Akamai Technologies Inc.
Find Ratings Reports
0.98 |
1.2%
AKAMAI TECHNOLOGIES INC's gross profit margin for the first quarter of its fiscal year 2018 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. AKAMAI TECHNOLOGIES INC has average liquidity. Currently, the Quick Ratio is 1.15 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 3.91% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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| Income Statement | Q1 FY18 | Q1 FY17 |
|---|---|---|
| Net Sales ($mil) | 668.72 | 600.29 |
| EBITDA ($mil) | 211.79 | 187.66 |
| EBIT ($mil) | 107.7 | 101.13 |
| Net Income ($mil) | 53.71 | 74.58 |
| Balance Sheet | Q1 FY18 | Q1 FY17 |
|---|---|---|
| Cash & Equiv. ($mil) | 811.55 | 845.07 |
| Total Assets ($mil) | 4686.9 | 4450.0 |
| Total Debt ($mil) | 668.75 | 645.72 |
| Equity ($mil) | 3386.26 | 3258.55 |
| Profitability | Q1 FY18 | Q1 FY17 |
|---|---|---|
| Gross Profit Margin | 76.22 | 75.8 |
| EBITDA Margin | 31.67 | 31.26 |
| Operating Margin | 16.11 | 16.85 |
| Sales Turnover | 0.55 | 0.53 |
| Return on Assets | 4.07 | 7.09 |
| Return on Equity | 5.64 | 9.69 |
| Debt | Q1 FY18 | Q1 FY17 |
|---|---|---|
| Current Ratio | 1.29 | 3.66 |
| Debt/Capital | 0.16 | 0.17 |
| Interest Expense | 5.83 | 5.63 |
| Interest Coverage | 18.47 | 17.96 |
| Share Data | Q1 FY18 | Q1 FY17 |
|---|---|---|
| Shares outstanding (mil) | 170.55 | 173.19 |
| Div / share | 0.0 | 0.0 |
| EPS | 0.31 | 0.43 |
| Book value / share | 19.86 | 18.82 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 1714935.0 | 2189002.0 |
BUY. The current P/E ratio indicates a significant discount compared to an average of 104.81 for the Internet Software & Services industry and a significant premium compared to the S&P 500 average of 25.32. Conducting a second comparison, its price-to-book ratio of 4.07 indicates a premium versus the S&P 500 average of 3.29 and a significant discount versus the industry average of 9.07. 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.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| AKAM 73.51 | Peers 104.81 | AKAM 16.12 | Peers 84.31 | |||||||||||||||||||||
|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. AKAM is trading at a significant 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. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| AKAM 21.62 | Peers 51.93 | AKAM 0.46 | Peers 0.26 | |||||||||||||||||||||
|
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. |
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. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| AKAM 4.07 | Peers 9.07 | AKAM -38.89 | Peers 27.00 | |||||||||||||||||||||
|
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. |
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| Price/Sales |
|
Sales Growth |
|
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| AKAM 5.38 | Peers 9.41 | AKAM 8.00 | Peers 38.48 | |||||||||||||||||||||
|
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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