have been tough to the share price as CERN fall by -1.24% during the last week, even though the stock is still down by -1.66% compared to -0.92 of all time high it touched on 01/09/20. However, the stock had a strong performance during the past 3 months, roughly gaining 2.20%, while additionally gaining 35.62% during the last 12 months. Cerner Corporation is said to have a 12-month price target set at $76.03. That means that the stock has a strong potential to acquire 2.96% increase from the current trading price.
Cerner Corporation [NASDAQ:CERN]: Analyst Rating and Earnings
Its stock price has been found in the range of 52.66 to 76.47. This is compared to its latest closing price of $73.48.
Keep your eyes peeled for this company’s upcoming financial results publication, which is slated for Tue 4 Feb (In 22 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 9.00%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, 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 97.01, and its Long-Term Debt to Total Capital is 8.90.
What about valuation? This company’s Enterprise Value to EBITDA is 16.13 and its Total Debt to EBITDA Value is 0.31. The Enterprise Value to Sales for this firm is now 4.07, 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 46.94. 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 315.29M shares outstanding, amounting to a total market cap of $23.04B. Its stock price has been found in the range of 52.66 to 76.47. At its current price, it has moved down by -4.45% from its 52-week high, and it has moved up 38.76% from its 52-week low.
This stock’s Beta value is currently 0.97, which indicates that it is 1.32% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 57.39. 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.