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Akamai Technologies

Nasdaq:AKAM
Snowflake Description

Adequate balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
AKAM
Nasdaq
$12B
Market Cap
  1. Home
  2. US
  3. Software
Company description

Akamai Technologies, Inc. provides cloud services for delivering, optimizing, and securing content and business applications over the Internet in the United States and internationally. The last earnings update was 18 days ago. More info.


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AKAM Share Price and Events
7 Day Returns
0.4%
NasdaqGS:AKAM
3%
US IT
2.4%
US Market
1 Year Returns
-0.4%
NasdaqGS:AKAM
15.5%
US IT
1.9%
US Market
AKAM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Akamai Technologies (AKAM) 0.4% 3% 12.2% -0.4% 28.3% 21.2%
US IT 3% 4.7% 19.4% 15.5% 79.7% 94.9%
US Market 2.4% 1.7% 11.9% 1.9% 38.2% 42.4%
1 Year Return vs Industry and Market
  • AKAM underperformed the IT industry which returned 15.5% over the past year.
  • AKAM underperformed the Market in United States of America which returned 1.9% over the past year.
Price Volatility
AKAM
Industry
5yr Volatility vs Market
Related Companies

AKAM Value

 Is Akamai Technologies undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Akamai Technologies to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our intrinsic value calculation method has changed recently, learn more here.

Below are the data sources, inputs and calculation used to determine the intrinsic value for Akamai Technologies.

NasdaqGS:AKAM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 21 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.4%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:AKAM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
IT Unlevered Beta Simply Wall St/ S&P Global 1.06
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.063 (1 + (1- 21%) (13.24%))
1.117
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.12
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.117 * 5.96%)
9.39%

Discounted Cash Flow Calculation for NasdaqGS:AKAM using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Akamai Technologies is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:AKAM DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.39%)
2019 531.91 Analyst x11 486.26
2020 672.49 Analyst x12 562.02
2021 808.91 Analyst x2 618.01
2022 853.55 Analyst x2 596.15
2023 937.58 Analyst x2 598.64
2024 1,006.87 Est @ 7.39% 587.71
2025 1,067.21 Est @ 5.99% 569.47
2026 1,120.72 Est @ 5.01% 546.70
2027 1,169.24 Est @ 4.33% 521.42
2028 1,214.24 Est @ 3.85% 495.02
Present value of next 10 years cash flows $5,581.40
NasdaqGS:AKAM DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $1,214.24 × (1 + 2.73%) ÷ (9.39% – 2.73%)
$18,736.17
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $18,736.17 ÷ (1 + 9.39%)10
$7,638.32
NasdaqGS:AKAM Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $5,581.40 + $7,638.32
$13,219.72
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $13,219.72 / 163.21
$81
NasdaqGS:AKAM Discount to Share Price
Calculation Result
Value per share (USD) From above. $81.00
Current discount Discount to share price of $72.21
= -1 x ($72.21 - $81.00) / $81.00
10.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Akamai Technologies is available for.
Intrinsic value
11%
Share price is $72.21 vs Future cash flow value of $81
Current Discount Checks
For Akamai Technologies to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Akamai Technologies's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Akamai Technologies's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Akamai Technologies's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Akamai Technologies's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:AKAM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $1.78
NasdaqGS:AKAM Share Price ** NasdaqGS (2019-03-18) in USD $72.21
United States of America IT Industry PE Ratio Median Figure of 78 Publicly-Listed IT Companies 30.16x
United States of America Market PE Ratio Median Figure of 3,055 Publicly-Listed Companies 17.61x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Akamai Technologies.

NasdaqGS:AKAM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:AKAM Share Price ÷ EPS (both in USD)

= 72.21 ÷ 1.78

40.49x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Akamai Technologies is overvalued based on earnings compared to the US IT industry average.
  • Akamai Technologies is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Akamai Technologies's expected growth come at a high price?
Raw Data
NasdaqGS:AKAM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 40.49x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts
15.9%per year
United States of America IT Industry PEG Ratio Median Figure of 64 Publicly-Listed IT Companies 2.43x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

NasdaqGS:AKAM PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 40.49x ÷ 15.9%

