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Cerner

Nasdaq:CERN
Snowflake Description

Excellent balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CERN
Nasdaq
$19B
Market Cap
  1. Home
  2. US
  3. Healthcare
Company description

Cerner Corporation, together with its subsidiaries, provides health care information technology solutions and tech-enabled services in the United States and internationally. The last earnings update was 53 days ago. More info.


Add to Portfolio Compare Print
  • Cerner has significant price volatility in the past 3 months.
CERN Share Price and Events
7 Day Returns
3.2%
NasdaqGS:CERN
7.2%
US Healthcare Services
-1.1%
US Market
1 Year Returns
8.1%
NasdaqGS:CERN
15.9%
US Healthcare Services
-13.6%
US Market
CERN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Cerner (CERN) 3.2% -15.7% -16.1% 8.1% 4% -17.4%
US Healthcare Services 7.2% -4.2% -2.6% 15.9% 61.6% 36.7%
US Market -1.1% -17.8% -22.5% -13.6% 4.9% 16.3%
1 Year Return vs Industry and Market
  • CERN underperformed the Healthcare Services industry which returned 15.9% over the past year.
  • CERN outperformed the Market in United States of America which returned -13.6% over the past year.
Price Volatility
CERN
Industry
5yr Volatility vs Market

CERN Value

 Is Cerner undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Cerner to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Cerner.

NasdaqGS:CERN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 21 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:CERN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Healthcare Services Unlevered Beta Simply Wall St/ S&P Global 0.98
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.975 (1 + (1- 21%) (6.15%))
1.015
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.02
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (1.015 * 5.44%)
7.26%

Discounted Cash Flow Calculation for NasdaqGS:CERN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Cerner is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGS:CERN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.26%)
2020 992.71 Analyst x6 925.51
2021 1,098.56 Analyst x5 954.85
2022 1,207.00 Analyst x2 978.08
2023 1,367.45 Analyst x2 1,033.07
2024 1,551.85 Analyst x2 1,093.01
2025 1,685.94 Est @ 8.64% 1,107.06
2026 1,796.71 Est @ 6.57% 1,099.92
2027 1,888.72 Est @ 5.12% 1,077.97
2028 1,966.28 Est @ 4.11% 1,046.27
2029 2,033.07 Est @ 3.4% 1,008.57
Present value of next 10 years cash flows $10,324.00
NasdaqGS:CERN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $2,033.07 × (1 + 1.74%) ÷ (7.26% – 1.74%)
$37,459.99
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $37,459.99 ÷ (1 + 7.26%)10
$18,583.12
NasdaqGS:CERN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $10,324.00 + $18,583.12
$28,907.12
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $28,907.12 / 311.94
$92.67
NasdaqGS:CERN Discount to Share Price
Calculation Result
Value per share (USD) From above. $92.67
Current discount Discount to share price of $61.96
= -1 x ($61.96 - $92.67) / $92.67
33.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Cerner is available for.
Intrinsic value
33%
Share price is $61.96 vs Future cash flow value of $92.67
Current Discount Checks
For Cerner to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Cerner's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Cerner's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Cerner's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Cerner's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:CERN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-28) in USD $1.66
NasdaqGS:CERN Share Price ** NasdaqGS (2020-04-02) in USD $61.96
United States of America Healthcare Services Industry PE Ratio Median Figure of 12 Publicly-Listed Healthcare Services Companies 42.81x
United States of America Market PE Ratio Median Figure of 2,943 Publicly-Listed Companies 12.9x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Cerner.

NasdaqGS:CERN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:CERN Share Price ÷ EPS (both in USD)

= 61.96 ÷ 1.66

37.24x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cerner is good value based on earnings compared to the US Healthcare Services industry average.
  • Cerner is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Cerner's expected growth come at a high price?
Raw Data
NasdaqGS:CERN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 37.24x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts
15.5%per year
United States of America Healthcare Services Industry PEG Ratio Median Figure of 11 Publicly-Listed Healthcare Services Companies 3.11x
United States of America Market PEG Ratio Median Figure of 2,006 Publicly-Listed Companies 0.95x

*Line of best fit is calculated by linear regression .

