EPAM SYSTEMS INC (EPAM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EPAM - US29414B1044 - Common Stock
214.65 USD
-6.75 (-3.05%)
Taking everything into account, EPAM scores 5 out of 10 in our fundamental rating. EPAM was compared to 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 is not valued too expensively and it also shows a decent growth rate.
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.
- In the past 5 years EPAM has always been profitable.
- EPAM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a decent Return On Assets value of 7.67%, EPAM is doing good in the industry, outperforming 77.27% of the companies in the same industry.
- EPAM's Return On Equity of 9.97% is fine compared to the rest of the industry. EPAM outperforms 65.91% of its industry peers.
- EPAM's Return On Invested Capital of 10.71% is fine compared to the rest of the industry. EPAM outperforms 77.27% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for EPAM is significantly below the industry average of 28.99%.
| 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
- EPAM has a Profit Margin of 7.01%. This is in the better half of the industry: EPAM outperforms 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.
- The Gross Margin of EPAM (28.92%) is worse than 62.50% of its industry peers.
- 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.
- EPAM has less shares outstanding than it did 1 year ago.
- EPAM has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for EPAM has been reduced compared to a year ago.
2.2 Solvency
- EPAM has an Altman-Z score of 9.15. This indicates that EPAM is financially healthy and has little risk of bankruptcy at the moment.
- EPAM's Altman-Z score of 9.15 is amongst the best of the industry. EPAM outperforms 90.91% of its industry peers.
- 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 92.05% of the companies in the same industry.
- A Debt/Equity ratio of 0.01 indicates that EPAM is not too dependend on debt financing.
- With an excellent Debt to Equity ratio value of 0.01, EPAM belongs to the best 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 | 9.15 |
ROIC/WACC1.19
WACC9.03%
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 has a Current ratio of 3.02. This is in the better half of the industry: EPAM outperforms 78.41% 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.
- Looking at the Quick 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.
| 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.
- EPAM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.89% yearly.
- 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
- EPAM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.17% yearly.
- 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 2Y8.1%
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
- 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
- The Price/Earnings ratio is 19.34, which indicates a rather expensive current valuation of EPAM.
- 69.32% of the companies in the same industry are more expensive than EPAM, based on the Price/Earnings ratio.
- EPAM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.33.
- The Price/Forward Earnings ratio is 16.90, which indicates a correct valuation of EPAM.
- 68.18% of the companies in the same industry are more expensive than EPAM, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 24.12. EPAM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.34 | ||
| Fwd PE | 16.9 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, EPAM is valued a bit cheaper than the industry average as 65.91% of the companies are valued more expensively.
- The rest of the industry has a similar Price/Free Cash Flow ratio as EPAM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.83 | ||
| EV/EBITDA | 17.08 |
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)2.68
PEG (5Y)1.3
EPS Next 2Y8.1%
EPS Next 3Y9.19%
5. Dividend
5.1 Amount
- EPAM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NYSE:EPAM (1/15/2026, 3:05:39 PM)
214.65
-6.75 (-3.05%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)11-06 2025-11-06/bmo
Earnings (Next)02-18 2026-02-18/amc
Inst Owners100.2%
Inst Owner Change0.1%
Ins Owners3.62%
Ins Owner Change-0.21%
Market Cap11.86B
Revenue(TTM)5.30B
Net Income(TTM)371.62M
Analysts80
Price Target215.01 (0.17%)
Short Float %5.54%
Short Ratio3.17
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)1.5%
PT rev (3m)-1.42%
EPS NQ rev (1m)0%
EPS NQ rev (3m)9%
EPS NY rev (1m)0%
EPS NY rev (3m)3.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.34 | ||
| Fwd PE | 16.9 | ||
| P/S | 2.24 | ||
| P/FCF | 25.83 | ||
| P/OCF | 23.61 | ||
| P/B | 3.18 | ||
| P/tB | 5.65 | ||
| EV/EBITDA | 17.08 |
EPS(TTM)11.1
EY5.17%
EPS(NY)12.7
Fwd EY5.92%
FCF(TTM)8.31
FCFY3.87%
OCF(TTM)9.09
OCFY4.24%
SpS95.91
BVpS67.46
TBVpS37.97
PEG (NY)2.68
PEG (5Y)1.3
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 | 9.15 |
F-Score6
WACC9.03%
ROIC/WACC1.19
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 2Y8.1%
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 3Y0.25%
EBIT growth 5Y12.52%
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 for EPAM stock?
ChartMill assigns a valuation rating of 3 / 10 to EPAM SYSTEMS INC (EPAM). This can be considered as Overvalued.
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 19.34 and the Price/Book (PB) ratio is 3.18.