Akamai Technologies Inc.

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AKAM : NASDAQ : Technology Services
$67.36 | %
Today's Range: 66.38 - 67.37
Avg. Daily Volume: 2350800.0
02/23/18 - 4:00 PM ET

Financial Analysis


AKAMAI TECHNOLOGIES INC's gross profit margin for the fourth quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. AKAMAI TECHNOLOGIES INC is extremely liquid. Currently, the Quick Ratio is 2.52 which clearly shows the ability to cover any 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 2.67% 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 Q4 FY17 Q4 FY16
Net Sales ($mil)663.45616.12
EBITDA ($mil)198.88208.3
EBIT ($mil)99.48124.3
Net Income ($mil)19.1191.64


Balance Sheet Q4 FY17 Q4 FY16
Cash & Equiv. ($mil)711.94837.02
Total Assets ($mil)4602.844373.15
Total Debt ($mil)662.91640.09
Equity ($mil)3310.723224.37


Profitability Q4 FY17 Q4 FY16
Gross Profit Margin76.1576.66
EBITDA Margin29.9733.8
Operating Margin14.9920.17
Sales Turnover0.540.54
Return on Assets4.747.22
Return on Equity6.599.8
Debt Q4 FY17 Q4 FY16
Current Ratio2.823.5
Debt/Capital0.170.17
Interest Expense0.05.58
Interest Coverage0.022.26


Share Data Q4 FY17 Q4 FY16
Shares outstanding (mil)170.0173.26
Div / share0.00.0
EPS0.110.52
Book value / share19.4718.61
Institutional Own % n/a n/a
Avg Daily Volume2475270.01922688.0

Valuation


HOLD. AKAMAI TECHNOLOGIES INC's P/E ratio indicates a discount compared to an average of 54.38 for the Internet Software & Services industry and a significant premium compared to the S&P 500 average of 25.51. To use another comparison, its price-to-book ratio of 3.46 indicates valuation on par with the S&P 500 average of 3.26 and a significant discount versus the industry average of 7.78. 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
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
AKAM 53.92 Peers 54.38   AKAM 14.30 Peers 25.71

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

AKAM is trading at a valuation on par with 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 19.79 Peers 21.24   AKAM 0.40 Peers 0.32

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 premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AKAM 3.46 Peers 7.78   AKAM -30.17 Peers 22.11

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 4.58 Peers 9.46   AKAM 6.96 Peers 35.76

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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