Cerner Stock Analysis, Valuation (NASDAQ:CERN)

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$64.86 $1.35 (2.13%) CERN stock closing price Aug 16, 2018 (Closing)

Watch the robo advisor video of Cerner stock analysis on Amigobulls. This is our analyst opinion covering the buy and sell arguments for CERN stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Cerner Corporation Stock Rating 3.9/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for CERN stock analysis. Cerner valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Based on a company's historical fundamentals we arrive at Cerner stock rating which is indicative of the company's financial performance.

Should you buy CERN stock?

  • Cerner's average operating margin of 16.58 was exceptional.
  • LTM Net margins were good at 16.1% for Cerner.
  • With a debt/equity ratio of 0.09, Cerner is comparatively less leveraged than its peers in the Medical sector.
  • The operating cash flow looks good at 1.7696 times the net income.
  • The lower PS ratio 4.1 for CERN stock versus Medical sector average of 6.2 is a positive for the company.
  • Cerner generates a high return on invested capital of 18.9.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Cerner at 18.
  • The company has a good Free Cash Flow (FCF) margin of 8.9.

Should you sell CERN stock?

Comments on this video and Cerner stock

Investors can make use of the Amigobulls Cerner stock analysis to ascertain how CERN stock fares in fundamental analysis investment criteria. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

Cerner revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. One can also combine technical analysis and fundamental analysis to get a holistic picture about CERN stock.