Akamai Technologies Inc

Consumer Discretionary
Business Services
www.akamai.com

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $14.93B
PE 28
Debt $3.54B
Cash $572.75M
EV $17.90B
FCF $1.20B

Earnings

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Sales & Net Margins

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Earnings	$526.18M
EBIT	$652.41M
ROE	11%
ROA	6%
FCF	$1.20B
Equity	$4.79B
Growth Stability	67%
PE	28.38
PEG	23.67
PB	3.11
P/FCF	12.48
P/S	3.77
Price/Cash	0.04
Debt/Equity	0.74
Debt/FCF	2.96
Net Margins	12%
Gross Margins	60%
Op. Margins	16%
Earnings CAGR	11%
Sales Growth YoY	4%
Sales Growth QoQ	3%
Sales CAGR	7%
FCF CAGR	9%
Equity CAGR	5%
Earnings Stability	0.6
Earnings Growth YoY	-64%
Earnings Growth QoQ	-56%

Earnings CAGR 5Y	1%
Sales CAGR 5Y	6%
FCF CAGR 5Y	11%
Equity CAGR 5Y	4%
Earnings CAGR 3Y	5%
Sales CAGR 3Y	5%
FCF CAGR 3Y	-0%
Equity CAGR 3Y	4%
Market Cap	$14.93B
Revenue	$3.97B
Assets	$10.19B
Total Debt	$3.54B
Cash	$572.75M
Shares Outstanding	150.62M
EV	17.9B
Earnings Score	82%
Moat Score	87%
Safety Score	85%
Final Score	85%
Working Capital	651.41M
Current Ratio	1.33
Gross Profit	$2.37B
Shares Growth 3y	-3%
Equity Growth QoQ	1%
Equity Growth YoY	11%

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-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 11%

Stability 60%

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Akamai Technologies Inc Discounted Cash Flow

Fully customizable DCF calculator online for Akamai Technologies Inc.

Years

Calculation mode

= $22B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$1.2B	$1.3B	$1.4B	$1.5B	$1.7B	$1.8B	$2B	$2.1B	$2.3B	$2.5B	$2.7B	$27B
DCF		$1.2B	$1.2B	$1.1B	$1.1B	$1.1B	$1.1B	$1.1B	$1.1B	$1.1B	$1B	$10B
Value	$22B

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	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	17%	15%	14%	9%	11%	17%	17%	19%	14%	14%	12%
ROA	-	11%	11%	7%	7%	8%	9%	10%	8%	7%	6%
ROE	-	10%	10%	7%	9%	13%	13%	14%	12%	12%	11%

Good Net Margins (12.28%)

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	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	1.38	0.93	1.21	1.97	2.63	2.72	1.84	2.21	3.97	2.96
Debt over Equity	0.21	0.2	0.2	0.2	0.49	0.5	0.45	0.44	0.52	0.77	0.74
Growth Stability	-	-	-	67%	100%	100%	100%	100%	93%	95%	67%

Neutral Debt/FCF ratio (2.96)

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 (0.74)

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

Bad Graham’s Stability (67%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

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	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	12%	6%	7%	8%	7%	11%	8%	4%	5%	6%
Earnings YoY growth	-	-4%	-2%	-31%	37%	60%	17%	17%	-20%	5%	1%
Equity YoY growth	-	6%	3%	3%	-4%	15%	16%	7%	-4%	5%	4%
FCF YoY growth	-	0%	51%	-20%	45%	-12%	0%	54%	-4%	-14%	11%