Akamai Stock Analysis (NASDAQ:AKAM)

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$69.15 $0.17 (0.25%) AKAM stock closing price Jan 20, 2017 (Closing)
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Akamai
Updated on : Jan 20, 2017
previous close
AKAM 69.2 (0%)
NASDAQ 5555.3 (0%)
Closing Price On: Jan 20, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Internet Services
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2016-Q3
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
19.9%
Sector Average:
4.8%
5 Quarter Net Profit
Net Margins
2016-Q3
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$251.4M
Net Income:
$76M
PROS      CONS
Operating Margins
Net Margins
Cash Flow
ROIC
ROE
FCF Margin
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
AKAM PS :
5.2
Industry PS :
2.4
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
10.4%
Return on Equity:
10%
Free Cash Flow Margin:
34.8%
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Akamai Analysis Video

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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.

Comments on this video and Akamai stock

tavern123 on Akamai stock analysis ($69.45)
bullish
WSJ reported last week that Cyber technology is in high demand by cloud companies to secure their servers from hacking. Akamai was reported to be prominent in the field. = BULLISH
1 reply
arnulacroix22 on Akamai stock analysis ($62.21)
bullish
Watch Akamai Technologies, Inc. (AKAM) stock @ current levels. The company reported strong quarterly performance on its fourth quarter 2014 financial results that capped off a record year on both the top and bottom line. Check this out http://finance.crwe-pr.com/2015/02/10/ak...
reply
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neena@amigobulls on Akamai stock analysis ($60.61)
bullish
We have AKAM as our top pick now for 4 months with 60% returns! We love the stock for its consistent growth and profits. Nothing fancy, old fashioned focus on growth and profits. We are bullish about long term prospects
http://amigobulls.com/internet-stock-pic...
1 1 reply
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VSfinancials on Akamai stock analysis ($59.03)
bearish
@Amigobulls The truth of Akamai is something different from what you want to hear. While the company is fundamentally strong, Do you think it can grow revenues rapidly? Reading this post should help you make a relook at Akamzi http://seekingalpha.com/article/2087613-...
3 1 reply