AKAMAI TECHNOLOGIES INC (AKAM) Stock Fundamental Analysis
NASDAQ:AKAM - Nasdaq - US00971T1016 - Common Stock - Currency: USD
Overall AKAM gets a fundamental rating of 5 out of 10. We evaluated AKAM against 81 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 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.
In the past 5 years AKAM has always been profitable.
In the past 5 years AKAM always reported a positive cash flow from operatings.
1.2 Ratios
AKAM has a Return On Assets of 4.53%. This is in the better half of the industry: AKAM outperforms 64.20% of its industry peers.
With a decent Return On Equity value of 9.87%, AKAM is doing good in the industry, outperforming 62.96% of the companies in the same industry.
With a decent Return On Invested Capital value of 7.35%, AKAM is doing good in the industry, outperforming 64.20% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AKAM is significantly below the industry average of 21.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.53% | ||
| ROE | 9.87% | ||
| ROIC | 7.35% |
ROA(3y)5.57%
ROA(5y)6.38%
ROE(3y)11.42%
ROE(5y)12.35%
ROIC(3y)7.45%
ROIC(5y)8.08%
1.3 Margins
The Profit Margin of AKAM (11.26%) is better than 80.25% of its industry peers.
AKAM's Profit Margin has declined in the last couple of years.
AKAM's Operating Margin of 17.16% is amongst the best of the industry. AKAM outperforms 91.36% of its industry peers.
In the last couple of years the Operating Margin of AKAM has declined.
The Gross Margin of AKAM (59.07%) is better than 77.78% of its industry peers.
In the last couple of years the Gross Margin of AKAM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.16% | ||
| PM (TTM) | 11.26% | ||
| GM | 59.07% |
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%
2. Health
2.1 Basic Checks
AKAM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, AKAM has less shares outstanding
AKAM has less shares outstanding than it did 5 years ago.
The debt/assets ratio for AKAM has been reduced compared to a year ago.
2.2 Solvency
AKAM has an Altman-Z score of 2.40. 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's Altman-Z score of 2.40 is in line compared to the rest of the industry. AKAM outperforms 43.21% of its industry peers.
AKAM has a debt to FCF ratio of 6.47. This is a slightly negative value and a sign of low solvency as AKAM would need 6.47 years to pay back of all of its debts.
AKAM's Debt to FCF ratio of 6.47 is in line compared to the rest of the industry. AKAM outperforms 49.38% of its industry peers.
AKAM has a Debt/Equity ratio of 0.52. This is a neutral value indicating AKAM is somewhat dependend on debt financing.
The Debt to Equity ratio of AKAM (0.52) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 6.47 | ||
| Altman-Z | 2.4 |
ROIC/WACC0.86
WACC8.51%
2.3 Liquidity
A Current Ratio of 1.18 indicates that AKAM should not have too much problems paying its short term obligations.
The Current ratio of AKAM (1.18) is worse than 69.14% of its industry peers.
A Quick Ratio of 1.18 indicates that AKAM should not have too much problems paying its short term obligations.
AKAM has a worse Quick ratio (1.18) than 67.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.24% over the past year.
The Earnings Per Share has been growing slightly by 7.53% on average over the past years.
Looking at the last year, AKAM shows a small growth in Revenue. The Revenue has grown by 3.51% in the last year.
AKAM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.64% yearly.
EPS 1Y (TTM)1.24%
EPS 3Y4.07%
EPS 5Y7.53%
EPS Q2Q%3.66%
Revenue 1Y (TTM)3.51%
Revenue growth 3Y4.86%
Revenue growth 5Y6.64%
Sales Q2Q%2.85%
3.2 Future
The Earnings Per Share is expected to grow by 8.05% on average over the next years. This is quite good.
AKAM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.52% yearly.
EPS Next Y-0.52%
EPS Next 2Y2.66%
EPS Next 3Y5.11%
EPS Next 5Y8.05%
Revenue Next Year3.64%
Revenue Next 2Y4.5%
Revenue Next 3Y5.43%
Revenue Next 5Y6.52%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.17, AKAM is valued correctly.
90.12% of the companies in the same industry are more expensive than AKAM, based on the Price/Earnings ratio.