NasdaqGS:CERN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 37.24x ÷ 15.5%

2.4x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cerner is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Cerner's assets?
Raw Data
NasdaqGS:CERN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-28) in USD $13.89
NasdaqGS:CERN Share Price * NasdaqGS (2020-04-02) in USD $61.96
United States of America Healthcare Services Industry PB Ratio Median Figure of 38 Publicly-Listed Healthcare Services Companies 3.01x
United States of America Market PB Ratio Median Figure of 5,140 Publicly-Listed Companies 1.25x
NasdaqGS:CERN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:CERN Share Price ÷ Book Value per Share (both in USD)

= 61.96 ÷ 13.89

4.46x

* Primary Listing of Cerner.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cerner is overvalued based on assets compared to the US Healthcare Services industry average.
X
Value checks
We assess Cerner's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Healthcare Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Healthcare Services industry average (and greater than 0)? (1 check)
  5. Cerner has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

CERN Future Performance

 How is Cerner expected to perform in the next 1 to 3 years based on estimates from 21 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
15.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Cerner expected to grow at an attractive rate?
  • Cerner's earnings growth is expected to exceed the low risk savings rate of 1.7%.
Growth vs Market Checks
  • Cerner's earnings growth is expected to exceed the United States of America market average.
  • Cerner's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:CERN Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:CERN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts 15.5%
NasdaqGS:CERN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 21 Analysts 4.5%
United States of America Healthcare Services Industry Earnings Growth Rate Market Cap Weighted Average 23.2%
United States of America Healthcare Services Industry Revenue Growth Rate Market Cap Weighted Average 14.5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 12.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:CERN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:CERN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 7,379 2,231 1,257 2
2023-12-31 6,869 2,047 1,111 3
2022-12-31 6,454 1,881 985 8
2021-12-31 6,156 1,724 878 19
2020-12-31 5,869 1,628 818 21
2020-04-03
2019-12-31 5,688 1,261 555 22
NasdaqGS:CERN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-28 5,693 1,313 529
2019-09-28 5,616 1,282 506
2019-06-29 5,527 1,269 594
2019-03-30 5,463 1,362 636
2018-12-29 5,366 1,454 630
2018-09-29 5,314 1,396 835
2018-06-30 5,250 1,421 843
2018-03-31 5,175 1,413 854
2017-12-30 5,142 1,308 867
2017-09-30 5,061 1,297 680
2017-07-01 4,948 1,245 673
2017-04-01 4,849 1,213 659
2016-12-31 4,796 1,246 636

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Cerner's earnings are expected to grow by 15.5% yearly, however this is not considered high growth (20% yearly).
  • Cerner's revenue is expected to grow by 4.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:CERN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below

All data from Cerner Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:CERN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31 4.42 4.42 4.42 1.00
2023-12-31 3.81 3.81 3.81 1.00
2022-12-31 3.30 3.30 3.30 1.00
2021-12-31 2.86 2.98 2.63 7.00
2020-12-31 2.62 3.25 2.29 8.00
2020-04-03
2019-12-31 1.76 1.78 1.72 8.00
NasdaqGS:CERN Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-28 1.66
2019-09-28 1.57
2019-06-29 1.82
2019-03-30 1.94
2018-12-29 1.91
2018-09-29 2.52
2018-06-30 2.54
2018-03-31 2.57
2017-12-30 2.62
2017-09-30 2.05
2017-07-01 2.02
2017-04-01 1.97
2016-12-31 1.88

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Cerner is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Cerner's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Cerner has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

