EPAM SYSTEMS INC (EPAM)
US29414B1044 - Common Stock
Overall EPAM gets a fundamental rating of 6 out of 10. We evaluated EPAM against 84 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 correct valuation and a medium growth rate.
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.
EPAM had positive earnings in each of the past 5 years.
In the past 5 years EPAM always reported a positive cash flow from operatings.
1.2 Ratios
EPAM's Return On Assets of 10.07% is amongst the best of the industry. EPAM outperforms 81.71% of its industry peers.
EPAM has a better Return On Equity (12.63%) than 71.95% of its industry peers.
EPAM has a better Return On Invested Capital (11.35%) than 81.71% of its industry peers.
EPAM had an Average Return On Invested Capital over the past 3 years of 13.88%. This is above the industry average of 9.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.07% | ||
| ROE | 12.63% | ||
| ROIC | 11.35% |
ROA(3y)11.24%
ROA(5y)11.47%
ROE(3y)15.12%
ROE(5y)15.64%
ROIC(3y)13.88%
ROIC(5y)13.64%
1.3 Margins
With a decent Profit Margin value of 9.68%, EPAM is doing good in the industry, outperforming 71.95% of the companies in the same industry.
In the last couple of years the Profit Margin of EPAM has declined.
EPAM's Operating Margin of 11.53% is fine compared to the rest of the industry. EPAM outperforms 76.83% of its industry peers.
In the last couple of years the Operating Margin of EPAM has declined.
EPAM's Gross Margin of 30.84% is in line compared to the rest of the industry. EPAM outperforms 43.90% of its industry peers.
In the last couple of years the Gross Margin of EPAM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.53% | ||
| PM (TTM) | 9.68% | ||
| GM | 30.84% |
OM growth 3Y-7.63%
OM growth 5Y-3.37%
PM growth 3Y-10.26%
PM growth 5Y-7.37%
GM growth 3Y-4.28%
GM growth 5Y-3%
2. Health
2.1 Basic Checks
EPAM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for EPAM remains at a similar level compared to 1 year ago.
EPAM has more shares outstanding than it did 5 years ago.
The debt/assets ratio for EPAM has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 11.70 indicates that EPAM is not in any danger for bankruptcy at the moment.
EPAM has a Altman-Z score of 11.70. This is amongst the best in the industry. EPAM outperforms 90.24% of its industry peers.
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.
EPAM has a better Debt to FCF ratio (0.04) than 93.90% 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 81.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.04 | ||
| Altman-Z | 11.7 |
ROIC/WACC1.05
WACC10.83%
2.3 Liquidity
EPAM has a Current Ratio of 4.56. This indicates that EPAM is financially healthy and has no problem in meeting its short term obligations.
EPAM has a Current ratio of 4.56. This is amongst the best in the industry. EPAM outperforms 93.90% of its industry peers.
EPAM has a Quick Ratio of 4.56. This indicates that EPAM is financially healthy and has no problem in meeting its short term obligations.
EPAM's Quick ratio of 4.56 is amongst the best of the industry. EPAM outperforms 93.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.56 | ||
| Quick Ratio | 4.56 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.09% over the past year.
Measured over the past years, EPAM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.31% on average per year.
The Revenue has decreased by -2.68% in the past year.
Measured over the past years, EPAM shows a very strong growth in Revenue. The Revenue has been growing by 20.54% on average per year.
EPS 1Y (TTM)0.09%
EPS 3Y18.59%
EPS 5Y19.31%
EPS Q2Q%14.29%
Revenue 1Y (TTM)-2.68%
Revenue growth 3Y20.82%
Revenue growth 5Y20.54%
Sales Q2Q%1.34%
3.2 Future
The Earnings Per Share is expected to grow by 8.34% on average over the next years. This is quite good.
Based on estimates for the next years, EPAM will show a small growth in Revenue. The Revenue will grow by 6.33% on average per year.
EPS Next Y1.13%
EPS Next 2Y3.42%
EPS Next 3Y6.11%
EPS Next 5Y8.34%
Revenue Next Year-0.23%
Revenue Next 2Y4.14%
Revenue Next 3Y6%
Revenue Next 5Y6.33%
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
With a Price/Earnings ratio of 22.75, EPAM is valued on the expensive side.
EPAM's Price/Earnings ratio is a bit cheaper when compared to the industry. EPAM is cheaper than 64.63% of the companies in the same industry.
EPAM is valuated rather cheaply when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 21.65, which indicates a rather expensive current valuation of EPAM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EPAM indicates a somewhat cheap valuation: EPAM is cheaper than 67.07% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, EPAM is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.75 | ||
| Fwd PE | 21.65 |
4.2 Price Multiples
60.98% of the companies in the same industry are more expensive than EPAM, based on the Enterprise Value to EBITDA ratio.
EPAM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EPAM is cheaper than 67.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.24 | ||
| EV/EBITDA | 18.12 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of EPAM may justify a higher PE ratio.
PEG (NY)20.07
PEG (5Y)1.18
EPS Next 2Y3.42%
EPS Next 3Y6.11%
5. Dividend
5.1 Amount
EPAM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
EPAM SYSTEMS INC
NYSE:EPAM (11/21/2024, 8:24:52 PM)
After market: 245.22 0 (0%)245.22
+10.72 (+4.57%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap13.91B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.75 | ||
| Fwd PE | 21.65 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)20.07
PEG (5Y)1.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.07% | ||
| ROE | 12.63% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.53% | ||
| PM (TTM) | 9.68% | ||
| GM | 30.84% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.56 | ||
| Quick Ratio | 4.56 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)0.09%
EPS 3Y18.59%
EPS 5Y
EPS Q2Q%
EPS Next Y1.13%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.68%
Revenue growth 3Y20.82%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y