StockCV
Akamai Technologies Inc logo

Akamai Technologies Inc

Services-Business Services, Nec

$106.80
+5.85%
Market cap $15.3B

Akamai operates a content delivery network, in which customers store content on distributed servers to deliver it to their own customers more quickly. Akamai has over 350,000 servers distributed over 4,350 points of presence in more than 700 cities globally.

It is a $15.3B technology company. Revenue grew 5.9% over the last year, and it keeps 10¢ of every dollar of sales as profit. It trades at 37.4× earnings — near the highest of its own history.

Website
akamai.com
Location
Cambridge, MA
Employees
11 000
Sector
Technology
Founded
1998

Skills

Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.

Valuation45Growth37Profitability49Health53Quality90Moat88

Strong quality and moat; Valuation, Growth and Profitability lag behind.

Valuation45
  • P/E vs own history92th pct · 0/25
  • FCF yield6.2% · 20/25
  • P/S3.6x · 20/25
  • EV/EBITDA33.9x · 5/25
Growth37
  • Revenue CAGR5.0% · 12/25
  • Net income CAGR-8.7% · 0/25
  • EPS CAGR ~5Y-1.8% · 0/25
  • Fwd implied growth123.5% · 25/25
Profitability49
  • ROIC11.9% · 12/25
  • ROE8.5% · 12/25
  • Net margin9.5% · 13/25
  • Operating margin10.5% · 12/25
Health53
  • Altman Z1.61 · 10/25
  • Current ratio1.64 · 18/25
  • Interest coverage85.4x · 25/25
  • Net cash / debtn/a · 0/25
Quality90
  • Piotroski F6/9 · 15/25
  • Beneish M-3.03 · 25/25
  • FCF conversion233% · 25/25
  • Margin stabilityσ 3.9% · 25/25
Moat88
  • ROIC >12% years8/10 yrs · 20/25
  • Median gross margin64.0% · 25/25
  • FCF-positive years10/10 yrs · 25/25
  • Worst-year net marginworst 8.7% · 18/25

How the scores work →

Experience

The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.

  1. 2022Acquisition
    The company's cloud infrastructure services primarily consist of compute and storage solutions developed based on…
  2. FY2021Financial
    Best year on record
    $652M net income
  3. FY2016Financial
    Profitable every year on record
    10 consecutive profitable years in our data
  4. FY2016Financial
    Revenue already above $1B
    $2.34B in first reported year
  5. FY2016Financial
    Positive free cash flow every year since
    10-year streak
  6. Oct 29, 1999IPO
    The company launched its commercial service in April 1999 and was listed on the NASDAQ Stock Market from October 29,…
  7. Aug 20, 1998Founded
    Thomson Leighton and Daniel Lewin as founders, and Akamai Technologies was incorporated on August 20, 1998
  8. 1998Product
    The team had developed a working prototype

Achievements

Verifiable track record, straight from the reported numbers.

$10 000 invested in 2021 would be worth ~$9 555 today — price return only
$4.2B revenue in FY2025
Revenue up 5.9% year over year
Profitable 10 years in a row
Positive free cash flow 10 years in a row
11 000 employees

Strengths & watch-outs

What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.

Strengths

  • High gross margin (57.5%)
  • Strong cash conversion — FCF is 22.1% of revenue
  • Interest covered 85.4× by operating earnings

Watch-outs

  • Altman Z-Score 1.61 — elevated financial-distress risk
  • Net debt would take ~6.3 years of free cash flow to repay

Qualifications

The basics a company should meet before you research it further. Each check uses the reported numbers.

8 of 10 checks passed
  • Revenue growing+5.9% YoY
  • Profitable$411M TTM
  • Profit growing-2.0% YoY
  • Generates cash$956M TTM
  • Debt under controlcurrent ratio 1.64
  • Established company$15.3B market cap
  • Not printing shares-11.0% shares over ~5y
  • Proven track record10/10 profitable years
  • Financially stableAltman Z 1.6 — distress
  • Pays a dividendno data
  • Valuation not extremeP/E 37.4
Peer comparisonAkamai Technologies Inc vs 6 largest technology peers — cap, P/E, growth and margin side by sideOpen ▾
CompanyMarket capP/ERevenue growthNet marginProfile
AKAM this company$15.3B37.4+5.9%9.5%Solid
NVDA Nvidia Corp$5.5T28.6+83.4%63.7%Mixed
AAPL Apple Inc.$4.9T38.1+14.2%27.6%Strong
GOOGL Alphabet Inc.$4.3T17.6+20.1%54.8%Mixed
MSFT Microsoft Corp$4.0T29.7+17.8%40.3%Strong
SPCX Space Exploration Technologies Corp.$2.1T—+33.2%-34.0%Strained
META Meta Platforms, Inc.$1.8T26.9+27.7%29.8%Mixed

Head-to-head: AKAM vs NVDA · AKAM vs AAPL · AKAM vs GOOGL

References

What covering analysts publish about the company — information only, not a recommendation.

Strong buy 7Buy 14Hold 11Sell 1

Appendix · Financial records

The full statements behind this CV, FY2016–FY2025. For readers who want to check the numbers.

Want the live picture — intraday moves, valuation history and full analysis?

Deeper analysis of AKAM on PreMarketPrice

Figures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $106.80 · market cap $15.3B.