Akamai Stock Analysis (NASDAQ:AKAM)
Akamai Analysis Video
View Akamai stock analysis video. This is our AKAM analyst opinion covering the buy and sell arguments for AKAM stock.
Akamai Technologies, Inc. Stock Rating (3.4/5)
Our Akamai stock opinion is based on fundamentals of the company. This Akamai stock analysis is based on latest Q4 earnings for 2016. The stock price analysis takes into account a company's valuation metrics.
Should you buy AKAM stock?
- Akamai had a healthy average operating margin of 19.6% over the last 4 quarters.
- Net margins came in at average 13.5% for Akamai over the last twelve months.
- The company has an operating cash flow which is 2 times the net income.
- Akamai's return on invested capital of 10.4% is good.
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for Akamai at 10%.
Should you sell AKAM stock?
- Akamai has a debt/equity ratio of 0.2, which is worse than the average in the Computer and Technology sector.
- The company is trading at a price to sales multiple of 4.7, which is overvalued in comparison to the Internet Services industry average multiple of 2.6.
- The company has a low free cash flow margin of 0.1%.