AKAMAKAM
US • —
$115.37
P/E
38.86
PEG
—
FCF Yield
4.5%
Rev Growth YoY
+6.2% YoY
Gross Margin
58.3%
Health Score
7/10
D/E Ratio
0.82
Confidence
MEDIUM
Business Snapshot
Akamai Technologies is a cloud services provider that operates a globally distributed content delivery network (CDN) and offers cybersecurity, web performance, and cloud computing services. The company primarily generates revenue from its two core segments — security and delivery solutions — serving enterprise clients that require reliable and fast content distribution. Akamai operates in the competitive edge computing and CDN market, where it is considered an established leader alongside larger cloud peers like Cloudflare and Fastly. With a market cap of $17.18B, the company is solidly in the large-cap tier and possesses a defining characteristic in its heavily distributed network architecture, which creates a scale moat that is difficult for smaller competitors to replicate quickly.
Financial Health
Gross margin stands at a healthy 58.3%, though no prior-year comparison is available to assess direction, while the net margin of 10.2% indicates moderate profitability after all operating expenses. The balance sheet is in decent shape with a Debt/Equity ratio of 0.82x and a Current Ratio of 2.36x, both pointing to a manageable debt load and ample short-term liquidity...
Risk Assessment
- VALUATION — P/E of 38.86x is significantly higher than the sector average of 22x, leaving the stock vulnerable to multiple compression if growth fails to accelerate.
- INSIDER — Insiders have net sold over the last 90 days, with 0 buys versus 3 sells, a pattern that often signals limited confidence in near-term upside.
- EARNINGS QUALITY — While 3 of 4 quarters beat estimates, the net earnings growth of just 0.1% YoY suggests beats were likely narrow and earnings momentum is weak.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- VALUATION DIVERGENCE — FMP DCF fair value is not provided, creating a single-source estimate from the Python model rather than a diversified range, which increases reliance on one set of assumptions....
Gross margin stands at a healthy 58.3%, though no prior-year comparison is available to assess direction, while the net margin of 10.2% indicates moderate profitability after all operating expenses. The balance sheet is in decent shape with a Debt/Equity ratio of 0.82x and a Current Ratio of 2.36x, both pointing to a manageable debt load and ample short-term liquidity. Free cash flow is a robust $764.73M in absolute terms, translating to a 4.5% FCF yield that supports reinvestment into the business and share repurchases. Overall, the company generates solid cash flows and carries a conservative capital structure, which provides it with the ability to fund growth initiatives without relying on external financing.
- VALUATION — P/E of 38.86x is significantly higher than the sector average of 22x, leaving the stock vulnerable to multiple compression if growth fails to accelerate. - INSIDER — Insiders have net sold over the last 90 days, with 0 buys versus 3 sells, a pattern that often signals limited confidence in near-term upside. - EARNINGS QUALITY — While 3 of 4 quarters beat estimates, the net earnings growth of just 0.1% YoY suggests beats were likely narrow and earnings momentum is weak. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - VALUATION DIVERGENCE — FMP DCF fair value is not provided, creating a single-source estimate from the Python model rather than a diversified range, which increases reliance on one set of assumptions.
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