Akamai Technologies, Inc. (AKAM)Growth Analysis: Profit Driven by Strength

    Akamai Technologies, Inc. (AKAM) is owned by a number of high-value investors. Its largest direct holder is F. Thomson Leighton Director and Chief Executive Officer with 488,654 shares. The second-largest direct holder is Paul Sagan Director, with 71,750 shares of the company’s stock. In third place with 68,919 shares of AKAM is Frederic V. Salerno Chairman of the Board.

    Now turning to institutional ownership of Akamai Technologies, Inc. (AKAM), VANGUARD GROUP INC is the top holder with 17.13 million shares. The next largest fund holder of this company’s stock is BLACKROCK INC. with 11.61 million shares. In the third-place spot with 8.52 million shares is FMR LLC.

    This company’s stock price was $89.13 at the previous market close, with its latest volume reaching 1,011,391. Compare that to its average daily volume of 1.35M. Given the fact that this stock has 168.26M shares outstanding, its current market value is sitting at $15.00B. This publicly-traded stock’s 60-month Beta is 0.62. Its Price to Sales ratio is 5.37, its Price to Cash Flow ratio is 14.39, and its Price to Book ratio is 4.29.

    AKAM stock has achieved a 5-day range of $86.51 to $90.19, with a total performance of +2.46% during that period. Meanwhile, in the past month of trading, this stock has traded in the range of $82.99 to $90.76, generating a +6.07% change during the period. In the past three months, this stock’s price has changed by +16.04%, trading in the range of $73.19 to $90.76.

    In the past 5 days, shares of AKAM have made a new high 3 times. In the last month, it has made a new high 1 time, and in the past 3 months, it has made a new high 14 times.

    Now let’s turn to this public company’s earnings. For the quarter ending Mar-19, the earnings per share (EPS) was reported at $1.10. This is a 0.08 difference compared to the consensus estimate of 1.02, amounting to an earnings surprise of 7.94%. In the previous quarter, which ended in Dec-18, the consensus estimate was 1.00, making for an earnings surprise of 7.31. For the quarter ending Sep-18, EPS was reported at $0.94, generating a 12.90% earnings surprise.

    The Net Income for the most recent full fiscal year, which ended in 12-2018, was $298.37 million. This is compared to the prior year, where Net Income was $222.77 million. Meanwhile, this company’s Operating Cash Flow was $1.01 billion for the year, compared to $800.98 million in 2017. Capital Expenditures for the year were reportedly -$217.61 million, compared to -$254.15 million, and Free Cash flow was $602.59 million compared to the prior year’s $386.2 million.

    Akamai Technologies, Inc. (AKAM) stock currently has a Financial Strength score of 7/10. This is due to a combination of factors, including a Cash to Debt ratio of 0.81, an Equity to Asset ratio of 0.64, a Debt to Equity ratio of 0.38 and a Debt to EBITDA of 1.32. The Interest Coverage of this stock is 10.64, its Piotroski F-Score is 7, its Altman Z-Score is 5.56 and its Beneish M-Score is -2.86.

    This publicly-traded company’s Profitability and Growth score is 9/10, thanks to a combination of things: an Operating Margin of 18.93, a Net Margin of 15.12, a ROE of 12.83, and a ROC of 48.84. Similarly, this company’s 3-Year Total Revenue Growth Rate is 7.30, its 3-Year Total EBITDA Growth Rate is 1.90, and its 3-Year EPS w/o NRI Growth Rate is -0.40.

    Shifting focus now to Valuation and Return for AKAM, this company’s Price to Tangible Book is 8.90, its Price to Projected FCF is 1.73, its Price to DCF (Earnings Based) is 2.50, and its Price to Median PS Value is 1.03. This organization’s Price to Graham Number is 3.71. Meanwhile, its Earnings Yield (Joel Greenblatt) is 3.62 and its Forward Rate of Return (Yactman) is 7.44.

    Certain ratios provide helpful insights into how a stock is performing. The Quick Ratio for AKAM is sitting at 2.95, while its Current Ratio is 2.95 and its PEG Ratio is 6.03. This stock’s PB Ratio is 4.28, its PS Ratio is 5.28, its PE Ratio (TTM) is 34.95, its Forward PE Ratio is 21.55, and its PE Ratio without NRI is 34.95. Similarly, its Shiller PE Ratio is 55.61, its Price to Owner Earnings is 32.68, its Price to Free Cash Flow is 24.83 and its Price to Operating Cash Flow is 13.73.