AKAMAI TECHNOLOGIES INC (AKAM)
US00971T1016 - Common Stock
Taking everything into account, AKAM scores 5 out of 10 in our fundamental rating. AKAM was compared to 84 industry peers in the IT Services industry. AKAM has an excellent profitability rating, but there are some minor concerns on its financial health. AKAM has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year AKAM was profitable.
In the past year AKAM had a positive cash flow from operations.
Each year in the past 5 years AKAM has been profitable.
Each year in the past 5 years AKAM had a positive operating cash flow.
1.2 Ratios
AKAM has a better Return On Assets (5.16%) than 65.85% of its industry peers.
AKAM has a Return On Equity of 10.98%. This is in the better half of the industry: AKAM outperforms 70.73% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.24%, AKAM is in the better half of the industry, outperforming 67.07% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AKAM is in line with the industry average of 9.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.16% | ||
| ROE | 10.98% | ||
| ROIC | 7.24% |
ROA(3y)6.61%
ROA(5y)6.77%
ROE(3y)12.77%
ROE(5y)12.9%
ROIC(3y)7.91%
ROIC(5y)7.94%
1.3 Margins
AKAM has a better Profit Margin (13.27%) than 90.24% of its industry peers.
In the last couple of years the Profit Margin of AKAM has grown nicely.
AKAM has a better Operating Margin (18.22%) than 92.68% of its industry peers.
In the last couple of years the Operating Margin of AKAM has grown nicely.
Looking at the Gross Margin, with a value of 59.68%, AKAM is in the better half of the industry, outperforming 79.27% of the companies in the same industry.
AKAM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.22% | ||
| PM (TTM) | 13.27% | ||
| GM | 59.68% |
OM growth 3Y-4.14%
OM growth 5Y2.97%
PM growth 3Y-6.22%
PM growth 5Y5.5%
GM growth 3Y-2.19%
GM growth 5Y-1.4%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AKAM is destroying value.
The number of shares outstanding for AKAM has been reduced compared to 1 year ago.
The number of shares outstanding for AKAM has been reduced compared to 5 years ago.
The debt/assets ratio for AKAM is higher compared to a year ago.
2.2 Solvency
AKAM has an Altman-Z score of 2.57. This is not the best score and indicates that AKAM is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.57, AKAM perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
The Debt to FCF ratio of AKAM is 4.33, which is a neutral value as it means it would take AKAM, 4.33 years of fcf income to pay off all of its debts.
AKAM's Debt to FCF ratio of 4.33 is in line compared to the rest of the industry. AKAM outperforms 57.32% of its industry peers.
A Debt/Equity ratio of 0.50 indicates that AKAM is not too dependend on debt financing.
The Debt to Equity ratio of AKAM (0.50) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 4.33 | ||
| Altman-Z | 2.57 |
ROIC/WACC0.73
WACC9.88%
2.3 Liquidity
A Current Ratio of 1.33 indicates that AKAM should not have too much problems paying its short term obligations.
With a Current ratio value of 1.33, AKAM is not doing good in the industry: 62.20% of the companies in the same industry are doing better.
AKAM has a Quick Ratio of 1.33. This is a normal value and indicates that AKAM is financially healthy and should not expect problems in meeting its short term obligations.
AKAM has a Quick ratio (1.33) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.36% over the past year.
AKAM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.34% yearly.
The Revenue has been growing slightly by 5.92% in the past year.
AKAM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.03% yearly.
EPS 1Y (TTM)10.36%
EPS 3Y5.96%
EPS 5Y11.34%
EPS Q2Q%-2.45%
Revenue 1Y (TTM)5.92%
Revenue growth 3Y6.03%
Revenue growth 5Y7.03%
Sales Q2Q%4.06%
3.2 Future
AKAM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.53% yearly.
Based on estimates for the next years, AKAM will show a small growth in Revenue. The Revenue will grow by 7.85% on average per year.
EPS Next Y5.4%
EPS Next 2Y5.54%
EPS Next 3Y7.09%
EPS Next 5Y10.53%
Revenue Next Year4.62%
Revenue Next 2Y5.72%
Revenue Next 3Y6.57%
Revenue Next 5Y7.85%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.01, which indicates a correct valuation of AKAM.
AKAM's Price/Earnings ratio is rather cheap when compared to the industry. AKAM is cheaper than 84.15% of the companies in the same industry.
AKAM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.96.
The Price/Forward Earnings ratio is 13.17, which indicates a correct valuation of AKAM.
Based on the Price/Forward Earnings ratio, AKAM is valued cheaply inside the industry as 85.37% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.82. AKAM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.01 | ||
| Fwd PE | 13.17 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AKAM indicates a somewhat cheap valuation: AKAM is cheaper than 78.05% of the companies listed in the same industry.
81.71% of the companies in the same industry are more expensive than AKAM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.86 | ||
| EV/EBITDA | 10.4 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of AKAM may justify a higher PE ratio.
PEG (NY)2.59
PEG (5Y)1.24
EPS Next 2Y5.54%
EPS Next 3Y7.09%
5. Dividend
5.1 Amount
No dividends for AKAM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
AKAMAI TECHNOLOGIES INC
NASDAQ:AKAM (11/21/2024, 8:11:42 PM)
After market: 91.2 +0.12 (+0.13%)91.08
+3.12 (+3.55%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap13.80B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.01 | ||
| Fwd PE | 13.17 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.59
PEG (5Y)1.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.16% | ||
| ROE | 10.98% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.22% | ||
| PM (TTM) | 13.27% | ||
| GM | 59.68% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)10.36%
EPS 3Y5.96%
EPS 5Y
EPS Q2Q%
EPS Next Y5.4%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.92%
Revenue growth 3Y6.03%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y