Akamai Technologies, Inc. provides cloud services for securing, delivering, and optimizing content and business applications over the internet in the United States and internationally. More Details
Solid track record and fair value.
Share Price & News
How has Akamai Technologies's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: AKAM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: AKAM's weekly volatility (5%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: AKAM underperformed the US IT industry which returned 66.8% over the past year.
Return vs Market: AKAM underperformed the US Market which returned 57.5% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Akamai Technologies's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 months ago | Simply Wall StThe Returns At Akamai Technologies (NASDAQ:AKAM) Provide Us With Signs Of What's To Come
2 months ago | Simply Wall StThe Akamai Technologies (NASDAQ:AKAM) Share Price Is Up 171% And Shareholders Are Boasting About It
3 months ago | Simply Wall StDeclining Stock and Solid Fundamentals: Is The Market Wrong About Akamai Technologies, Inc. (NASDAQ:AKAM)?
Is Akamai Technologies undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AKAM ($105.83) is trading below our estimate of fair value ($106.41)
Significantly Below Fair Value: AKAM is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: AKAM is good value based on its PE Ratio (30.9x) compared to the US IT industry average (39.1x).
PE vs Market: AKAM is poor value based on its PE Ratio (30.9x) compared to the US market (22.3x).
Price to Earnings Growth Ratio
PEG Ratio: AKAM is poor value based on its PEG Ratio (3x)
Price to Book Ratio
PB vs Industry: AKAM is good value based on its PB Ratio (4.1x) compared to the US IT industry average (5.3x).
How is Akamai Technologies forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AKAM's forecast earnings growth (10.3% per year) is above the savings rate (2%).
Earnings vs Market: AKAM's earnings (10.3% per year) are forecast to grow slower than the US market (18.4% per year).
High Growth Earnings: AKAM's earnings are forecast to grow, but not significantly.
Revenue vs Market: AKAM's revenue (7.1% per year) is forecast to grow slower than the US market (9.4% per year).
High Growth Revenue: AKAM's revenue (7.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: AKAM's Return on Equity is forecast to be low in 3 years time (18.7%).
How has Akamai Technologies performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AKAM has high quality earnings.
Growing Profit Margin: AKAM's current net profit margins (17.4%) are higher than last year (16.5%).
Past Earnings Growth Analysis
Earnings Trend: AKAM's earnings have grown by 14.6% per year over the past 5 years.
Accelerating Growth: AKAM's earnings growth over the past year (16.5%) exceeds its 5-year average (14.6% per year).
Earnings vs Industry: AKAM earnings growth over the past year (16.5%) exceeded the IT industry 8.4%.
Return on Equity
High ROE: AKAM's Return on Equity (13.1%) is considered low.
How is Akamai Technologies's financial position?
Financial Position Analysis
Short Term Liabilities: AKAM's short term assets ($1.9B) exceed its short term liabilities ($758.2M).
Long Term Liabilities: AKAM's short term assets ($1.9B) do not cover its long term liabilities ($2.8B).
Debt to Equity History and Analysis
Debt Level: AKAM's debt to equity ratio (44.9%) is considered high.
Reducing Debt: AKAM's debt to equity ratio has increased from 19.8% to 44.9% over the past 5 years.
Debt Coverage: AKAM's debt is well covered by operating cash flow (63.7%).
Interest Coverage: AKAM's interest payments on its debt are well covered by EBIT (17.5x coverage).
What is Akamai Technologies's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate AKAM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate AKAM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if AKAM's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if AKAM's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of AKAM's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Tom Leighton (63 yo)
Dr. F. Thomson Leighton, also known as Tom, co-founded Akamai Technologies, Inc. in 1998 and has been its Chief Executive Officer since January 1, 2013. Dr. Leighton is Akamai's technology visionary and le...
CEO Compensation Analysis
Compensation vs Market: Tom's total compensation ($USD10.94M) is about average for companies of similar size in the US market ($USD11.02M).
Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.
Experienced Management: AKAM's management team is considered experienced (3 years average tenure).
Experienced Board: AKAM's board of directors are considered experienced (4.7 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: AKAM insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Akamai Technologies, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Akamai Technologies, Inc.
- Ticker: AKAM
- Exchange: NasdaqGS
- Founded: 1998
- Industry: Internet Services and Infrastructure
- Sector: Software
- Market Cap: US$17.217b
- Shares outstanding: 163.22m
- Website: https://www.akamai.com
Number of Employees
- Akamai Technologies, Inc.
- 145 Broadway
- United States
Akamai Technologies, Inc. provides cloud services for securing, delivering, and optimizing content and business applications over the internet in the United States and internationally. The company offers c...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/04/16 22:11|
|End of Day Share Price||2021/04/16 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.