CERN Past Performance

  How has Cerner performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Cerner's growth in the last year to its industry (Healthcare Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Cerner's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Cerner's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Cerner's 1-year earnings growth is negative, it can't be compared to the US Healthcare Services industry average.
Earnings and Revenue History
Cerner's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Cerner Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:CERN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-28 5,692.60 529.45 3,109.94 737.14
2019-09-28 5,616.03 506.44 3,113.75 730.41
2019-06-29 5,526.68 593.89 2,978.42 715.18
2019-03-30 5,463.34 636.28 2,935.31 702.41
2018-12-29 5,366.33 630.06 2,883.17 683.66
2018-09-29 5,314.45 835.40 2,802.22 664.67
2018-06-30 5,250.38 843.44 2,742.29 646.21
2018-03-31 5,174.65 853.77 2,665.74 620.76
2017-12-30 5,142.27 866.98 2,632.09 605.05
2017-09-30 5,061.23 680.01 2,573.80 588.54
2017-07-01 4,947.56 672.57 2,524.74 571.46
2017-04-01 4,849.42 659.34 2,481.01 563.79
2016-12-31 4,796.47 636.48 2,428.38 551.42
2016-10-01 4,632.81 652.90 2,378.46 546.71
2016-07-02 4,579.44 630.20 2,334.30 542.77
2016-04-02 4,493.52 578.79 2,263.99 546.06
2016-01-02 4,352.47 539.36 2,170.02 539.80
2015-10-03 4,103.40 521.13 2,024.13 505.44
2015-07-04 3,811.85 502.85 1,870.84 469.66
2015-04-04 3,526.64 516.84 1,724.84 428.53
2015-01-03 3,312.82 525.43 1,612.96 392.81
2014-09-27 3,181.14 437.62 1,659.41 378.34
2014-06-28 3,074.88 423.97 1,613.13 364.31
2014-03-29 2,939.30 407.84 1,552.17 349.27
2013-12-28 2,840.64 398.35 1,468.43 338.79
2013-09-28 2,760.62 450.10 1,322.41 324.97
2013-06-29 2,711.67 433.64 1,267.51 320.06

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Cerner has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Cerner used its assets more efficiently than the US Healthcare Services industry average last year based on Return on Assets.
  • Cerner's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Cerner's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Healthcare Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Cerner has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

CERN Health

 How is Cerner's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Cerner's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Cerner is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Cerner's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Cerner's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Cerner Company Filings, last reported 3 months ago.

NasdaqGS:CERN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-28 4,317.33 1,055.38 541.77
2019-09-28 4,411.27 1,060.57 632.70
2019-06-29 4,717.27 1,038.55 953.52
2019-03-30 5,129.15 438.82 903.67
2018-12-29 4,928.39 438.80 775.41
2018-09-29 5,065.73 438.78 813.55
2018-06-30 4,878.85 438.76 885.56
2018-03-31 4,900.49 438.67 921.36
2017-12-30 4,785.35 513.65 805.77
2017-09-30 4,564.00 521.02 852.05
2017-07-01 4,355.50 524.92 636.99
2017-04-01 4,112.88 532.75 531.91
2016-12-31 3,927.95 513.31 356.45
2016-10-01 4,278.04 535.92 692.68
2016-07-02 4,053.98 546.17 629.89
2016-04-02 3,916.33 553.68 503.45
2016-01-02 3,870.38 512.73 513.18
2015-10-03 3,837.33 630.67 464.54
2015-07-04 3,863.99 622.76 558.05
2015-04-04 3,710.42 626.17 684.16
2015-01-03 3,565.97 130.33 1,420.87
2014-09-27 3,396.21 146.80 1,331.76
2014-06-28 3,259.77 155.37 988.79
2014-03-29 3,246.40 160.48 1,031.26
2013-12-28 3,167.66 165.82 879.38
2013-09-28 3,077.39 182.90 921.83
2013-06-29 2,951.01 181.90 969.52
  • Cerner's level of debt (24.4%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (3.7% vs 24.4% today).
  • Debt is well covered by operating cash flow (124.4%, greater than 20% of total debt).
  • Cerner earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Cerner's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Cerner has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

