Stock Analysis
Akamai Technologies IncAKAM
P/E 30.71×· 5Y range 20.88–55.55×· 73th percentile of history
Sector: Technology · Industry: Services-Business Services, Nec
AnalystsBuy33 analystsP/E 30.7× sits at the 73rd percentile of its 5.089664613278576-year history.
PMP Verdict
Mixed fundamentals, fairly valued
Strengths
- Quality90
- Financial Health68
Risks
- Growth37
- Profitability49
Mixed picture — no clear quality or value edge.
Market context
-4.9% today· Z 1.1σ
Bull Case
- ✓Interest coverage 24.5× — debt well covered
What's happening with AKAM
Profile
Strong earnings quality and moat; growth and profitability lag behind.
How is each axis scored?
- Valuation55/100 · Moderate
- P/E vs own history (73th pct)5/25
- FCF yield (7.6%)20/25
- P/S (2.9x)20/25
- EV/EBIT (n/a)10/25
- Growth37/100 · Weak
- Revenue CAGR (5.0%)12/25
- Net income CAGR (-8.7%)0/25
- EPS CAGR 5Y (-6.0%)0/25
- Fwd implied growth (82.3%)25/25
- Profitability49/100 · Weak
- ROIC (9.5%)12/25
- ROE (8.3%)12/25
- Net margin (9.5%)13/25
- Operating margin (10.5%)12/25
- Financial Health68/100 · Moderate
- Altman Z (2.27)18/25
- Current ratio (2.36)25/25
- Interest coverage (24.5x)25/25
- Net cash / debt (n/a)0/25
- Quality90/100 · Strong
- Piotroski F (6/9)15/25
- Beneish M (-2.98)25/25
- FCF conversion (233%)25/25
- Margin stability (σ 3.8%)25/25
- Moat88/100 · Strong
- ROIC >12% years (8/10 yrs)20/25
- Median gross margin (64.0%)25/25
- FCF-positive years (10/10 yrs)25/25
- Worst-year net margin (worst 8.7%)18/25
Risk Flags
- ⚠SBC 11.8% of revenue — real dilution cost
About Akamai Technologies Inc
Akamai operates a content delivery network, in which customers store content on distributed servers to deliver it to their own customers more quickly. Show more
Akamai has over 350,000 servers distributed over 4,350 points of presence in more than 700 cities globally. This network supports upward of 20% of global internet traffic, generating massive amounts of data. Using data generated by the delivery network, the firm offers cybersecurity products and cloud computing services, ranging from API security to zero-trust enterprise access, which has surpassed the delivery network in revenue and importance. As of 2026, the primary focus has shifted to offering computing hardware as a service, with an emphasis on serving large language model providers such as Anthropic.
Headquarters: CAMBRIDGE, MA · Employees: 11,000 · Website ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
55CP/E (TTM)30.5xC
Grade C: ExpensivePrice / TTM EPS (own statements) — vs own 5Y history: 20.9x–55.6x · 73rd pct
P/FCF20.9xB
Grade B: FairPrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative
FCF Yield7.6%A
Grade A: ValueTTM (OCF − CapEx) / Market Cap — vs own 5Y history: 4.3%–10.1% · 63rd pct
P/S (TTM)2.90xB
Grade B: FairPrice / TTM Revenue (own statements) — vs own 5Y history: 2.6x–5.9x · 9th pct
EV/EBITDA30.5xD
Grade D: ExpensiveEnterprise value / EBITDA (Finnhub) — capital-structure neutral
EV/Sales4.5xB
Grade B: FairEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E16.7xB
Grade B: FairPrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio2.52xA
Grade A: FairPrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio5.34D
Grade D: ExpensiveFinnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield—
TTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio—
Dividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
Profitability
49D+ROIC9.5%C
Grade C: AverageNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE8.3%D
Grade D: WeakReturn on Equity. Neg. equity = heavy buybacks
ROA3.4%D
Grade D: WeakReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin9.5%C
Grade C: AverageNet Income / Revenue
Operating Margin10.5%C
Grade C: AverageTTM EBIT / TTM Revenue
Gross Margin57.5%A
Grade A: PremiumGross Profit / Revenue
FCF Margin22.1%A
Grade A: HighFCF / Revenue
True FCF Margin10.3%C
Grade C: AverageTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost
Growth
37DRevenue CAGR5.0%C
Grade C: OkCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR-8.7%D
Grade D: LowCompound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)-6.0%D
Grade D: LowCompound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Implied EPS Growth82.3%A
Grade A: HighAnalyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)-13.4%A
Grade A: BuybacksShare count change over 5Y
SBC / Net Income124.0%D
Grade D: HighStock-based comp/Net income. >30% = dilution risk
SBC / Revenue11.8%D
Grade D: HighTTM stock-based comp / TTM Revenue
Financial Health
68BAltman Z-Score2.27C
Grade C: Gray zoneBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio2.36xA
Grade A: HighCurrent Assets/Liabilities
Quick Ratio1.52xA
Grade A: High(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage24.5xA
Grade A: StrongEBIT/Interest. >10 Strong
Debt Repayment—
Years to repay net debt via FCF
Net Debt/EBIT—
Leverage. <2x Low, >4x High
Debt/Equity1.59xC
Grade C: MedDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt—
Cash covers how much of total debt. >1 = could repay all debt from cash
Quality
90A+Piotroski F-Score6/9C
Grade C: AverageFinancial strength 0–9. >7 Strong
Beneish M-Score-2.98A
Grade A: SafeEarnings manipulation risk. < -2.22 Safe
FCF Conversion232.6%A
Grade A: StrongFCF / Net Income
Margin Stability3.8%A
Grade A: StableEBIT margin std deviation. Lower = stable
Capex / Revenue11.4%C
Grade C: AverageTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover0.35xD
Grade D: LowRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
Insider Transactions
SEC Form 4 · 8 recordsP/S codes are the directional signal; grants, option exercises and tax withholding carry none. Form 4 doesn't flag 10b5-1 plans — scheduled sales may appear within open-market sells.
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Salem-Jackson Kim Filed | Salem-Jackson Kim | SellOpen market sale | -2013 | |
Sundaram Mani Filed | Sundaram Mani | SellOpen market sale | -7022 | |
Joseph Paul C Filed | Joseph Paul C | SellOpen market sale | -3100 | |
Howell Laura Filed | Howell Laura | Option exercise | -323 | |
Howell Laura Filed | Howell Laura | Tax withholding | -108 |
Show 3 more filingsShow fewer filings
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Howell Laura Filed | Howell Laura | Option exercise | +323 | |
Joseph Paul C Filed | Joseph Paul C | SellOpen market sale | -3100 | |
Blumofe Robert Filed | Blumofe Robert | SellOpen market sale | -243 |
Option exercise (M) rows report a derivative leg, not an open-market sale — a paired negative entry is the option position being consumed.
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
88AROIC >12% Years8/10 yrsA
Grade A: DurableShare of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)64.0%A
Grade A: DurableMedian annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years10/10 yrsA
Grade A: DurableShare of completed fiscal years with positive free cash flow
Net Margin Floor8.7%A
Grade A: DurableWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)$2.86
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$23.37
Cash & short-term investments per share (Finnhub)
Book Value / Share$33.07
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt—
Total debt obligations (short + long term)
Cash & Equiv.$1.19B
Cash and short-term investments
Net Debt—
Total Debt minus Cash. Negative = Net Cash position
Total Equity$4.98B
Shareholders' equity (book value)
Asset / Liability1.77xC
Grade C: AdequateTotal Assets / Total Liabilities
Market
Market Cap$12.54B
Current Market Capitalization
Beta0.65B
Grade B: DefensivePrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Jun 2026 · Ratio snapshot Oct 17, 2026
Key Insights: Akamai Technologies Inc (AKAM)
AKAM is down 4.89% at the last close. Piotroski F-Score of 6/9 indicates mixed fundamentals for Akamai Technologies Inc. Altman Z-Score of 2.27 falls in the grey zone (1.81–2.99) — financial distress is unlikely but not ruled out.
- Beneish M-Score of -2.98 suggests a low likelihood of earnings manipulation.
- Akamai Technologies Inc converts about 22% of revenue into free cash flow — strong cash generation.
See how AKAM ranks on the Capex Tracker — top 50 capital spenders compared.
Recent Market Moves
See all AKAM moves →| Date | Session | Price | Move | Z-Score |
|---|---|---|---|---|
| Oct 14 | Regular | 91.55 | -8.39% | -2.04 |
| Oct 14 | After-hours | 90.00 | -9.94% | -2.45 |
| Sep 25 | Pre-market | 126.90 | +14.94% | 3.69 |
| Sep 24 | After-hours | 134.33 | +13.42% | 3.50 |
| Sep 21 | Regular | 115.78 | +10.77% | 4.55 |
Frequently Asked Questions about AKAM
What is the current Akamai Technologies Inc (AKAM) stock price?
AKAM is trading at $87.81 at the last market close, down 4.89% on the session. PreMarketPrice tracks AKAM pre-market, intraday and after-hours prices.
Is AKAM stock a buy right now?
PreMarketPrice's quantitative model rates Akamai Technologies Inc's financial health at 68/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is AKAM stock overvalued?
Akamai Technologies Inc trades at a trailing P/E of 30.5 and our valuation score rates it 55/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does Akamai Technologies Inc report earnings?
No confirmed earnings date is currently scheduled for AKAM. The Earnings section lists recent reports and updates as dates are announced.
What sector does Akamai Technologies Inc operate in?
Akamai Technologies Inc operates in the Technology sector, within the Services-Business Services, Nec industry. The Related Stocks section lists sector peers for comparison.
What does Akamai Technologies Inc do?
Akamai operates a content delivery network, in which customers store content on distributed servers to deliver it to their own customers more quickly.
About Akamai Technologies Inc (AKAM) Stock
Akamai Technologies Inc (AKAM) is a US-listed stock operating in the Technology sector, specifically the Services-Business Services, Nec industry. As of the latest update, Akamai Technologies Inc is trading at $87.81, down 4.89% on the day with a market capitalization of $12.5 billion. The financial health score for AKAM is 68/100, which indicates good financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for AKAM stock.
AKAM Stock Analysis & Key Metrics
On PreMarketPrice, you can track Akamai Technologies Inc (AKAM) across multiple dimensions:
- Pre-market price & movement: Real-time AKAM stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for AKAM with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for Akamai Technologies Inc across multiple reporting periods.
- Financial health score: A composite score of 68/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for AKAM.
- Sector peers: Compare AKAM against 6 other technology stocks on key financial metrics.
Is AKAM a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate Akamai Technologies Inc (AKAM) as an investment. The financial health score of 68/100 suggests good financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.Akamai Technologies Inc (AKAM) trades on NYSE/NASDAQ. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.