2.54x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Akamai Technologies is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Akamai Technologies's assets?
Raw Data
NasdaqGS:AKAM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $19.59
NasdaqGS:AKAM Share Price * NasdaqGS (2019-03-18) in USD $72.21
United States of America IT Industry PB Ratio Median Figure of 122 Publicly-Listed IT Companies 4.33x
United States of America Market PB Ratio Median Figure of 5,152 Publicly-Listed Companies 1.87x
NasdaqGS:AKAM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:AKAM Share Price ÷ Book Value per Share (both in USD)

= 72.21 ÷ 19.59

3.69x

* Primary Listing of Akamai Technologies.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Akamai Technologies is good value based on assets compared to the US IT industry average.
X
Value checks
We assess Akamai Technologies's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. Akamai Technologies has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

AKAM Future Performance

 How is Akamai Technologies expected to perform in the next 1 to 3 years based on estimates from 21 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
15.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Akamai Technologies expected to grow at an attractive rate?
  • Akamai Technologies's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Akamai Technologies's earnings growth is expected to exceed the United States of America market average.
  • Akamai Technologies's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:AKAM Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:AKAM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts 15.9%
NasdaqGS:AKAM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 21 Analysts 6.2%
United States of America IT Industry Earnings Growth Rate Market Cap Weighted Average 15.7%
United States of America IT Industry Revenue Growth Rate Market Cap Weighted Average 9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:AKAM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:AKAM Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 3,810 1,535 682 2
2022-12-31 3,535 1,407 620 2
2021-12-31 3,269 1,324 544 6
2020-12-31 3,050 1,176 492 21
2019-12-31 2,843 1,068 412 21
NasdaqGS:AKAM Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 2,714 1,008 298
2018-09-30 2,674 920 227
2018-06-30 2,628 845 184
2018-03-31 2,571 850 197
2017-12-31 2,489 801 223
2017-09-30 2,447 788 287
2017-06-30 2,406 803 299
2017-03-31 2,373 823 316
2016-12-31 2,348 872 321
2016-09-30 2,303 905 313
2016-06-30 2,270 836 325
2016-03-31 2,239 856 319

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Akamai Technologies's earnings are expected to grow by 15.9% yearly, however this is not considered high growth (20% yearly).
  • Akamai Technologies's revenue is expected to grow by 6.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:AKAM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below

All data from Akamai Technologies Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:AKAM Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 4.60 5.02 4.17 2.00
2022-12-31 4.06 4.35 3.77 2.00
2021-12-31 3.47 3.80 3.29 4.00
2020-12-31 3.03 3.37 2.31 14.00
2019-12-31 2.51 2.73 2.07 14.00
NasdaqGS:AKAM Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 1.78
2018-09-30 1.35
2018-06-30 1.08
2018-03-31 1.16
2017-12-31 1.30
2017-09-30 1.66
2017-06-30 1.72
2017-03-31 1.81
2016-12-31 1.83
2016-09-30 1.78
2016-06-30 1.84
2016-03-31 1.79

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Akamai Technologies is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Akamai Technologies's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Akamai Technologies has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

AKAM Past Performance

  How has Akamai Technologies performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Akamai Technologies's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Akamai Technologies's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Akamai Technologies's 1-year earnings growth exceeds its 5-year average (33.9% vs -6.2%)
  • Akamai Technologies's earnings growth has exceeded the US IT industry average in the past year (33.9% vs 15.3%).
Earnings and Revenue History
Akamai Technologies's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Akamai Technologies Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:AKAM Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 2,714.47 298.37 1,048.82 246.17
2018-09-30 2,673.54 227.43 1,041.91 245.50
2018-06-30 2,628.35 183.76 1,039.99 241.67
2018-03-31 2,571.43 197.45 1,027.01 235.34
2017-12-31 2,489.04 222.77 985.31 222.43
2017-09-30 2,446.69 286.89 952.29 209.52
2017-06-30 2,406.31 298.97 927.48 194.63
2017-03-31 2,372.62 315.86 899.71 178.95
2016-12-31 2,347.99 320.73 875.77 167.63
2016-09-30 2,303.08 312.91 848.57 158.55
2016-06-30 2,270.05 324.95 839.67 154.60
2016-03-31 2,238.64 318.52 839.60 153.61
2015-12-31 2,197.45 321.41 827.50 148.59
2015-09-30 2,154.58 330.09 805.45 143.33
2015-06-30 2,101.60 333.21 776.86 137.52
2015-03-31 2,036.91 338.89 739.19 132.88
2014-12-31 1,963.87 333.95 700.97 125.29
2014-09-30 1,863.56 317.19 657.49 119.39
2014-06-30 1,761.31 305.79 612.50 111.66
2014-03-31 1,663.38 294.80 569.85 100.21
2013-12-31 1,577.92 293.49 532.50 93.88
2013-09-30 1,519.81 281.43 496.94 87.73
2013-06-30 1,469.35 249.91 469.73 82.22
2013-03-31 1,422.55 232.25 449.21 79.17
2012-12-31 1,373.95 203.99 427.66 74.74
2012-09-30 1,319.82 195.78 428.87 69.56
2012-06-30 1,256.35 189.83 428.31 63.76
2012-03-31 1,202.03 193.51 417.40 57.22

