EPAM SYSTEMS INC (EPAM) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:EPAM • US29414B1044
183.33 USD
-27.09 (-12.87%)
At close: Feb 3, 2026
183.33 USD
0 (0%)
After Hours: 2/3/2026, 4:15:21 PM
Overall EPAM gets a fundamental rating of 5 out of 10. We evaluated EPAM against 88 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.
1. Profitability
1.1 Basic Checks
- In the past year EPAM was profitable.
- In the past year EPAM had a positive cash flow from operations.
- EPAM had positive earnings in each of the past 5 years.
- EPAM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- EPAM's Return On Assets of 7.67% is fine compared to the rest of the industry. EPAM outperforms 77.27% of its industry peers.
- Looking at the Return On Equity, with a value of 9.97%, EPAM is in the better half of the industry, outperforming 65.91% of the companies in the same industry.
- EPAM has a Return On Invested Capital of 10.71%. This is in the better half of the industry: EPAM outperforms 78.41% of its industry peers.
- EPAM had an Average Return On Invested Capital over the past 3 years of 11.99%. This is significantly below the industry average of 29.07%.
| 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)11.99%
ROIC(5y)12.85%
1.3 Margins
- The Profit Margin of EPAM (7.01%) is better than 69.32% 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 71.59% of the companies in the same industry.
- In the last couple of years the Operating Margin of EPAM has declined.
- Looking at the Gross Margin, with a value of 28.92%, EPAM is doing worse than 62.50% 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-7.14%
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%
2. Health
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
- EPAM has more shares outstanding than it did 5 years ago.
- EPAM has a better debt/assets ratio than last year.
2.2 Solvency
- EPAM has an Altman-Z score of 8.82. This indicates that EPAM is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 8.82, EPAM belongs to the best of the industry, outperforming 89.77% 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.
- With an excellent Debt to FCF ratio value of 0.05, EPAM belongs to the best of the industry, outperforming 92.05% of the companies in the same industry.
- A Debt/Equity ratio of 0.01 indicates that EPAM is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.01, EPAM belongs to the top of the industry, outperforming 82.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.05 | ||
| Altman-Z | 8.82 |
ROIC/WACC1.15
WACC9.29%
2.3 Liquidity
- A Current Ratio of 3.02 indicates that EPAM has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 3.02, EPAM is in the better half of the industry, outperforming 78.41% of the companies in the same industry.
- 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.
- With a decent Quick ratio value of 3.02, EPAM is doing good in the industry, outperforming 78.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.02 | ||
| Quick Ratio | 3.02 |
3. Growth
3.1 Past
- EPAM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.97%.
- 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.
- EPAM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.26%.
- 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 5.17% on average per year.
- Based on estimates for the next years, EPAM will show a small growth in Revenue. The Revenue will grow by 7.81% on average per year.
EPS Next Y7.3%
EPS Next 2Y8.24%
EPS Next 3Y9.28%
EPS Next 5Y5.17%
Revenue Next Year15.96%
Revenue Next 2Y11.41%
Revenue Next 3Y10.53%
Revenue Next 5Y7.81%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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 16.52, EPAM is valued correctly.
- Based on the Price/Earnings ratio, EPAM is valued a bit cheaper than 69.32% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.41. EPAM is valued slightly cheaper when compared to this.
- EPAM is valuated correctly with a Price/Forward Earnings ratio of 14.40.
- EPAM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EPAM is cheaper than 68.18% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.64, EPAM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.52 | ||
| Fwd PE | 14.4 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EPAM indicates a somewhat cheap valuation: EPAM is cheaper than 67.05% of the companies listed in the same industry.
- EPAM's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.06 | ||
| EV/EBITDA | 16.14 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates EPAM does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.26
PEG (5Y)1.11
EPS Next 2Y8.24%
EPS Next 3Y9.28%
5. Dividend
5.1 Amount
- No dividends for EPAM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
183.33
-27.09 (-12.87%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)11-06 2025-11-06/bmo
Earnings (Next)02-19 2026-02-19/amc
Inst Owners100.2%
Inst Owner Change-3.39%
Ins Owners3.62%
Ins Owner Change-0.21%
Market Cap10.13B
Revenue(TTM)5.30B
Net Income(TTM)371.62M
Analysts80
Price Target221.92 (21.05%)
Short Float %N/A
Short RatioN/A
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)3.21%
PT rev (3m)6%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)8.58%
EPS NY rev (1m)0.08%
EPS NY rev (3m)2.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.52 | ||
| Fwd PE | 14.4 | ||
| P/S | 1.91 | ||
| P/FCF | 22.06 | ||
| P/OCF | 20.16 | ||
| P/B | 2.72 | ||
| P/tB | 4.83 | ||
| EV/EBITDA | 16.14 |
EPS(TTM)11.1
EY6.05%
EPS(NY)12.73
Fwd EY6.95%
FCF(TTM)8.31
FCFY4.53%
OCF(TTM)9.09
OCFY4.96%
SpS95.91
BVpS67.46
TBVpS37.97
PEG (NY)2.26
PEG (5Y)1.11
Graham Number129.8
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)11.99%
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 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 | 8.82 |
F-Score6
WACC9.29%
ROIC/WACC1.15
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 2Y8.24%
EPS Next 3Y9.28%
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 16.52 and the Price/Book (PB) ratio is 2.72.