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AKAMAI TECHNOLOGIES INC (AKAM) Stock Fundamental Analysis

NASDAQ:AKAM - US00971T1016 - Common Stock

76.75 USD
-1.41 (-1.8%)
Last: 9/10/2025, 8:00:00 PM
76.75 USD
0 (0%)
After Hours: 9/10/2025, 8:00:00 PM
Fundamental Rating

5

Overall AKAM gets a fundamental rating of 5 out of 10. We evaluated AKAM against 85 industry peers in the IT Services industry. Both the profitability and the financial health of AKAM get a neutral evaluation. Nothing too spectacular is happening here. AKAM has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

AKAM had positive earnings in the past year.
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.
AKAM Yearly Net Income VS EBIT VS OCF VS FCFAKAM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

1.2 Ratios

Looking at the Return On Assets, with a value of 4.03%, AKAM is in the better half of the industry, outperforming 65.88% of the companies in the same industry.
AKAM has a Return On Equity of 9.50%. This is in the better half of the industry: AKAM outperforms 64.71% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.96%, AKAM is in line with its industry, outperforming 60.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AKAM is significantly below the industry average of 21.77%.
Industry RankSector Rank
ROA 4.03%
ROE 9.5%
ROIC 5.96%
ROA(3y)5.57%
ROA(5y)6.38%
ROE(3y)11.42%
ROE(5y)12.35%
ROIC(3y)7.45%
ROIC(5y)8.08%
AKAM Yearly ROA, ROE, ROICAKAM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10

1.3 Margins

AKAM has a Profit Margin of 10.40%. This is in the better half of the industry: AKAM outperforms 77.65% of its industry peers.
AKAM's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 16.62%, AKAM belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
In the last couple of years the Operating Margin of AKAM has declined.
AKAM has a better Gross Margin (59.13%) than 78.82% of its industry peers.
AKAM's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 16.62%
PM (TTM) 10.4%
GM 59.13%
OM growth 3Y-8.94%
OM growth 5Y-2.49%
PM growth 3Y-12.41%
PM growth 5Y-5.2%
GM growth 3Y-2.12%
GM growth 5Y-2.05%
AKAM Yearly Profit, Operating, Gross MarginsAKAM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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5

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
Compared to 1 year ago, AKAM has an improved debt to assets ratio.
AKAM Yearly Shares OutstandingAKAM Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
AKAM Yearly Total Debt VS Total AssetsAKAM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.2 Solvency

AKAM has an Altman-Z score of 2.24. 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.
AKAM has a Altman-Z score of 2.24. This is comparable to the rest of the industry: AKAM outperforms 44.71% of its industry peers.
AKAM has a debt to FCF ratio of 7.87. This is a slightly negative value and a sign of low solvency as AKAM would need 7.87 years to pay back of all of its debts.
AKAM has a Debt to FCF ratio (7.87) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.92 indicates that AKAM is somewhat dependend on debt financing.
AKAM has a worse Debt to Equity ratio (0.92) than 64.71% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.92
Debt/FCF 7.87
Altman-Z 2.24
ROIC/WACC0.76
WACC7.88%
AKAM Yearly LT Debt VS Equity VS FCFAKAM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

2.3 Liquidity

AKAM has a Current Ratio of 2.31. This indicates that AKAM is financially healthy and has no problem in meeting its short term obligations.
AKAM has a better Current ratio (2.31) than 70.59% of its industry peers.
A Quick Ratio of 2.31 indicates that AKAM has no problem at all paying its short term obligations.
The Quick ratio of AKAM (2.31) is better than 70.59% of its industry peers.
Industry RankSector Rank
Current Ratio 2.31
Quick Ratio 2.31
AKAM Yearly Current Assets VS Current LiabilitesAKAM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

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4

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 2.14% over the past year.
Measured over the past 5 years, AKAM shows a small growth in Earnings Per Share. The EPS has been growing by 7.53% on average per year.
Looking at the last year, AKAM shows a small growth in Revenue. The Revenue has grown by 3.98% in the last year.
The Revenue has been growing slightly by 6.64% on average over the past years.
EPS 1Y (TTM)2.14%
EPS 3Y4.07%
EPS 5Y7.53%
EPS Q2Q%9.49%
Revenue 1Y (TTM)3.98%
Revenue growth 3Y4.86%
Revenue growth 5Y6.64%
Sales Q2Q%6.52%

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 9.39% yearly.
The Revenue is expected to grow by 6.66% on average over the next years.
EPS Next Y5.87%
EPS Next 2Y5.48%
EPS Next 3Y7.12%
EPS Next 5Y9.39%
Revenue Next Year4.72%
Revenue Next 2Y4.92%
Revenue Next 3Y5.58%
Revenue Next 5Y6.66%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
AKAM Yearly Revenue VS EstimatesAKAM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2B 4B 6B
AKAM Yearly EPS VS EstimatesAKAM Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8 10

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6

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 11.49, which indicates a very decent valuation of AKAM.
88.24% of the companies in the same industry are more expensive than AKAM, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of AKAM to the average of the S&P500 Index (27.03), we can say AKAM is valued rather cheaply.
The Price/Forward Earnings ratio is 10.66, which indicates a very decent valuation of AKAM.
AKAM's Price/Forward Earnings ratio is rather cheap when compared to the industry. AKAM is cheaper than 88.24% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AKAM to the average of the S&P500 Index (22.54), we can say AKAM is valued rather cheaply.
Industry RankSector Rank
PE 11.49
Fwd PE 10.66
AKAM Price Earnings VS Forward Price EarningsAKAM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

