Akamai Technologies Inc (AKAM, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance and promising market position. With a current share price of $105.54, Akamai Technologies Inc has experienced a slight daily decrease of 0.58%, yet it boasts a significant three-month growth of 9.77%. A detailed evaluation using the GF Score indicates that Akamai Technologies Inc is poised for substantial future growth.
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 are weighted differently to calculate a composite score that ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Historically, stocks with higher GF Scores have tended to yield superior long-term returns. For Akamai Technologies Inc, the GF Score stands impressively at 94 out of 100, highlighting its strong potential for market outperformance.
Understanding Akamai Technologies Inc's Business
Akamai Technologies Inc operates a comprehensive content delivery network, enhancing the speed, security, and quality of content delivery for its customers. The company boasts over 325,000 servers across more than 1,000 cities worldwide. With a market cap of $15.99 billion and annual sales of $3.93 billion, Akamai not only focuses on content delivery but has also expanded into security and cloud services, which now represent significant components of its business model.
Financial Strength Breakdown
Akamai Technologies Inc's financial robustness is reflected in its Financial Strength Rank of 6/10. An impressive aspect of its financial health is the Interest Coverage ratio, which stands at 26.45. This indicates that the company is more than capable of meeting its interest obligations—a critical factor in assessing financial stability and a metric highly regarded by investors like Benjamin Graham.
Profitability and Growth Metrics
Akamai Technologies Inc is distinguished by its high Profitability Rank of 9/10, underscoring its efficacy in generating profits relative to its peers. Additionally, the company's Growth Rank is a perfect 10/10, highlighted by a 3-Year Revenue Growth Rate of 8.2%. This growth is supported by a consistent increase in EBITDA, with a three-year growth rate of 4.3 and a five-year rate of 10, demonstrating Akamai's ongoing ability to expand its operations effectively.
Conclusion: Akamai's Position for Future Success
Considering Akamai Technologies Inc's strong financial strength, impressive profitability, and consistent growth metrics, the GF Score effectively 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.
