On Feb. 6, network load-balancing expert Akamai Technologies
Remember the inflection point in earnings growth that happened a couple of quarters ago? Consider that trend reaffirmed, with both gusto and elan.
That's in spite of some serious share dilution, as Akamai loves to pay its employees in stock options but has never bought back a single share of its own stock.
The shares are 45% cheaper today than they were a year ago, but the five-year return is still a staggering 2,135%.
(Figures are in millions, except per-share data.)
Income Statement Highlights
FY 2007 |
FY 2006 |
Change |
|
---|---|---|---|
Sales |
$636.4 |
$428.7 |
48.5% |
Net Profit |
$101.0 |
$57.4 |
75.9% |
EPS |
$0.56 |
$0.34 |
64.7% |
Diluted Shares |
185.1 |
176.8 |
4.7% |
Get back to basics with the income statement.
Margin Checkup
FY 2007 |
FY 2006 |
Change* |
|
---|---|---|---|
Gross Margin |
73.7% |
78.1% |
(4.4) |
Operating Margin |
22.8% |
19.4% |
3.4 |
Net Margin |
15.9% |
13.4% |
2.5 |
Margins are the earnings engine.
Balance Sheet Highlights
Assets |
FY 2007 |
FY 2006 |
Change |
---|---|---|---|
Cash + ST Invest. |
$545.7 |
$268.7 |
103.0% |
Accounts Rec. |
$118.9 |
$86.2 |
37.9% |
Liabilities |
FY 2007 |
FY 2006 |
Change |
---|---|---|---|
Long-term Debt |
$199.9 |
$200.0 |
(0.1%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
FY 2007 |
FY 2006 |
Change |
|
---|---|---|---|
Cash From Ops. |
$235.4 |
$132.0 |
78.4% |
Capital Expenditures |
$100.5 |
$69.3 |
44.9% |
Free Cash Flow |
$134.9 |
$62.6 |
115.4% |
$72.4 |
$28.7 |
152.6% |
Free cash flow is a Fool's best friend.
Competitive Context
Market Cap |
Trailing P/E Ratio |
CAPS Rating |
|
---|---|---|---|
Citrix Systems |
$6,530 |
29.6 |
|
Akamai |
$5,390 |
66.9 |
|
F5 Networks |
$1,780 |
24.8 |
|
SAVVIS |
$1,050 |
4.5 |
|
Limelight Networks |
$586 |
N/A |
Using the latest reported numbers from Capital IQ. Keep your partners close and the competition in your vest pocket.
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