EPAM SYSTEMS INC (EPAM) Stock Fundamental Analysis
NYSE:EPAM • US29414B1044
138.055 USD
-0.56 (-0.41%)
Last: Feb 27, 2026, 02:35 PM
We assign a fundamental rating of 6 out of 10 to EPAM. EPAM was compared to 87 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year EPAM was profitable.
- EPAM had a positive operating cash flow in the past year.
- In the past 5 years EPAM has always been profitable.
- Of the past 5 years EPAM 4 years had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 7.67%, EPAM is in the better half of the industry, outperforming 77.01% of the companies in the same industry.
- EPAM has a better Return On Equity (9.97%) than 67.82% of its industry peers.
- EPAM has a better Return On Invested Capital (10.51%) than 80.46% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for EPAM is in line with the industry average of 10.57%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.67% | ||
| ROE | 9.97% | ||
| ROIC | 10.51% |
ROA(3y)8.95%
ROA(5y)10.2%
ROE(3y)11.6%
ROE(5y)13.63%
ROIC(3y)10.51%
ROIC(5y)12.05%
1.3 Margins
- With a decent Profit Margin value of 7.01%, EPAM is doing good in the industry, outperforming 68.97% of the companies in the same industry.
- EPAM's Profit Margin has declined in the last couple of years.
- EPAM has a Operating Margin of 10.43%. This is in the better half of the industry: EPAM outperforms 70.11% of its industry peers.
- EPAM's Operating Margin has declined in the last couple of years.
- EPAM's Gross Margin of 28.92% is on the low side compared to the rest of the industry. EPAM is outperformed by 62.07% 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-8.11%
OM growth 5Y-7.75%
PM growth 3Y-7.32%
PM growth 5Y-10.87%
GM growth 3Y-3.29%
GM growth 5Y-3.72%
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.
- EPAM has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, EPAM has less shares outstanding
- EPAM has a better debt/assets ratio than last year.
2.2 Solvency
- EPAM has an Altman-Z score of 6.69. This indicates that EPAM is financially healthy and has little risk of bankruptcy at the moment.
- EPAM has a better Altman-Z score (6.69) than 87.36% of its industry peers.
- EPAM has a debt to FCF ratio of 0.05. This is a very positive value and a sign of high solvency as it would only need 0.05 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 0.05, EPAM belongs to the best of the industry, outperforming 90.80% of the companies in the same industry.
- 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 82.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.05 | ||
| Altman-Z | 6.69 |
ROIC/WACC1.11
WACC9.44%
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.
- The Current ratio of EPAM (3.02) is better than 77.01% of its industry peers.
- A Quick Ratio of 3.02 indicates that EPAM has no problem at all paying its short term obligations.
- The Quick ratio of EPAM (3.02) is better than 77.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.02 | ||
| Quick Ratio | 3.02 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 5.98% over the past year.
- EPAM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.65% yearly.
- EPAM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.42%.
- 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
- EPAM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.97% yearly.
- The Revenue is expected to grow by 10.16% on average over the next years. This is quite good.
EPS Next Y10.62%
EPS Next 2Y10.99%
EPS Next 3Y4.4%
EPS Next 5Y4.97%
Revenue Next Year7.1%
Revenue Next 2Y7.98%
Revenue Next 3Y6.49%
Revenue Next 5Y10.16%
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 estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 11.98, the valuation of EPAM can be described as very reasonable.
- Compared to the rest of the industry, the Price/Earnings ratio of EPAM indicates a somewhat cheap valuation: EPAM is cheaper than 77.01% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.11, EPAM is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 10.83, the valuation of EPAM can be described as reasonable.
- Based on the Price/Forward Earnings ratio, EPAM is valued a bit cheaper than the industry average as 79.31% of the companies are valued more expensively.
