Akamai Technologies Inc (AKAM, Financial) has recently garnered significant attention from investors and financial analysts, thanks to its strong financial position. With its shares currently priced at $92.6, Akamai Technologies Inc has experienced a modest daily gain of 0.13%, despite a three-month change of -11.18%. A detailed analysis, supported by the GF Score, indicates that Akamai Technologies Inc is poised for significant growth in the foreseeable future.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects of valuation, which have shown a strong correlation with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield higher returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Akamai Technologies Inc boasts a GF Score of 94, signaling strong future performance potential.
- Financial strength rank: 6/10
- Profitability rank: 9/10
- Growth rank: 10/10
- GF Value rank: 9/10
- Momentum rank: 5/10
Understanding Akamai Technologies Inc's Business
Akamai Technologies Inc operates a content delivery network (CDN), which enhances the speed, security, and quality with which its customers can deliver content to their end-users. With over 325,000 servers across more than 1,000 cities worldwide, Akamai not only focuses on CDN but has also expanded into security and cloud services, which now surpass its legacy CDN operations. The company's market cap stands at $14.1 billion, with annual sales reaching approximately $3.88 billion and an operating margin of 17.88%.
Financial Strength Breakdown
Akamai Technologies Inc's robust balance sheet demonstrates resilience against financial volatility, reflecting prudent capital management. The company's Interest Coverage ratio is an impressive 30.17, indicating strong capability to meet its interest obligations—a key indicator of financial health favored by legendary investor Benjamin Graham.
Profitability and Growth Metrics
Akamai Technologies Inc's Profitability Rank is outstanding, reflecting its efficacy in generating profits relative to its peers. Additionally, the company's Predictability Rank of 4.5 stars out of five highlights consistent operational performance, boosting investor confidence.
The company's commitment to growth is evident in its high Growth Rank. With a 3-Year Revenue Growth Rate of 8.2%, Akamai Technologies Inc continues to expand its operations effectively. The company's EBITDA has also seen significant growth, further underscoring its capacity for sustained expansion.
Conclusion
Considering Akamai Technologies Inc's strong financial strength, profitability, and growth metrics, the GF Score highlights the company's exceptional position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores through the GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
