EPAM SYSTEMS INC (EPAM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EPAM - US29414B1044 - Common Stock
211.41 USD
+2.33 (+1.11%)
211.41 USD
0 (0%)
EPAM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 88 industry peers in the IT Services industry. EPAM is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. EPAM has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
EPAM had positive earnings in the past year.
In the past year EPAM had a positive cash flow from operations.
Each year in the past 5 years EPAM has been profitable.
EPAM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EPAM has a Return On Assets of 7.67%. This is in the better half of the industry: EPAM outperforms 77.27% of its industry peers.
EPAM's Return On Equity of 9.97% is fine compared to the rest of the industry. EPAM outperforms 65.91% of its industry peers.
EPAM has a better Return On Invested Capital (10.71%) than 77.27% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EPAM is significantly below the industry average of 29.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.67% | ||
| ROE | 9.97% | ||
| ROIC | 10.72% |
ROA(3y)9.87%
ROA(5y)11.06%
ROE(3y)12.84%
ROE(5y)14.88%
ROIC(3y)11.98%
ROIC(5y)12.84%
1.3 Margins
EPAM has a better Profit Margin (7.01%) than 69.32% of its industry peers.
EPAM's Profit Margin has declined in the last couple of years.
The Operating Margin of EPAM (10.43%) is better than 71.59% of its industry peers.
EPAM's Operating Margin has declined in the last couple of years.
EPAM has a worse Gross Margin (28.92%) than 62.50% of its industry peers.
In the last couple of years the Gross Margin of EPAM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.43% | ||
| PM (TTM) | 7.01% | ||
| GM | 28.92% |
OM growth 3Y-7.24%
OM growth 5Y-2.7%
PM growth 3Y-9.14%
PM growth 5Y-3.32%
GM growth 3Y-3.28%
GM growth 5Y-2.67%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so EPAM is still creating some value.
Compared to 1 year ago, EPAM has less shares outstanding
EPAM has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, EPAM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 8.78 indicates that EPAM is not in any danger for bankruptcy at the moment.
EPAM has a better Altman-Z score (8.78) than 90.91% of its industry peers.
The Debt to FCF ratio of EPAM is 0.05, which is an excellent value as it means it would take EPAM, only 0.05 years of fcf income to pay off all of its debts.
EPAM has a Debt to FCF ratio of 0.05. This is amongst the best in the industry. EPAM outperforms 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.
The Debt to Equity ratio of EPAM (0.01) is better than 80.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.05 | ||
| Altman-Z | 8.78 |
ROIC/WACC1.18
WACC9.07%
2.3 Liquidity
EPAM has a Current Ratio of 3.02. This indicates that EPAM is financially healthy and has no problem in meeting its short term obligations.
EPAM has a better Current ratio (3.02) than 78.41% of its industry peers.
A Quick Ratio of 3.02 indicates that EPAM has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.02, EPAM is in the better half of the industry, outperforming 79.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.02 | ||
| Quick Ratio | 3.02 |
3. Growth
3.1 Past
EPAM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.97%.
The Earnings Per Share has been growing by 14.89% on average over the past years. This is quite good.
EPAM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.26%.
The Revenue has been growing by 15.56% on average over the past years. This is quite good.
EPS 1Y (TTM)2.97%
EPS 3Y6.34%
EPS 5Y14.89%
EPS Q2Q%-1.28%
Revenue 1Y (TTM)14.26%
Revenue growth 3Y7.95%
Revenue growth 5Y15.56%
Sales Q2Q%19.43%
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 5.17% on average per year.
Based on estimates for the next years, EPAM will show a small growth in Revenue. The Revenue will grow by 7.81% on average per year.
EPS Next Y7.22%
EPS Next 2Y8.16%
EPS Next 3Y9.19%
EPS Next 5Y5.17%
Revenue Next Year15.96%
Revenue Next 2Y11.41%
Revenue Next 3Y10.52%
Revenue Next 5Y7.81%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 19.05 indicates a rather expensive valuation of EPAM.
Compared to the rest of the industry, the Price/Earnings ratio of EPAM indicates a somewhat cheap valuation: EPAM is cheaper than 70.45% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.57, EPAM is valued a bit cheaper.
With a Price/Forward Earnings ratio of 16.62, EPAM is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EPAM indicates a somewhat cheap valuation: EPAM is cheaper than 71.59% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.04. EPAM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.05 | ||
| Fwd PE | 16.62 |
4.2 Price Multiples
EPAM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EPAM is cheaper than 64.77% of the companies in the same industry.
