AKAMCAUTIOUS

AKAM Return on Equity (ROE) Analysis

9.1%

Higher than 51% of Technology sector peers

Updated 3029h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholder equity—Akamai's 9.1% means it earns $9.10 in net income for every $100 of equity.

Sector Performance

51th percentile

AKAM

9.1%

Sector Median

8.7%

Sector Avg

-3.2%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholder equity—Akamai's 9.1% means it earns $9.10 in net income for every $100 of equity.

That figure sits far below the Technology sector median of 25.4%, placing Akamai in the 13th percentile among its peers. The metric has been completely stable over the past eight quarters, with year-over-year and quarter-over-quarter changes both flat at +0.0%. A low ROE combined with no upward movement suggests limited earnings efficiency relative to peers, which may indicate a lack of competitive advantage or growth catalysts. This combination points to a moderate risk profile where the company is not improving its profitability but also not deteriorating. Such a neutral-to-weak performance directly supports the overall NEUTRAL verdict, as the metric neither confirms a strong buy nor a sell signal.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about AKAM?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does AKAM's Return on Equity (ROE) compare to its sector?

AKAM's Return on Equity (ROE) of 9.1% compares to a Technology sector median of 8.7%, placing it in the 51th percentile.

Who are AKAM's closest peers by Return on Equity (ROE)?

The closest Technology peers by Return on Equity (ROE) include: CRWD (-0.2%), MDB (-1.0%), ZS (-3.7%), APLD (-5.6%), SMTC (-5.8%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.