89.01 USD
+1.63 (+1.87%)
88.95 USD
-0.06 (-0.07%)
AKAM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 85 industry peers in the IT Services industry. AKAM has only an average score on both its financial health and profitability. AKAM has a correct valuation and a medium growth rate.
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.
AKAM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AKAM has a better Return On Assets (4.68%) than 67.44% of its industry peers.
AKAM has a better Return On Equity (10.71%) than 67.44% of its industry peers.
AKAM's Return On Invested Capital of 5.75% is fine compared to the rest of the industry. AKAM outperforms 60.47% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AKAM is significantly below the industry average of 29.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.68% | ||
| ROE | 10.71% | ||
| ROIC | 5.75% |
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
AKAM has a better Profit Margin (12.26%) than 86.05% of its industry peers.
In the last couple of years the Profit Margin of AKAM has declined.
AKAM has a Operating Margin of 16.21%. This is amongst the best in the industry. AKAM outperforms 84.88% of its industry peers.
In the last couple of years the Operating Margin of AKAM has declined.
AKAM's Gross Margin of 59.13% is amongst the best of the industry. AKAM outperforms 81.40% of its industry peers.
In the last couple of years the Gross Margin of AKAM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.21% | ||
| PM (TTM) | 12.26% | ||
| 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%
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.
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.
AKAM has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.41 indicates that AKAM is not a great score, but indicates only limited risk for bankruptcy at the moment.
AKAM has a Altman-Z score (2.41) which is in line with its industry peers.
AKAM has a debt to FCF ratio of 7.32. This is a slightly negative value and a sign of low solvency as AKAM would need 7.32 years to pay back of all of its debts.
AKAM has a Debt to FCF ratio (7.32) which is in line with its industry peers.
AKAM has a Debt/Equity ratio of 0.87. This is a neutral value indicating AKAM is somewhat dependend on debt financing.
The Debt to Equity ratio of AKAM (0.87) is worse than 61.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 7.32 | ||
| Altman-Z | 2.41 |
ROIC/WACC0.75
WACC7.68%
2.3 Liquidity
A Current Ratio of 2.28 indicates that AKAM has no problem at all paying its short term obligations.
AKAM has a Current ratio of 2.28. This is in the better half of the industry: AKAM outperforms 70.93% of its industry peers.
A Quick Ratio of 2.28 indicates that AKAM has no problem at all paying its short term obligations.
AKAM has a Quick ratio of 2.28. This is in the better half of the industry: AKAM outperforms 72.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.28 | ||
| Quick Ratio | 2.28 |
3. Growth
3.1 Past
AKAM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.92%.
AKAM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.53% yearly.
Looking at the last year, AKAM shows a small growth in Revenue. The Revenue has grown by 4.21% in the last year.
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)6.92%
EPS 3Y4.07%
EPS 5Y7.53%
EPS Q2Q%16.98%
Revenue 1Y (TTM)4.21%
Revenue growth 3Y4.86%
Revenue growth 5Y6.64%
Sales Q2Q%4.97%
3.2 Future
The Earnings Per Share is expected to grow by 9.39% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.66% on average over the next years.
EPS Next Y5.81%
EPS Next 2Y5.48%
EPS Next 3Y7.06%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.81, AKAM is valued correctly.
AKAM's Price/Earnings ratio is rather cheap when compared to the industry. AKAM is cheaper than 80.23% of the companies in the same industry.
When comparing the Price/Earnings ratio of AKAM to the average of the S&P500 Index (25.45), we can say AKAM is valued slightly cheaper.
A Price/Forward Earnings ratio of 12.37 indicates a correct valuation of AKAM.
AKAM's Price/Forward Earnings ratio is rather cheap when compared to the industry. AKAM is cheaper than 82.56% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.46, AKAM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.81 | ||
| Fwd PE | 12.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AKAM is valued a bit cheaper than the industry average as 73.26% of the companies are valued more expensively.
AKAM's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.77 | ||
| EV/EBITDA | 11.41 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AKAM does not grow enough to justify the current Price/Earnings ratio.