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Akamai Technologies has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Akamai Technologies used its assets more efficiently than the US IT industry average last year based on Return on Assets.
  • Akamai Technologies's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Akamai Technologies's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Akamai Technologies has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

AKAM Health

 How is Akamai Technologies's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Akamai Technologies's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Akamai Technologies is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Akamai Technologies's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Akamai Technologies's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Akamai Technologies Company Filings, last reported 2 months ago.

NasdaqGS:AKAM Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 3,191.86 1,560.63 1,892.11
2018-09-30 3,155.53 1,545.24 1,801.64
2018-06-30 3,445.28 1,530.01 1,856.97
2018-03-31 3,386.26 668.75 811.55
2017-12-31 3,362.47 662.91 711.94
2017-09-30 3,272.66 657.13 752.00
2017-06-30 3,287.17 651.40 683.12
2017-03-31 3,258.55 645.72 845.07
2016-12-31 3,224.37 640.09 837.02
2016-09-30 3,168.93 634.50 911.22
2016-06-30 3,150.47 628.97 868.71
2016-03-31 3,113.58 623.49 837.87
2015-12-31 3,120.88 618.05 749.56
2015-09-30 3,085.66 619.37 667.85
2015-06-30 3,045.31 614.48 643.50
2015-03-31 2,981.68 609.65 713.29
2014-12-31 2,945.34 604.85 758.29
2014-09-30 2,848.38 600.10 710.91
2014-06-30 2,772.74 595.39 756.77
2014-03-31 2,712.15 590.71 698.13
2013-12-31 2,629.43 0.00 673.90
2013-09-30 2,543.13 0.00 566.32
2013-06-30 2,447.87 0.00 530.72
2013-03-31 2,384.78 0.00 513.01
2012-12-31 2,345.75 0.00 437.58
2012-09-30 2,259.94 0.00 465.18
2012-06-30 2,214.63 0.00 496.51
2012-03-31 2,201.19 0.00 404.49
  • Akamai Technologies's level of debt (48.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0.2% vs 48.9% today).
  • Debt is well covered by operating cash flow (64.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 26.6x coverage).
X
Financial health checks
We assess Akamai Technologies's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Akamai Technologies has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

AKAM Dividends

 What is Akamai Technologies's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Akamai Technologies dividends. Estimated to be 0% next year.
If you bought $2,000 of Akamai Technologies shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Akamai Technologies's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Akamai Technologies's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:AKAM Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below
United States of America IT Industry Average Dividend Yield Market Cap Weighted Average of 33 Stocks 1.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2004 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:AKAM Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 1.00
2020-12-31 0.00 1.00
2019-12-31 0.00 1.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Akamai Technologies has not reported any payouts.
  • Unable to verify if Akamai Technologies's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Akamai Technologies's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Akamai Technologies has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Akamai Technologies's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Akamai Technologies's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Akamai Technologies afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Akamai Technologies has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

AKAM Management

 What is the CEO of Akamai Technologies's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Tom Leighton
COMPENSATION $9,202,921
AGE 61
TENURE AS CEO 6.2 years
CEO Bio

