Akamai Stock Analysis (NASDAQ:AKAM)

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$63.66 $0.02 (0.03%) AKAM stock closing price Mar 23, 2017 (Closing)
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Akamai
Updated on : Mar 23, 2017
previous close
AKAM 63.7 (0%)
NASDAQ 5817.7 (0%)
Closing Price On: Mar 23, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Internet Services
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2016-Q4
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
19.6%
Sector Average:
2.7%
5 Quarter Net Profit
Net Margins
2016-Q4
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
640.1M
Debt/Equity Ratio:
 0.2
Compared to the industry
Cash Flow
Operating cash flow:
$181.8M
Net Income:
$91.6M
PROS      CONS
Operating Margins
Net Margins
Cash Flow
ROIC
ROE
High Debt Burden
FCF Margin
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
AKAM PS :
4.7
Industry PS :
2.6
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:
0.1%
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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 (3.4/5)

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%.

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