CERN Dividends

 What is Cerner's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.16%
Current annual income from Cerner dividends. Estimated to be 0.78% next year.
If you bought $2,000 of Cerner shares you are expected to receive $23 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Cerner's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (2%).
  • Cerner's dividend is below the markets top 25% of dividend payers in United States of America (5.56%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:CERN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below
Global Healthcare Services Industry Average Dividend Yield Market Cap Weighted Average of 29 Stocks 0.7%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1943 Stocks 3.1%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 2%
United States of America Top 25% Dividend Yield 75th Percentile 5.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:CERN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 0.36 3.00
2021-12-31 0.54 5.00
2020-12-31 0.50 6.00
2020-04-03
2019-12-31 0.28 6.00
NasdaqGS:CERN Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-03-20 0.720 1.205
2019-12-13 0.720 0.996
2019-09-11 0.720 1.054
2019-05-30 0.720 1.008

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • It is too early to tell whether Cerner has stable dividend payments.
  • Cerner only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of Cerner's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.1x coverage).
Future Payout to shareholders
  • No need to calculate the sustainability of Cerner's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Cerner's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Cerner afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Cerner has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

CERN Management

 What is the CEO of Cerner's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
David Shafer
COMPENSATION $9,699,361
AGE 62
TENURE AS CEO 2.2 years
CEO Bio

Mr. David Brent Shafer serves as Chairman and Chief Executive Officer at Cerner Corporation since Febraury 1, 2018. Mr. Shafer served as Executive Vice President of North American Market at Koninklijke Philips N.V. since July 29, 2016. Mr. Shafer served as the Chief Executive Officer of Philips Electronics North America Corporation since February 2014 until July 29, 2016. Mr. Shafer corporate responsibilities includes: Strengthening culture of entrepreneurship and growing revenue and market share in the United States and Canada. He has strong market and business experience to the role through various senior leadership positions with Philips and other companies including GE, Johnson & Johnson, Intermountain Healthcare Primary Children’s, Inc. and Hewlett-Packard. Mr. Shafer served as the Chief Executive Officer of the Global Business -Philips Home Healthcare Solutions of Murrysville at Koninklijke Philips N.V. since May 3, 2010 until May 2014, where he improved the value of the portfolio and broadened the business group into new markets. He was with Philips Medical Systems International B.V. since 2005. He served as Unit Chief Executive Officer of Philips Medical Systems International B.V. since May 19, 2005. Mr. Shafer served as President and Chief Executive Officer of Global Sales and Service Business for Philips Healthcare. He served as an Executive Vice President of North America Region of Philips Medical Systems International B.V. from May 19, 2005 to May 2010 and served as its President of North America Region until May 2010. He served as Head of North America Sales and Service Division at Philips Medical Systems International B.V. He served as Chief Executive Officer of the North America region for Royal Philips Electronics from January 2009 until May 2010. He served as Vice President and General Manager of Patient Care Environment Division for Hill-Rom Company, Inc. Previously, he served HILL-ROM as Vice President of the Americas and Asia Pacific sales divisions. He began his career with Johnson & Johnson (Critikon Division) and worked for Hewlett-Packard Medical Products Group in several key sales management positions. In 1996, he joined GE Medical Systems, where he held various sales, marketing and general management positions, including in X-ray and cardiology. Mr. Shafer serves as a Member of Board of Governors at National Electrical Manufacturers Association.