AKAM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.2
PEG (5Y)1.7
EPS Next 2Y5.48%
EPS Next 3Y7.06%
5. Dividend
5.1 Amount
AKAM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
89.01
+1.63 (+1.87%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners98.72%
Inst Owner Change45.68%
Ins Owners1.99%
Ins Owner Change-2.57%
Market Cap12.76B
Revenue(TTM)4.13B
Net Income(TTM)506.86M
Analysts72.26
Price Target98.36 (10.5%)
Short Float %6.95%
Short Ratio4.33
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)10.28%
Min EPS beat(2)9.26%
Max EPS beat(2)11.3%
EPS beat(4)4
Avg EPS beat(4)8.62%
Min EPS beat(4)6.21%
Max EPS beat(4)11.3%
EPS beat(8)7
Avg EPS beat(8)4.71%
EPS beat(12)11
Avg EPS beat(12)4.82%
EPS beat(16)14
Avg EPS beat(16)3.69%
Revenue beat(2)1
Avg Revenue beat(2)-0.32%
Min Revenue beat(2)-0.88%
Max Revenue beat(2)0.24%
Revenue beat(4)1
Avg Revenue beat(4)-0.93%
Min Revenue beat(4)-1.55%
Max Revenue beat(4)0.24%
Revenue beat(8)1
Avg Revenue beat(8)-1.4%
Revenue beat(12)3
Avg Revenue beat(12)-1.09%
Revenue beat(16)3
Avg Revenue beat(16)-1.19%
PT rev (1m)-0.32%
PT rev (3m)-2.36%
EPS NQ rev (1m)6.4%
EPS NQ rev (3m)6.4%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.06%
Revenue NQ rev (1m)0.55%
Revenue NQ rev (3m)0.55%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.81 | ||
| Fwd PE | 12.37 | ||
| P/S | 3.09 | ||
| P/FCF | 22.77 | ||
| P/OCF | 8.53 | ||
| P/B | 2.7 | ||
| P/tB | 13.96 | ||
| EV/EBITDA | 11.41 |
EPS(TTM)6.95
EY7.81%
EPS(NY)7.2
Fwd EY8.09%
FCF(TTM)3.91
FCFY4.39%
OCF(TTM)10.43
OCFY11.72%
SpS28.82
BVpS33
TBVpS6.38
PEG (NY)2.2
PEG (5Y)1.7
Graham Number71.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.68% | ||
| ROE | 10.71% | ||
| ROCE | 6.78% | ||
| ROIC | 5.75% | ||
| ROICexc | 6.49% | ||
| ROICexgc | 11.49% | ||
| OM | 16.21% | ||
| PM (TTM) | 12.26% | ||
| GM | 59.13% | ||
| FCFM | 13.56% |
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%
ROICexgc growth 3Y5.69%
ROICexgc 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 Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 7.32 | ||
| Debt/EBITDA | 3.01 | ||
| Cap/Depr | 134.8% | ||
| Cap/Sales | 22.64% | ||
| Interest Coverage | 30.85 | ||
| Cash Conversion | 109.69% | ||
| Profit Quality | 110.56% | ||
| Current Ratio | 2.28 | ||
| Quick Ratio | 2.28 | ||
| Altman-Z | 2.41 |
F-Score5
WACC7.68%
ROIC/WACC0.75
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)6.92%
EPS 3Y4.07%
EPS 5Y7.53%
EPS Q2Q%16.98%
EPS Next Y5.81%
EPS Next 2Y5.48%
EPS Next 3Y7.06%
EPS Next 5Y9.39%
Revenue 1Y (TTM)4.21%
Revenue growth 3Y4.86%
Revenue growth 5Y6.64%
Sales Q2Q%4.97%
Revenue Next Year4.72%
Revenue Next 2Y4.92%
Revenue Next 3Y5.58%
Revenue Next 5Y6.66%
EBIT growth 1Y-7.32%
EBIT growth 3Y-4.52%
EBIT growth 5Y3.99%
EBIT Next Year53.38%
EBIT Next 3Y19.6%
EBIT Next 5Y17.02%
FCF growth 1Y0.54%
FCF growth 3Y-6.56%
FCF growth 5Y7.16%
OCF growth 1Y15.01%
OCF growth 3Y2.65%
OCF growth 5Y7.5%
AKAMAI TECHNOLOGIES INC / AKAM FAQ
What is the fundamental rating for AKAM stock?
ChartMill assigns a fundamental rating of 5 / 10 to AKAM.
What is the valuation status of AKAMAI TECHNOLOGIES INC (AKAM) stock?
ChartMill assigns a valuation rating of 5 / 10 to AKAMAI TECHNOLOGIES INC (AKAM). This can be considered as Fairly Valued.
What is the profitability of AKAM stock?
AKAMAI TECHNOLOGIES INC (AKAM) has a profitability rating of 6 / 10.
How financially healthy is AKAMAI TECHNOLOGIES INC?
The financial health rating of AKAMAI TECHNOLOGIES INC (AKAM) is 5 / 10.