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AKAM

NEUTRAL
$107.67 Live
Akamai Technologies, Inc. · NASDAQ
Target $109.46 (+1.7%)
$67.51 52W Range $113.5

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AI Analysis

AI-powered fundamental assessment

Confidence
78%
Akamai Technologies (AKAM) exhibits mixed fundamental health, with a Piotroski F-Score of 4/9 indicating a borderline stable financial position, and no Altman Z-Score available to assess distress risk. The stock trades at a forward P/E of 14.17, significantly below its current P/E of 35.07, suggesting market expectations for earnings recovery. While the company maintains strong gross margins (58.95%) and consistent earnings beat rates (3/4 in last 4 quarters), recent year-over-year earnings have declined sharply (-37.40%), raising concerns about near-term profitability. The Graham Number ($48.74) and intrinsic value ($21.49) are substantially below the current price of $107.67, indicating a significant premium, likely justified by growth expectations. However, insider selling activity and a bearish technical trend (10/100) add cautionary signals.

Key Strengths

Consistent earnings beat rate over the last 4 quarters (3/4), with an average surprise of 10.67%
Strong gross margin of 58.95% reflects pricing power and operational efficiency
Positive forward P/E of 14.17 suggests potential undervaluation if earnings rebound
Robust current and quick ratios (2.36 and 2.05) indicate solid short-term liquidity
Strong historical earnings progression with 21 consecutive quarters of positive EPS surprises

Key Risks

Piotroski F-Score of 4/9 signals weak financial health, with only 4 positive criteria met
Sharp year-over-year earnings decline of -37.40% despite stable revenue growth (7.40%)
Insider selling activity totaling $3.45M in the last 6 months, with no buys recorded
Current price ($107.67) is more than double the Graham Number ($48.74), indicating high valuation risk
Technical trend score of 10/100 reflects strong bearish momentum despite recent price gains
AI Fair Value Estimate
Based on comprehensive analysis
$85.0
-21.1% below current price

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