EPAM SYSTEMS INC (EPAM) Fundamental Analysis & Valuation
NYSE:EPAM • US29414B1044
145.87 USD
+1.29 (+0.89%)
At close: Mar 6, 2026
145.87 USD
0 (0%)
After Hours: 3/6/2026, 8:14:15 PM
This EPAM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
We assign a fundamental rating of 6 out of 10 to EPAM. EPAM was compared to 86 industry peers in the IT Services industry. EPAM has an excellent financial health rating, but there are some minor concerns on its profitability. EPAM is not valued too expensively and it also shows a decent growth rate.
1. EPAM Profitability Analysis
1.1 Basic Checks
- In the past year EPAM was profitable.
- In the past year EPAM had a positive cash flow from operations.
- In the past 5 years EPAM has always been profitable.
- In the past 5 years EPAM always reported a positive cash flow from operatings.
1.2 Ratios
- EPAM has a Return On Assets of 7.67%. This is in the better half of the industry: EPAM outperforms 74.42% of its industry peers.
- With a decent Return On Equity value of 9.97%, EPAM is doing good in the industry, outperforming 66.28% of the companies in the same industry.
- EPAM has a Return On Invested Capital of 10.51%. This is in the better half of the industry: EPAM outperforms 76.74% 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 10.85%.
| 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
- EPAM's Profit Margin of 7.01% is fine compared to the rest of the industry. EPAM outperforms 66.28% of its industry peers.
- EPAM's Profit Margin has declined in the last couple of years.
- EPAM's Operating Margin of 10.43% is fine compared to the rest of the industry. EPAM outperforms 70.93% of its industry peers.
- EPAM's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 28.92%, EPAM is doing worse than 61.63% of the companies in the same industry.
- EPAM's Gross Margin has declined in the last couple of years.
| 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. EPAM Health Analysis
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
- Compared to 5 years ago, EPAM has less shares outstanding
- Compared to 1 year ago, EPAM has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 6.87 indicates that EPAM is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 6.87, EPAM belongs to the top of the industry, outperforming 88.37% of the companies in the same industry.
- 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 89.53% of its industry peers.
- A Debt/Equity ratio of 0.01 indicates that EPAM is not too dependend on debt financing.
- With an excellent Debt to Equity ratio value of 0.01, EPAM belongs to the best of the industry, outperforming 82.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.05 | ||
| Altman-Z | 6.87 |
ROIC/WACC1.14
WACC9.18%
2.3 Liquidity
- A Current Ratio of 3.02 indicates that EPAM has no problem at all paying its short term obligations.
- EPAM has a better Current ratio (3.02) than 76.74% 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 76.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.02 | ||
| Quick Ratio | 3.02 |
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%.
- EPAM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.65% yearly.
- The Revenue has grown by 15.42% in the past year. This is quite good.
- The Revenue has been growing by 15.46% on average over the past years. This is quite good.
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.
- EPAM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.16% yearly.
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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. EPAM Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 12.66, the valuation of EPAM can be described as correct.
- Based on the Price/Earnings ratio, EPAM is valued a bit cheaper than 76.74% of the companies in the same industry.
- When comparing the Price/Earnings ratio of EPAM to the average of the S&P500 Index (26.29), we can say EPAM is valued rather cheaply.
- A Price/Forward Earnings ratio of 11.45 indicates a reasonable valuation of EPAM.
- Based on the Price/Forward Earnings ratio, EPAM is valued cheaply inside the industry as 80.23% 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 24.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.66 | ||
| Fwd PE | 11.45 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, EPAM is valued a bit cheaper than 74.42% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, EPAM is valued a bit cheaper than the industry average as 62.79% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.55 | ||
| EV/EBITDA | 10.5 |
4.3 Compensation for Growth
- EPAM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.19
PEG (5Y)1
EPS Next 2Y10.99%
EPS Next 3Y4.4%
5. EPAM Dividend Analysis
5.1 Amount
- EPAM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
EPAM Fundamentals: All Metrics, Ratios and Statistics
145.87
+1.29 (+0.89%)
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 Owners105.22%
Inst Owner Change3.69%
Ins Owners3.68%
Ins Owner Change-0.28%
Market Cap7.90B
Revenue(TTM)5.46B
Net Income(TTM)371.62M
Analysts79.23
Price Target205.07 (40.58%)
Short Float %7.26%
Short Ratio3.67
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)-7.6%
PT rev (3m)-3.19%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)0.05%
EPS NY rev (1m)0.07%
EPS NY rev (3m)2.82%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)0.14%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.66 | ||
| Fwd PE | 11.45 | ||
| P/S | 1.52 | ||
| P/FCF | 17.55 | ||
| P/OCF | 16.04 | ||
| P/B | 2.16 | ||
| P/tB | 3.84 | ||
| EV/EBITDA | 10.5 |
EPS(TTM)11.52
EY7.9%
EPS(NY)12.74
Fwd EY8.74%
FCF(TTM)8.31
FCFY5.7%
OCF(TTM)9.09
OCFY6.23%
SpS95.91
BVpS67.46
TBVpS37.97
PEG (NY)1.19
PEG (5Y)1
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 | 6.87 |
F-Score7
WACC9.18%
ROIC/WACC1.14
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 12.66 and the Price/Book (PB) ratio is 2.16.