EPAM SYSTEMS INC (EPAM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EPAM - US29414B1044 - Common Stock
211.11 USD
-0.61 (-0.29%)
211.11 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to EPAM. EPAM was compared to 85 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
EPAM had positive earnings in the past year.
EPAM had a positive operating cash flow in the past year.
In the past 5 years EPAM has always been profitable.
Each year in the past 5 years EPAM 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 76.47% of the companies in the same industry.
With a decent Return On Equity value of 9.97%, EPAM is doing good in the industry, outperforming 64.71% of the companies in the same industry.
EPAM has a better Return On Invested Capital (10.71%) than 76.47% 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 29.59%.
| 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
EPAM's Profit Margin of 7.01% is fine compared to the rest of the industry. EPAM outperforms 68.24% of its industry peers.
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 70.59% 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
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.
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 8.86. This indicates that EPAM is financially healthy and has little risk of bankruptcy at the moment.
EPAM has a better Altman-Z score (8.86) than 90.59% 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 91.76% 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's Debt to Equity ratio of 0.01 is amongst the best of the industry. EPAM outperforms 81.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.05 | ||
| Altman-Z | 8.86 |
ROIC/WACC1.22
WACC8.78%
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.
EPAM's Current ratio of 3.02 is fine compared to the rest of the industry. EPAM outperforms 78.82% 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 80.00% 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.
The Revenue has grown by 14.26% in the past year. This is quite good.
Measured over the past years, EPAM shows a quite strong growth in Revenue. The Revenue has been growing by 15.56% on average per year.
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.
EPAM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.81% yearly.
EPS Next Y7.22%
EPS Next 2Y8.16%
EPS Next 3Y9.19%
EPS Next 5Y5.17%
Revenue Next Year15.96%
Revenue Next 2Y11.41%
Revenue Next 3Y10.52%
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.
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
A Price/Earnings ratio of 19.02 indicates a rather expensive valuation of EPAM.
Based on the Price/Earnings ratio, EPAM is valued a bit cheaper than 69.41% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.76. EPAM is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 16.60, EPAM is valued correctly.
70.59% of the companies in the same industry are more expensive than EPAM, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of EPAM to the average of the S&P500 Index (23.96), we can say EPAM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.02 | ||
| Fwd PE | 16.6 |
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 65.88% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EPAM is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.4 | ||
| EV/EBITDA | 16.25 |
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)2.63
PEG (5Y)1.28
EPS Next 2Y8.16%
EPS Next 3Y9.19%
5. Dividend
5.1 Amount
No dividends for EPAM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
211.11
-0.61 (-0.29%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners98.81%
Inst Owner Change1.95%
Ins Owners3.62%
Ins Owner Change-0.21%
Market Cap11.66B
Revenue(TTM)5.30B
Net Income(TTM)371.62M
Analysts80
Price Target211.82 (0.34%)
Short Float %5.33%
Short Ratio3.3
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)1.17%
PT rev (3m)-3.24%
EPS NQ rev (1m)2.41%
EPS NQ rev (3m)9.23%
EPS NY rev (1m)2.68%
EPS NY rev (3m)3.22%
Revenue NQ rev (1m)0.21%
Revenue NQ rev (3m)1.07%
Revenue NY rev (1m)0.63%
Revenue NY rev (3m)0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.02 | ||
| Fwd PE | 16.6 | ||
| P/S | 2.2 | ||
| P/FCF | 25.4 | ||
| P/OCF | 23.22 | ||
| P/B | 3.13 | ||
| P/tB | 5.56 | ||
| EV/EBITDA | 16.25 |
EPS(TTM)11.1
EY5.26%
EPS(NY)12.72
Fwd EY6.02%
FCF(TTM)8.31
FCFY3.94%
OCF(TTM)9.09
OCFY4.31%
SpS95.91
BVpS67.46
TBVpS37.97
PEG (NY)2.63
PEG (5Y)1.28
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)11.98%
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 | 8.86 |
F-Score6
WACC8.78%
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 Y7.22%
EPS Next 2Y8.16%
EPS Next 3Y9.19%
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 3Y10.52%
Revenue Next 5Y7.81%
EBIT growth 1Y3.34%
EBIT growth 3Y0.14%
EBIT growth 5Y12.45%
EBIT Next Year19.76%
EBIT Next 3Y13.13%
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 of EPAM SYSTEMS INC (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.
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 7.22% in the next year.