AKAM Akamai Technologies, Inc.
Services-Business Services, NEC · Deep Dive · researched Nov 2026 — score, value range and action plan are the researched record and never recomputed
Overview
$10,000 invested ~5 years ago → $7,124 in this stock vs $17,665 in the S&P 500 (SPY). End-of-day closes, dividends not reinvested.
Deep Dive: researched from primary SEC filings (10-K, 10-Q, DEF 14A, Form 4) — the score and valuation above are the published research record. Market data around it refreshes daily.
The 100-point scorecard
A real edge network and security franchise, but a narrower, slower moat than the mega-caps on this board.
Investment-grade balance sheet; cash generation funds the cloud build-out without stress.
Cash conversion is decent but not pristine; SBC runs high relative to GAAP earnings.
Disciplined operators; capital allocation steady through the delivery-to-cloud transition.
DSO bloat is the flag, with SBC of $275M in H1 against $186M of GAAP net income.
Cloud/security growth legs are real; the legacy delivery base is the drag.
DCF ≈ $106 lands INSIDE the $95–$125 range — three methods triangulate ~$102–$110; ~27% discount to DCF at scoring.
Weak tape at scoring — the setup, not the business, is what the 4/10 grades.
Business
Business Quality & Moat
A real edge network and security franchise, but a narrower, slower moat than the mega-caps on this board.
Financial Strength
Investment-grade balance sheet; cash generation funds the cloud build-out without stress.
Earnings & Cash-Flow Quality
Cash conversion is decent but not pristine; SBC runs high relative to GAAP earnings.
Management & Governance
Disciplined operators; capital allocation steady through the delivery-to-cloud transition.
Accounting & Red Flags
DSO bloat is the flag, with SBC of $275M in H1 against $186M of GAAP net income.
🚩 Accounting & Red Flags is the lowest pillar (6/10): receivables bloat (DSO) and stock comp of $275M in H1 2026 vs $186M GAAP net income.
Growth & Catalysts
Cloud/security growth legs are real; the legacy delivery base is the drag.
Valuation & Margin of Safety
DCF ≈ $106 lands INSIDE the $95–$125 range — three methods triangulate ~$102–$110; ~27% discount to DCF at scoring.
DCF ≈ $106 (WACC 9.5%; sensitivity $100 at 10.5% – $113 at 8.5%; Gordon cross-check $102) lands inside the $95–$125 multiples range, just under the $110 midpoint — the triangulated confidence beat of this board.
Technical Setup
Weak tape at scoring — the setup, not the business, is what the 4/10 grades.
Daily closes, trailing year · — price · — 50-day · - - 200-day
Financials
| Fiscal year | Revenue | Gross profit | Operating income | Net income | Operating cash flow | Free cash flow | Diluted EPS | Cash | Total assets | Equity |
|---|---|---|---|---|---|---|---|---|---|---|
| FY2020 ended 2020-12-31 | $3.20B | — | $658.5M | $557.1M | $1.22B | $700.7M | $3.37 | $352.9M | $7.76B | $4.25B |
| FY2021 ended 2021-12-31 | $3.46B | — | $783.1M | $651.6M | $1.40B | $1.08B | $3.93 | $536.7M | $8.14B | $4.53B |
| FY2022 ended 2022-12-31 | $3.62B | — | $676.3M | $523.7M | $1.27B | $1.03B | $3.26 | $542.3M | $8.30B | $4.36B |
| FY2023 ended 2023-12-31 | $3.81B | — | $637.3M | $547.6M | $1.35B | $890.5M | $3.52 | $489.5M | $9.90B | $4.60B |
| FY2024 ended 2024-12-31 | $3.99B | — | $533.4M | $504.9M | $1.52B | $1.13B | $3.27 | $517.7M | $10.37B | $4.88B |
| FY2025 ended 2025-12-31 | $4.21B | — | $566.9M | $452.0M | $1.52B | $1.01B | $3.07 | $930.2M | $11.48B | $4.98B |
As reported in SEC filings (EDGAR company facts), latest restated figures.
Summary & Action Plan
The board's value name: a durable edge/security franchise whose DCF, multiples and Gordon cross-check all agree around $102–$110 against a $77.84 scoring price. The business grades Mixed; the price is what makes it interesting.