AKAMAI TECHNOLOGIES INC's gross profit margin for the first quarter of its fiscal year 2015 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 3.97 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 9.93% 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 FY15||Q1 FY14|
|Net Sales ($mil)||526.54||453.5|
|Net Income ($mil)||77.75||72.8|
|Balance Sheet||Q1 FY15||Q1 FY14|
|Cash & Equiv. ($mil)||713.29||698.13|
|Total Assets ($mil)||3986.91||3651.49|
|Total Debt ($mil)||609.65||590.71|
|Profitability||Q1 FY15||Q1 FY14|
|Gross Profit Margin||79.94||79.51|
|Return on Assets||8.5||8.07|
|Return on Equity||11.36||10.86|
|Debt||Q1 FY15||Q1 FY14|
|Share Data||Q1 FY15||Q1 FY14|
|Shares outstanding (mil)||178.68||178.52|
|Div / share||0.0||0.0|
|Book value / share||16.69||15.19|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1373066.0||1571392.0|
BUY. AKAMAI TECHNOLOGIES INC's P/E ratio indicates a discount compared to an average of 47.79 for the Internet Software & Services industry and a significant premium compared to the S&P 500 average of 21.18. For additional comparison, its price-to-book ratio of 4.41 indicates a significant premium versus the S&P 500 average of 2.82 and a discount versus the industry average of 5.67. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, AKAMAI TECHNOLOGIES INC proves to trade at a discount to investment alternatives within the industry.
|AKAM 39.31||Peers 47.79||AKAM 19.60||Peers 29.02|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
AKAM is trading at a discount 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.
|AKAM 24.10||Peers 31.51||AKAM 1.07||Peers 0.53|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
AKAM is trading at a valuation on par with its peers.
Premium. 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 significant premium to its peers.
|AKAM 4.41||Peers 5.67||AKAM 15.43||Peers 86.99|
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 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.
|AKAM 6.45||Peers 9.98||AKAM 22.45||Peers 33.54|
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 significant 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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