Fundamentals for Akamai Technologies, Inc.
AKAM's low earnings and revenue growth highlight a potential decline in profitability. This suggests that the company's financial health may be weakening, and profits could...
Business Operations:
Sector: TechnologyIndustry: Software - Infrastructure
Akamai Technologies, Inc. engages in the provision of security, delivery, and cloud computing solutions in the United States and internationally. It offers security solutions that include web application and application programming interfaces (API) protection solutions, which protect web, API, and mobile app traffic from attacks; Bot & Abuse portfolio, which provides solutions to help customers protect against threats; full account lifecycle protections including the ability to defend against account takeover and opening abuse, adversarial bot protection, protection against credential stuffing, inventory scalping, and hoarding; and solutions designed to stop persistent scrapers from stealing content; API security, which discovers, audits, and monitors API; and microservice and application component protection that analyzes and protects application traffic that moves between application components. The company also offers cloud computing services, which include compute, storage, and cloud native and networking services; and Akamai App Platform, provides ready-to-run templates that address challenges in deploying, managing and scaling Kubernetes clusters at scale. In addition, it offers delivery solutions that include web and mobile performance solutions, which enables dynamic websites and applications, as well as global traffic management, site acceleration, application load balancing, large-scale load testing, and real-user monitoring; and media delivery solutions, including video streaming and video player services, game and software delivery, broadcast operations, authoritative domain name system, resolution, and data and analytics. Akamai Technologies, Inc. was incorporated in 1998 and is headquartered in Cambridge, Massachusetts.
Revenue projections:
Financial Ratios:
| currentRatio | 1.637000 |
|---|---|
| forwardPE | 12.822759 |
| debtToEquity | 196.672000 |
| earningsGrowth | -0.268000 |
| revenueGrowth | 0.054000 |
| grossMargins | 0.574520 |
| operatingMargins | 0.076290 |
| trailingEps | 2.760000 |
| forwardEps | 6.847980 |
AKAM's current ratio of 1.637 means the company has enough liquidity to meet its short-term debt obligations. With sufficient cash reserves and current assets, AKAM can comfortably cover its liabilities, reflecting a strong financial outlook.
AKAM's Forward PE ratio suggests that the stock is priced appropriately in relation to its earnings. Not being overpriced, it offers room for growth, signaling potential upside for investors looking for a stock with reasonable valuation and growth potential.
Akamai Technologies, Inc.'s high debt-to-equity ratio reveals that the company is heavily reliant on debt for financing. This high level of leverage increases the risk of financial strain if profits decline or interest rates rise.
AKAM's low earnings and revenue growth highlight a potential decline in profitability. This suggests that the company's financial health may be weakening, and profits could shrink as a result.
AKAM's negative gross and operating margins highlight potential financial struggles, as the company is not covering its production or operational expenses. This could lead to broader concerns about its ability to achieve profitability.
AKAM's forward EPS exceeding its trailing EPS means that the company is expected to increase profitability in the current financial year. This reflects improved earnings potential, signaling that AKAM is likely to outperform its previous year's financial performance.
Price projections:
Insider Transactions:
AKAM stock was sold in 27 transactions, with market price at 98.82814845332393.1 separate transactions to buy Akamai Technologies, Inc. were completed, while market price hovered around 70.61000061035156.There is no discernible trend in insider transactions, making it hard to determine whether these actions signal positive or negative developments within the company.
Recommendation changes over time:
Analysts have shown a buy bias for Akamai Technologies, Inc., signaling it as a strong investment choice. This positive outlook could motivate investors to allocate funds to Akamai Technologies, Inc., seeing it as a reliable and potentially profitable option, especially in an environment where the stock market is highly scrutinized.