AKAMAI TECHNOLOGIES INC (AKAM) Fundamental Analysis & Valuation
NASDAQ:AKAM • US00971T1016
105.47 USD
-1 (-0.94%)
At close: Mar 12, 2026
105 USD
-0.47 (-0.45%)
Pre-Market: 3/13/2026, 4:23:32 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 an average financial health and profitability rating. AKAM has a correct valuation and a medium growth rate.
1. AKAM Profitability Analysis
1.1 Basic Checks
- AKAM had positive earnings in the past year.
- AKAM had a positive operating cash flow in the past year.
- 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.
1.2 Ratios
- AKAM's Return On Assets of 3.94% is fine compared to the rest of the industry. AKAM outperforms 65.52% of its industry peers.
- AKAM has a better Return On Equity (9.08%) than 64.37% of its industry peers.
- AKAM's Return On Invested Capital of 4.92% is in line compared to the rest of the industry. AKAM outperforms 59.77% of 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.
- The Operating Margin of AKAM (15.26%) is better than 81.61% of its industry peers.
- AKAM's Operating Margin has declined in the last couple of years.
- AKAM has a better Gross Margin (58.95%) than 80.46% of its industry peers.
- In the last couple of years the Gross Margin of AKAM has declined.
| 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.
- The number of shares outstanding for AKAM has been reduced compared to 1 year ago.
- The number of shares outstanding for AKAM has been reduced compared to 5 years ago.
- The debt/assets ratio for AKAM is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.52 indicates that AKAM is not a great score, but indicates only limited risk for bankruptcy at the moment.
- AKAM has a Altman-Z score (2.52) which is comparable to the rest of the industry.
- AKAM has a debt to FCF ratio of 6.13. This is a slightly negative value and a sign of low solvency as AKAM would need 6.13 years to pay back of all of its debts.
- AKAM has a Debt to FCF ratio (6.13) which is in line with its industry peers.
- AKAM has a Debt/Equity ratio of 0.82. This is a neutral value indicating 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
- AKAM has a Current Ratio of 2.36. This indicates that AKAM is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of AKAM (2.36) is better than 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.
- With a decent Quick ratio value of 2.36, AKAM is doing good in the industry, outperforming 67.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.36 | ||
| Quick Ratio | 2.36 |
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.
- 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
- With a Price/Earnings ratio of 14.79, AKAM is valued correctly.
- 68.97% of the companies in the same industry are more expensive than AKAM, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 25.71, AKAM is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 15.10, the valuation of AKAM can be described as correct.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of AKAM indicates a somewhat cheap valuation: AKAM is cheaper than 65.52% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of AKAM to the average of the S&P500 Index (23.82), we can say AKAM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.79 | ||
| Fwd PE | 15.1 |
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 63.22% of the companies listed in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as AKAM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.83 | ||
| 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)2.3
EPS Next 2Y4.11%
EPS Next 3Y7.39%
5. AKAM Dividend Analysis
5.1 Amount
- AKAM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
AKAM Fundamentals: All Metrics, Ratios and Statistics
105.47
-1 (-0.94%)
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 Cap15.28B
Revenue(TTM)4.21B
Net Income(TTM)452.03M
Analysts75.15
Price Target111.88 (6.08%)
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 | 14.79 | ||
| Fwd PE | 15.1 | ||
| P/S | 3.63 | ||
| P/FCF | 22.83 | ||
| P/OCF | 10.06 | ||
| P/B | 3.07 | ||
| P/tB | 13.22 | ||
| EV/EBITDA | 13.29 |
EPS(TTM)7.13
EY6.76%
EPS(NY)6.98
Fwd EY6.62%
FCF(TTM)4.62
FCFY4.38%
OCF(TTM)10.48
OCFY9.94%
SpS29.04
BVpS34.35
TBVpS7.98
PEG (NY)N/A
PEG (5Y)2.3
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 14.79 and the Price/Book (PB) ratio is 3.07.
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.