Akamai Technologies Inc.
Find Ratings ReportsAKAMAI 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 ($mil) | 663.45 | 616.12 |
| EBITDA ($mil) | 197.01 | 208.3 |
| EBIT ($mil) | 97.61 | 124.3 |
| Net Income ($mil) | 19.11 | 91.64 |
| Balance Sheet | Q4 FY17 | Q4 FY16 |
|---|---|---|
| Cash & Equiv. ($mil) | 711.94 | 837.02 |
| Total Assets ($mil) | 4602.84 | 4373.15 |
| Total Debt ($mil) | 662.91 | 640.09 |
| Equity ($mil) | 3310.72 | 3224.37 |
| Profitability | Q4 FY17 | Q4 FY16 |
|---|---|---|
| Gross Profit Margin | 76.15 | 76.66 |
| EBITDA Margin | 29.69 | 33.8 |
| Operating Margin | 14.71 | 20.17 |
| Sales Turnover | 0.54 | 0.54 |
| Return on Assets | 4.74 | 7.22 |
| Return on Equity | 6.59 | 9.8 |
| Debt | Q4 FY17 | Q4 FY16 |
|---|---|---|
| Current Ratio | 2.82 | 3.5 |
| Debt/Capital | 0.17 | 0.17 |
| Interest Expense | 5.78 | 5.58 |
| Interest Coverage | 16.88 | 22.26 |
| Share Data | Q4 FY17 | Q4 FY16 |
|---|---|---|
| Shares outstanding (mil) | 169.89 | 173.26 |
| Div / share | 0.0 | 0.0 |
| EPS | 0.11 | 0.52 |
| Book value / share | 19.49 | 18.61 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 1614611.0 | 2647231.0 |
HOLD. AKAMAI TECHNOLOGIES INC's P/E ratio indicates a discount compared to an average of 58.18 for the Internet Software & Services industry and a significant premium compared to the S&P 500 average of 24.51. Conducting a second comparison, its price-to-book ratio of 3.72 indicates a premium versus the S&P 500 average of 3.18 and a significant discount versus the industry average of 7.32. 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 57.97 | Peers 58.18 | AKAM 15.37 | Peers 36.01 | |||||||||||||||||||||
|
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. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| AKAM 20.18 | Peers 26.54 | AKAM 0.42 | 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 significant premium to its peers. |
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| Price/Book |
|
Earnings Growth |
|
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| AKAM 3.72 | Peers 7.32 | AKAM -30.17 | Peers 21.28 | |||||||||||||||||||||
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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 4.92 | Peers 9.02 | AKAM 6.96 | Peers 35.32 | |||||||||||||||||||||
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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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