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AKAMAI TECHNOLOGIES INC (AKAM) Stock Fundamental Analysis

NASDAQ:AKAM - Nasdaq - US00971T1016 - Common Stock - Currency: USD

74.74  +0.47 (+0.63%)

Fundamental Rating

5

Taking everything into account, AKAM scores 5 out of 10 in our fundamental rating. AKAM was compared to 82 industry peers in the IT Services industry. AKAM has only an average score on both its financial health and profitability. AKAM has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

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6

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.
In the past 5 years AKAM has always 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

With a decent Return On Assets value of 4.03%, AKAM is doing good in the industry, outperforming 64.63% of the companies in the same industry.
The Return On Equity of AKAM (9.50%) is better than 64.63% of its industry peers.
AKAM has a Return On Invested Capital (5.95%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AKAM is significantly below the industry average of 22.31%.
Industry RankSector Rank
ROA 4.03%
ROE 9.5%
ROIC 5.95%
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 78.05% of its industry peers.
AKAM's Profit Margin has declined in the last couple of years.
The Operating Margin of AKAM (16.59%) is better than 86.59% of its industry peers.
AKAM's Operating Margin has declined in the last couple of years.
AKAM has a Gross Margin of 59.13%. This is amongst the best in the industry. AKAM outperforms 80.49% of its industry peers.
In the last couple of years the Gross Margin of AKAM has declined.
Industry RankSector Rank
OM 16.59%
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

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AKAM is destroying value.
The number of shares outstanding for AKAM has been reduced compared to 1 year ago.
Compared to 5 years ago, AKAM has less shares outstanding
AKAM has a better debt/assets ratio than last year.
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 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.
With a Debt to FCF ratio value of 7.87, AKAM perfoms like the industry average, outperforming 48.78% of the companies in the same industry.
AKAM has a Debt/Equity ratio of 0.92. This is a neutral value indicating AKAM is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.92, AKAM is doing worse than 65.85% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.92
Debt/FCF 7.87
Altman-Z N/A
ROIC/WACC0.72
WACC8.23%
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.
The Current ratio of AKAM (2.31) is better than 70.73% of its industry peers.
AKAM has a Quick Ratio of 2.31. This indicates that AKAM is financially healthy and has no problem in meeting its short term obligations.
AKAM's Quick ratio of 2.31 is fine compared to the rest of the industry. AKAM outperforms 70.73% 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

AKAM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.14%.
AKAM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.53% yearly.
AKAM shows a small growth in Revenue. In the last year, the Revenue has grown by 3.98%.
Measured over the past years, AKAM shows a small growth in Revenue. The Revenue has been growing by 6.64% on average per year.
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

Based on estimates for the next years, AKAM will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.05% on average per year.
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-0.49%
EPS Next 2Y2.45%
EPS Next 3Y4.85%
EPS Next 5Y8.05%
Revenue Next Year3.54%
Revenue Next 2Y4.38%
Revenue Next 3Y5.33%
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.
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

Based on the Price/Earnings ratio of 11.19, the valuation of AKAM can be described as reasonable.
89.02% of the companies in the same industry are more expensive than AKAM, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.93. AKAM is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 11.01, 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 85.37% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.31. AKAM is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 11.19
Fwd PE 11.01
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

AKAM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AKAM is cheaper than 74.39% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AKAM indicates a somewhat cheap valuation: AKAM is cheaper than 65.85% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 20.98
EV/EBITDA 10.2
AKAM Per share dataAKAM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

The decent profitability rating of AKAM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.49
EPS Next 2Y2.45%
EPS Next 3Y4.85%

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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 (8/15/2025, 3:03:36 PM)

74.74

+0.47 (+0.63%)

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 Change0.94%
Ins Owners1.99%
Ins Owner Change7.05%
Market Cap10.93B
Analysts74.84
Price Target103.88 (38.99%)
Short Float %6.27%
Short Ratio3.9
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)-0.59%
PT rev (3m)-1.98%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.18%
EPS NY rev (1m)0%
EPS NY rev (3m)0.99%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.77%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.36%
Valuation
Industry RankSector Rank
PE 11.19
Fwd PE 11.01
P/S 2.68
P/FCF 20.98
P/OCF 7.55
P/B 2.45
P/tB 17.56
EV/EBITDA 10.2
EPS(TTM)6.68
EY8.94%
EPS(NY)6.79
Fwd EY9.09%
FCF(TTM)3.56
FCFY4.77%
OCF(TTM)9.89
OCFY13.24%
SpS27.93
BVpS30.56
TBVpS4.26
PEG (NY)N/A
PEG (5Y)1.49
Profitability
Industry RankSector Rank
ROA 4.03%
ROE 9.5%
ROCE 7.02%
ROIC 5.95%
ROICexc 6.62%
ROICexgc 11.87%
OM 16.59%
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 250
Cash Conversion 106.33%
Profit Quality 122.69%
Current Ratio 2.31
Quick Ratio 2.31
Altman-Z N/A
F-Score5
WACC8.23%
ROIC/WACC0.72
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 Y-0.49%
EPS Next 2Y2.45%
EPS Next 3Y4.85%
EPS Next 5Y8.05%
Revenue 1Y (TTM)3.98%
Revenue growth 3Y4.86%
Revenue growth 5Y6.64%
Sales Q2Q%6.52%
Revenue Next Year3.54%
Revenue Next 2Y4.38%
Revenue Next 3Y5.33%
Revenue Next 5Y6.52%
EBIT growth 1Y-8.75%
EBIT growth 3Y-4.52%
EBIT growth 5Y3.99%
EBIT Next Year49.7%
EBIT Next 3Y20.61%
EBIT Next 5Y17.35%
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%