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Is NASDAQ:AKAM suited for quality investing?

By Mill Chart

Last update: Aug 11, 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.

Why NASDAQ:AKAM may be interesting for quality investors.

  • AKAMAI TECHNOLOGIES INC has shown strong performance in revenue growth over the past 5 years, with a 7.76% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
  • AKAMAI TECHNOLOGIES INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 17.61% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
  • AKAMAI TECHNOLOGIES INC maintains a healthy Debt/Free Cash Flow Ratio of 3.1, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
  • With a favorable Profit Quality (5-year) ratio of 135.0%, AKAMAI TECHNOLOGIES INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
  • AKAMAI TECHNOLOGIES INC has experienced impressive EBIT growth over the past 5 years, with 12.61% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
  • The EBIT 5-year growth of AKAMAI TECHNOLOGIES INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

What else is there to say on the fundamentals of NASDAQ:AKAM?

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

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. Both the health and profitability get an excellent rating, making AKAM a very profitable company, without any liquidiy or solvency issues. AKAM has a correct valuation and a medium growth rate.

Our latest full fundamental report of AKAM contains the most current fundamental analsysis.

More quality stocks can be found in our Caviar Cruise screen.


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.



NASDAQ:AKAM (12/8/2023, 7:00:01 PM)

After market: 114.41 0 (0%)


-0.52 (-0.45%)


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