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Should you consider AKAMAI TECHNOLOGIES INC (NASDAQ:AKAM) for quality investing?

By Mill Chart

Last update: Sep 4, 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.

  • Over the past 5 years, AKAMAI TECHNOLOGIES INC has experienced impressive revenue growth, with 7.76% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
  • AKAMAI TECHNOLOGIES INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 16.84% 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 3.28, 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.
  • 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.
  • 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.

Fundamental Analysis Observations

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

AKAM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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.

For an up to date full fundamental analysis you can check the fundamental report of AKAM

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

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.



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

After market: 114.41 0 (0%)


-0.52 (-0.45%)


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