88.42 USD
-0.4 (-0.45%)
88.42 USD
0 (0%)
Taking everything into account, AKAM scores 5 out of 10 in our fundamental rating. AKAM was compared to 88 industry peers in the IT Services industry. AKAM has only an average score on both its financial health and profitability. 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.
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.
AKAM's Return On Equity of 10.71% is fine compared to the rest of the industry. AKAM outperforms 68.18% of its industry peers.
AKAM has a Return On Invested Capital of 5.75%. This is in the better half of the industry: AKAM outperforms 61.36% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AKAM 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 Profit Margin of 12.26%. This is amongst the best in the industry. AKAM outperforms 85.23% of its industry peers.
In the last couple of years the Profit Margin of AKAM has declined.
The Operating Margin of AKAM (16.21%) is better than 85.23% of its industry peers.
In the last couple of years the Operating Margin of AKAM has declined.
AKAM has a Gross Margin of 59.13%. This is amongst the best in the industry. AKAM outperforms 80.68% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
AKAM has a better debt/assets ratio than last year.
2.2 Solvency
AKAM has an Altman-Z score of 2.40. 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 (2.40) which is in line with its industry peers.
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 has a Debt to FCF ratio (7.32) which is in line with its industry peers.
AKAM has a Debt/Equity ratio of 0.87. This is a neutral value indicating AKAM is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.87, AKAM is not doing good in the industry: 64.77% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 7.32 | ||
| Altman-Z | 2.4 |
ROIC/WACC0.71
WACC8.09%
2.3 Liquidity
A Current Ratio of 2.28 indicates that AKAM has no problem at all paying its short term obligations.
AKAM's Current ratio of 2.28 is fine compared to the rest of the industry. AKAM outperforms 68.18% of its industry peers.
A Quick Ratio of 2.28 indicates that AKAM has no problem at all paying its short term obligations.
AKAM has a better Quick ratio (2.28) than 69.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.28 | ||
| Quick Ratio | 2.28 |
3. Growth
3.1 Past
AKAM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.92%.
Measured over the past 5 years, AKAM shows a small growth in Earnings Per Share. The EPS has been growing by 7.53% on average per year.
AKAM shows a small growth in Revenue. In the last year, the Revenue has grown by 4.21%.
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)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.
The Revenue is expected to grow by 6.80% on average over the next years.
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.
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
AKAM is valuated correctly with a Price/Earnings ratio of 12.72.
Compared to the rest of the industry, the Price/Earnings ratio of AKAM indicates a rather cheap valuation: AKAM is cheaper than 84.09% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.92, AKAM is valued rather cheaply.
A Price/Forward Earnings ratio of 11.87 indicates a reasonable valuation of AKAM.
82.95% of the companies in the same industry are more expensive than AKAM, based on the Price/Forward Earnings ratio.
AKAM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.72 | ||
| Fwd PE | 11.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AKAM is valued a bit cheaper than 76.14% of the companies in the same industry.
AKAM's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.7 | ||
| EV/EBITDA | 11.38 |
4.3 Compensation for Growth
AKAM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
AKAM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.16
PEG (5Y)1.69
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% |
88.42
-0.4 (-0.45%)
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 Cap12.72B
Revenue(TTM)4.13B
Net Income(TTM)506.86M
Analysts73.13
Price Target101.06 (14.3%)
Short Float %8.48%
Short Ratio4.01
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 | 12.72 | ||
| Fwd PE | 11.87 | ||
| P/S | 3.08 | ||
| P/FCF | 22.7 | ||
| P/OCF | 8.5 | ||
| P/B | 2.69 | ||
| P/tB | 13.91 | ||
| EV/EBITDA | 11.38 |
EPS(TTM)6.95
EY7.86%
EPS(NY)7.45
Fwd EY8.42%
FCF(TTM)3.9
FCFY4.41%
OCF(TTM)10.4
OCFY11.76%
SpS28.73
BVpS32.89
TBVpS6.36
PEG (NY)1.16
PEG (5Y)1.69
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 | 2.4 |
F-Score5
WACC8.09%
ROIC/WACC0.71
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.
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.