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Akamai Technologies Inc
AKAM : NASDAQ : Technology
$60.07 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 2,038,800
07/10/14 - 3:59 PM ET

Financial Analysis


AKAMAI TECHNOLOGIES INC's gross profit margin for the first quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. AKAMAI TECHNOLOGIES INC is extremely liquid. Currently, the Quick Ratio is 4.10 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 13.72% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q1 FY14 Q1 FY13
Net Sales ($mil)453.5368.05
EBITDA ($mil)178.49144.33
EBIT ($mil)124.97101.96
Net Income ($mil)72.871.49


Balance Sheet Q1 FY14 Q1 FY13
Cash & Equiv. ($mil)698.13513.23
Total Assets ($mil)3651.492646.67
Total Debt ($mil)590.710.0
Equity ($mil)2712.152384.78


Profitability Q1 FY14 Q1 FY13
Gross Profit Margin79.5177.16
EBITDA Margin39.3539.21
Operating Margin27.5627.7
Sales Turnover0.460.54
Return on Assets8.078.77
Return on Equity10.869.73
Debt Q1 FY14 Q1 FY13
Current Ratio4.623.92
Debt/Capital0.180.0
Interest Expense2.180.0
Interest Coverage57.380.0


Share Data Q1 FY14 Q1 FY13
Shares outstanding (mil)178.52177.84
Div / share0.00.0
EPS0.40.39
Book value / share15.1913.41
Institutional Own % n/a n/a
Avg Daily Volume2170649.02724209.0

Valuation


BUY. This stock's P/E ratio indicates a premium compared to an average of 33.46 for the Internet Software & Services industry and a significant premium compared to the S&P 500 average of 19.71. Conducting a second comparison, its price-to-book ratio of 4.07 indicates a premium versus the S&P 500 average of 2.72 and a significant discount versus the industry average of 9.24. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
AKAM 38.17 Peers 33.46   AKAM 20.10 Peers 114.10

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

AKAM is trading at a premium to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

AKAM is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
AKAM 23.02 Peers 47.04   AKAM 0.90 Peers 0.94

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

AKAM is trading at a significant discount to its peers.

 

Average. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

AKAM trades at a valuation on par to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AKAM 4.07 Peers 9.24   AKAM 26.56 Peers 256.45

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

AKAM is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, AKAM is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AKAM 6.64 Peers 8.43   AKAM 16.92 Peers 26.35

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

AKAM is trading at a discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

AKAM significantly trails its peers on the basis of sales growth

 

 

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