Akamai Technologies Inc (AKAM, Financial) has recently captured the attention of investors and financial analysts with its strong financial position. Despite a daily loss of 0.85% and a three-month decline of -12.06%, the company's shares are currently valued at $96.05. 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: financial strength, profitability, growth, GF Value, and momentum. These aspects have been backtested from 2006 to 2021, showing a strong correlation with long-term stock performance. Stocks with higher GF Scores typically yield higher returns. Akamai Technologies Inc boasts a GF Score of 94 out of 100, indicating a high potential for outperformance.
- Financial strength rank: 6/10
- Profitability rank: 9/10
- Growth rank: 9/10
- GF Value rank: 9/10
- Momentum rank: 7/10
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. The company boasts over 325,000 servers across more than 1,000 cities worldwide. Additionally, Akamai has expanded its services to include security and cloud computing solutions, which have grown to surpass its legacy CDN operations. With a market cap of $14.63 billion and annual sales of $3.88 billion, Akamai demonstrates a robust operating margin of 17.88%.
Financial Strength Breakdown
Akamai Technologies Inc's financial strength is evident in its balance sheet, which shows resilience against market volatility. The company's Interest Coverage ratio is an impressive 30.17, significantly higher than Benjamin Graham's recommended minimum of 5, highlighting its strong ability to meet interest obligations.
Profitability and Growth Metrics
Akamai Technologies Inc excels in profitability, with a high Profitability Rank of 9/10. The company's Predictability Rank of 4.5 stars further underscores its consistent operational performance, instilling confidence in investors. In terms of growth, Akamai has demonstrated a commitment to expansion, evidenced by a 3-Year Revenue Growth Rate of 8.2%. This growth is supported by a significant increase in EBITDA over the past few years.
Conclusion
Considering Akamai Technologies Inc's strong financial strength, impressive profitability, and consistent growth metrics, the GF Score highlights the company's exceptional position for potential market outperformance. Investors looking for similar opportunities can explore other 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.
