Cerner Beneish M Score

CERN
 Stock
  

USD 94.92  0.00  0.00%   

This module uses fundamental data of Cerner to approximate the value of its Beneish M Score. Cerner M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Continue to Trending Equities.
  
Total Debt is expected to rise to about 2 B this year. Debt Current is expected to rise to about 279.2 M this year. Cerner Cash and Equivalents Turnover is quite stable at the moment as compared to the past year. The company's current value of Cash and Equivalents Turnover is estimated at 9.76. Return on Investment is expected to rise to 16.78 this year, although the value of Receivables Turnover will most likely fall to 4.59.
At this time, it appears that Cerner is an unlikely manipulator. The earnings manipulation may begin if Cerner's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Cerner executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Cerner's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.95
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.02Focus
Asset Quality0.94Focus
Expense Coverage0.98Focus
Gross Margin Strengs1.1Focus
Accruals Factor0.98Focus
Depreciation Resistance1.04Focus
Net Sales Growth0.96Focus
Financial Leverage Condition0.93Focus

Cerner Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Cerner's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues5.6 B5.8 B
Sufficiently Down
Increasing
Slightly volatile
Selling General and Administrative ExpenseB3.2 B
Notably Down
Increasing
Slightly volatile
Net Cash Flow from Operations1.6 B1.8 B
Moderately Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion656.5 M718.9 M
Significantly Down
Increasing
Slightly volatile
Total Assets7.2 B7.4 B
Sufficiently Down
Increasing
Slightly volatile
Investments700.2 M714.6 M
Fairly Down
Increasing
Slightly volatile
Investments Current310.6 M252.6 M
Fairly Up
Increasing
Stable
Investments Non Current444.5 M462 M
Sufficiently Down
Increasing
Slightly volatile
Property Plant and Equipment Net1.7 B1.7 B
Sufficiently Down
Increasing
Slightly volatile
Trade and Non Trade Receivables1.1 B1.2 B
Fairly Down
Increasing
Slightly volatile
Total LiabilitiesB3.8 B
Significantly Down
Increasing
Slightly volatile
Current Assets2.5 B2.4 B
Fairly Up
Increasing
Slightly volatile
Assets Non Current4.7 BB
Notably Down
Increasing
Slightly volatile
Current Liabilities1.4 B1.6 B
Fairly Down
Increasing
Slightly volatile
Liabilities Non Current2.3 B2.1 B
Significantly Up
Increasing
Slightly volatile
Total DebtB1.8 B
Significantly Up
Increasing
Slightly volatile
Debt Current279.2 M258.8 M
Significantly Up
Increasing
Slightly volatile
Debt Non Current1.7 B1.6 B
Significantly Up
Increasing
Slightly volatile
Operating Income795 M708.3 M
Moderately Up
Increasing
Stable
Gross Margin0.910.826
Significantly Up
Increasing
Slightly volatile

Cerner Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Cerner's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Cerner in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Cerner's degree of accounting gimmicks and manipulations.

About Cerner Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation Amortization and Accretion

656.5 Million

Cerner Depreciation Amortization and Accretion is quite stable at the moment as compared to the past year. The company's current value of Depreciation Amortization and Accretion is estimated at 656.5 Million

About Cerner Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Cerner's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Cerner using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Cerner based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Cerner Corporation, together with its subsidiaries, provides health care information technology solutions and tech-enabled services in the United States and internationally. The company was founded in 1979 and is headquartered in North Kansas City, Missouri. Cerner operates under Health Information Services classification in the United States and is traded on NASDAQ Exchange. It employs 25150 people.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Cerner without increasing your portfolio risk or giving up expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate.risk-adjusted returns of your individual positions relative to your overall portfolio.

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Pair Trading with Cerner

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Cerner position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cerner will appreciate offsetting losses from the drop in the long position's value.

Moving together with Cerner

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Moving against Cerner

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The ability to find closely correlated positions to Cerner could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Cerner when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Cerner - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Cerner to buy it.
The correlation of Cerner is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Cerner moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Cerner moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Cerner can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
Continue to Trending Equities. Note that the Cerner information on this page should be used as a complementary analysis to other Cerner's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Global Correlations module to find global opportunities by holding instruments from different markets.

Other Tools for Cerner Stock

When running Cerner price analysis, check to measure Cerner's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Cerner is operating at the current time. Most of Cerner's value examination focuses on studying past and present price action to predict the probability of Cerner's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Cerner's price. Additionally, you may evaluate how the addition of Cerner to your portfolios can decrease your overall portfolio volatility.
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