Morningstar Rating

Stock Research and Analysis

by Andrew Lange

Bulls Say

Satisfying "meaningful use" requirements imposed by the U.S. government are driving health-care providers to Cerner because a number of competitors are struggling to keep up with the technological requirements needed to fulfill such requirements.
We expect operating margins to increase around 100 basis points per year over the next five to 10 years. In addition, we forecast revenues to grow at a cumulative annual growth rate of 13% over the next 10 years.
Cerner and Epic look well-positioned as the U.S. market moves toward a preference for single-platform offerings. Read more 

Bears Say

Poor operational execution could disappoint a market that is expecting significant revenue and margin growth.
Very large companies such as General Electric, IBM, Microsoft, and Siemens have targeted the HCIT market for growth, which could pose a competitive threat to Cerner.
Just as regulatory changes created a significant opportunity for Cerner, unforeseen future regulatory changes could reduce its competitive position. Read more 

Management

Cerner's founder, chairman, and chief executive officer Neal Patterson has overseen the company's operation since its inception in 1979. From its initial public offering in 1986, Cerner's share price has risen at an annualized rate of 22%, which has   Read more 

Profile

Cerner is a health-care information technology supplier that helps to eliminate errors and improve efficiency within health-care organizations. The company provides a wide   Read more 

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