CEO Compensation
  • Insufficient data for David to compare compensation growth.
  • David's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Cerner management team in years:

4
Average Tenure
58
Average Age
  • The tenure for the Cerner management team is about average.
Management Team

David Shafer

TITLE
Chairman & CEO
COMPENSATION
$10M
AGE
62
TENURE
2.2 yrs

Marc Naughton

TITLE
Executive VP & CFO
COMPENSATION
$3M
AGE
64
TENURE
24.4 yrs

John Peterzalek

TITLE
Chief Client & Services Officer
COMPENSATION
$5M
AGE
58

Don Trigg

TITLE
President
AGE
47
TENURE
0.2 yrs

Mike Robin

TITLE
Partner and Vice President
TENURE
4 yrs

Michael Battaglioli

TITLE
VP & Chief Accounting Officer
AGE
51
TENURE
10.9 yrs

Bill Graff

TITLE
Chief Information Officer
TENURE
4 yrs

Allan Kells

TITLE
Vice President

Randy Sims

TITLE
Executive VP
AGE
58
TENURE
23.1 yrs

Misti Preston

TITLE
Director of External Communications & Public Relations
Board of Directors Tenure

Average tenure and age of the Cerner board of directors in years:

1.6
Average Tenure
63
Average Age
  • The average tenure for the Cerner board of directors is less than 3 years, this suggests a new board.
Board of Directors

David Shafer

TITLE
Chairman & CEO
COMPENSATION
$10M
AGE
62
TENURE
2.2 yrs

Gary Bisbee

TITLE
Independent Director
COMPENSATION
$356K
AGE
76
TENURE
32.2 yrs

Linda Dillman

TITLE
Independent Director
COMPENSATION
$350K
AGE
62
TENURE
9.9 yrs

Mitch Daniels

TITLE
Independent Director
COMPENSATION
$345K
AGE
70
TENURE
6.3 yrs

John Greisch

TITLE
Independent Director
AGE
64
TENURE
1 yrs

Bill Zollars

TITLE
Lead Independent Director
COMPENSATION
$340K
AGE
71
TENURE
1 yrs

Julie Gerberding

TITLE
Independent Director
COMPENSATION
$342K
AGE
64
TENURE
3.1 yrs

R. Wise

TITLE
Independent Director
AGE
54
TENURE
1 yrs

Melinda Mount

TITLE
Independent Director
AGE
60
TENURE
1 yrs

George Riedel

TITLE
Independent Director
AGE
61
TENURE
1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
20. Nov 19 Sell Michael Nill Individual 19. Nov 19 19. Nov 19 -25,772 $68.15 $-1,756,362
20. Nov 19 Sell John Peterzalek Individual 18. Nov 19 19. Nov 19 -9,211 $68.24 $-627,855
16. Sep 19 Sell Michael Nill Individual 13. Sep 19 13. Sep 19 -13,124 $68.07 $-893,351
10. Sep 19 Sell Jeffrey Townsend Individual 06. Sep 19 06. Sep 19 -176,354 $67.59 $-11,919,767
06. Sep 19 Sell Donald Trigg Individual 06. Sep 19 06. Sep 19 -22,323 $67.72 $-1,511,714
06. Sep 19 Sell Marc Naughton Individual 06. Sep 19 06. Sep 19 -24,110 $67.58 $-1,629,354
23. Aug 19 Sell John Peterzalek Individual 21. Aug 19 22. Aug 19 -9,078 $72.17 $-654,522
23. Aug 19 Sell Julie Gerberding Individual 22. Aug 19 22. Aug 19 -7,928 $71.82 $-569,389
13. Jun 19 Sell William Zollars Individual 12. Jun 19 12. Jun 19 -1,400 $72.11 $-100,954
03. Jun 19 Sell Linda Dillman Individual 30. May 19 30. May 19 -4,100 $70.14 $-287,574
30. Apr 19 Buy R. Wise Individual 30. Apr 19 30. Apr 19 7,600 $65.76 $499,776
02. May 19 Buy John Greisch Individual 02. May 19 02. May 19 9,000 $67.57 $608,130
X
Management checks
We assess Cerner's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Cerner has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

CERN News

Simply Wall St News

Is Cerner Corporation's (NASDAQ:CERN) P/E Ratio Really That Good?

