Akamai Technologies Inc

Consumer Discretionary
Business Services
www.akamai.com

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $12.43B
PE 25
Debt $3.55B
Cash $519.08M
EV $15.46B
FCF $1.13B

Earnings

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Sales & Net Margins

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Earnings	$504.92M
EBIT	$614.13M
ROE	10%
ROA	6%
FCF	$1.13B
Equity	$4.88B
Growth Stability	88%
PE	24.63
PEG	-71.23
PB	2.55
P/FCF	11.02
P/S	3.12
Price/Cash	0.04
Debt/Equity	0.73
Debt/FCF	3.14
Net Margins	13%
Gross Margins	59%
Op. Margins	15%
Earnings CAGR	12%
Sales Growth YoY	3%
Sales Growth QoQ	2%
Sales CAGR	7%
FCF CAGR	8%
Equity CAGR	5%
Earnings Stability	0.58
Earnings Growth YoY	-13%
Earnings Growth QoQ	142%

Earnings CAGR 5Y	-0%
Sales CAGR 5Y	6%
FCF CAGR 5Y	10%
Equity CAGR 5Y	4%
Earnings CAGR 3Y	5%
Sales CAGR 3Y	5%
FCF CAGR 3Y	2%
Equity CAGR 3Y	5%
Market Cap	$12.43B
Revenue	$3.99B
Assets	$10.37B
Total Debt	$3.55B
Cash	$519.08M
Shares Outstanding	150.03M
EV	15.46B
Earnings Score	81%
Moat Score	85%
Safety Score	89%
Final Score	85%
Working Capital	486.77M
Current Ratio	1.23
Gross Profit	$2.37B
Shares Growth 3y	-2%
Equity Growth QoQ	2%
Equity Growth YoY	6%

Assets & ROA

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Stockholders Equity & ROE

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Akamai operates a content delivery network, or CDN, which entails locating servers at the edges of networks so its customers, which store content on Akamai servers, can reach their own customers faster, more securely, and with better quality. Akamai has over 325,000 servers distributed over 4,000 points of presence in more than 1,000 cities worldwide. Its customers generally include media companies, which stream video content or make video games available for download, and other enterprises that run interactive or high-traffic websites, such as e-commerce firms and financial institutions. Akamai also has a significant security business, which is integrated with its core web and media businesses to protect its customers from cyber threats.

SEC Filings

Direct access to Akamai Technologies Inc (AKAM) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Akamai Technologies Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Akamai Technologies Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 12%

Stability 58%

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Akamai Technologies Inc Discounted Cash Flow

Fully customizable DCF calculator online for Akamai Technologies Inc.

Years

Calculation mode

= $20B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$1.1B	$1.2B	$1.3B	$1.4B	$1.6B	$1.7B	$1.8B	$2B	$2.1B	$2.3B	$2.5B	$25B
DCF		$1.1B	$1.1B	$1.1B	$1.1B	$1B	$1B	$1B	$994M	$978M	$962M	$9.6B
Value	$20B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Net Margins	15%	14%	9%	11%	17%	17%	19%	14%	14%	13%	13%
ROA	-	11%	7%	7%	8%	9%	10%	8%	7%	6%	6%
ROE	-	10%	7%	9%	13%	13%	14%	12%	12%	10%	10%

Good Net Margins (12.65%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Debt over FCF	-	0.93	1.21	1.97	2.63	2.72	1.84	2.21	3.97	3.14	3.14
Debt over Equity	0.2	0.2	0.2	0.49	0.5	0.45	0.44	0.52	0.77	0.73	0.73
Growth Stability	-	-	-	100%	100%	100%	100%	93%	95%	88%	88%

Neutral Debt/FCF ratio (3.14)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Good Debt/Equity ratio (0.73)

The company is not overleveraged and has a good balance between equity and debt.

Neutral Graham’s Stability (88%)

The company has a stability in its earnings that is not too good nor too bad.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	CAGR 5Y
Revenue YoY growth	-	6%	7%	8%	7%	11%	8%	4%	5%	5%	6%
Earnings YoY growth	-	-2%	-31%	37%	60%	17%	17%	-20%	5%	-8%	-0%
Equity YoY growth	-	3%	3%	-4%	15%	16%	7%	-4%	5%	6%	4%
FCF YoY growth	-	51%	-20%	45%	-12%	0%	54%	-4%	-14%	27%	10%