This health IT company is leading the industry and is the largest provider of health IT to the US Government.

Cerner (CERN)

The company was founded by former employees of accounting firm Arthur Andersen in 1979. With the start of the computer age under way growth came slowly at first. However the first mover advantage led to incredible returns over time.

Today the company has a suite of products that handles billing, insurance, scheduling and patient flow. You can purchase each of Cerner's products individually but the software works so well together that many end up buying the total package.

The company has a stellar balance sheet and remains highly profitable. Over the last 12 months sales grew 4.6% with an 81% profit margin. The company also generates almost $1 billion in free cash flow which is money left over that can be used to pay dividends, buy back stock or make acquisitions. The company only has $1.3 billion in debt and earns a return on equity of 11%.

Disclosure: I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. The information provided should NOT be considered advice. The topics discussed are risky and have the potential to lose a substantial amount. I am not an investment professional and therefore do not offer individual financial advice. Please do your own research before investing.

Posted Using LeoFinance