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 86 industry peers in the IT Services industry. While AKAM has a great profitability rating, there are some minor concerns on its financial health. AKAM is not valued too expensively and it also shows a decent 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 Return On Assets of 6.23%. This is in the better half of the industry: AKAM outperforms 75.31% of its industry peers.
The Return On Equity of AKAM (13.22%) is better than 75.31% of its industry peers.
AKAM's Return On Invested Capital of 7.50% is fine compared to the rest of the industry. AKAM outperforms 67.90% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AKAM is significantly below the industry average of 13.88%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.23% | ||
| ROE | 13.22% | ||
| ROIC | 7.5% |
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's Profit Margin of 16.01% is amongst the best of the industry. AKAM outperforms 93.83% of its industry peers.
In the last couple of years the Profit Margin of AKAM has grown nicely.
Looking at the Operating Margin, with a value of 18.90%, AKAM belongs to the top of the industry, outperforming 93.83% of the companies in the same industry.
In the last couple of years the Operating Margin of AKAM has grown nicely.
AKAM has a Gross Margin of 59.95%. This is in the better half of the industry: AKAM outperforms 77.78% of its industry peers.
AKAM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.9% | ||
| PM (TTM) | 16.01% | ||
| GM | 59.95% |
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.
AKAM has less shares outstanding than it did 1 year ago.
AKAM has less shares outstanding than it did 5 years ago.
AKAM has a worse debt/assets ratio than last year.
2.2 Solvency
AKAM has an Altman-Z score of 2.86. 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 2.86, AKAM perfoms like the industry average, outperforming 56.79% of the companies in the same industry.
AKAM has a debt to FCF ratio of 4.81. This is a neutral value as AKAM would need 4.81 years to pay back of all of its debts.
AKAM has a Debt to FCF ratio (4.81) which is in line with its industry peers.
AKAM has a Debt/Equity ratio of 0.50. This is a neutral value indicating AKAM is somewhat 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 | 4.81 | ||
| Altman-Z | 2.86 |
ROIC/WACC0.83
WACC9.07%
2.3 Liquidity
AKAM has a Current Ratio of 1.32. This is a normal value and indicates that AKAM is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.32, AKAM is in line with its industry, outperforming 41.98% of the companies in the same industry.
A Quick Ratio of 1.32 indicates that AKAM should not have too much problems paying its short term obligations.
AKAM has a Quick ratio of 1.32. This is comparable to the rest of the industry: AKAM outperforms 41.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.48% over the past year.
The Earnings Per Share has been growing by 11.34% on average over the past years. This is quite good.
The Revenue has been growing slightly by 7.26% in the past year.
The Revenue has been growing slightly by 7.03% on average over the past years.
EPS 1Y (TTM)18.48%
EPS 3Y5.96%
EPS 5Y11.34%
EPS Q2Q%6.04%
Revenue 1Y (TTM)7.26%
Revenue growth 3Y6.03%
Revenue growth 5Y7.03%
Sales Q2Q%4.69%
3.2 Future
The Earnings Per Share is expected to grow by 10.53% on average over the next years. This is quite good.
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 Y5.68%
EPS Next 2Y6.04%
EPS Next 3Y7.79%
EPS Next 5Y10.53%
Revenue Next Year4.7%
Revenue Next 2Y5.94%
Revenue Next 3Y6.8%
Revenue Next 5Y7.85%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
AKAM is valuated correctly with a Price/Earnings ratio of 16.01.
Based on the Price/Earnings ratio, AKAM is valued a bit cheaper than the industry average as 79.01% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of AKAM to the average of the S&P500 Index (31.77), we can say AKAM is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 15.00, the valuation of AKAM can be described as correct.
Based on the Price/Forward Earnings ratio, AKAM is valued cheaply inside the industry as 82.72% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, AKAM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.01 | ||
| Fwd PE | 15 |
4.2 Price Multiples
AKAM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AKAM is cheaper than 70.37% of the companies in the same industry.
65.43% 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 | 21.54 | ||
| EV/EBITDA | 12.13 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
AKAM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.82
PEG (5Y)1.41
EPS Next 2Y6.04%
EPS Next 3Y7.79%
5. Dividend
5.1 Amount
No dividends for AKAM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
AKAMAI TECHNOLOGIES INC
NASDAQ:AKAM (10/17/2024, 9:22:08 PM)
After market: 104.73 0 (0%)104.73
+1.15 (+1.11%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
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Market Cap15.87B
Analysts
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Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.01 | ||
| Fwd PE | 15 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
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SpS
BVpS
TBVpS
PEG (NY)2.82
PEG (5Y)1.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.23% | ||
| ROE | 13.22% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.9% | ||
| PM (TTM) | 16.01% | ||
| GM | 59.95% | ||
| 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 | 1.32 | ||
| Quick Ratio | 1.32 | ||
| 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)18.48%
EPS 3Y5.96%
EPS 5Y
EPS Q2Q%
EPS Next Y5.68%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.26%
Revenue growth 3Y6.03%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
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EBIT growth 3Y
EBIT growth 5Y
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