(AKAM) Akamai Technologies - Overview
Sector: Technology | Industry: Software - Infrastructure | Exchange: NASDAQ (USA) | Market Cap: 21.920m USD | Total Return: 89% in 12m
Avg Turnover: 652M
EPS Trend: 92.4%
Qual. Beats: -1
Rev. Trend: 99.1%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
Leader, Tailwind, Pullback Swing
Akamai Technologies, Inc. provides cloud computing, cybersecurity, and content delivery network (CDN) solutions globally. The firm’s security division focuses on API protection, bot management, and credential stuffing defense, while its cloud segment offers distributed compute and storage infrastructure. Akamai’s delivery services optimize web performance and media streaming by caching content closer to end-users to reduce latency.
Operating in the Internet Services & Infrastructure sector, Akamai utilizes an edge computing business model that leverages a vast network of geographically dispersed servers. This decentralized architecture allows the company to mitigate DDoS attacks and process data at the network edge, reducing the load on centralized data centers. Investors may find it useful to examine Akamais valuation metrics and historical performance on ValueRay.
Founded in 1998 and headquartered in Cambridge, Massachusetts, the company has expanded its portfolio to include Kubernetes management and microservices protection. Its revenue model is primarily service-based, catering to enterprises requiring high-availability web infrastructure and secure application traffic management.
- Security segment growth offsets declining revenue from legacy content delivery network services
- Expansion into cloud computing and edge compute markets drives margin diversification
- Enterprise adoption of API security and bot protection solutions accelerates recurring revenue
- High capital expenditure for server infrastructure impacts short-term free cash flow margins
- Global internet traffic volatility and competitive pricing pressure affect delivery segment profitability
| Net Income: 435.2m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.07 > 0.02 and ΔFCF/TA -0.56 > 1.0 |
| NWC/Revenue: 23.95% < 20% (prev 8.92%; Δ 15.04% < -1%) |
| CFO/TA 0.14 > 3% & CFO 1.58b > Net Income 435.2m |
| Net Debt (6.70b) to EBITDA (1.30b): 5.15 < 3 |
| Current Ratio: 1.99 > 1.5 & < 3 |
| Outstanding Shares: last quarter (150.0m) vs 12m ago -0.69% < -2% |
| Gross Margin: 57.23% > 18% (prev 0.59%; Δ 5.66k% > 0.5%) |
| Asset Turnover: 39.45% > 50% (prev 40.27%; Δ -0.81% > 0%) |
| Interest Coverage Ratio: 8.07 > 6 (EBITDA TTM 1.30b / Interest Expense TTM 72.2m) |
| A: 0.09 (Total Current Assets 2.06b - Total Current Liabilities 1.04b) / Total Assets 11.6b |
| B: 0.30 (Retained Earnings 3.53b / Total Assets 11.6b) |
| C: 0.05 (EBIT TTM 583.3m / Avg Total Assets 10.8b) |
| D: 0.51 (Book Value of Equity 3.42b / Total Liabilities 6.74b) |
| Altman-Z'' = 2.46 = A |
| DSRI: 1.09 (Receivables 881.1m/759.4m, Revenue 4.27b/4.02b) |
| GMI: 1.03 (GM 57.23% / 59.07%) |
| AQI: 1.05 (AQ_t 0.47 / AQ_t-1 0.45) |
| SGI: 1.06 (Revenue 4.27b / 4.02b) |
| TATA: -0.10 (NI 435.2m - CFO 1.58b) / TA 11.6b) |
| Beneish M = -2.95 (Cap -4..+1) = A |
As of May 25, 2026, the stock is trading at USD 147.23 with a total of 3,735,200 shares traded.
Over the past week, the price has changed by -2.42%,
over one month by +54.57%,
over three months by +47.04% and
over the past year by +89.02%.
Akamai Technologies has received a consensus analysts rating of 4.09. Therefore, it is recommended to buy AKAM.
