Akamai Technologies, Inc. (AKAM) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Why is Akamai Technologies, Inc. ?

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.41 times

Flat results in Jun 25

ROCE(HY) Lowest at 9.21%
INTEREST COVERAGE RATIO(Q) Lowest at 4,039.74
DEBT-EQUITY RATIO (HY) Highest at 96.35 %

With ROCE of 8.82%, it has a fair valuation with a 1.96 Enterprise value to Capital Employed

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -4.15%, its profits have fallen by -16.8%

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Underperformed the market in the last 1 year

Even though the market (S&P 500) has generated returns of 12.33% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -4.15% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Akamai Technologies, Inc. should be less than 10%
Overall Portfolio exposure to Commercial Services & Supplies should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Commercial Services & Supplies)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Akamai Technologies, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Akamai Technologies, Inc.

-11.21%

0.01

42.05%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.07%

EBIT Growth (5y)

-0.47%

EBIT to Interest (avg)

28.54

Debt to EBITDA (avg)

1.41

Net Debt to Equity (avg)

0.54

Sales to Capital Employed (avg)

0.48

Tax Ratio

20.88%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

11.60%

ROE (avg)

13.44%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.48

EV to EBIT

22.18

EV to EBITDA

10.73

EV to Capital Employed

1.96

EV to Sales

3.44

PEG Ratio

Dividend Yield

ROCE (Latest)

8.82%

ROE (Latest)

11.66%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

OPERATING PROFIT(Q)

Highest at USD 331.3 MM

RAW MATERIAL COST(Y)

Fallen by 0.28% (YoY

NET SALES(Q)

Highest at USD 1,043.49 MM

-12What is not working for the Company

ROCE(HY)

Lowest at 9.21%

INTEREST COVERAGE RATIO(Q)

Lowest at 4,039.74

DEBT-EQUITY RATIO (HY)

Highest at 96.35 %

INTEREST(Q)

Highest at USD 8.2 MM

PRE-TAX PROFIT(Q)

Lowest at USD 156.31 MM

NET PROFIT(Q)

Lowest at USD 106.6 MM

Here's what is working for Akamai Technologies, Inc.

Operating Profit

Highest at USD 331.3 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (USD MM)

Net Sales

Highest at USD 1,043.49 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Raw Material Cost

Fallen by 0.28% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 175.46 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Akamai Technologies, Inc.

Interest

At USD 8.2 MM has Grown at 21.5%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest Coverage Ratio

Lowest at 4,039.74

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at USD 8.2 MM

in the last five periods and Increased by 21.5% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Pre-Tax Profit

Lowest at USD 156.31 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 106.6 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Debt-Equity Ratio

Highest at 96.35 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio