Akamai Technologies, Inc. Fundamental Analysis (XETRA: AK3.DE)
Akamai Technologies, Inc. Fundamental Analysis (XETRA: AK3.DE)
Akamai Technologies, Inc. (XETRA: AK3.DE) shows weak financial fundamentals with a PE ratio of 37.09, profit margin of 10.20%, and ROE of 9.12%. The company generates $4.4B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 53.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze AK3.DE's fundamental strength across five key dimensions:
Efficiency Score
WeakAK3.DE struggles to generate sufficient returns from assets.
Valuation Score
WeakAK3.DE trades at a premium to fair value.
Growth Score
ModerateAK3.DE shows steady but slowing expansion.
Financial Health Score
ModerateAK3.DE shows balanced financial health with some risks.
Profitability Score
WeakAK3.DE struggles to sustain strong margins.
Key Financial Metrics
Is AK3.DE Expensive or Cheap?
P/E Ratio
AK3.DE trades at 37.09 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, AK3.DE's PEG of 1430343241652869.50 indicates potential overvaluation.
Price to Book
The market values Akamai Technologies, Inc. at 3.31 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 8.91 times EBITDA. This is generally considered low.
How Well Does AK3.DE Make Money?
Net Profit Margin
For every $100 in sales, Akamai Technologies, Inc. keeps $10.20 as profit after all expenses.
Operating Margin
Core operations generate 13.76 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.12 in profit for every $100 of shareholder equity.
ROA
Akamai Technologies, Inc. generates $3.74 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Akamai Technologies, Inc. generates strong operating cash flow of $1.64B, reflecting robust business health.
Free Cash Flow
Akamai Technologies, Inc. generates strong free cash flow of $795.37M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.25 in free cash annually.
FCF Yield
AK3.DE converts 4.52% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
37.09
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1430343241652869.50
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.31
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.96
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.20
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.99
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How AK3.DE Stacks Against Its Sector Peers
| Metric | AK3.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 37.09 | 35.21 | Neutral |
| ROE | 9.12% | 747.00% | Weak |
| Net Margin | 10.20% | -3061.00% (disorted) | Strong |
| Debt/Equity | 1.20 | 0.66 | Weak (High Leverage) |
| Current Ratio | 1.99 | 6.21 | Neutral |
| ROA | 3.74% | 174.00% | Weak |
AK3.DE outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Akamai Technologies, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Growth, Innovation, High Beta
EPS CAGR
N/A
Industry Style: Growth, Innovation, High Beta
FCF CAGR
N/A
Industry Style: Growth, Innovation, High Beta