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Akamai Technologies Inc

AKAM

Services-Business Services, NEC

Mkt Cap

$15.78B

PE

28.82

Debt

$3.538B

Cash

$490.5M

EV

$18.83B

FCF

$890.5M

Market Cap

$15.78B

P/E Ratio

28.82

Debt

$3.538B

Cash

$490.5M

EV

$18.83B

FCF

$890.5M
Charts data: {"Earnings":[{"time":"2014-12-30","value":333948000},{"time":"2015-12-30","value":321406000},{"time":"2016-12-30","value":316132000},{"time":"2017-12-30","value":218321000},{"time":"2018-12-30","value":298373000},{"time":"2019-12-30","value":478035000},{"time":"2020-12-30","value":557054000},{"time":"2021-12-30","value":651642000},{"time":"2022-12-30","value":523672000},{"time":"2023-12-30","value":547629000}],"Sales":[{"time":"2014-12-30","value":1963874000},{"time":"2015-12-30","value":2197448000},{"time":"2016-12-30","value":2340049000},{"time":"2017-12-30","value":2502996000},{"time":"2018-12-30","value":2714474000},{"time":"2019-12-30","value":2893617000},{"time":"2020-12-30","value":3198149000},{"time":"2021-12-30","value":3461223000},{"time":"2022-12-30","value":3616654000},{"time":"2023-12-30","value":3811920000}],"Net Margins":[{"time":"2014-12-30","value":0.170045532452693},{"time":"2015-12-30","value":0.14626330179371708},{"time":"2016-12-30","value":0.13509631635918734},{"time":"2017-12-30","value":0.08722387091309775},{"time":"2018-12-30","value":0.10991926981065209},{"time":"2019-12-30","value":0.16520327327355347},{"time":"2020-12-30","value":0.17418012731739516},{"time":"2021-12-30","value":0.18826929094138112},{"time":"2022-12-30","value":0.14479460849724635},{"time":"2023-12-30","value":0.14366224894541332}],"Assets":[{"time":"2014-12-30","value":4001546000},{"time":"2015-12-30","value":4187925000},{"time":"2016-12-30","value":4373146000},{"time":"2017-12-30","value":4602844000},{"time":"2018-12-30","value":5461770000},{"time":"2019-12-30","value":7006886000},{"time":"2020-12-30","value":7764130000},{"time":"2021-12-30","value":8138673000},{"time":"2022-12-30","value":8303400000},{"time":"2023-12-30","value":9900037000}],"Stockholders Equity":[{"time":"2014-12-30","value":2945335000},{"time":"2015-12-30","value":3120878000},{"time":"2016-12-30","value":3224370000},{"time":"2017-12-30","value":3310723000},{"time":"2018-12-30","value":3191860000},{"time":"2019-12-30","value":3657958000},{"time":"2020-12-30","value":4251296000},{"time":"2021-12-30","value":4530014000},{"time":"2022-12-30","value":4360187000},{"time":"2023-12-30","value":4597155000}],"ROE":[{"time":"2014-12-30","value":0.11338200917722432},{"time":"2015-12-30","value":0.10298576233995689},{"time":"2016-12-30","value":0.09804457925114053},{"time":"2017-12-30","value":0.06594360204704532},{"time":"2018-12-30","value":0.09347935059808388},{"time":"2019-12-30","value":0.13068356717053614},{"time":"2020-12-30","value":0.13103157248989486},{"time":"2021-12-30","value":0.143849886556642},{"time":"2022-12-30","value":0.12010310566955042},{"time":"2023-12-30","value":0.11912345787775265}],"ROA":[{"time":"2014-12-30","value":0.12376191601945848},{"time":"2015-12-30","value":0.1134569028814986},{"time":"2016-12-30","value":0.10932267068147279},{"time":"2017-12-30","value":0.0727726162346584},{"time":"2018-12-30","value":0.07072633962982697},{"time":"2019-12-30","value":0.08303902760798448},{"time":"2020-12-30","value":0.08825225749697647},{"time":"2021-12-30","value":0.09836406991655765},{"time":"2022-12-30","value":0.08144543199171424},{"time":"2023-12-30","value":0.0677003530390846}]}

Akamai Technologies, Inc. provides cloud services for securing, delivering, and computing content, applications, and software over the internet in the United States and internationally. The company offers cloud solutions to keep infrastructure, websites, applications, application programming interfaces, and users safe from various cyberattacks and online threats while enhancing performance. It also provides web and mobile performance solutions to enable dynamic websites and applications; media delivery solutions, including video streaming and video player services, game and software delivery, broadcast operations, authoritative domain name system, resolution, and data and analytics; and cloud computing services, such as compute, storage, networking, database, and container management services to build, deploy, and secure applications and workloads. In addition, the company offers carrier offerings, including cybersecurity protection, parental controls, DNS infrastructure and content delivery solutions; and an array of service and support to assist customers with integrating, configuring, optimizing, and managing its offerings. It sells its solutions through direct sales and service organizations, as well as through various channel partners. The company was incorporated in 1998 and is headquartered in Cambridge, Massachusetts.

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Growth

%

%

Discount

%

%

Multiple

g\r+10%+11%+12%+13%+14%
0%109887
+1%1110988
+2%13111098
+3%141311109
+4%1714121110
Years012345678910TV
FCF$890.5M$970.4M$1.053B$1.138B$1.225B$1.314B$1.403B$1.491B$1.579B$1.665B$1.748B$17.48B
DCF$843.9M$796.4M$748.5M$700.7M$653.2M$606.4M$560.7M$516.2M$473.3M$432.1M$4.321B
Value$10.65B

In the chart Earnings are multiplied by this value.

Earnings Growth 11%
Earnings Stability 55%


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.

Years12-201512-201612-201712-201812-201912-202012-202112-202212-2023TTM
Net Margin15%14%8.7%11%17%17%19%14%14%14%
ROA11%11%7.3%7.1%8.3%8.8%9.8%8.1%6.8%6.8%
ROE10%9.8%6.6%9.3%13%13%14%12%12%12%

What is the average Net Margin?

The average Net Margin over the past 5 years is +15.43%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.35%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +8.16%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -0.03%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +12.3%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +0.31%.


Safety & Stabiliy

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.

Years12-201512-201612-201712-201812-201912-202012-202112-202212-2023TTM
Debt FCF1.380.931.211.972.632.721.842.213.973.97
Debt Equity0.200.200.200.490.500.450.440.520.770.77
MIN
Graham Stability--67%100%100%100%100%93%95%67%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 3.97.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 0.22.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.67.


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.

Years12-201612-201812-202012-2022Trend
Revenue7.2%7%6%5.4%-0.46%
Net Income8.2%13%-0.57%4.6%0.92%
Stockholders Equity5.2%7.6%2.6%5.4%0.071%
FCF3.8%2.4%8.3%-14%-2%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +7.03%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -0.46%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +12.91%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +0.92%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +7.57%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +0.07%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +2.41%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -2%.