EPAM SYSTEMS INC (EPAM) Fundamental Analysis & Valuation

NYSE:EPAM • US29414B1044

Current stock price

137.09 USD
-0.34 (-0.25%)
Last:

This EPAM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. EPAM Profitability Analysis

1.1 Basic Checks

  • EPAM had positive earnings in the past year.
  • In the past year EPAM had a positive cash flow from operations.
  • In the past 5 years EPAM has always been profitable.
  • EPAM had a positive operating cash flow in each of the past 5 years.
EPAM Yearly Net Income VS EBIT VS OCF VS FCFEPAM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M

1.2 Ratios

  • EPAM has a Return On Assets of 7.70%. This is in the better half of the industry: EPAM outperforms 75.00% of its industry peers.
  • EPAM has a better Return On Equity (10.27%) than 70.45% of its industry peers.
  • With a decent Return On Invested Capital value of 10.48%, EPAM is doing good in the industry, outperforming 75.00% of the companies in the same industry.
  • EPAM had an Average Return On Invested Capital over the past 3 years of 10.64%. This is in line with the industry average of 11.08%.
Industry RankSector Rank
ROA 7.7%
ROE 10.27%
ROIC 10.49%
ROA(3y)8.95%
ROA(5y)10.2%
ROE(3y)11.6%
ROE(5y)13.63%
ROIC(3y)10.64%
ROIC(5y)12.13%
EPAM Yearly ROA, ROE, ROICEPAM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

1.3 Margins

  • With a decent Profit Margin value of 6.92%, EPAM is doing good in the industry, outperforming 65.91% of the companies in the same industry.
  • In the last couple of years the Profit Margin of EPAM has declined.
  • With a decent Operating Margin value of 9.89%, EPAM is doing good in the industry, outperforming 70.45% of the companies in the same industry.
  • In the last couple of years the Operating Margin of EPAM has declined.
  • EPAM's Gross Margin of 28.88% is on the low side compared to the rest of the industry. EPAM is outperformed by 61.36% of its industry peers.
  • In the last couple of years the Gross Margin of EPAM has declined.
Industry RankSector Rank
OM 9.89%
PM (TTM) 6.92%
GM 28.88%
OM growth 3Y-6.96%
OM growth 5Y-7.06%
PM growth 3Y-7.32%
PM growth 5Y-10.87%
GM growth 3Y-3.24%
GM growth 5Y-3.69%
EPAM Yearly Profit, Operating, Gross MarginsEPAM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

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9

2. EPAM Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), EPAM is creating some value.
  • EPAM has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, EPAM has less shares outstanding
  • Compared to 1 year ago, EPAM has an improved debt to assets ratio.
EPAM Yearly Shares OutstandingEPAM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M 50M
EPAM Yearly Total Debt VS Total AssetsEPAM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

2.2 Solvency

  • EPAM has an Altman-Z score of 6.15. This indicates that EPAM is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 6.15, EPAM belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
  • The Debt to FCF ratio of EPAM is 0.04, which is an excellent value as it means it would take EPAM, only 0.04 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of EPAM (0.04) is better than 92.05% of its industry peers.
  • EPAM has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
  • EPAM has a better Debt to Equity ratio (0.01) than 81.82% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF 0.04
Altman-Z 6.15
ROIC/WACC1.09
WACC9.65%
EPAM Yearly LT Debt VS Equity VS FCFEPAM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

2.3 Liquidity

  • A Current Ratio of 2.59 indicates that EPAM has no problem at all paying its short term obligations.
  • With a decent Current ratio value of 2.59, EPAM is doing good in the industry, outperforming 72.73% of the companies in the same industry.
  • EPAM has a Quick Ratio of 2.59. This indicates that EPAM is financially healthy and has no problem in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 2.59, EPAM is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.59
Quick Ratio 2.59
EPAM Yearly Current Assets VS Current LiabilitesEPAM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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4