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 leads the senior management team in setting its strategic direction, while engaging directly with customers and partners from around the globe. He is a Co-Founder of Akamai Technologies Spain S.L.U. (a subsidiary of Akamai Technologies, Inc.) and serves as its Chief Executive Officer. He has been a Professor of Applied Mathematics at The Massachusetts Institute of Technology, or MIT, since 1982 and has served as the Head of the Algorithms Group in MIT’s Laboratory for Computer Science since its inception in 1996. He is a renowned expert on parallel algorithms and architecture was head of the Algorithms Group at MIT's Laboratory for Computer Science. He served as the Chief Scientist of Akamai Technologies, Inc., from August 1998 to January 1, 2013. He was a Member of the Computer Science and Artificial Intelligence Laboratory (CSAIL). He is a former Two-Term Chair of the 2,000-member Association of Computing Machinery Special Interest Group on Algorithms and Complexity Theory and a former two-term Editor-in-Chief of the Journal of the Association for Computing Machinery, one of the nation’s premier journals for computer science research. From 2003 to 2005, he served on the President's Information Technology Advisory Committee (PITAC), during which time he chaired the Subcommittee on Cybersecurity. He is a Fellow of the American Academy of Arts and Sciences, the National Academy of Engineering and the National Academy of Sciences. He holds numerous patents involving content delivery, Internet protocols, algorithms for networks, cryptography and digital rights management. During the course of his career, he has served on dozens of government, industrial and academic review committees; program committees; and editorial boards. He has been a Director of Akamai Technologies, Inc., since August 1998. He serves as a Trustee at Mathematical Sciences Research Institute. He serves as a Member of the Advisory Board at ForeScout Technologies, Inc. He has published more than 100 research papers and his leading text on parallel algorithms and architectures has been translated into several languages. He graduated summa cum laude from Princeton University with a B.S., in Engineering. Dr. Leighton received his Ph.D. in Mathematics from MIT.

CEO Compensation
  • Tom's compensation has increased by more than 20% in the past year.
  • Tom's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Akamai Technologies management team in years:

3.3
Average Tenure
52.5
Average Age
  • The tenure for the Akamai Technologies management team is about average.
Management Team

Tom Leighton

TITLE
Co-Founder
COMPENSATION
$9M
AGE
61
TENURE
6.2 yrs

Rick McConnell

TITLE
President & GM of Web Division
COMPENSATION
$5M
AGE
52
TENURE
2.8 yrs

Bobby Blumofe

TITLE
Executive VP of Platform & GM of Enterprise Division
COMPENSATION
$3M
AGE
53
TENURE
11.2 yrs

Bill Wheaton

TITLE
Executive VP & Chief Strategy Officer
COMPENSATION
$3M
AGE
56
TENURE
3.7 yrs

Jim Benson

TITLE
Executive Advisor
COMPENSATION
$3M
AGE
51

Ed McGowan

TITLE
Executive VP & CFO

Keith Oslakovic

TITLE
Senior Vice President of Global Performance & Operations
TENURE
0.2 yrs

Mani Sundaram

TITLE
Executive VP of Global Services & Support and Chief Information Officer
TENURE
0.3 yrs

Tom Barth

TITLE
Head of Investor Relations
TENURE
5.5 yrs

Aaron Ahola

TITLE
Senior VP
AGE
48
TENURE
1.4 yrs
Board of Directors Tenure

Average tenure and age of the Akamai Technologies board of directors in years:

6.8
Average Tenure
61.5
Average Age
  • The tenure for the Akamai Technologies board of directors is about average.
Board of Directors

Fred Salerno

TITLE
Chairman of the Board
COMPENSATION
$340K
AGE
74
TENURE
1 yrs

Tom Leighton

TITLE
Co-Founder
COMPENSATION
$9M
AGE
61
TENURE
20.6 yrs

Jill Greenthal

TITLE
Director
COMPENSATION
$310K
AGE
61
TENURE
11.4 yrs

Pam Craig

TITLE
Director
COMPENSATION
$325K
AGE
61
TENURE
7.9 yrs

Ben Verwaayen

TITLE
Director
COMPENSATION
$325K
AGE
66
TENURE
5.3 yrs

Paul Sagan

TITLE
Director
COMPENSATION
$300K
AGE
59
TENURE
14.2 yrs

Naomi Seligman

TITLE
Director
COMPENSATION
$300K
AGE
80
TENURE
17.3 yrs

Monte Ford

TITLE
Director
COMPENSATION
$300K
AGE
58
TENURE
5.8 yrs

Jon Miller

TITLE
Director
COMPENSATION
$300K
AGE
62
TENURE
3.7 yrs

Dan Hesse

TITLE
Director
COMPENSATION
$300K
AGE
64
TENURE
2.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
09. Nov 18 Sell Paul Sagan Individual 09. Nov 18 09. Nov 18 -55,500 $70.46 $-3,910,530
02. Nov 18 Buy Elliott Management Corporation Company 03. Oct 18 22. Oct 18 1,300,000 $69.94 $85,104,979
08. Aug 18 Sell Naomi Seligman Individual 06. Aug 18 06. Aug 18 -6,023 $74.54 $-448,954
X
Management checks
We assess Akamai Technologies's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Akamai Technologies has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

AKAM News

Simply Wall St News

Read This Before Judging Akamai Technologies, Inc.'s (NASDAQ:AKAM) ROE

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … To keep the lesson grounded in practicality, we'll use ROE to better understand Akamai Technologies, Inc. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.093 in profit.

