85.36 USD
-1.89 (-2.17%)
AKAM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 88 industry peers in the IT Services industry. AKAM has an average financial health and profitability rating. AKAM is not valued too expensively and it also shows a decent 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.
Each year in the past 5 years AKAM has been profitable.
AKAM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of AKAM (4.68%) is better than 68.18% of its industry peers.
The Return On Equity of AKAM (10.71%) is better than 68.18% of its industry peers.
AKAM's Return On Invested Capital of 5.75% is fine compared to the rest of the industry. AKAM outperforms 61.36% of its industry peers.
AKAM had an Average Return On Invested Capital over the past 3 years of 7.45%. This is significantly below the industry average of 29.60%.
| 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 85.23% of its industry peers.
AKAM's Profit Margin has declined in the last couple of years.
AKAM's Operating Margin of 16.21% is amongst the best of the industry. AKAM outperforms 85.23% of its industry peers.
AKAM's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 59.13%, AKAM belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
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.
Compared to 1 year ago, AKAM has less shares outstanding
Compared to 5 years ago, AKAM has less shares outstanding
AKAM has a better debt/assets ratio than last year.
2.2 Solvency
AKAM has an Altman-Z score of 2.39. 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 (2.39) which is comparable to the rest of the industry.
The Debt to FCF ratio of AKAM is 7.32, which is on the high side as it means it would take AKAM, 7.32 years of fcf income to pay off all of its debts.
AKAM's Debt to FCF ratio of 7.32 is in line compared to the rest of the industry. AKAM outperforms 50.00% of its industry peers.
A Debt/Equity ratio of 0.87 indicates that AKAM is somewhat dependend on debt financing.
The Debt to Equity ratio of AKAM (0.87) is worse than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 7.32 | ||
| Altman-Z | 2.39 |
ROIC/WACC0.72
WACC8.04%
2.3 Liquidity
AKAM has a Current Ratio of 2.28. 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 2.28, AKAM is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
AKAM has a Quick Ratio of 2.28. This indicates that AKAM is financially healthy and has no problem in meeting its short term obligations.
AKAM's Quick ratio of 2.28 is fine compared to the rest of the industry. AKAM outperforms 69.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.28 | ||
| Quick Ratio | 2.28 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.92% over the past year.
The Earnings Per Share has been growing slightly by 7.53% on average over the past years.
Looking at the last year, AKAM shows a small growth in Revenue. The Revenue has grown by 4.21% in the last year.
AKAM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.64% yearly.
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
AKAM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.80% yearly.
AKAM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.80% yearly.
EPS Next Y10.96%
EPS Next 2Y7.3%
EPS Next 3Y8.37%
EPS Next 5Y8.8%
Revenue Next Year5.12%
Revenue Next 2Y5.21%
Revenue Next 3Y5.71%
Revenue Next 5Y6.8%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
AKAM is valuated correctly with a Price/Earnings ratio of 12.28.
AKAM's Price/Earnings ratio is rather cheap when compared to the industry. AKAM is cheaper than 84.09% of the companies in the same industry.
AKAM is valuated cheaply when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.46, the valuation of AKAM can be described as reasonable.
AKAM's Price/Forward Earnings ratio is rather cheap when compared to the industry. AKAM is cheaper than 81.82% of the companies in the same industry.
AKAM is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.28 | ||
| Fwd PE | 11.46 |
4.2 Price Multiples
76.14% of the companies in the same industry are more expensive than AKAM, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as AKAM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.91 | ||
| EV/EBITDA | 11.25 |
4.3 Compensation for Growth
AKAM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of AKAM may justify a higher PE ratio.
PEG (NY)1.12
PEG (5Y)1.63
EPS Next 2Y7.3%
EPS Next 3Y8.37%
5. Dividend
5.1 Amount
AKAM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NASDAQ:AKAM (1/2/2026, 11:01:04 AM)
85.36
-1.89 (-2.17%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners100.42%
Inst Owner Change45.7%
Ins Owners2.01%
Ins Owner Change-1.9%
Market Cap12.28B
Revenue(TTM)4.13B
Net Income(TTM)506.86M
Analysts73.13
Price Target101.06 (18.39%)
Short Float %8.54%
Short Ratio3.88
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)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)2.74%
PT rev (3m)2.42%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.39%
EPS NY rev (1m)4.86%
EPS NY rev (3m)4.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.46%
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.28 | ||
| Fwd PE | 11.46 | ||
| P/S | 2.97 | ||
| P/FCF | 21.91 | ||
| P/OCF | 8.21 | ||
| P/B | 2.6 | ||
| P/tB | 13.43 | ||
| EV/EBITDA | 11.25 |
EPS(TTM)6.95
EY8.14%
EPS(NY)7.45
Fwd EY8.73%
FCF(TTM)3.9
FCFY4.56%
OCF(TTM)10.4
OCFY12.18%
SpS28.73
BVpS32.89
TBVpS6.36
PEG (NY)1.12
PEG (5Y)1.63
Graham Number71.72
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 | 2.39 |
F-Score5
WACC8.04%
ROIC/WACC0.72
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 Y10.96%
EPS Next 2Y7.3%
EPS Next 3Y8.37%
EPS Next 5Y8.8%
Revenue 1Y (TTM)4.21%
Revenue growth 3Y4.86%
Revenue growth 5Y6.64%
Sales Q2Q%4.97%
Revenue Next Year5.12%
Revenue Next 2Y5.21%
Revenue Next 3Y5.71%
Revenue Next 5Y6.8%
EBIT growth 1Y-7.32%
EBIT growth 3Y-4.52%
EBIT growth 5Y3.99%
EBIT Next Year56.89%
EBIT Next 3Y21.56%
EBIT Next 5Y18.73%
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.
Can you provide the valuation status for AKAMAI TECHNOLOGIES INC?
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.
What are the PE and PB ratios of AKAMAI TECHNOLOGIES INC (AKAM) stock?
The Price/Earnings (PE) ratio for AKAMAI TECHNOLOGIES INC (AKAM) is 12.28 and the Price/Book (PB) ratio is 2.6.
Can you provide the expected EPS growth for AKAM stock?
The Earnings per Share (EPS) of AKAMAI TECHNOLOGIES INC (AKAM) is expected to grow by 10.96% in the next year.