View our latest analysis for Cerner How Do You Calculate Cerner's P/E Ratio? … The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Cerner: P/E of 37.78 = $68.91 ÷ $1.82 (Based on the trailing twelve months to June 2019.) Is A High Price-to-Earnings Ratio Good? … NasdaqGS:CERN Price Estimation Relative to Market, September 2nd 2019 Cerner's P/E tells us that market participants think it will not fare as well as its peers in the same industry.

Simply Wall St -

Director Julie Gerberding Just Sold A Bunch Of Shares In Cerner Corporation (NASDAQ:CERN)

Check out our latest analysis for Cerner Cerner Insider Transactions Over The Last Year In the last twelve months, the biggest single sale by an insider was when the insider, Clifford Illig, sold US$25m worth of shares at a price of US$58.76 per share. … While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. … NasdaqGS:CERN Recent Insider Trading, August 24th 2019 Insider Ownership For a common shareholder, it is worth checking how many shares are held by company insiders.

Simply Wall St -

When Should You Buy Cerner Corporation (NASDAQ:CERN)?

According to my valuation model, Cerner seems to be fairly priced at around 6.64% above my intrinsic value, which means if you buy Cerner today, you’d be paying a relatively reasonable price for it. … CERN’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. … Will you have enough confidence to invest in the company should the price drop below its fair value?

Simply Wall St -

What To Know Before Buying Cerner Corporation (NASDAQ:CERN) For Its Dividend

Click the interactive chart for our full dividend analysis NasdaqGS:CERN Historical Dividend Yield, August 14th 2019 Payout ratios Dividends are typically paid from company earnings. … Unfortunately, there hasn't been any earnings growth, and the company's dividend history has been too short for us to evaluate the consistency of the dividend. … Earnings growth generally bodes well for the future value of company dividend payments.

Simply Wall St -

Is Cerner (NASDAQ:CERN) Using Too Much Debt?

Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. … This state of affairs indicates that Cerner's balance sheet looks quite solid, as its total liabilities are just about equal to its liquid assets. … We measure a company's debt load relative to its earnings power by looking at its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and by calculating how easily its earnings before interest and tax (EBIT) cover its interest expense (interest cover).

Simply Wall St -

Why Cerner Corporation’s (NASDAQ:CERN) Return On Capital Employed Is Impressive

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Cerner: 0.12 = US$757m ÷ (US$7.3b - US$1.0b) (Based on the trailing twelve months to June 2019.) Therefore, Cerner has an ROCE of 12%. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

Simply Wall St -

Should We Be Delighted With Cerner Corporation's (NASDAQ:CERN) ROE Of 12%?

Does Cerner Have A Good Return On Equity? … One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. … A company that can achieve a high return on equity without debt could be considered a high quality business.

Simply Wall St -

Want To Invest In Cerner Corporation (NASDAQ:CERN) Today? Read This First

Cerner Corporation (NASDAQ:CERN) is a stock well-positioned for future growth, but many investors are wondering whether its last closing price of $74.5 is based on unrealistic expectations. … But, to properly examine the value of a high-growth stock such as Cerner, we must reflect its earnings growth into the valuation. … A PE ratio of 38.42x and expected year-on-year earnings growth of 11% give Cerner a quite high PEG ratio of 3.57x.

Simply Wall St -

Is Cerner Corporation (NASDAQ:CERN) Worth US$73.22 Based On Its Intrinsic Value?

