Akamai Technologies Inc (AKAM) stock analysis
Close on Nov 12, 2026Market cap $12.44BP/E 33.6Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Mixed11 of 30 checks passed
Akamai Technologies passes 11 of the 30 checks behind our score; 5 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 3/6
- Growth
- 0/6
- Past performance
- 3/6
- Financial health
- 5/6
- Dividend
- 0/6
What stands out
Trading below fair value
The share price of $86.68 is below our fair value estimate of $94.31.
Return on capital over 10%
Return on invested capital was 12.7%, above the 10% that usually covers the cost of capital.
No debt
Akamai Technologies has no borrowings on its latest balance sheet.
Interest well covered
Operating income covers interest expense 11.1 times.
What to watch
Margin of safety under 20%
The price is 8.1% below fair value, less than the 20% cushion we look for.
Return on equity under 15%
Return on equity was 7.9% over the last twelve months and averaged 11.7% over five years; we look for 15% on both.
Earnings shrank over 5 years
Net income shrank 4.1% a year on average over the last five fiscal years.
Revenue growing under 10% a year
Revenue grew 5.2% a year over the last three fiscal years, short of the 10% we look for.
Valuation3/6
P/E above its 5-year median
Akamai Technologies's P/E of 33.6 is above its own 5-year median of 27.5.
P/E above the industry
Akamai Technologies's P/E of 33.6 is above the Miscellaneous Business Services median of 25.8.
EV/EBITDA below its 5-year median
Akamai Technologies's EV/EBITDA of 7.8 is below its 5-year median of 10.6.
P/B below the industry
Akamai Technologies's price-to-book of 2.42 is below the Miscellaneous Business Services median of 2.48.
Trading below fair value
The share price of $86.68 is below our fair value estimate of $94.31.
Margin of safety under 20%
The price is 8.1% below fair value, less than the 20% cushion we look for.
Growth0/6
Revenue growing under 10% a year
Revenue grew 5.2% a year over the last three fiscal years, short of the 10% we look for.
EPS growing under 10% a year
Diluted EPS grew -2.0% a year over the last three fiscal years.
Earnings growth not accelerating
Net income grew -23.5% over the last twelve months, against a 5-year average of -4.1% a year.
Growing slower than the industry
Revenue grew 6.2% over the last twelve months; the Miscellaneous Business Services median is 9.9%.
Guidance lowered
Akamai Technologies lowered its Year Ending December 31, 2026 Revenue (in millions) outlook on Aug 6, 2026.
Gross margin slipping
Gross margin was 56.4% over the last twelve months, against 59.1% a year earlier.
Past performance3/6
Return on equity under 15%
Return on equity was 7.9% over the last twelve months and averaged 11.7% over five years; we look for 15% on both.
Return on capital over 10%
Return on invested capital was 12.7%, above the 10% that usually covers the cost of capital.
Return on equity above the industry
Akamai Technologies's return on equity of 7.9% is above the Miscellaneous Business Services median of 6.8%.
Earnings shrank over 5 years
Net income shrank 4.1% a year on average over the last five fiscal years.
Net margin below its 5-year average
Net margin was 8.8% over the last twelve months, against a 5-year average of 14.2%.
Net margin above the industry
Akamai Technologies's net margin of 8.8% is above the Miscellaneous Business Services median of 3.8%.
Financial health5/6
No debt
Akamai Technologies has no borrowings on its latest balance sheet.
Debt not rising
With no debt today, leverage cannot have risen.
Debt covered by cash flow
There is no debt to cover.
Interest well covered
Operating income covers interest expense 11.1 times.
Short-term assets cover short-term debts
Current assets are 2.13 times current liabilities.
Elevated bankruptcy risk
The Altman Z-score is 1.62; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
Akamai Technologies has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$94.31
The share price is 8% below this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 26.7× | 27.5× | 25.8× | $68.77 | 40% |
| EV/EBITDA | 13.1× | 10.6× | 15.7× | $128.68 | 35% |
| P/B | 2.9× | 3.2× | 2.5× | $102.62 | 10% |
| Earnings power | 9.2% cost of equity | – | – | $76.67 | 15% |
| Fair value | $94.31 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 27.5
- Miscellaneous Business Services median 25.8
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $574.04M
- Value traded per 1% price move
- $174.34M
Downside
High risk
- Typical loss in a bad month
- 25.2%
- Volatility (annualized)
- 62%
- Sharpe ratio, 1 year
- -0.08
- Beta to the S&P 500 (5Y)
- 0.86
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2011 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +5.4% | +5.2% | +5.6% | +6.7% | |
| Gross profit | +4.7% | +3.6% | +3.7% | +5.4% | |
| Operating income | +6.3% | -5.7% | -3.0% | +2.0% | |
| Net income | -10.5% | -4.8% | -4.1% | +3.5% | |
| EPS, diluted | -6.1% | -2.0% | -1.8% | +5.6% | |
| Free cash flow | -10.4% | -0.7% | +7.6% | +7.7% |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | 10.0% | 14.1% | 9.2% | |
| Return on assets | 7.5% | 7.5% | 4.1% | |
| Current ratio | 3.50 | 2.54 | 2.36 | |
| Interest coverage | 25.0× | 9.5× | 18.4× | |
| Capex to revenue | 7.7% | 16.1% | 12.1% | |
| Diluted shares | 176M | 165M | 147M |
Where the cash went
Fiscal 2021 to 2025, five years combined
Akamai Technologies generated $7.07B from operations and spent $5.07B on capital expenditure, dividends and share buybacks. 38% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 10.7% | 0.39× | 2.22× | 9.2% |
| FY2024 | 12.7% | 0.39× | 2.14× | 10.7% |
| FY2023 | 14.4% | 0.42× | 2.03× | 12.2% |
| FY2022 | 14.5% | 0.44× | 1.85× | 11.8% |
| FY2021 | 18.8% | 0.44× | 1.81× | 14.8% |
| FY2020 | 17.4% | 0.43× | 1.87× | 14.1% |
| FY2019 | 16.5% | 0.46× | 1.82× | 14.0% |
| FY2018 | 11.0% | 0.54× | 1.54× | 9.1% |
| FY2017 | 8.9% | 0.55× | 1.36× | 6.7% |
| FY2016 | 13.7% | 0.55× | 1.33× | 10.0% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero$452.03M
- Cash generatingOperating cash flow above zero$1.52B
- Return on assets improvedROA up on the prior year5.1% → 4.4%
- Earnings backed by cashOperating cash flow above net income$1.52B vs $452.03M
- Less leverageLong-term debt to assets fell– → –
- Better liquidityCurrent ratio rose1.23 → 2.36
- No dilutionShare count did not rise154M → 147M
- Gross margin improvedGross margin up on the prior year59.39% → 58.95%
- More efficientAsset turnover rose0.40 → 0.41
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