AKAM is valuated cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.66, the valuation of AKAM can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AKAM indicates a rather cheap valuation: AKAM is cheaper than 86.42% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of AKAM to the average of the S&P500 Index (21.90), we can say AKAM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.17 | ||
| Fwd PE | 11.66 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AKAM indicates a rather cheap valuation: AKAM is cheaper than 83.95% 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 65.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.2 | ||
| EV/EBITDA | 10.05 |
4.3 Compensation for Growth
AKAM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.62
EPS Next 2Y2.66%
EPS Next 3Y5.11%
5. Dividend
5.1 Amount
No dividends for AKAM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
79.48
+0.02 (+0.03%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners96.3%
Inst Owner Change-4.75%
Ins Owners1.99%
Ins Owner Change7.09%
Market Cap11.62B
Analysts76
Price Target104.5 (31.48%)
Short Float %6.51%
Short Ratio3.57
Dividend
| Industry Rank | Sector 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)6.95%
Min EPS beat(2)6.21%
Max EPS beat(2)7.7%
EPS beat(4)3
Avg EPS beat(4)3.28%
Min EPS beat(4)-1.88%
Max EPS beat(4)7.7%
EPS beat(8)7
Avg EPS beat(8)3.47%
EPS beat(12)11
Avg EPS beat(12)3.3%
EPS beat(16)14
Avg EPS beat(16)2.6%
Revenue beat(2)0
Avg Revenue beat(2)-1.54%
Min Revenue beat(2)-1.55%
Max Revenue beat(2)-1.54%
Revenue beat(4)0
Avg Revenue beat(4)-1.56%
Min Revenue beat(4)-1.73%
Max Revenue beat(4)-1.41%
Revenue beat(8)1
Avg Revenue beat(8)-1.44%
Revenue beat(12)2
Avg Revenue beat(12)-1.26%
Revenue beat(16)2
Avg Revenue beat(16)-1.28%
PT rev (1m)-1.4%
PT rev (3m)-5.61%
EPS NQ rev (1m)-0.3%
EPS NQ rev (3m)2.22%
EPS NY rev (1m)0.22%
EPS NY rev (3m)0.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.87%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.17 | ||
| Fwd PE | 11.66 | ||
| P/S | 2.89 | ||
| P/FCF | 21.2 | ||
| P/OCF | 8.19 | ||
| P/B | 2.53 | ||
| P/tB | 16 | ||
| EV/EBITDA | 10.05 |
EPS(TTM)6.53
EY8.22%
EPS(NY)6.82
Fwd EY8.58%
FCF(TTM)3.75
FCFY4.72%
OCF(TTM)9.7
OCFY12.21%
SpS27.49
BVpS31.36
TBVpS4.97
PEG (NY)N/A
PEG (5Y)1.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.53% | ||
| ROE | 9.87% | ||
| ROCE | 8.66% | ||
| ROIC | 7.35% | ||
| ROICexc | 8.81% | ||
| ROICexgc | 21.01% | ||
| OM | 17.16% | ||
| PM (TTM) | 11.26% | ||
| GM | 59.07% | ||
| FCFM | 13.64% |
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-Score6
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 6.47 | ||
| Debt/EBITDA | 1.77 | ||
| Cap/Depr | 130.63% | ||
| Cap/Sales | 21.65% | ||
| Interest Coverage | 33.35 | ||
| Cash Conversion | 104.61% | ||
| Profit Quality | 121.11% | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 2.4 |
F-Score6
WACC8.51%
ROIC/WACC0.86
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)1.24%
EPS 3Y4.07%
EPS 5Y7.53%
EPS Q2Q%3.66%
EPS Next Y-0.52%
EPS Next 2Y2.66%
EPS Next 3Y5.11%
EPS Next 5Y8.05%
Revenue 1Y (TTM)3.51%
Revenue growth 3Y4.86%
Revenue growth 5Y6.64%
Sales Q2Q%2.85%
Revenue Next Year3.64%
Revenue Next 2Y4.5%
Revenue Next 3Y5.43%
Revenue Next 5Y6.52%
EBIT growth 1Y-7.93%
EBIT growth 3Y-4.52%
EBIT growth 5Y3.99%
EBIT Next Year49.19%
EBIT Next 3Y20.06%
EBIT Next 5Y17.35%
FCF growth 1Y-25.58%
FCF growth 3Y-6.56%
FCF growth 5Y7.16%
OCF growth 1Y10.33%
OCF growth 3Y2.65%
OCF growth 5Y7.5%