- StrongBuy: 12
- Buy: 2
- Hold: 8
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 156.3 | 6.2% |
P/E Forward = 22.4215
P/S = 5.1375
P/B = 4.4686
P/EG = 1.7793
Revenue TTM = 4.27b USD
EBIT TTM = 583.3m USD
EBITDA TTM = 1.30b USD
Long Term Debt = 4.11b USD (from longTermDebt, last quarter)
Short Term Debt = 369.1m USD (from shortTermDebt, last quarter)
Debt = 7.63b USD (from shortLongTermDebtTotal, last quarter) + Leases 1.76b
Net Debt = 6.70b USD (calculated: Debt 7.63b - CCE 930.4m)
Enterprise Value = 28.6b USD (21.9b + Debt 7.63b - CCE 930.4m)
Interest Coverage Ratio = 8.07 (Ebit TTM 583.3m / Interest Expense TTM 72.2m)
EV/FCF = 37.42x (Enterprise Value 28.6b / FCF TTM 764.7m)
FCF Yield = 2.67% (FCF TTM 764.7m / Enterprise Value 28.6b)
FCF Margin = 17.92% (FCF TTM 764.7m / Revenue TTM 4.27b)
Net Margin = 10.20% (Net Income TTM 435.2m / Revenue TTM 4.27b)
Gross Margin = 57.23% ((Revenue TTM 4.27b - Cost of Revenue TTM 1.82b) / Revenue TTM)
Gross Margin QoQ = 56.10% (prev 54.56%)
Tobins Q-Ratio = 2.46 (Enterprise Value 28.6b / Total Assets 11.6b)
Interest Expense / Debt = 0.95% (Interest Expense 72.2m / Debt 7.63b)
Taxrate = 12.85% (15.7m / 122.0m)
NOPAT = 508.4m (EBIT 583.3m * (1 - 12.85%))
Current Ratio = 1.99 (Total Current Assets 2.06b / Total Current Liabilities 1.04b)
Debt / Equity = 1.55 (Debt 7.63b / totalStockholderEquity, last quarter 4.91b)
Debt / EBITDA = 5.15 (Net Debt 6.70b / EBITDA 1.30b)
Debt / FCF = 8.76 (Net Debt 6.70b / FCF TTM 764.7m)
Total Stockholder Equity = 4.77b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.02% (Net Income 435.2m / Total Assets 11.6b)
RoE = 9.12% (Net Income TTM 435.2m / Total Stockholder Equity 4.77b)
RoCE = 6.57% (EBIT 583.3m / Capital Employed (Equity 4.77b + L.T.Debt 4.11b))
RoIC = 4.97% (NOPAT 508.4m / Invested Capital 10.2b)
WACC = 6.97% (E(21.9b)/V(29.5b) * Re(9.11%) + D(7.63b)/V(29.5b) * Rd(0.95%) * (1-Tc(0.13)))
Discount Rate = 9.11% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -68.89 | Cagr: -2.01%
[DCF] Terminal Value 76.38% ; FCFF base≈743.2m ; Y1≈793.0m ; Y5≈948.6m
[DCF] Fair Price = 54.16 (EV 14.6b - Net Debt 6.70b = Equity 7.87b / Shares 145.4m; r=8.35% [WACC [floored]]; 5y FCF grow 7.56% → 2.50% )
EPS Correlation: 92.36 | EPS CAGR: 7.77% | SUE: -1.80 | # QB: -1
Revenue Correlation: 99.12 | Revenue CAGR: 5.20% | SUE: 0.10 | # QB: 0
EPS current Quarter (2026-06-30): EPS=1.58 | Chg30d=-5.68% | Revisions=-82% | Analysts=21
EPS next Quarter (2026-09-30): EPS=1.70 | Chg30d=-2.66% | Revisions=-40% | Analysts=21
EPS current Year (2026-12-31): EPS=6.70 | Chg30d=-2.35% | Revisions=-48% | GrowthEPS=-6.0% | GrowthRev=+6.8%
EPS next Year (2027-12-31): EPS=7.15 | Chg30d=-5.93% | Revisions=-42% | GrowthEPS=+6.7% | GrowthRev=+10.1%
[Analyst] Revisions Ratio: -82%