AKAMAI TECHNOLOGIES INC (AKAM) Fundamental Analysis & Valuation
NASDAQ:AKAM • US00971T1016
107.39 USD
+1.92 (+1.82%)
Last: Mar 13, 2026, 10:56 AM
This AKAM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
AKAM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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.
1. AKAM Profitability Analysis
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 3.94%. This is in the better half of the industry: AKAM outperforms 65.52% of its industry peers.
- AKAM has a Return On Equity of 9.08%. This is in the better half of the industry: AKAM outperforms 64.37% of its industry peers.
- AKAM has a Return On Invested Capital (4.92%) which is in line with its industry peers.
- AKAM had an Average Return On Invested Capital over the past 3 years of 6.13%. This is below the industry average of 10.73%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.94% | ||
| ROE | 9.08% | ||
| ROIC | 4.92% |
ROA(3y)4.78%
ROA(5y)5.73%
ROE(3y)10.45%
ROE(5y)11.55%
ROIC(3y)6.13%
ROIC(5y)6.98%
1.3 Margins
- With a decent Profit Margin value of 10.74%, AKAM is doing good in the industry, outperforming 79.31% of the companies in the same industry.
- In the last couple of years the Profit Margin of AKAM has declined.
- AKAM's Operating Margin of 15.26% is amongst the best of the industry. AKAM outperforms 81.61% of its industry peers.
- In the last couple of years the Operating Margin of AKAM has declined.
- AKAM has a Gross Margin of 58.95%. This is amongst the best in the industry. AKAM outperforms 80.46% of its industry peers.
- AKAM's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.26% | ||
| PM (TTM) | 10.74% | ||
| GM | 58.95% |
OM growth 3Y-8.77%
OM growth 5Y-7.93%
PM growth 3Y-9.48%
PM growth 5Y-9.22%
GM growth 3Y-1.53%
GM growth 5Y-1.81%
2. AKAM Health Analysis
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
- Compared to 5 years ago, AKAM has less shares outstanding
- The debt/assets ratio for AKAM is higher compared to a year ago.
2.2 Solvency
- AKAM has an Altman-Z score of 2.52. 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 (2.52) which is in line with its industry peers.
- The Debt to FCF ratio of AKAM is 6.13, which is on the high side as it means it would take AKAM, 6.13 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of AKAM (6.13) is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.82 indicates that AKAM is somewhat dependend on debt financing.
- AKAM has a worse Debt to Equity ratio (0.82) than 60.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 6.13 | ||
| Altman-Z | 2.52 |
ROIC/WACC0.62
WACC7.92%
2.3 Liquidity
- A Current Ratio of 2.36 indicates that AKAM has no problem at all paying its short term obligations.
- AKAM has a Current ratio of 2.36. This is in the better half of the industry: AKAM outperforms 66.67% of its industry peers.
- AKAM has a Quick Ratio of 2.36. This indicates that AKAM is financially healthy and has no problem in meeting its short term obligations.
- AKAM's Quick ratio of 2.36 is fine compared to the rest of the industry. AKAM outperforms 67.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.36 | ||
| Quick Ratio | 2.36 |
3. AKAM Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an nice 10.20% over the past year.
- The Earnings Per Share has been growing slightly by 6.43% on average over the past years.
- AKAM shows a small growth in Revenue. In the last year, the Revenue has grown by 5.44%.
- The Revenue has been growing slightly by 5.64% on average over the past years.
EPS 1Y (TTM)10.2%
EPS 3Y9.91%
EPS 5Y6.43%
EPS Q2Q%10.84%
Revenue 1Y (TTM)5.44%
Revenue growth 3Y5.18%
Revenue growth 5Y5.64%
Sales Q2Q%7.35%
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 9.69% on average per year.
- Based on estimates for the next years, AKAM will show a small growth in Revenue. The Revenue will grow by 7.14% on average per year.
EPS Next Y-2.06%
EPS Next 2Y4.11%
EPS Next 3Y7.39%
EPS Next 5Y9.69%
Revenue Next Year6.78%
Revenue Next 2Y6.87%
Revenue Next 3Y7.14%
Revenue Next 5Y7.14%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. AKAM Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 15.06 indicates a correct valuation of AKAM.
- AKAM's Price/Earnings ratio is a bit cheaper when compared to the industry. AKAM is cheaper than 68.97% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 25.71, AKAM is valued a bit cheaper.
- The Price/Forward Earnings ratio is 15.38, which indicates a correct valuation of AKAM.
- Based on the Price/Forward Earnings ratio, AKAM is valued a bit cheaper than the industry average as 65.52% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 23.82. AKAM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.06 | ||
| Fwd PE | 15.38 |
4.2 Price Multiples
- AKAM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AKAM is cheaper than 63.22% of the companies in the same industry.
