EPAM SYSTEMS INC (EPAM) Stock Fundamental Analysis

NYSE:EPAM • US29414B1044

132.67 USD
-35.02 (-20.88%)
Last: Feb 19, 2026, 01:12 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

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 has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

5

1. Profitability

1.1 Basic Checks

  • EPAM had positive earnings in the past year.
  • EPAM had a positive operating cash flow in the past year.
  • Each year in the past 5 years EPAM has been profitable.
  • Each year in the past 5 years EPAM had a positive operating cash flow.
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 100M 200M 300M 400M 500M

1.2 Ratios

  • With a decent Return On Assets value of 7.67%, EPAM is doing good in the industry, outperforming 77.01% of the companies in the same industry.
  • The Return On Equity of EPAM (9.97%) is better than 66.67% of its industry peers.
  • With a decent Return On Invested Capital value of 10.71%, EPAM is doing good in the industry, outperforming 79.31% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for EPAM is in line with the industry average of 10.62%.
Industry RankSector 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)11.99%
ROIC(5y)12.85%
EPAM Yearly ROA, ROE, ROICEPAM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

  • EPAM's Profit Margin of 7.01% is fine compared to the rest of the industry. EPAM outperforms 68.97% of its industry peers.
  • In the last couple of years the Profit Margin of EPAM has declined.
  • Looking at the Operating Margin, with a value of 10.43%, EPAM is in the better half of the industry, outperforming 71.26% of the companies in the same industry.
  • 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.
  • EPAM's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 10.43%
PM (TTM) 7.01%
GM 28.92%
OM growth 3Y-7.14%
OM growth 5Y-2.63%
PM growth 3Y-9.14%
PM growth 5Y-3.32%
GM growth 3Y-3.28%
GM growth 5Y-2.67%
EPAM Yearly Profit, Operating, Gross MarginsEPAM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

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9

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), EPAM is creating some value.
  • Compared to 1 year ago, EPAM has less shares outstanding
  • The number of shares outstanding for EPAM has been increased compared to 5 years ago.
  • The debt/assets ratio for EPAM has been reduced compared to a year ago.
EPAM Yearly Shares OutstandingEPAM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 1B 2B 3B 4B

2.2 Solvency

  • EPAM has an Altman-Z score of 7.55. This indicates that EPAM is financially healthy and has little risk of bankruptcy at the moment.
  • EPAM has a Altman-Z score of 7.55. This is amongst the best in the industry. EPAM outperforms 89.66% 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.
  • 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.
  • Looking at the Debt to Equity ratio, with a value of 0.01, EPAM belongs to the top of the industry, outperforming 82.76% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF 0.05
Altman-Z 7.55
ROIC/WACC1.13
WACC9.48%
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 1B 2B 3B

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.
  • EPAM has a Quick 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 Quick ratio (3.02) than 77.01% of its industry peers.
Industry RankSector Rank
Current Ratio 3.02
Quick Ratio 3.02
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 1B 2B 3B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. Growth

3.1 Past

  • The Earnings Per Share has been growing slightly by 2.97% over the past year.
  • 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.
  • The Revenue is expected to grow by 7.81% on average over the next years.
EPS Next Y7.3%
EPS Next 2Y8.28%
EPS Next 3Y9.29%
EPS Next 5Y5.17%
Revenue Next Year15.96%
Revenue Next 2Y11.41%
Revenue Next 3Y10.53%
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.
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 8B
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 5 10

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Find the best growth stocksShow best growing peers

5

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 11.95, the valuation of EPAM can be described as very reasonable.
  • EPAM's Price/Earnings ratio is a bit cheaper when compared to the industry. EPAM is cheaper than 72.41% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of EPAM to the average of the S&P500 Index (27.27), we can say EPAM is valued rather cheaply.
  • The Price/Forward Earnings ratio is 10.41, which indicates a very decent valuation of EPAM.
  • EPAM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EPAM is cheaper than 71.26% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 28.16. EPAM is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 11.95
Fwd PE 10.41
EPAM Price Earnings VS Forward Price EarningsEPAM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, EPAM is valued a bit cheaper than the industry average as 71.26% of the companies are valued more expensively.
  • EPAM's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 15.96
EV/EBITDA 12.48
EPAM Per share dataEPAM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

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)1.64
PEG (5Y)0.8
EPS Next 2Y8.28%
EPS Next 3Y9.29%

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

0

5. Dividend

5.1 Amount

  • EPAM does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

EPAM SYSTEMS INC

NYSE:EPAM (2/19/2026, 1:12:59 PM)

132.67

-35.02 (-20.88%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)11-06
Earnings (Next)02-19
Inst Owners100.2%
Inst Owner Change3.44%
Ins Owners3.62%
Ins Owner Change-0.21%
Market Cap7.33B
Revenue(TTM)5.30B
Net Income(TTM)371.62M
Analysts80.77
Price Target232.54 (75.28%)
Short Float %6.12%
Short Ratio3.85
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)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)8.15%
PT rev (3m)11.07%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)2.4%
EPS NY rev (1m)0.08%
EPS NY rev (3m)2.76%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.28%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.63%
Valuation
Industry RankSector Rank
PE 11.95
Fwd PE 10.41
P/S 1.38
P/FCF 15.96
P/OCF 14.59
P/B 1.97
P/tB 3.49
EV/EBITDA 12.48
EPS(TTM)11.1
EY8.37%
EPS(NY)12.74
Fwd EY9.61%
FCF(TTM)8.31
FCFY6.26%
OCF(TTM)9.09
OCFY6.85%
SpS95.91
BVpS67.46
TBVpS37.97
PEG (NY)1.64
PEG (5Y)0.8
Graham Number129.8
Profitability
Industry RankSector 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)11.99%
ROIC(5y)12.85%
ROICexc(3y)23.93%
ROICexc(5y)27.46%
ROICexgc(3y)44.58%
ROICexgc(5y)48.53%
ROCE(3y)15.43%
ROCE(5y)16.55%
ROICexgc growth 3Y-11.78%
ROICexgc growth 5Y3.36%
ROICexc growth 3Y-20.26%
ROICexc growth 5Y-8.86%
OM growth 3Y-7.14%
OM growth 5Y-2.63%
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 RankSector 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 7.55
F-Score6
WACC9.48%
ROIC/WACC1.13
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 Y7.3%
EPS Next 2Y8.28%
EPS Next 3Y9.29%
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 3Y10.53%
Revenue Next 5Y7.81%
EBIT growth 1Y3.34%
EBIT growth 3Y0.25%
EBIT growth 5Y12.52%
EBIT Next Year19.76%
EBIT Next 3Y13.1%
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 for 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.


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 11.95 and the Price/Book (PB) ratio is 1.97.