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Why NASDAQ:AKAM Stands Out as a Quality Stock.

By Mill Chart

Last update: Oct 17, 2023

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if AKAMAI TECHNOLOGIES INC (NASDAQ:AKAM) is suited for quality investing. Investors should of course do their own research, but we spotted AKAMAI TECHNOLOGIES INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Some of the quality metrics of NASDAQ:AKAM highlighted

  • 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.
  • With a Debt/Free Cash Flow Ratio of 3.28, AKAMAI TECHNOLOGIES INC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
  • With a robust Profit Quality (5-year) ratio of 135.0%, AKAMAI TECHNOLOGIES INC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
  • The 5-year EBIT growth of AKAMAI TECHNOLOGIES INC has been remarkable, with 12.61% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
  • 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.

A complete fundamental analysis 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.

AKAM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 88 industry peers in the IT Services industry. While AKAM belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. AKAM has a correct valuation and a medium growth rate.

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

Our Caviar Cruise screen will find you more ideas suited for quality investing.

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.

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AKAMAI TECHNOLOGIES INC

NASDAQ:AKAM (2/23/2024, 1:08:01 PM)

108.66

+1.71 (+1.6%)

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