EPAM SYSTEMS INC (EPAM) Stock Fundamental Analysis

NYSE:EPAM • US29414B1044

130.86 USD
+0.9 (+0.69%)
Last: Feb 24, 2026, 01:25 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 has an excellent financial health rating, but there are some minor concerns on its profitability. EPAM is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

5

1. Profitability

1.1 Basic Checks

  • In the past year EPAM was profitable.
  • EPAM had a positive operating cash flow in the past year.
  • Each year in the past 5 years EPAM has been profitable.
  • Of the past 5 years EPAM 4 years 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 2025 100M 200M 300M 400M 500M

1.2 Ratios

  • EPAM has a better Return On Assets (7.67%) than 77.01% of its industry peers.
  • EPAM has a better Return On Equity (9.97%) than 67.82% of its industry peers.
  • The Return On Invested Capital of EPAM (10.51%) is better than 80.46% of its industry peers.
  • EPAM had an Average Return On Invested Capital over the past 3 years of 10.51%. This is in line with the industry average of 10.61%.
Industry RankSector Rank
ROA 7.67%
ROE 9.97%
ROIC 10.51%
ROA(3y)8.95%
ROA(5y)10.2%
ROE(3y)11.6%
ROE(5y)13.63%
ROIC(3y)10.51%
ROIC(5y)12.05%
EPAM Yearly ROA, ROE, ROICEPAM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

1.3 Margins

  • Looking at the Profit Margin, with a value of 7.01%, EPAM is in the better half of the industry, outperforming 68.97% of the companies in the same industry.
  • EPAM's Profit Margin has declined in the last couple of years.
  • EPAM's Operating Margin of 10.43% is fine compared to the rest of the industry. EPAM outperforms 70.11% 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 62.07% of the companies in the same industry.
  • In the last couple of years the Gross Margin of EPAM has declined.
Industry RankSector Rank
OM 10.43%
PM (TTM) 7.01%
GM 28.92%
OM growth 3Y-8.11%
OM growth 5Y-7.75%
PM growth 3Y-7.32%
PM growth 5Y-10.87%
GM growth 3Y-3.29%
GM growth 5Y-3.72%
EPAM Yearly Profit, Operating, Gross MarginsEPAM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

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ROAROEROICOperating and Profit MarginShow most profitable peers

9

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.
  • The number of shares outstanding for EPAM has been reduced compared to 1 year ago.
  • The number of shares outstanding for EPAM has been reduced compared to 5 years ago.
  • Compared to 1 year ago, EPAM has an improved debt to assets ratio.
EPAM Yearly Shares OutstandingEPAM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2025 1B 2B 3B 4B

2.2 Solvency

  • An Altman-Z score of 6.43 indicates that EPAM is not in any danger for bankruptcy at the moment.
  • With an excellent Altman-Z score value of 6.43, EPAM belongs to the best of the industry, outperforming 87.36% 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.
  • The Debt to FCF ratio of EPAM (0.05) is better than 90.80% of its industry peers.
  • A Debt/Equity ratio of 0.01 indicates that EPAM is not too dependend on debt financing.
  • The Debt to Equity ratio of EPAM (0.01) is better than 82.76% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF 0.05
Altman-Z 6.43
ROIC/WACC1.11
WACC9.43%
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 2025 1B 2B 3B

2.3 Liquidity

  • A Current Ratio of 3.02 indicates that EPAM has no problem at all paying its short term obligations.
  • EPAM's Current ratio of 3.02 is fine compared to the rest of the industry. EPAM outperforms 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.
  • With a decent Quick ratio value of 3.02, EPAM is doing good in the industry, outperforming 77.01% of the companies in the same industry.
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 2025 1B 2B 3B

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

5

3. Growth

3.1 Past

  • EPAM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.98%.
  • EPAM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.65% yearly.
  • The Revenue has grown by 15.42% in the past year. This is quite good.
  • EPAM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.46% yearly.
EPS 1Y (TTM)5.98%
EPS 3Y1.86%
EPS 5Y12.65%
EPS Q2Q%14.79%
Revenue 1Y (TTM)15.42%
Revenue growth 3Y4.19%
Revenue growth 5Y15.46%
Sales Q2Q%12.75%

3.2 Future

  • The Earnings Per Share is expected to grow by 4.97% on average over the next years.
  • The Revenue is expected to grow by 10.16% on average over the next years. This is quite good.
EPS Next Y10.62%
EPS Next 2Y10.99%
EPS Next 3Y4.4%
EPS Next 5Y4.97%
Revenue Next Year7.1%
Revenue Next 2Y7.98%
Revenue Next 3Y6.49%
Revenue Next 5Y10.16%