EPAM's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.44 | ||
| EV/EBITDA | 16.03 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.64
PEG (5Y)1.28
EPS Next 2Y8.16%
EPS Next 3Y9.19%
5. Dividend
5.1 Amount
EPAM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
211.41
+2.33 (+1.11%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners98.81%
Inst Owner Change1.96%
Ins Owners3.62%
Ins Owner Change-0.21%
Market Cap11.68B
Revenue(TTM)5.30B
Net Income(TTM)371.62M
Analysts80
Price TargetN/A
Short Float %5.35%
Short Ratio3.22
Dividend
| Industry Rank | Sector 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)1.91%
Min EPS beat(2)-0.24%
Max EPS beat(2)4.07%
EPS beat(4)3
Avg EPS beat(4)2.22%
Min EPS beat(4)-0.24%
Max EPS beat(4)4.07%
EPS beat(8)7
Avg EPS beat(8)5.06%
EPS beat(12)11
Avg EPS beat(12)5.54%
EPS beat(16)15
Avg EPS beat(16)10.49%
Revenue beat(2)0
Avg Revenue beat(2)-0.55%
Min Revenue beat(2)-0.61%
Max Revenue beat(2)-0.48%
Revenue beat(4)1
Avg Revenue beat(4)-0.2%
Min Revenue beat(4)-0.61%
Max Revenue beat(4)0.84%
Revenue beat(8)1
Avg Revenue beat(8)-0.58%
Revenue beat(12)1
Avg Revenue beat(12)-0.88%
Revenue beat(16)4
Avg Revenue beat(16)0.18%
PT rev (1m)1.17%
PT rev (3m)-2.43%
EPS NQ rev (1m)0%
EPS NQ rev (3m)9.17%
EPS NY rev (1m)2.68%
EPS NY rev (3m)3.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.07%
Revenue NY rev (1m)0.63%
Revenue NY rev (3m)0.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.05 | ||
| Fwd PE | 16.62 | ||
| P/S | 2.2 | ||
| P/FCF | 25.44 | ||
| P/OCF | 23.25 | ||
| P/B | 3.13 | ||
| P/tB | 5.57 | ||
| EV/EBITDA | 16.03 |
EPS(TTM)11.1
EY5.25%
EPS(NY)12.72
Fwd EY6.02%
FCF(TTM)8.31
FCFY3.93%
OCF(TTM)9.09
OCFY4.3%
SpS95.91
BVpS67.46
TBVpS37.97
PEG (NY)2.64
PEG (5Y)1.28
Graham Number129.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.67% | ||
| ROE | 9.97% | ||
| ROCE | 13.78% | ||
| ROIC | 10.72% | ||
| ROICexc | 15.51% | ||
| ROICexgc | 37.67% | ||
| OM | 10.43% | ||
| PM (TTM) | 7.01% | ||
| GM | 28.92% | ||
| FCFM | 8.67% |
ROA(3y)9.87%
ROA(5y)11.06%
ROE(3y)12.84%
ROE(5y)14.88%
ROIC(3y)11.98%
ROIC(5y)12.84%
ROICexc(3y)23.91%
ROICexc(5y)27.45%
ROICexgc(3y)44.54%
ROICexgc(5y)48.5%
ROCE(3y)15.42%
ROCE(5y)16.54%
ROICexgc growth 3Y-11.88%
ROICexgc growth 5Y3.29%
ROICexc growth 3Y-20.35%
ROICexc growth 5Y-8.92%
OM growth 3Y-7.24%
OM growth 5Y-2.7%
PM growth 3Y-9.14%
PM growth 5Y-3.32%
GM growth 3Y-3.28%
GM growth 5Y-2.67%
F-Score6
Asset Turnover1.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.05 | ||
| Debt/EBITDA | 0.04 | ||
| Cap/Depr | 46.68% | ||
| Cap/Sales | 0.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.89% | ||
| Profit Quality | 123.54% | ||
| Current Ratio | 3.02 | ||
| Quick Ratio | 3.02 | ||
| Altman-Z | 8.78 |
F-Score6
WACC9.07%
ROIC/WACC1.18
Cap/Depr(3y)51.75%
Cap/Depr(5y)79.67%
Cap/Sales(3y)0.99%
Cap/Sales(5y)1.71%
Profit Quality(3y)111.75%
Profit Quality(5y)115.25%
High Growth Momentum
Growth
EPS 1Y (TTM)2.97%
EPS 3Y6.34%
EPS 5Y14.89%
EPS Q2Q%-1.28%
EPS Next Y7.22%
EPS Next 2Y8.16%
EPS Next 3Y9.19%
EPS Next 5Y5.17%
Revenue 1Y (TTM)14.26%
Revenue growth 3Y7.95%
Revenue growth 5Y15.56%
Sales Q2Q%19.43%
Revenue Next Year15.96%
Revenue Next 2Y11.41%
Revenue Next 3Y10.52%
Revenue Next 5Y7.81%
EBIT growth 1Y3.34%
EBIT growth 3Y0.14%
EBIT growth 5Y12.45%
EBIT Next Year19.76%
EBIT Next 3Y13.13%
EBIT Next 5Y11.07%
FCF growth 1Y-14.58%
FCF growth 3Y4.58%
FCF growth 5Y22.87%
OCF growth 1Y-13.01%
OCF growth 3Y-0.77%
OCF growth 5Y14.23%
EPAM SYSTEMS INC / EPAM FAQ
What is the fundamental rating for EPAM stock?
ChartMill assigns a fundamental rating of 5 / 10 to EPAM.
What is the valuation status of EPAM SYSTEMS INC (EPAM) stock?
ChartMill assigns a valuation rating of 4 / 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.
Can you provide the expected EPS growth for EPAM stock?
The Earnings per Share (EPS) of EPAM SYSTEMS INC (EPAM) is expected to grow by 7.22% in the next year.