Today we will run through one way of estimating the intrinsic value of Cerner Corporation (NASDAQ:CERN) by taking the expected future cash flows and discounting them to their present value. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $658.85 $890.81 $1.04k $1.19k $1.28k $1.36k $1.44k $1.50k $1.56k $1.62k Growth Rate Estimate Source Analyst x6 Analyst x6 Analyst x2 Analyst x2 Analyst x2 Est @ 6.35% Est @ 5.26% Est @ 4.5% Est @ 3.97% Est @ 3.6% Present Value ($, Millions) Discounted @ 9.18% $603.43 $747.26 $797.45 $834.49 $827.14 $805.68 $776.76 $743.47 $707.98 $671.77 Present Value of 10-year Cash Flow (PVCF)= $7.52b "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … NasdaqGS:CERN Intrinsic value, June 29th 2019 Important assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

What Should We Expect From Cerner Corporation's (NASDAQ:CERN) Earnings In The Next 12 Months?

After Cerner Corporation's (NASDAQ:CERN) earnings announcement in March 2019, the consensus outlook from analysts appear fairly confident, as a 18% increase in profits is expected in the upcoming year, compared with the past 5-year average growth rate of 12%. … To get an idea of the overall earnings growth trend for CERN, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line. … NasdaqGS:CERN Past and Future Earnings, June 19th 2019 This results in an annual growth rate of 11% based on the most recent earnings level of US$630m to the final forecast of US$889m by 2022.

Simply Wall St -

CERN Company Info

Description

Cerner Corporation, together with its subsidiaries, provides health care information technology solutions and tech-enabled services in the United States and internationally. The company offers Cerner Millennium architecture, a person-centric computing framework, which includes clinical, financial, and management information systems that allow providers to access an individual’s electronic health record (EHR) at the point of care, and organizes and delivers information for physicians, nurses, laboratory technicians, pharmacists, front- and back-office professionals, and consumers. It also provides HealtheIntent platform, a cloud-based platform to aggregate, transform, and reconcile data across the continuum of care; and CareAware, an EHR agnostic platform that facilitates connectivity of health care devices to EHRs. In addition, the company offers a portfolio of clinical and financial health care information technology solutions, as well as departmental, connectivity, population health, and care coordination solutions. Further, it provides tech-enabled services, such as implementation and training, remote hosting, operational management services, revenue cycle services, support and maintenance, health care data analysis, clinical process optimization, transaction processing, employer health centers, employee wellness programs, and third-party administrator services; and complementary hardware and devices for third parties. The company serves integrated delivery networks, physician groups and networks, managed care organizations, hospitals, medical centers, reference laboratories, home health agencies, blood banks, imaging centers, pharmacies, pharmaceutical manufacturers, employers, governments, and public health organizations. Cerner Corporation was founded in 1979 and is headquartered in North Kansas City, Missouri.

Details
Name: Cerner Corporation
CERN
Exchange: NasdaqGS
Founded: 1979
$19,327,659,396
311,937,692
Website: http://www.cerner.com
Address: Cerner Corporation
2800 Rockcreek Parkway,
North Kansas City,
Missouri, 64117-2551,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS CERN Common Stock Nasdaq Global Select US USD 05. Dec 1986
DB CRE Common Stock Deutsche Boerse AG DE EUR 05. Dec 1986
LSE 0R00 Common Stock London Stock Exchange GB USD 05. Dec 1986
SWX CERN Common Stock SIX Swiss Exchange CH CHF 05. Dec 1986
WBAG CERN Common Stock Wiener Boerse AG AT EUR 05. Dec 1986
BMV CERN * Common Stock Bolsa Mexicana de Valores MX MXN 05. Dec 1986
ETLX CRE Common Stock Eurotlx IT EUR 05. Dec 1986
BOVESPA C1ER34 BDR EACH 2 REPR 1 SHS UNSPON Bolsa de Valores de Sao Paulo BR BRL 27. Jan 2020
Number of employees
Current staff
Staff numbers
27,400
Cerner employees.
Industry
Health Care Technology
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/03 02:39
End of day share price update: 2020/04/02 00:00
Last estimates confirmation: 2020/04/02
Last earnings filing: 2020/02/10
Last earnings reported: 2019/12/28
Last annual earnings reported: 2019/12/28


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.