Stock on Focus: Cerner Corporation (CERN)

Company Profile:

Cerner Corporation is a supplier of health care information technology (HCIT). The Company offers a range of intelligent solutions and services that support the clinical, financial and operational needs of organizations. The Company offers software, hardware, professional services and managed services. The Company operates in two segments: 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, Brazil, Canada, Cayman Islands, Chile, Egypt, England, Finland, France, Germany, Guam, India, Ireland, Israel, Malaysia, Mexico, Netherlands, Qatar, Saudi Arabia, Singapore, Spain, Switzerland and the United Arab Emirates. Cerner solutions are offered on the unified Cerner Millennium architecture and on the HealtheIntent cloud-based platform. Its solutions include HealtheRegistries, Cerner ITWorks, Cerner RevWorks, PowerWorks and CommunityWorks, among others. Cerner Corporation was founded in 1979 and is headquartered in North Kansas City, Missouri.

Recent News:

On March 08, 2016, its board of directors approved a stock repurchase program on March 7, 2016, at its regularly scheduled Board meeting, authorizing the repurchase of up to $300 million of its common stock.

On March 02, 2016 the company have entered into an extended agreement to expand the use of Cerner’s PowerChart Ambulatory™electronic health record (EHR) across all Dignity Health ambulatory care clinics, which will create a unified patient record and an integrated clinically driven network across all acute and ambulatory care settings.

Fourth quarter revenue was $1.175 billion, an increase of 27 percent compared to $926 million in the year-ago period. Full-year 2015 revenue was $4.43 billion, up 30 percent compared to 2014 revenue of $3.4 billion.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

CERN’s strengths can be seen in its better growth and better profitability compared with its peers. Its revenue and net income have increased over several years. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and Stochastic Oscillator. RSI is increasing to 55.03. The current P/BV ratio indicates it is undervalued compared to the average P/BV ratio of the industry. We rate Cerner Corporation (CERN) a Strong BUY.