|Company name||Cerner Corporation|
|Live stock price||[stckqut]CERN[/stckqut]|
|P/E compared to competitors||Good|
|Confident Investor Rating||Fair|
|Target stock price (TWCA growth scenario)||$55.86|
|Target stock price (averages with growth)||$58.18|
|Target stock price (averages with no growth)||$32.57|
|Target stock price (manual assumptions)||$58.1|
The following company description is from Google Finance: http://www.google.com/finance?q=cern
Cerner Corporation is a supplier of healthcare information technology (HCIT). The Company offers a range of intelligent solutions and services that support the clinical, financial and operational needs of organizations. Its segments include Domestic and Global. The Domestic segment includes the business activity in the United States. The Global segment includes the business activity in Aruba, Australia, Austria, Belgium, Brazil, Canada, Cayman Islands, Chile, Denmark, Egypt, England, Finland, France, Germany, Guam, India, Ireland, Luxembourg, Malaysia, Mexico, Netherlands, Norway, Portugal, Qatar, Romania, Saudi Arabia, Singapore, Slovakia, Spain, Sweden, Switzerland and the United Arab Emirates. It offers software, hardware, professional and managed services. Its solutions are offered on the unified Cerner Millennium architecture and on the HealtheIntent cloud-based platform. Its solutions include Cerner ITWorks, Cerner RevWorks, PowerWorks and CommunityWorks, among others.
Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Cerner Corporation as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns. I am removing Cerner from my Watch List.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.
How was this analysis of Cerner Corporation calculated?
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
- Stock price at the time of the calculation: $58.8
- Growth: 0.1
- Current EPS (TTM): $1.66
- P/E: 35
- Future EPS Calc: $2.67
- Future Stock Price Calc: $93.57
- Target stock price: $58.1
I hope that this makes you a Confident Investor.