3. EPAM Growth Analysis

3.1 Past

  • EPAM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.98%.
  • The Earnings Per Share has been growing by 12.65% on average over the past years. This is quite good.
  • Looking at the last year, EPAM shows a quite strong growth in Revenue. The Revenue has grown by 15.42% in the last year.
  • EPAM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.46% yearly.
EPS 1Y (TTM)5.98%
EPS 3Y1.86%
EPS 5Y12.65%
EPS Q2Q%14.79%
Revenue 1Y (TTM)15.42%
Revenue growth 3Y4.19%
Revenue growth 5Y15.46%
Sales Q2Q%12.75%

3.2 Future

  • Based on estimates for the next years, EPAM will show a small growth in Earnings Per Share. The EPS will grow by 5.15% on average per year.
  • The Revenue is expected to grow by 4.49% on average over the next years.
EPS Next Y12.95%
EPS Next 2Y11.21%
EPS Next 3Y10.56%
EPS Next 5Y5.15%
Revenue Next Year6.74%
Revenue Next 2Y6.96%
Revenue Next 3Y6.98%
Revenue Next 5Y4.49%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
EPAM Yearly Revenue VS EstimatesEPAM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B
EPAM Yearly EPS VS EstimatesEPAM Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5 10 15

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6

4. EPAM Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 11.90 indicates a reasonable valuation of EPAM.
  • 76.14% of the companies in the same industry are more expensive than EPAM, based on the Price/Earnings ratio.
  • EPAM is valuated cheaply when we compare the Price/Earnings ratio to 25.23, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 10.54, the valuation of EPAM can be described as very reasonable.
  • 78.41% of the companies in the same industry are more expensive than EPAM, based on the Price/Forward Earnings ratio.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.42, EPAM is valued rather cheaply.
Industry RankSector Rank
PE 11.9
Fwd PE 10.54
EPAM Price Earnings VS Forward Price EarningsEPAM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • 72.73% of the companies in the same industry are more expensive than EPAM, based on the Enterprise Value to EBITDA ratio.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of EPAM indicates a somewhat cheap valuation: EPAM is cheaper than 76.14% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 12.11
EV/EBITDA 9.28
EPAM Per share dataEPAM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80 100

4.3 Compensation for Growth

  • EPAM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.92
PEG (5Y)0.94
EPS Next 2Y11.21%
EPS Next 3Y10.56%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. EPAM Dividend Analysis

5.1 Amount

  • No dividends for EPAM!.
Industry RankSector Rank
Dividend Yield 0%

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EPAM Fundamentals: All Metrics, Ratios and Statistics

EPAM SYSTEMS INC

NYSE:EPAM (3/23/2026, 3:49:09 PM)

