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Akamai Technologies Inc
NASDAQ:AKAM

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Akamai Technologies Inc Logo
Akamai Technologies Inc
NASDAQ:AKAM
Watchlist
Price: 92.11 USD +1.7% Market Closed
Updated: May 31, 2023
Section:
 

Intrinsic Value

Akamai Technologies, Inc. engages in the provision of cloud services for delivering, optimizing, and securing content and business applications over the Internet. [ Read More ]

The intrinsic value of one AKAM stock under the Base Case scenario is 105.61 USD. Compared to the current market price of 92.11 USD, Akamai Technologies Inc is Undervalued by 13%.

Key Points:
AKAM Intrinsic Value
Base Case
105.61 USD
Undervaluation 13%
Intrinsic Value
Price
Worst Case
Base Case
Best Case
What is intrinsic value?

Fundamental Analysis

Financials
3.6B
+0.3%
Revenue
Growth Rates:
1 Year
+3%
3 Years
+23%
5 Years
+42%
7 Years
+62%
10 Years
+155%
692M
-2%
Operating Income
Growth Rates:
1 Year
-15%
3 Years
+15%
5 Years
+76%
7 Years
+48%
10 Years
+100%
502M
-4%
Net Income
Growth Rates:
1 Year
-18%
3 Years
+2%
5 Years
+148%
7 Years
+57%
10 Years
+116%
1.3B
+0.9%
Operating Cash Flow
Growth Rates:
1 Year
-7%
3 Years
+15%
5 Years
+51%
7 Years
+45%
10 Years
+142%
-549.2M
+20%
Capital Expenditures
Growth Rates:
1 Year
+7%
3 Years
-18%
5 Years
+26%
7 Years
+41%
10 Years
+130%
737M
-10%
Free Cash Flow
Growth Rates:
1 Year
-15%
3 Years
+64%
5 Years
+78%
7 Years
+49%
10 Years
+152%

Balance Sheet Decomposition
Akamai Technologies Inc

8.2B
Assets
4B
Liabilities
8.2B
Assets
4B
Liabilities
Current Assets 1.7B
Cash & Short-Term Investments 752M
Receivables 706M
Other Current Assets 240M
Non-Current Assets 6.5B
Long-Term Investments 299M
PP&E 2.5B
Intangibles 3.2B
Other Non-Current Assets 468M
Current Liabilities 836M
Accounts Payable 202M
Accrued Liabilities 462M
Other Current Liabilities 172M
Non-Current Liabilities 3.2B
Long-Term Debt 2.3B
Other Non-Current Liabilities 889M
Efficiency
61%
Gross Margin
Average:
3 Years
64%
5 Years
64%
19%
Operating Margin
Average:
3 Years
22%
5 Years
20%
14%
Net Margin
Average:
3 Years
17%
5 Years
15%
20%
FCF Margin
Average:
3 Years
20%
5 Years
19%
12%
ROE
Average:
3 Years
14%
5 Years
12%
6%
ROA
Average:
3 Years
8%
5 Years
7%
7%
ROIC
Average:
3 Years
11%
5 Years
11%
9%
ROCE
Average:
3 Years
11%
5 Years
11%
Fundamental Scores

AKAM Profitability Score
Profitability Due Diligence

Akamai Technologies Inc's profitability score is 60/100. The higher the profitability score, the more profitable the company is.

Positive Gross Profit
Positive Free Cash Flow
Positive Operating Income
Positive Net Income
60/100
Profitability
Score

Akamai Technologies Inc's profitability score is 60/100. The higher the profitability score, the more profitable the company is.

AKAM Solvency Score
Solvency Due Diligence

Akamai Technologies Inc's solvency score is 69/100. The higher the solvency score, the more solvent the company is.

High Interest Coverage
Low D/E
Long-Term Solvency
Short-Term Solvency
69/100
Solvency
Score

Akamai Technologies Inc's solvency score is 69/100. The higher the solvency score, the more solvent the company is.

See Also
Fundamental Analysis
Profitability Analysis Solvency Analysis Earnings Call Transcripts
Profitability Analysis Solvency Analysis Earnings Call Transcripts

Wall St
Price Targets

AKAM Price Targets Summary
Akamai Technologies Inc

Wall Street analysts forecast AKAM stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for AKAM is 95.68 USD with a low forecast of 75.75 USD and a high forecast of 115.5 USD.

AKAM Lowest Forecast
Wall Street Target
75.75 USD
18% Downside
AKAM Average Forecast
Wall Street Target
95.68 USD
4% Upside
AKAM Highest Forecast
Wall Street Target
115.5 USD
25% Upside
Lowest
Price Target
75.75 USD
18% Downside
Average
Price Target
95.68 USD
4% Upside
Highest
Price Target
115.5 USD
25% Upside
View Analyst Estimates
View Analyst Estimates

Competitive Landscape

AKAM Competitors
Akamai Technologies Inc

AKAM Suppliers & Customers
Akamai Technologies Inc

Suppliers
11
Customers
34
Suppliers Map
Customers Map

Ownership

AKAM Insider Trading
Buy and sell transactions by insiders

Akamai Technologies Inc insiders have sold more shares than they have bought in the past 12 months.

