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AKAMAI TECHNOLOGIES INC (AKAM) Stock Fundamental Analysis

USA - NASDAQ:AKAM - US00971T1016 - Common Stock

75.05 USD
+0.44 (+0.59%)
Last: 10/24/2025, 8:08:35 PM
75.0999 USD
+0.05 (+0.07%)
After Hours: 10/24/2025, 8:08:35 PM
Fundamental Rating

5

Taking everything into account, AKAM scores 5 out of 10 in our fundamental rating. AKAM was compared to 86 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.


Dividend Valuation Growth Profitability Health

6

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.
AKAM had positive earnings in each of the past 5 years.
AKAM had a positive operating cash flow in each of the past 5 years.
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 has a Return On Assets of 4.03%. This is in the better half of the industry: AKAM outperforms 65.12% of its industry peers.
Looking at the Return On Equity, with a value of 9.50%, AKAM is in the better half of the industry, outperforming 65.12% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.96%, AKAM is in the better half of the industry, outperforming 60.47% 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 21.41%.
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

AKAM has a Profit Margin of 10.40%. This is in the better half of the industry: AKAM outperforms 76.74% of its industry peers.
AKAM's Profit Margin has declined in the last couple of years.
AKAM has a Operating Margin of 16.62%. This is amongst the best in the industry. AKAM outperforms 88.37% of its industry peers.
AKAM's Operating Margin has declined in the last couple of years.
AKAM has a better Gross Margin (59.13%) than 80.23% of its industry peers.
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

5

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.
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 2.21 indicates that AKAM is not a great score, but indicates only limited risk for bankruptcy at the moment.
AKAM has a Altman-Z score (2.21) which is comparable to the rest of the industry.
The Debt to FCF ratio of AKAM is 7.87, which is on the high side as it means it would take AKAM, 7.87 years of fcf income to pay off all of its debts.
AKAM's Debt to FCF ratio of 7.87 is in line compared to the rest of the industry. AKAM outperforms 50.00% of its industry peers.
AKAM has a Debt/Equity ratio of 0.92. This is a neutral value indicating AKAM is somewhat dependend on debt financing.
The Debt to Equity ratio of AKAM (0.92) is worse than 65.12% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.92
Debt/FCF 7.87
Altman-Z 2.21
ROIC/WACC0.75
WACC7.98%
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

A Current Ratio of 2.31 indicates that AKAM has no problem at all paying its short term obligations.
The Current ratio of AKAM (2.31) is better than 70.93% 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 has a better Quick ratio (2.31) than 70.93% 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

4

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 2.14% over the past year.
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

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 2Y4.93%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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

6

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 11.24, the valuation of AKAM can be described as very reasonable.
Based on the Price/Earnings ratio, AKAM is valued cheaper than 87.21% of the companies in the same industry.
AKAM is valuated cheaply when we compare the Price/Earnings ratio to 26.91, which is the current average of the S&P500 Index.
AKAM is valuated reasonably with a Price/Forward Earnings ratio of 10.43.
88.37% of the companies in the same industry are more expensive than AKAM, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.92. AKAM is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 11.24
Fwd PE 10.43
AKAM Price Earnings VS Forward Price EarningsAKAM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

75.58% of the companies in the same industry are more expensive than AKAM, based on the Enterprise Value to EBITDA ratio.
AKAM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AKAM is cheaper than 66.28% of the companies in the same industry.
Industry RankSector Rank
P/FCF 20.66
EV/EBITDA 10.07
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%

0

5. Dividend

5.1 Amount

No dividends for AKAM!.
Industry RankSector Rank
Dividend Yield N/A

AKAMAI TECHNOLOGIES INC

NASDAQ:AKAM (10/24/2025, 8:08:35 PM)

After market: 75.0999 +0.05 (+0.07%)

75.05

+0.44 (+0.59%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)08-07 2025-08-07/amc
Earnings (Next)11-06 2025-11-06/amc
Inst Owners98.72%
Inst Owner Change0.07%
Ins Owners1.99%
Ins Owner Change-1.03%
Market Cap10.76B
Revenue(TTM)4.08B
Net Income(TTM)424.60M
Analysts72.26
Price Target98.67 (31.47%)
Short Float %7.19%
Short Ratio5.96
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%
PT rev (3m)-5.01%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8.16%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)6.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.76%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.14%
Valuation
Industry RankSector Rank
PE 11.24
Fwd PE 10.43
P/S 2.64
P/FCF 20.66
P/OCF 7.44
P/B 2.41
P/tB 17.29
EV/EBITDA 10.07
EPS(TTM)6.68
EY8.9%
EPS(NY)7.2
Fwd EY9.59%
FCF(TTM)3.63
FCFY4.84%
OCF(TTM)10.09
OCFY13.44%
SpS28.48
BVpS31.16
TBVpS4.34
PEG (NY)1.93
PEG (5Y)1.49
Graham Number68.43
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%
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 Turnover0.39
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 2.21
F-Score5
WACC7.98%
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)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 2Y4.93%
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%

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 6 / 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.