AKAMAI TECHNOLOGIES INC (AKAM) Fundamental Analysis & Valuation

NASDAQ:AKAM • US00971T1016

Current stock price

114.5 USD
-2.75 (-2.35%)
At close:
113.575 USD
-0.92 (-0.81%)
After Hours:

This AKAM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. AKAM Profitability Analysis

1.1 Basic Checks

  • AKAM had positive earnings in the past year.
  • In the past year AKAM had a positive cash flow from operations.
  • AKAM had positive earnings in each of the past 5 years.
  • 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

1.2 Ratios

  • The Return On Assets of AKAM (3.94%) is better than 67.05% of its industry peers.
  • AKAM has a better Return On Equity (9.08%) than 65.91% of its industry peers.
  • AKAM has a Return On Invested Capital (4.92%) which is in line with its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for AKAM is below the industry average of 11.08%.
Industry RankSector 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%
AKAM Yearly ROA, ROE, ROICAKAM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10

1.3 Margins

  • The Profit Margin of AKAM (10.74%) is better than 81.82% of its industry peers.
  • AKAM's Profit Margin has declined in the last couple of years.
  • The Operating Margin of AKAM (15.26%) is better than 81.82% of its industry peers.
  • AKAM's Operating Margin has declined in the last couple of years.
  • The Gross Margin of AKAM (58.95%) is better than 80.68% of its industry peers.
  • AKAM's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
AKAM Yearly Profit, Operating, Gross MarginsAKAM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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5

2. AKAM Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AKAM is destroying value.
  • AKAM has less shares outstanding than it did 1 year ago.
  • AKAM has less shares outstanding than it did 5 years ago.
  • The debt/assets ratio for AKAM is higher compared to a year ago.
AKAM Yearly Shares OutstandingAKAM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
AKAM Yearly Total Debt VS Total AssetsAKAM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.2 Solvency

  • An Altman-Z score of 2.67 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 2.67, AKAM is in line with its industry, outperforming 53.41% of the companies in the same industry.
  • 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.
  • Looking at the Debt to Equity ratio, with a value of 0.82, AKAM is in line with its industry, outperforming 40.91% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.82
Debt/FCF 6.13
Altman-Z 2.67
ROIC/WACC0.57
WACC8.66%
AKAM Yearly LT Debt VS Equity VS FCFAKAM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

2.3 Liquidity

  • A Current Ratio of 2.36 indicates that AKAM has no problem at all paying its short term obligations.
  • With a decent Current ratio value of 2.36, AKAM is doing good in the industry, outperforming 67.05% of the companies in the same industry.
  • A Quick Ratio of 2.36 indicates that AKAM has no problem at all paying its short term obligations.
  • AKAM has a Quick ratio of 2.36. This is in the better half of the industry: AKAM outperforms 68.18% of its industry peers.
Industry RankSector Rank
Current Ratio 2.36
Quick Ratio 2.36
AKAM Yearly Current Assets VS Current LiabilitesAKAM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

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5

3. AKAM Growth Analysis

3.1 Past

  • AKAM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.20%, which is quite good.
  • Measured over the past 5 years, AKAM shows a small growth in Earnings Per Share. The EPS has been growing by 6.43% on average per year.
  • 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

  • The Earnings Per Share is expected to grow by 9.69% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 7.14% on average over the next years.
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.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
AKAM Yearly Revenue VS EstimatesAKAM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2B 4B 6B
AKAM Yearly EPS VS EstimatesAKAM Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2 4 6 8 10

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4

4. AKAM Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 16.06 indicates a correct valuation of AKAM.
  • 63.64% of the companies in the same industry are more expensive than AKAM, based on the Price/Earnings ratio.
  • AKAM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.88.
  • With a Price/Forward Earnings ratio of 16.40, AKAM is valued correctly.
  • 61.36% of the companies in the same industry are more expensive than AKAM, based on the Price/Forward Earnings ratio.
  • AKAM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 16.06
Fwd PE 16.4
AKAM Price Earnings VS Forward Price EarningsAKAM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, AKAM is valued a bit cheaper than 60.23% of the companies in the same industry.
  • AKAM's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 24.79
EV/EBITDA 14.55
AKAM Per share dataAKAM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

  • AKAM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.5
EPS Next 2Y4.11%
EPS Next 3Y7.39%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. AKAM Dividend Analysis

5.1 Amount

  • No dividends for AKAM!.
Industry RankSector Rank
Dividend Yield 0%

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AKAM Fundamentals: All Metrics, Ratios and Statistics

AKAMAI TECHNOLOGIES INC

NASDAQ:AKAM (3/27/2026, 8:00:20 PM)

After market: 113.575 -0.92 (-0.81%)

114.5

-2.75 (-2.35%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)02-19
Earnings (Next)05-06
Inst Owners102.28%
Inst Owner Change-36.21%
Ins Owners2.04%
Ins Owner Change7.42%
Market Cap16.59B
Revenue(TTM)4.21B
Net Income(TTM)452.03M
Analysts75.15
Price Target111.88 (-2.29%)
Short Float %10.31%
Short Ratio3.53
Dividend
Industry RankSector 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 RankSector Rank
PE 16.06
Fwd PE 16.4
P/S 3.94
P/FCF 24.79
P/OCF 10.92
P/B 3.33
P/tB 14.35
EV/EBITDA 14.55
EPS(TTM)7.13
EY6.23%
EPS(NY)6.98
Fwd EY6.1%
FCF(TTM)4.62
FCFY4.03%
OCF(TTM)10.48
OCFY9.15%
SpS29.04
BVpS34.35
TBVpS7.98
PEG (NY)N/A
PEG (5Y)2.5
Graham Number74.24
Profitability
Industry RankSector 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 RankSector 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 2.67
F-Score5
WACC8.66%
ROIC/WACC0.57
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 Fundamental Analysis 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 16.06 and the Price/Book (PB) ratio is 3.33.


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.