- AKAM's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.25 | ||
| EV/EBITDA | 13.29 |
4.3 Compensation for Growth
- The decent profitability rating of AKAM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.34
EPS Next 2Y4.11%
EPS Next 3Y7.39%
5. AKAM Dividend Analysis
5.1 Amount
- No dividends for AKAM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
AKAM Fundamentals: All Metrics, Ratios and Statistics
NASDAQ:AKAM (3/13/2026, 10:56:09 AM)
107.39
+1.92 (+1.82%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)02-19 2026-02-19/amc
Earnings (Next)05-06 2026-05-06/amc
Inst Owners102.28%
Inst Owner Change-36.21%
Ins Owners2.04%
Ins Owner Change7.39%
Market Cap15.56B
Revenue(TTM)4.21B
Net Income(TTM)452.03M
Analysts75.15
Price Target111.88 (4.18%)
Short Float %9.38%
Short Ratio3.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)7.04%
Min EPS beat(2)2.78%
Max EPS beat(2)11.3%
EPS beat(4)4
Avg EPS beat(4)7.39%
Min EPS beat(4)2.78%
Max EPS beat(4)11.3%
EPS beat(8)7
Avg EPS beat(8)4.58%
EPS beat(12)11
Avg EPS beat(12)4.59%
EPS beat(16)14
Avg EPS beat(16)3.68%
Revenue beat(2)0
Avg Revenue beat(2)-0.58%
Min Revenue beat(2)-0.88%
Max Revenue beat(2)-0.28%
Revenue beat(4)1
Avg Revenue beat(4)-0.62%
Min Revenue beat(4)-1.54%
Max Revenue beat(4)0.24%
Revenue beat(8)1
Avg Revenue beat(8)-1.15%
Revenue beat(12)2
Avg Revenue beat(12)-1.16%
Revenue beat(16)3
Avg Revenue beat(16)-1.12%
PT rev (1m)7.13%
PT rev (3m)13.26%
EPS NQ rev (1m)-8.64%
EPS NQ rev (3m)-8.66%
EPS NY rev (1m)-6.22%
EPS NY rev (3m)-6.26%
Revenue NQ rev (1m)0.74%
Revenue NQ rev (3m)0.83%
Revenue NY rev (1m)1.33%
Revenue NY rev (3m)1.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.06 | ||
| Fwd PE | 15.38 | ||
| P/S | 3.7 | ||
| P/FCF | 23.25 | ||
| P/OCF | 10.24 | ||
| P/B | 3.13 | ||
| P/tB | 13.46 | ||
| EV/EBITDA | 13.29 |
EPS(TTM)7.13
EY6.64%
EPS(NY)6.98
Fwd EY6.5%
FCF(TTM)4.62
FCFY4.3%
OCF(TTM)10.48
OCFY9.76%
SpS29.04
BVpS34.35
TBVpS7.98
PEG (NY)N/A
PEG (5Y)2.34
Graham Number74.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.94% | ||
| ROE | 9.08% | ||
| ROCE | 6.11% | ||
| ROIC | 4.92% | ||
| ROICexc | 5.54% | ||
| ROICexgc | 9.39% | ||
| OM | 15.26% | ||
| PM (TTM) | 10.74% | ||
| GM | 58.95% | ||
| FCFM | 15.91% |
ROA(3y)4.78%
ROA(5y)5.73%
ROE(3y)10.45%
ROE(5y)11.55%
ROIC(3y)6.13%
ROIC(5y)6.98%
ROICexc(3y)7.11%
ROICexc(5y)8.14%
ROICexgc(3y)14.02%
ROICexgc(5y)15.44%
ROCE(3y)7.61%
ROCE(5y)8.66%
ROICexgc growth 3Y-20.14%
ROICexgc growth 5Y-8.76%
ROICexc growth 3Y-15.45%
ROICexc growth 5Y-11.22%
OM growth 3Y-8.77%
OM growth 5Y-7.93%
PM growth 3Y-9.48%
PM growth 5Y-9.22%
GM growth 3Y-1.53%
GM growth 5Y-1.81%
F-Score5
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 6.13 | ||
| Debt/EBITDA | 3.04 | ||
| Cap/Depr | 119.87% | ||
| Cap/Sales | 20.19% | ||
| Interest Coverage | 27.56 | ||
| Cash Conversion | 112.45% | ||
| Profit Quality | 148.07% | ||
| Current Ratio | 2.36 | ||
| Quick Ratio | 2.36 | ||
| Altman-Z | 2.52 |
F-Score5
WACC7.92%
ROIC/WACC0.62
Cap/Depr(3y)131.71%
Cap/Depr(5y)114.3%
Cap/Sales(3y)21%
Cap/Sales(5y)18.29%
Profit Quality(3y)125.92%
Profit Quality(5y)133.11%
High Growth Momentum
Growth
EPS 1Y (TTM)10.2%
EPS 3Y9.91%
EPS 5Y6.43%
EPS Q2Q%10.84%
EPS Next Y-2.06%
EPS Next 2Y4.11%
EPS Next 3Y7.39%
EPS Next 5Y9.69%
Revenue 1Y (TTM)5.44%
Revenue growth 3Y5.18%
Revenue growth 5Y5.64%
Sales Q2Q%7.35%
Revenue Next Year6.78%
Revenue Next 2Y6.87%
Revenue Next 3Y7.14%
Revenue Next 5Y7.14%
EBIT growth 1Y-8.64%
EBIT growth 3Y-4.05%
EBIT growth 5Y-2.73%
EBIT Next Year47.17%
EBIT Next 3Y21.59%
EBIT Next 5Y16.61%
FCF growth 1Y-4.53%
FCF growth 3Y-6.41%
FCF growth 5Y8.42%
OCF growth 1Y-0.03%
OCF growth 3Y6.01%
OCF growth 5Y4.56%
AKAMAI TECHNOLOGIES INC / AKAM FAQ
What is the fundamental rating for AKAM stock?
ChartMill assigns a fundamental rating of 5 / 10 to AKAM.
Can you provide the valuation status for AKAMAI TECHNOLOGIES INC?
ChartMill assigns a valuation rating of 4 / 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.
What are the PE and PB ratios of AKAMAI TECHNOLOGIES INC (AKAM) stock?
The Price/Earnings (PE) ratio for AKAMAI TECHNOLOGIES INC (AKAM) is 15.06 and the Price/Book (PB) ratio is 3.13.
Can you provide the expected EPS growth for AKAM stock?
The Earnings per Share (EPS) of AKAMAI TECHNOLOGIES INC (AKAM) is expected to decline by -2.06% in the next year.