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 (3.5/5)
Our Akamai stock opinion is based on fundamentals of the company. This Akamai stock analysis is based on latest Q3 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 19.9% over the last 4 quarters.
- Net margins stood at a healthy 13.6% (average) for Akamai in the Trailing Twelve Months.
- The company has an operating cash flow which is 3.3 times the net income. We see this as a positive signal.
- Akamai has an attractive ROIC (Return on Invested Capital) of 10.4%
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for Akamai at 10%.
- The company has a healthy free cash flow margin of 34.8%.
Should you sell AKAM stock?
- The company is trading at a price to sales multiple of 5.2, which is overvalued in comparison to the Internet Services industry average multiple of 2.4.