EPAM SYSTEMS INC (EPAM) Stock Fundamental Analysis
USA - NYSE:EPAM - US29414B1044 - Common Stock
175.48 USD
-2.3 (-1.29%)
EPAM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 85 industry peers in the IT Services industry. While EPAM has a great health rating, its profitability is only average at the moment. 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.
EPAM had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 7.67%, EPAM is in the better half of the industry, outperforming 77.65% of the companies in the same industry.
Looking at the Return On Equity, with a value of 9.97%, EPAM is in the better half of the industry, outperforming 64.71% of the companies in the same industry.
EPAM has a better Return On Invested Capital (10.71%) than 75.29% of its industry peers.
EPAM had an Average Return On Invested Capital over the past 3 years of 11.98%. This is significantly below the industry average of 30.25%.
| 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
The Profit Margin of EPAM (7.01%) is better than 71.76% of its industry peers.
In the last couple of years the Profit Margin of EPAM has declined.
EPAM's Operating Margin of 10.43% is fine compared to the rest of the industry. EPAM outperforms 70.59% 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 63.53% 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-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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), EPAM is creating some value.
EPAM has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, EPAM has more shares outstanding
The debt/assets ratio for EPAM has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.90 indicates that EPAM is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 7.90, EPAM belongs to the best of the industry, outperforming 89.41% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 0.05, EPAM belongs to the top of the industry, outperforming 92.94% of the companies in the same industry.
A Debt/Equity ratio of 0.01 indicates that EPAM is not too dependend on debt financing.
EPAM has a Debt to Equity ratio of 0.01. This is amongst the best in the industry. EPAM outperforms 81.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.05 | ||
| Altman-Z | 7.9 |
ROIC/WACC1.22
WACC8.79%
2.3 Liquidity
A Current Ratio of 3.02 indicates that EPAM has no problem at all paying its short term obligations.
The Current ratio of EPAM (3.02) is better than 80.00% of its industry peers.
A Quick Ratio of 3.02 indicates that EPAM has no problem at all paying its short term obligations.
EPAM has a Quick ratio of 3.02. This is amongst the best in the industry. EPAM outperforms 81.18% 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 2.97% 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 14.89% on average per year.
Looking at the last year, EPAM shows a quite strong growth in Revenue. The Revenue has grown by 14.26% in the last year.
EPAM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.56% yearly.
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 4.56% on average per year.
EPAM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.65% yearly.
EPS Next Y4.42%
EPS Next 2Y6.78%
EPS Next 3Y8.14%
EPS Next 5Y4.56%
Revenue Next Year15.23%
Revenue Next 2Y11.14%
Revenue Next 3Y10.23%
Revenue Next 5Y7.65%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
EPAM is valuated correctly with a Price/Earnings ratio of 15.81.
EPAM's Price/Earnings ratio is a bit cheaper when compared to the industry. EPAM is cheaper than 71.76% of the companies in the same industry.
When comparing the Price/Earnings ratio of EPAM to the average of the S&P500 Index (25.56), we can say EPAM is valued slightly cheaper.
EPAM is valuated correctly with a Price/Forward Earnings ratio of 14.16.
Based on the Price/Forward Earnings ratio, EPAM is valued a bit cheaper than the industry average as 76.47% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of EPAM to the average of the S&P500 Index (34.62), we can say EPAM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.81 | ||
| Fwd PE | 14.16 |
4.2 Price Multiples
EPAM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EPAM is cheaper than 65.88% of the companies in the same industry.
EPAM's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.29 | ||
| EV/EBITDA | 13.47 |
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)3.57
PEG (5Y)1.06
EPS Next 2Y6.78%
EPS Next 3Y8.14%
5. Dividend
5.1 Amount
No dividends for EPAM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:EPAM (11/18/2025, 12:40:34 PM)
175.48
-2.3 (-1.29%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners96.48%
Inst Owner Change2.03%
Ins Owners3.6%
Ins Owner Change0.21%
Market Cap9.77B
Revenue(TTM)5.30B
Net Income(TTM)371.62M
Analysts80
Price Target209.37 (19.31%)
Short Float %4.48%
Short Ratio2.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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%
PT rev (3m)-5.59%
EPS NQ rev (1m)6.49%
EPS NQ rev (3m)5.1%
EPS NY rev (1m)0.5%
EPS NY rev (3m)2.62%
Revenue NQ rev (1m)0.93%
Revenue NQ rev (3m)1.14%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.81 | ||
| Fwd PE | 14.16 | ||
| P/S | 1.84 | ||
| P/FCF | 21.29 | ||
| P/OCF | 19.46 | ||
| P/B | 2.62 | ||
| P/tB | 4.66 | ||
| EV/EBITDA | 13.47 |
EPS(TTM)11.1
EY6.33%
EPS(NY)12.39
Fwd EY7.06%
FCF(TTM)8.24
FCFY4.7%
OCF(TTM)9.02
OCFY5.14%
SpS95.11
BVpS66.9
TBVpS37.66
PEG (NY)3.57
PEG (5Y)1.06
Graham Number129.26
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 | 7.9 |
F-Score6
WACC8.79%
ROIC/WACC1.22
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 Y4.42%
EPS Next 2Y6.78%
EPS Next 3Y8.14%
EPS Next 5Y4.56%
Revenue 1Y (TTM)14.26%
Revenue growth 3Y7.95%
Revenue growth 5Y15.56%
Sales Q2Q%19.43%
Revenue Next Year15.23%
Revenue Next 2Y11.14%
Revenue Next 3Y10.23%
Revenue Next 5Y7.65%
EBIT growth 1Y3.34%
EBIT growth 3Y0.14%
EBIT growth 5Y12.45%
EBIT Next Year16.3%
EBIT Next 3Y12.45%
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 6 / 10 to EPAM.
What is the valuation status of EPAM SYSTEMS INC (EPAM) stock?
ChartMill assigns a valuation rating of 5 / 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 4.42% in the next year.