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 72.94% of the companies listed in the same industry.
AKAM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AKAM is cheaper than 63.53% of the companies in the same industry.
Industry RankSector Rank
P/FCF 21.13
EV/EBITDA 10.3
AKAM Per share dataAKAM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)1.96
PEG (5Y)1.53
EPS Next 2Y5.48%
EPS Next 3Y7.12%

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0

5. Dividend

5.1 Amount

No dividends for AKAM!.
Industry RankSector Rank
Dividend Yield N/A

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AKAMAI TECHNOLOGIES INC

NASDAQ:AKAM (9/10/2025, 8:00:00 PM)

After market: 76.75 0 (0%)

76.75

-1.41 (-1.8%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)08-07 2025-08-07/amc
Earnings (Next)11-05 2025-11-05/amc
Inst Owners97.94%
Inst Owner Change15.19%
Ins Owners1.99%
Ins Owner Change-3.78%
Market Cap11.01B
Analysts72.26
Price Target98.67 (28.56%)
Short Float %7.07%
Short Ratio5.11
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.73%
Min EPS beat(2)6.21%
Max EPS beat(2)9.26%
EPS beat(4)3
Avg EPS beat(4)5.32%
Min EPS beat(4)-1.88%
Max EPS beat(4)9.26%
EPS beat(8)7
Avg EPS beat(8)4.14%
EPS beat(12)11
Avg EPS beat(12)3.96%
EPS beat(16)14
Avg EPS beat(16)3.15%
Revenue beat(2)1
Avg Revenue beat(2)-0.65%
Min Revenue beat(2)-1.54%
Max Revenue beat(2)0.24%
Revenue beat(4)1
Avg Revenue beat(4)-1.06%
Min Revenue beat(4)-1.55%
Max Revenue beat(4)0.24%
Revenue beat(8)2
Avg Revenue beat(8)-1.25%
Revenue beat(12)3
Avg Revenue beat(12)-1.12%
Revenue beat(16)3
Avg Revenue beat(16)-1.19%
PT rev (1m)-5.01%
PT rev (3m)-7.27%
EPS NQ rev (1m)8.16%
EPS NQ rev (3m)4.81%
EPS NY rev (1m)6.39%
EPS NY rev (3m)6.66%
Revenue NQ rev (1m)0.76%
Revenue NQ rev (3m)0.85%
Revenue NY rev (1m)1.14%
Revenue NY rev (3m)1.02%
Valuation
Industry RankSector Rank
PE 11.49
Fwd PE 10.66
P/S 2.7
P/FCF 21.13
P/OCF 7.61
P/B 2.46
P/tB 17.69
EV/EBITDA 10.3
EPS(TTM)6.68
EY8.7%
EPS(NY)7.2
Fwd EY9.38%
FCF(TTM)3.63
FCFY4.73%
OCF(TTM)10.09
OCFY13.15%
SpS28.48
BVpS31.16
TBVpS4.34
PEG (NY)1.96
PEG (5Y)1.53
Profitability
Industry RankSector Rank
ROA 4.03%
ROE 9.5%
ROCE 7.03%
ROIC 5.96%
ROICexc 6.63%
ROICexgc 11.89%
OM 16.62%
PM (TTM) 10.4%
GM 59.13%
FCFM 12.76%
ROA(3y)5.57%
ROA(5y)6.38%
ROE(3y)11.42%
ROE(5y)12.35%
ROIC(3y)7.45%
ROIC(5y)8.08%
ROICexc(3y)8.74%
ROICexc(5y)9.5%
ROICexgc(3y)17.88%
ROICexgc(5y)17.4%
ROCE(3y)8.78%
ROCE(5y)9.53%
ROICexcg growth 3Y5.69%
ROICexcg growth 5Y5.39%
ROICexc growth 3Y-6.51%
ROICexc growth 5Y-2.76%
OM growth 3Y-8.94%
OM growth 5Y-2.49%
PM growth 3Y-12.41%
PM growth 5Y-5.2%
GM growth 3Y-2.12%
GM growth 5Y-2.05%
F-Score5
Asset Turnover0.39
Health
Industry RankSector Rank
Debt/Equity 0.92
Debt/FCF 7.87
Debt/EBITDA 3.01
Cap/Depr 135.51%
Cap/Sales 22.67%
Interest Coverage 31.34
Cash Conversion 106.23%
Profit Quality 122.69%
Current Ratio 2.31
Quick Ratio 2.31
Altman-Z 2.24
F-Score5
WACC7.88%
ROIC/WACC0.76
Cap/Depr(3y)117.53%
Cap/Depr(5y)122.44%
Cap/Sales(3y)18.5%
Cap/Sales(5y)19.05%
Profit Quality(3y)128.52%
Profit Quality(5y)119.53%
High Growth Momentum
Growth
EPS 1Y (TTM)2.14%
EPS 3Y4.07%
EPS 5Y7.53%
EPS Q2Q%9.49%
EPS Next Y5.87%
EPS Next 2Y5.48%
EPS Next 3Y7.12%
EPS Next 5Y9.39%
Revenue 1Y (TTM)3.98%
Revenue growth 3Y4.86%
Revenue growth 5Y6.64%
Sales Q2Q%6.52%
Revenue Next Year4.72%
Revenue Next 2Y4.92%
Revenue Next 3Y5.58%
Revenue Next 5Y6.66%
EBIT growth 1Y-8.58%
EBIT growth 3Y-4.52%
EBIT growth 5Y3.99%
EBIT Next Year49.7%
EBIT Next 3Y20.61%
EBIT Next 5Y17.02%
FCF growth 1Y-25.93%
FCF growth 3Y-6.56%
FCF growth 5Y7.16%
OCF growth 1Y10.38%
OCF growth 3Y2.65%
OCF growth 5Y7.5%