Akamai Technologies, Inc. provides cloud services for delivering, optimizing, and securing content and business applications over the Internet in the United States and internationally.
Solid track record with mediocre balance sheet.
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 has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: AKAM exceeded the US IT industry which returned 37.2% over the past year.
Return vs Market: AKAM exceeded the US Market which returned 20.1% over the past year.
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
3 days ago | Simply Wall StAkamai Technologies, Inc. Analysts Are Pretty Bullish On The Stock After Recent Results
1 week ago | Simply Wall StIntroducing Akamai Technologies (NASDAQ:AKAM), A Stock That Climbed 54% In The Last Five Years
3 weeks ago | Simply Wall StCan Akamai Technologies, Inc. (NASDAQ:AKAM) Improve Its Returns?
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 ($99.67) is trading below our estimate of fair value ($118.4)
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 poor value based on its PE Ratio (33.9x) compared to the IT industry average (33.1x).
PE vs Market: AKAM is poor value based on its PE Ratio (33.9x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: AKAM is poor value based on its PEG Ratio (3.8x)
Price to Book Ratio
PB vs Industry: AKAM is overvalued based on its PB Ratio (4.4x) compared to the US IT industry average (4.3x).
How is Akamai Technologies forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AKAM's forecast earnings growth (9% per year) is above the savings rate (1.7%).
Earnings vs Market: AKAM's earnings (9% per year) are forecast to grow slower than the US market (14.5% per year).
High Growth Earnings: AKAM's earnings are forecast to grow, but not significantly.
Revenue vs Market: AKAM's revenue (7.2% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: AKAM's revenue (7.2% 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 high in 3 years time (20.7%)
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 (16.5%) are higher than last year (11%).
Past Earnings Growth Analysis
Earnings Trend: AKAM's earnings have grown by 2.7% per year over the past 5 years.
Accelerating Growth: AKAM's earnings growth over the past year (60.2%) exceeds its 5-year average (2.7% per year).
Earnings vs Industry: AKAM earnings growth over the past year (60.2%) exceeded the IT industry 12%.
Return on Equity
High ROE: AKAM's Return on Equity (13.1%) is considered low.
Return on Assets
Return on Capital Employed
How is Akamai Technologies's financial position?
Financial Position Analysis
Short Term Liabilities: AKAM's short term assets ($2.2B) exceed its short term liabilities ($693.3M).
Long Term Liabilities: AKAM's short term assets ($2.2B) do not cover its long term liabilities ($2.7B).
Debt to Equity History and Analysis
Debt Level: AKAM's debt to equity ratio (50.3%) is considered high.
Reducing Debt: AKAM's debt to equity ratio has increased from 20.5% to 50.3% over the past 5 years.
Debt Coverage: AKAM's debt is well covered by operating cash flow (57.5%).
Interest Coverage: AKAM's interest payments on its debt are well covered by EBIT (38.2x coverage).
Inventory Level: AKAM has a high level of physical assets or inventory.
Debt Coverage by Assets: AKAM's debt is covered by short term assets (assets are 1.2x debt).
What is Akamai Technologies's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate AKAM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate AKAM's dividend yield against the top 25% of dividend payers, as the company has not reported any 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 (62yo)
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 ($USD11.35M) is about average for companies of similar size in the US market ($USD10.81M).
Compensation vs Earnings: Tom's compensation has increased by more than 20% in the past year.
|President & GM of Web Division||3.8yrs||US$5.82m||0.018% $2.8m|
|Executive VP of Platform & GM of Enterprise Division||12.1yrs||US$4.12m||0.012% $2.0m|
|Executive VP and GM of Media & Carrier Divisions||2.9yrs||US$3.29m||0.0096% $1.5m|
|Executive VP & CFO||0.9yrs||no data||0.0082% $1.3m|
|Senior Vice President of Global Performance & Operations||1.1yrs||no data||no data|
|Executive VP of Global Services & Support and Chief Information Officer||1.3yrs||no data||no data|
|Head of Investor Relations||6.4yrs||no data||no data|
|Executive VP||2.3yrs||no data||0.0025% $409.1k|
|Senior Vice President of Global Marketing & Corporate Communications||0.3yrs||no data||no data|
Experienced Management: AKAM's management team is considered experienced (2.6 years average tenure).
|Independent Director||6.3yrs||US$324.95k||no data|
|Independent Director||6.7yrs||US$299.96k||0.012% $1.9m|
|Independent Director||4.6yrs||US$299.96k||0.011% $1.8m|
|Independent Chairman of the Board||1.9yrs||US$359.98k||0.011% $1.8m|
|Independent Director||3.5yrs||US$299.96k||0.0048% $766.7k|
|Independent Director||1.8yrs||US$224.96k||0.0030% $481.6k|
|Independent Director||12.3yrs||US$309.98k||0.024% $3.8m|
|Director||0.7yrs||no data||no data|
|Independent Director||1.9yrs||US$224.96k||0.0030% $481.6k|
Experienced Board: AKAM's board of directors are considered experienced (4 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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$16.107b
- Shares outstanding: 161.60m
- Website: https://www.akamai.com
Number of Employees
- Akamai Technologies, Inc.
- Kendall Square
- 145 Broadway
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|AKAM||NasdaqGS (Nasdaq Global Select)||Yes||Common Shares||US||USD||Oct 1999|
|AK3||DB (Deutsche Boerse AG)||Yes||Common Shares||DE||EUR||Oct 1999|
|AK3||XTRA (XETRA Trading Platform)||Yes||Common Shares||DE||EUR||Oct 1999|
|AKAM||WBAG (Wiener Boerse AG)||Yes||Common Shares||AT||EUR||Oct 1999|
|0HBQ||LSE (London Stock Exchange)||Yes||Common Shares||GB||USD||Oct 1999|
|AK3||ETLX (Eurotlx)||Yes||Common Shares||IT||EUR||Oct 1999|
|A1KA34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 2 REPR 1 SHS UNSPON||BR||BRL||Jan 2020|
Akamai Technologies, Inc. provides cloud services for delivering, optimizing, and securing content and business applications over the Internet in the United States and internationally. It provides cloud security solutions, including Web Application Protector to safeguard Web assets from Web application and distributed denial of service; Kona Site Defender, a cloud security solution; Bot Manager to identify bots and categorize bots based on business or IT impact; Fast DNS, which translates human-readable domain names into numerical IP addresses; Prolexic Routed to protect Web- and IP-based applications; and Client Reputation that assigns risk scores to malicious IP address and enables customers to take action on individual clients. The company also offers enterprise security solutions, including Enterprise Application Access that enables remote access to applications; and Enterprise Threat Protector to enable enterprise security teams to identify, block, and mitigate targeted attacks. In addition, the company provides Web and mobile performance solutions, such as Ion, a suite of intelligent performance optimization tools and controls; Dynamic Site Accelerator to accelerate and secure interactive Websites; Image Manager that automatically optimizes online images; CloudTest to conduct load testing and other analysis of Websites in a pre-production environment; and mPulse that provides real-time Website performance data to provide insight about end-user experiences on a Website. Further, it provides carrier solutions, including Aura Managed CDN, intelligent recursive DNS platforms, and security and personalization services; and media delivery solutions, such as adaptive delivery, download delivery, media services live, and media analytics, as well as NetStorage, a cloud storage solution. The company sells its solutions through direct sales and service organization; and channel partners. The company was founded in 1998 and is headquartered in Cambridge, Massachusetts.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/16 23:43|
|End of Day Share Price||2020/02/14 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.