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AKAMAI TECHNOLOGIES INC (AKAM) Stock Fundamental Analysis

USA - NASDAQ:AKAM - US00971T1016 - Common Stock

74.88 USD
-0.88 (-1.16%)
Last: 10/1/2025, 12:12:18 PM
Fundamental Rating

5

Taking everything into account, AKAM scores 5 out of 10 in our fundamental rating. AKAM was compared to 87 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.


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.
In the past 5 years AKAM always reported a positive cash flow from operatings.
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

AKAM's Return On Assets of 4.03% is fine compared to the rest of the industry. AKAM outperforms 66.67% of its industry peers.
AKAM has a better Return On Equity (9.50%) than 65.52% of its industry peers.
AKAM's Return On Invested Capital of 5.96% is fine compared to the rest of the industry. AKAM outperforms 60.92% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AKAM is significantly below the industry average of 21.81%.
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

Looking at the Profit Margin, with a value of 10.40%, AKAM is in the better half of the industry, outperforming 78.16% of the companies in the same industry.
AKAM's Profit Margin has declined in the last couple of years.
AKAM's Operating Margin of 16.62% is amongst the best of the industry. AKAM outperforms 88.51% of its industry peers.
In the last couple of years the Operating Margin of AKAM has declined.
With a decent Gross Margin value of 59.13%, AKAM is doing good in the industry, outperforming 79.31% of the companies in the same industry.
In the last couple of years the Gross Margin of AKAM has declined.
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.
Compared to 1 year ago, AKAM has less shares outstanding
AKAM has less shares outstanding than it did 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

An Altman-Z score of 2.23 indicates that AKAM is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.23, AKAM is in line with its industry, outperforming 42.53% of the companies in the same industry.
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.
The Debt to FCF ratio of AKAM (7.87) is comparable to the rest of the industry.
AKAM has a Debt/Equity ratio of 0.92. This is a neutral value indicating AKAM is somewhat dependend on debt financing.
AKAM has a worse Debt to Equity ratio (0.92) than 63.22% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.92
Debt/FCF 7.87
Altman-Z 2.23
ROIC/WACC0.73
WACC8.16%
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.
Looking at the Current ratio, with a value of 2.31, AKAM is in the better half of the industry, outperforming 70.11% of the companies in the same industry.
A Quick Ratio of 2.31 indicates that AKAM has no problem at all paying its short term obligations.
AKAM has a better Quick ratio (2.31) than 70.11% 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.
The Revenue has been growing slightly by 3.98% in the past 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)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

The Earnings Per Share is expected to grow by 9.39% on average over the next years. This is quite good.
Based on estimates for the next years, AKAM will show a small growth in Revenue. The Revenue will grow by 6.66% on average per year.
EPS Next Y5.81%
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

AKAM is valuated reasonably with a Price/Earnings ratio of 11.21.
Based on the Price/Earnings ratio, AKAM is valued cheaply inside the industry as 88.51% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of AKAM to the average of the S&P500 Index (27.76), we can say AKAM is valued rather cheaply.
The Price/Forward Earnings ratio is 10.40, which indicates a very decent valuation of AKAM.
89.66% of the companies in the same industry are more expensive than AKAM, based on the Price/Forward Earnings ratio.
AKAM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.18.
Industry RankSector Rank
PE 11.21
Fwd PE 10.4
AKAM Price Earnings VS Forward Price EarningsAKAM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

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 74.71% of the companies listed 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 67.82% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 20.61
EV/EBITDA 10.19
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.
AKAM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.93
PEG (5Y)1.49
EPS Next 2Y5.48%
EPS Next 3Y7.12%

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0

5. Dividend

5.1 Amount

AKAM does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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AKAMAI TECHNOLOGIES INC

NASDAQ:AKAM (10/1/2025, 12:12:18 PM)

74.88

-0.88 (-1.16%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)08-07 2025-08-07/amc
Earnings (Next)11-05 2025-11-05/amc
Inst Owners98.72%
Inst Owner Change15.18%
Ins Owners1.99%
Ins Owner Change-1.03%
Market Cap10.74B
Analysts72.26
Price Target98.67 (31.77%)
Short Float %7.45%
Short Ratio5.3
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)-2.05%
PT rev (3m)-5.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8.29%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)6.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.04%
Valuation
Industry RankSector Rank
PE 11.21
Fwd PE 10.4
P/S 2.63
P/FCF 20.61
P/OCF 7.42
P/B 2.4
P/tB 17.25
EV/EBITDA 10.19
EPS(TTM)6.68
EY8.92%
EPS(NY)7.2
Fwd EY9.61%
FCF(TTM)3.63
FCFY4.85%
OCF(TTM)10.09
OCFY13.47%
SpS28.48
BVpS31.16
TBVpS4.34
PEG (NY)1.93
PEG (5Y)1.49
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 2.23
F-Score5
WACC8.16%
ROIC/WACC0.73
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 Y5.81%
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 Year53.38%
EBIT Next 3Y19.6%
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%