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?
- The TTM operating margin was good at 19.6% for Akamai.
- 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. We see this as a positive signal.
- Akamai has an attractive ROIC (Return on Invested Capital) of 10.4%
- The LTM ROE of 10% for Akamai is attractive.
Should you sell AKAM stock?
- The company is trading at a price to sales multiple of 4.5, which is overvalued in comparison to the Internet Services industry average multiple of 2.7.
- Akamai has a low FCF (Free Cash Flow) margin of 0.1%.