Simply Wall St -

Despite Its High P/E Ratio, Is Akamai Technologies, Inc. (NASDAQ:AKAM) Still Undervalued?

We'll show how you can use Akamai Technologies, Inc.'s (NASDAQ:AKAM) P/E ratio to inform your assessment of the investment opportunity. … Akamai Technologies has a price to earnings ratio of 39.41, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

What You Need To Know About Akamai Technologies, Inc.’s (NASDAQ:AKAM) Cash Situation

What is left after investment, determines the value of the stock since this cash flow technically belongs to investors of the company. … I will take you through Akamai Technologies’s cash flow health and the risk-return concept based on the stock’s cash flow yield, using the most recent financial data. … Akamai Technologies generates cash through its day-to-day business, which needs to be reinvested into the company in order for it to continue operating

Simply Wall St -

With 37% Earnings Growth, Did Akamai Technologies, Inc. (NASDAQ:AKAM) Outperform The Industry?

In this article, I will take a look at Akamai Technologies, Inc.'s (NASDAQ:AKAM) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers. … How AKAM fared against its long-term earnings performance and its industry. … Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -6.2%, indicating the rate at which AKAM is growing has accelerated

Simply Wall St -

How Do Analysts See Akamai Technologies, Inc. (NASDAQ:AKAM) Performing In The Year Ahead?

Help shape the future of investing tools and you could win a $250 gift card! … Based on Akamai Technologies, Inc.'s (NASDAQ:AKAM) earnings update in September 2018, … the consensus outlook from analysts appear highly confident,

Simply Wall St -

What You Must Know About Akamai Technologies, Inc.'s (NASDAQ:AKAM) Financial Strength

Investors seeking to preserve capital in a volatile environment might consider large-cap stocks such as Akamai Technologies, Inc. … Let’s take a look at Akamai Technologies’s leverage and assess its financial strength to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis

Simply Wall St -

Why You Should Care About Akamai Technologies, Inc.’s (NASDAQ:AKAM) Low Return On Capital

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Return On Capital Employed (ROCE): What is it? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Read This Before Buying Akamai Technologies, Inc. (NASDAQ:AKAM) Shares

Akamai Technologies Insider Transactions Over The Last Year. … That means that an insider was selling shares at around the current price of US$59.80. … In total, Akamai Technologies insiders sold more than they bought over the last year.

Simply Wall St -

Should You Worry About Akamai Technologies Inc's (NASDAQ:AKAM) CEO Pay Cheque?

This analysis aims first to contrast CEO compensation with other large companies. … According to our data, Akamai Technologies Inc has a market capitalization of US$11b, and pays its CEO total annual compensation worth US$9.2m. … While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.0.

Simply Wall St -

With A 7.2% Return On Equity, Is Akamai Technologies Inc (NASDAQ:AKAM) A Quality Stock?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … That means that for every $1 worth of shareholders' equity, it generated $0.072 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

AKAM Company Info

Description

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.

Details
Name: Akamai Technologies, Inc.
AKAM
Exchange: NasdaqGS
Founded: 1998
$11,785,574,408
163,212,497
Website: http://www.akamai.com
Address: Akamai Technologies, Inc.
150 Broadway,
Cambridge,
Massachusetts, 02142,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS AKAM Common Shares Nasdaq Global Select US USD 29. Oct 1999
DB AK3 Common Shares Deutsche Boerse AG DE EUR 29. Oct 1999
LSE 0HBQ Common Shares London Stock Exchange GB USD 29. Oct 1999
WBAG AKAM Common Shares Wiener Boerse AG AT EUR 29. Oct 1999
Number of employees
Current staff
Staff numbers
7,519
Akamai Technologies employees.
Industry
Internet Services and Infrastructure
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/18 23:32
End of day share price update: 2019/03/18 00:00
Last estimates confirmation: 2019/03/13
Last earnings filing: 2019/02/28
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.