Akamai Technologies EBITDA vs. Net Income

AKAM Stock  USD 95.89  1.31  1.39%   
Based on Akamai Technologies' profitability indicators, Akamai Technologies is performing exceptionally good at the present time. It has a great chance to showcase excellent profitability results in January. Profitability indicators assess Akamai Technologies' ability to earn profits and add value for shareholders.
 
EBITDA  
First Reported
2010-12-31
Previous Quarter
1.2 B
Current Value
1.3 B
Quarterly Volatility
376.2 M
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Akamai Technologies' Days Sales Outstanding is very stable compared to the past year. As of the 22nd of December 2024, Operating Cash Flow Sales Ratio is likely to grow to 0.37, while EV To Sales is likely to drop 5.51. At this time, Akamai Technologies' Operating Income is very stable compared to the past year. As of the 22nd of December 2024, Net Income is likely to grow to about 575 M, while Income Tax Expense is likely to drop about 61.3 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.790.5697
Significantly Up
Slightly volatile
For Akamai Technologies profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Akamai Technologies to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Akamai Technologies utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Akamai Technologies's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Akamai Technologies over time as well as its relative position and ranking within its peers.
  
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Is Internet Services & Infrastructure space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Akamai Technologies. If investors know Akamai will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Akamai Technologies listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.64)
Earnings Share
3.38
Revenue Per Share
26.167
Quarterly Revenue Growth
0.041
Return On Assets
0.0419
The market value of Akamai Technologies is measured differently than its book value, which is the value of Akamai that is recorded on the company's balance sheet. Investors also form their own opinion of Akamai Technologies' value that differs from its market value or its book value, called intrinsic value, which is Akamai Technologies' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Akamai Technologies' market value can be influenced by many factors that don't directly affect Akamai Technologies' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Akamai Technologies' value and its price as these two are different measures arrived at by different means. Investors typically determine if Akamai Technologies is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Akamai Technologies' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Akamai Technologies Net Income vs. EBITDA Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Akamai Technologies's current stock value. Our valuation model uses many indicators to compare Akamai Technologies value to that of its competitors to determine the firm's financial worth.
Akamai Technologies is rated third in ebitda category among its peers. It also is rated third in net income category among its peers making up about  0.44  of Net Income per EBITDA. The ratio of EBITDA to Net Income for Akamai Technologies is roughly  2.27 . At this time, Akamai Technologies' EBITDA is very stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Akamai Technologies by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Akamai Net Income vs. EBITDA

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

Akamai Technologies

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
1.24 B
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Akamai Technologies

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
547.63 M
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.

Akamai Net Income Comparison

Akamai Technologies is currently under evaluation in net income category among its peers.

Akamai Technologies Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Akamai Technologies, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Akamai Technologies will eventually generate negative long term returns. The profitability progress is the general direction of Akamai Technologies' change in net profit over the period of time. It can combine multiple indicators of Akamai Technologies, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-95.3 M-90.6 M
Operating Income707.3 M742.7 M
Net Income547.6 M575 M
Income Tax Expense106.4 M61.3 M
Income Before Tax652.5 M685.2 M
Total Other Income Expense Net-54.8 M-57.5 M
Net Income Applicable To Common Shares602.2 M311.5 M
Net Income From Continuing Ops515.2 M384.5 M
Non Operating Income Net Other3.9 M3.7 M
Interest Income45.2 M23.5 M
Net Interest Income12.7 M13.4 M
Change To Netincome183 M151.6 M
Net Income Per Share 3.59  3.77 
Income Quality 2.46  1.54 
Net Income Per E B T 0.84  1.05 

Akamai Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Akamai Technologies. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Akamai Technologies position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Akamai Technologies' important profitability drivers and their relationship over time.

Use Akamai Technologies in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Akamai Technologies position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Akamai Technologies will appreciate offsetting losses from the drop in the long position's value.

Akamai Technologies Pair Trading

Akamai Technologies Pair Trading Analysis

The ability to find closely correlated positions to Akamai Technologies could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Akamai Technologies when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Akamai Technologies - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Akamai Technologies to buy it.
The correlation of Akamai Technologies is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Akamai Technologies moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Akamai Technologies moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Akamai Technologies can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Akamai Technologies position

In addition to having Akamai Technologies in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Healthcare
Healthcare Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Healthcare theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Healthcare Theme or any other thematic opportunities.
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When determining whether Akamai Technologies is a strong investment it is important to analyze Akamai Technologies' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Akamai Technologies' future performance. For an informed investment choice regarding Akamai Stock, refer to the following important reports:
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To learn how to invest in Akamai Stock, please use our How to Invest in Akamai Technologies guide.
You can also try the Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
To fully project Akamai Technologies' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Akamai Technologies at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Akamai Technologies' income statement, its balance sheet, and the statement of cash flows.
Potential Akamai Technologies investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Akamai Technologies investors may work on each financial statement separately, they are all related. The changes in Akamai Technologies's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Akamai Technologies's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.