AKAMAI TECHNOLOGIES INC (AKAM) Stock Fundamental Analysis
USA - NASDAQ:AKAM - US00971T1016 - Common Stock
75.05 USD
+0.44 (+0.59%)
75.0999 USD
+0.05 (+0.07%)
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.
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.
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 Rank | Sector 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%
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 Rank | Sector 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%
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 7.87 | ||
| Altman-Z | 2.21 |
ROIC/WACC0.75
WACC7.98%
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.31 | ||
| Quick Ratio | 2.31 |
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.24 | ||
| Fwd PE | 10.43 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.66 | ||
| EV/EBITDA | 10.07 |
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%
5. Dividend
5.1 Amount
No dividends for AKAM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
75.05
+0.44 (+0.59%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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.