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.
  • Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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

6

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 11.36, which indicates a very decent valuation of EPAM.
  • Based on the Price/Earnings ratio, EPAM is valued a bit cheaper than 78.16% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of EPAM to the average of the S&P500 Index (26.64), we can say EPAM is valued rather cheaply.
  • Based on the Price/Forward Earnings ratio of 10.27, the valuation of EPAM can be described as reasonable.
  • 79.31% 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 (27.75), we can say EPAM is valued rather cheaply.
Industry RankSector Rank
PE 11.36
Fwd PE 10.27
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

  • 74.71% of the companies in the same industry are more expensive than EPAM, based on the Enterprise Value to EBITDA ratio.
  • 63.22% of the companies in the same industry are more expensive than EPAM, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 15.74
EV/EBITDA 9.25
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)1.07
PEG (5Y)0.9
EPS Next 2Y10.99%
EPS Next 3Y4.4%

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

0

5. Dividend

5.1 Amount

  • No dividends for EPAM!.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

EPAM SYSTEMS INC

NYSE:EPAM (2/24/2026, 1:25:15 PM)

130.86

+0.9 (+0.69%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)02-19
Earnings (Next)05-06
Inst Owners100.2%
Inst Owner Change3.46%
Ins Owners3.62%
Ins Owner Change-0.21%
Market Cap7.23B
Revenue(TTM)5.46B
Net Income(TTM)371.62M
Analysts80.77
Price Target232.54 (77.7%)
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)4.79%
PT rev (3m)9.78%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)-0.01%
EPS NY rev (1m)0%
EPS NY rev (3m)2.76%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.63%
Valuation
Industry RankSector Rank
PE 11.36
Fwd PE 10.27
P/S 1.36
P/FCF 15.74
P/OCF 14.39
P/B 1.94
P/tB 3.45
EV/EBITDA 9.25
EPS(TTM)11.52
EY8.8%
EPS(NY)12.74
Fwd EY9.74%
FCF(TTM)8.31
FCFY6.35%
OCF(TTM)9.09
OCFY6.95%
SpS95.91
BVpS67.46
TBVpS37.97
PEG (NY)1.07
PEG (5Y)0.9
Graham Number132.23
Profitability
Industry RankSector Rank
ROA 7.67%
ROE 9.97%
ROCE 13.78%
ROIC 10.51%
ROICexc 15.21%
ROICexgc 36.93%
OM 10.43%
PM (TTM) 7.01%
GM 28.92%
FCFM 8.67%
ROA(3y)8.95%
ROA(5y)10.2%
ROE(3y)11.6%
ROE(5y)13.63%
ROIC(3y)10.51%
ROIC(5y)12.05%
ROICexc(3y)18.6%
ROICexc(5y)23.31%
ROICexgc(3y)40.34%
ROICexgc(5y)45.92%
ROCE(3y)13.79%
ROCE(5y)15.84%
ROICexgc growth 3Y-7.38%
ROICexgc growth 5Y-3.77%
ROICexc growth 3Y-20.19%
ROICexc growth 5Y-14.56%
OM growth 3Y-8.11%
OM growth 5Y-7.75%
PM growth 3Y-7.32%
PM growth 5Y-10.87%
GM growth 3Y-3.29%
GM growth 5Y-3.72%
F-Score7
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 6.43
F-Score7
WACC9.43%
ROIC/WACC1.11
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)5.98%
EPS 3Y1.86%
EPS 5Y12.65%
EPS Q2Q%14.79%
EPS Next Y10.62%
EPS Next 2Y10.99%
EPS Next 3Y4.4%
EPS Next 5Y4.97%
Revenue 1Y (TTM)15.42%
Revenue growth 3Y4.19%
Revenue growth 5Y15.46%
Sales Q2Q%12.75%
Revenue Next Year7.1%
Revenue Next 2Y7.98%
Revenue Next 3Y6.49%
Revenue Next 5Y10.16%
EBIT growth 1Y3.34%
EBIT growth 3Y-4.26%
EBIT growth 5Y6.51%
EBIT Next Year18.81%
EBIT Next 3Y9.6%
EBIT Next 5Y10.22%
FCF growth 1Y-19.99%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-16.32%
OCF growth 3YN/A
OCF growth 5YN/A

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 for EPAM stock?

ChartMill assigns a valuation rating of 6 / 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 11.36 and the Price/Book (PB) ratio is 1.94.