During the last 12 months Akamai Technologies Inc insiders bought 2.6M USD , and sold 6M USD worth of shares. The last transaction was made on May 26, 2023 by Leighton F Thomson (Chief Executive Officer), who bought 25k USD worth of AKAM shares.

Summary Transactions
Sold
0-3
months
2.7M USD
5
3-6
months
1.7M USD
5
6-9
months
1M USD
3
9-12
months
471k USD
1
Bought
0-3
months
1
1.3M USD
3-6
months
1
1.3M USD
6-9
months
0
0 USD
9-12
months
0
0 USD
Cumulative Transactions Amount
Period Sold Bought Net
3 Months
2.7M USD
1.3M USD
-1.4M
6 Months
4.5M USD
2.6M USD
-1.9M
9 Months
5.5M USD
2.6M USD
-2.9M
12 Months
6M USD
2.6M USD
-3.4M
Why is insider trading important?

Shareholder Return

AKAM Return Decomposition
Main factors of price return

Market capitalization of AKAM shares increased by 9.47% over the past 5 years. The primary factor behind the change was an increase in earnings growth from 188M to 502M, leading to a growth in the market capitalization of Akamai Technologies Inc by 102.6%.

Period
5 Years
1 Year 2 Years 3 Years 5 Years 7 Years 10 Years

Market capitalization of AKAM shares increased by 9.47% over the past 5 years. The primary factor behind the change was an increase in earnings growth from 188M to 502M, leading to a growth in the market capitalization of Akamai Technologies Inc by 102.6%.

+9.47%
12.9B 14.1B
Market Cap Growth
-93.14%
68.3 28
P/E Change
+102.6%
188M 502M
Earnings Growth
Market Cap Growth
+9.47%
P/E Change
-93.14%
Earnings Growth
+102.6%
What is price return decomposition?

AKAM Price
Akamai Technologies Inc

1M 1M
+14%
6M 6M
-3%
1Y 1Y
-9%
3Y 3Y
-13%
5Y 5Y
+22%
10Y 10Y
+100%
Annual Price Range
92.11
52w Low
70.75
52w High
102.74
Price Metrics
Average Annual Return 14.64%
Standard Deviation of Annual Returns 28.92%
Max Drawdown -42%
Shares Statistics
Market Capitalization 14.1B USD
Shares Outstanding 152 202 000
Percentage of Shares Shorted 7.16%

Company Profile

Akamai Technologies Inc Logo
Akamai Technologies Inc

Country

United States of America

Industry

Technology

Market Cap

14.1B USD

Dividend Yield

0%

Description

Akamai Technologies, Inc. engages in the provision of cloud services for delivering, optimizing, and securing content and business applications over the Internet. The company is headquartered in Cambridge, Massachusetts and currently employs 8,700 full-time employees. The firm's products include Kona Site Defender, Bot Manager, Enterprise Application Access, Image & Video Manager, Edge DNS, Enterprise Threat Protector, Identity Cloud, Web Application Protector, Page Integrity Manager, Akamai MFA, Account Protector, Cloud Wrapper, DataStream, EdgeKV and Global Traffic Management. The firm's solutions include the Security Technology Group and the Edge Technology Group. The Security Technology Group includes solutions that are designed to keep infrastructure, Websites, applications, and users safe. The Edge Technology Group includes solutions that are designed to enable business online, including media delivery, Web performance and edge computing solutions. Its solutions blend automation with customizable protections and managed security services.

Contact

MASSACHUSETTS
Cambridge
145 Broadway
+16174443000.0
https://www.akamai.com/

IPO

1999-10-29

Employees

8 700

Officers

Co-Founder, CEO & Director
Dr. F. Thomson Leighton
Exec. VP, CFO, Treasurer & Principal Financial Officer
Mr. Edward J. McGowan
COO & GM of Edge Technology Group
Mr. Adam Karon
CTO & Exec. VP
Dr. Robert Blumofe
Exec. VP, Gen. Counsel & Corp. Sec.
Mr. Aaron S. Ahola
Principal Accounting Officer & Chief Accounting Officer
Ms. Laura Howell
Show More
Chief Information Officer
Ms. Kate Prouty
Head of Investor Relations
Mr. Tom Barth
Exec. VP of Global Sales & Services
Mr. Paul Joseph
Sr. VP of Corp. and Bus. Devel.
Mr. Charlie Rice
Show Less

See Also

Summary
AKAM intrinsic value, competitors valuation, and company profile.
DCF Valuation
AKAM stock valuation using Discount Cash Flow valuation method.
Relative Valuation
AKAM stock valuation using valuation multiples.
Wall Street Estimates
AKAM price targets and financial estimates made by Wall st analysts.
Profitability Analysis
Detailed analysis of the company's profitability.
Solvency Analysis
Analysis of the financial position and solvency of the company.
Financials
Income Statement, Balance Sheet, Cash Flow Statement.
Discount Rate
AKAM stock discount rate: cost of equity and WACC.
Summary
DCF Valuation
Relative Valuation
Wall Street Estimates
Profitability Analysis
Solvency Analysis
Financials
Discount Rate
Similar Stocks
What is the Intrinsic Value of one AKAM stock?

The intrinsic value of one AKAM stock under the Base Case scenario is 105.61 USD.

Is AKAM stock undervalued or overvalued?

Compared to the current market price of 92.11 USD, Akamai Technologies Inc is Undervalued by 13%.

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