- EPAM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.98 | ||
| Fwd PE | 10.83 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, EPAM is valued a bit cheaper than the industry average as 73.56% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of EPAM indicates a somewhat cheap valuation: EPAM is cheaper than 63.22% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.61 | ||
| EV/EBITDA | 9.99 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.13
PEG (5Y)0.95
EPS Next 2Y10.99%
EPS Next 3Y4.4%
5. Dividend
5.1 Amount
- No dividends for EPAM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NYSE:EPAM (2/27/2026, 2:35:14 PM)
138.055
-0.56 (-0.41%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)02-19 2026-02-19/bmo
Earnings (Next)05-06 2026-05-06/bmo
Inst Owners100.2%
Inst Owner Change3.46%
Ins Owners3.62%
Ins Owner Change-0.21%
Market Cap7.63B
Revenue(TTM)5.46B
Net Income(TTM)371.62M
Analysts80.77
Price Target205.07 (48.54%)
Short Float %6.12%
Short Ratio3.85
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)4.79%
PT rev (3m)9.78%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)-0.01%
EPS NY rev (1m)0%
EPS NY rev (3m)2.76%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.98 | ||
| Fwd PE | 10.83 | ||
| P/S | 1.44 | ||
| P/FCF | 16.61 | ||
| P/OCF | 15.18 | ||
| P/B | 2.05 | ||
| P/tB | 3.64 | ||
| EV/EBITDA | 9.99 |
EPS(TTM)11.52
EY8.34%
EPS(NY)12.74
Fwd EY9.23%
FCF(TTM)8.31
FCFY6.02%
OCF(TTM)9.09
OCFY6.59%
SpS95.91
BVpS67.46
TBVpS37.97
PEG (NY)1.13
PEG (5Y)0.95
Graham Number132.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.67% | ||
| ROE | 9.97% | ||
| ROCE | 13.78% | ||
| ROIC | 10.51% | ||
| ROICexc | 15.21% | ||
| ROICexgc | 36.93% | ||
| OM | 10.43% | ||
| PM (TTM) | 7.01% | ||
| GM | 28.92% | ||
| FCFM | 8.67% |
ROA(3y)8.95%
ROA(5y)10.2%
ROE(3y)11.6%
ROE(5y)13.63%
ROIC(3y)10.51%
ROIC(5y)12.05%
ROICexc(3y)18.6%
ROICexc(5y)23.31%
ROICexgc(3y)40.34%
ROICexgc(5y)45.92%
ROCE(3y)13.79%
ROCE(5y)15.84%
ROICexgc growth 3Y-7.38%
ROICexgc growth 5Y-3.77%
ROICexc growth 3Y-20.19%
ROICexc growth 5Y-14.56%
OM growth 3Y-8.11%
OM growth 5Y-7.75%
PM growth 3Y-7.32%
PM growth 5Y-10.87%
GM growth 3Y-3.29%
GM growth 5Y-3.72%
F-Score7
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 | 6.69 |
F-Score7
WACC9.44%
ROIC/WACC1.11
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)5.98%
EPS 3Y1.86%
EPS 5Y12.65%
EPS Q2Q%14.79%
EPS Next Y10.62%
EPS Next 2Y10.99%
EPS Next 3Y4.4%
EPS Next 5Y4.97%
Revenue 1Y (TTM)15.42%
Revenue growth 3Y4.19%
Revenue growth 5Y15.46%
Sales Q2Q%12.75%
Revenue Next Year7.1%
Revenue Next 2Y7.98%
Revenue Next 3Y6.49%
Revenue Next 5Y10.16%
EBIT growth 1Y3.34%
EBIT growth 3Y-4.26%
EBIT growth 5Y6.51%
EBIT Next Year18.81%
EBIT Next 3Y9.6%
EBIT Next 5Y10.22%
FCF growth 1Y-19.99%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-16.32%
OCF growth 3YN/A
OCF growth 5YN/A
EPAM SYSTEMS INC / EPAM 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 11.98 and the Price/Book (PB) ratio is 2.05.