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Why the quality investor may take a look at NASDAQ:AKAM.

By Mill Chart

Last update: Sep 25, 2023

In this article we will dive into AKAMAI TECHNOLOGIES INC (NASDAQ:AKAM) as a possible candidate for quality investing. Investors should always do their own research, but we noticed AKAMAI TECHNOLOGIES INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

A Deep Dive into AKAMAI TECHNOLOGIES INC's Quality Metrics.

  • The 5-year revenue growth of AKAMAI TECHNOLOGIES INC has been remarkable, with 7.76% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
  • AKAMAI TECHNOLOGIES INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 16.84% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
  • The Debt/Free Cash Flow Ratio of AKAMAI TECHNOLOGIES INC stands at 3.28, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
  • The Profit Quality (5-year) of AKAMAI TECHNOLOGIES INC stands at 135.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
  • With a robust 5-year EBIT growth of 12.61%, AKAMAI TECHNOLOGIES INC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
  • AKAMAI TECHNOLOGIES INC has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

Fundamental Analysis Observations

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

Taking everything into account, AKAM scores 5 out of 10 in our fundamental rating. AKAM was compared to 88 industry peers in the IT Services industry. AKAM scores excellent on profitability, but there are some minor concerns on its financial health. AKAM has a correct valuation and a medium growth rate.

Check the latest full fundamental report of AKAM for a complete fundamental analysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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