137.09

-0.34 (-0.25%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)02-19
Earnings (Next)05-06
Inst Owners105.22%
Inst Owner Change3.59%
Ins Owners3.68%
Ins Owner Change1.53%
Market Cap7.42B
Revenue(TTM)5.46B
Net Income(TTM)377.68M
Analysts79.23
Price Target205.07 (49.59%)
Short Float %8.82%
Short Ratio3.88
Dividend
Industry RankSector Rank
Dividend Yield 0%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.48%
Min EPS beat(2)-0.24%
Max EPS beat(2)1.2%
EPS beat(4)3
Avg EPS beat(4)2.25%
Min EPS beat(4)-0.24%
Max EPS beat(4)4.07%
EPS beat(8)7
Avg EPS beat(8)4.23%
EPS beat(12)11
Avg EPS beat(12)5.03%
EPS beat(16)15
Avg EPS beat(16)10.08%
Revenue beat(2)0
Avg Revenue beat(2)-0.71%
Min Revenue beat(2)-0.81%
Max Revenue beat(2)-0.61%
Revenue beat(4)0
Avg Revenue beat(4)-0.62%
Min Revenue beat(4)-0.81%
Max Revenue beat(4)-0.48%
Revenue beat(8)1
Avg Revenue beat(8)-0.67%
Revenue beat(12)1
Avg Revenue beat(12)-0.8%
Revenue beat(16)4
Avg Revenue beat(16)0.14%
PT rev (1m)-11.82%
PT rev (3m)-3.19%
EPS NQ rev (1m)0.48%
EPS NQ rev (3m)-0.43%
EPS NY rev (1m)2.1%
EPS NY rev (3m)2.32%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-0.28%
Revenue NY rev (1m)-0.32%
Revenue NY rev (3m)-0.25%
Valuation
Industry RankSector Rank
PE 11.9
Fwd PE 10.54
P/S 1.36
P/FCF 12.11
P/OCF 11.33
P/B 2.02
P/tB 3.6
EV/EBITDA 9.28
EPS(TTM)11.52
EY8.4%
EPS(NY)13.01
Fwd EY9.49%
FCF(TTM)11.32
FCFY8.26%
OCF(TTM)12.1
OCFY8.82%
SpS100.8
BVpS67.92
TBVpS38.05
PEG (NY)0.92
PEG (5Y)0.94
Graham Number132.68
Profitability
Industry RankSector Rank
ROA 7.7%
ROE 10.27%
ROCE 13.75%
ROIC 10.49%
ROICexc 15.65%
ROICexgc 40.67%
OM 9.89%
PM (TTM) 6.92%
GM 28.88%
FCFM 11.23%
ROA(3y)8.95%
ROA(5y)10.2%
ROE(3y)11.6%
ROE(5y)13.63%
ROIC(3y)10.64%
ROIC(5y)12.13%
ROICexc(3y)18.79%
ROICexc(5y)23.43%
ROICexgc(3y)40.83%
ROICexgc(5y)46.22%
ROCE(3y)13.96%
ROCE(5y)15.94%
ROICexgc growth 3Y-6.23%
ROICexgc growth 5Y-3.05%
ROICexc growth 3Y-19.19%
ROICexc growth 5Y-13.92%
OM growth 3Y-6.96%
OM growth 5Y-7.06%
PM growth 3Y-7.32%
PM growth 5Y-10.87%
GM growth 3Y-3.24%
GM growth 5Y-3.69%
F-Score6
Asset Turnover1.11
Health
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF 0.04
Debt/EBITDA 0.04
Cap/Depr 33.85%
Cap/Sales 0.77%
Interest Coverage 386.43
Cash Conversion 98.54%
Profit Quality 162.23%
Current Ratio 2.59
Quick Ratio 2.59
Altman-Z 6.15
F-Score6
WACC9.65%
ROIC/WACC1.09
Cap/Depr(3y)33.56%
Cap/Depr(5y)64.56%
Cap/Sales(3y)0.69%
Cap/Sales(5y)1.34%
Profit Quality(3y)135.42%
Profit Quality(5y)118.62%
High Growth Momentum
Growth
EPS 1Y (TTM)5.98%
EPS 3Y1.86%
EPS 5Y12.65%
EPS Q2Q%14.79%
EPS Next Y12.95%
EPS Next 2Y11.21%
EPS Next 3Y10.56%
EPS Next 5Y5.15%
Revenue 1Y (TTM)15.42%
Revenue growth 3Y4.19%
Revenue growth 5Y15.46%
Sales Q2Q%12.75%
Revenue Next Year6.74%
Revenue Next 2Y6.96%
Revenue Next 3Y6.98%
Revenue Next 5Y4.49%
EBIT growth 1Y-1.58%
EBIT growth 3Y-3.07%
EBIT growth 5Y7.31%
EBIT Next Year19.06%
EBIT Next 3Y10.13%
EBIT Next 5Y10.22%
FCF growth 1Y16.26%
FCF growth 3Y17%
FCF growth 5Y5.2%
OCF growth 1Y17.13%
OCF growth 3Y12.17%
OCF growth 5Y3.77%

EPAM SYSTEMS INC / EPAM Fundamental Analysis FAQ

What is the fundamental rating for EPAM stock?

ChartMill assigns a fundamental rating of 6 / 10 to EPAM.


What is the valuation status for EPAM stock?

ChartMill assigns a valuation rating of 6 / 10 to EPAM SYSTEMS INC (EPAM). This can be considered as Fairly Valued.


What is the profitability of EPAM stock?

EPAM SYSTEMS INC (EPAM) has a profitability rating of 5 / 10.


What is the valuation of EPAM SYSTEMS INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for EPAM SYSTEMS INC (EPAM) is 11.9 and the Price/Book (PB) ratio is 2.02.