EPAM SYSTEMS INC (EPAM) Stock Fundamental Analysis
NYSE:EPAM • US29414B1044
141 USD
+2.38 (+1.72%)
At close: Feb 27, 2026
141 USD
0 (0%)
After Hours: 2/27/2026, 8:04:00 PM
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 has a correct valuation and a medium 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.
- 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.
1.2 Ratios
- EPAM has a Return On Assets of 7.67%. This is in the better half of the industry: EPAM outperforms 77.01% 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 67.82% of the companies in the same industry.
- EPAM has a better Return On Invested Capital (10.51%) than 80.46% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for EPAM is in line with the industry average of 10.57%.
| Industry Rank | Sector 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%
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.
- 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 70.11% of its industry peers.
- In the last couple of years the Operating Margin of EPAM has declined.
- EPAM has a Gross Margin of 28.92%. This is in the lower half of the industry: EPAM underperforms 62.07% of its industry peers.
- In the last couple of years the Gross Margin of EPAM has declined.
| Industry Rank | Sector 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%
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.
- 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.
- EPAM has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 6.69 indicates that EPAM is not in any danger for bankruptcy at the moment.
- The Altman-Z score of EPAM (6.69) is better than 87.36% 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.
- With an excellent Debt to FCF ratio value of 0.05, EPAM belongs to the best of the industry, outperforming 90.80% 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.
- The Debt to Equity ratio of EPAM (0.01) is better than 82.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.05 | ||
| Altman-Z | 6.69 |
ROIC/WACC1.13
WACC9.31%
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 better Current ratio (3.02) than 77.01% 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 better Quick ratio (3.02) than 77.01% of its industry peers.
| 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 5.98%.
- The Earnings Per Share has been growing by 12.65% on average over the past years. This is quite good.
- EPAM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.42%.
- Measured over the past years, EPAM shows a quite strong growth in Revenue. The Revenue has been growing by 15.46% on average per year.
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
- EPAM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.97% yearly.
- EPAM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.16% yearly.
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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 12.24, the valuation of EPAM can be described as correct.
- Based on the Price/Earnings ratio, EPAM is valued a bit cheaper than 77.01% of the companies in the same industry.
- EPAM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.10.
- EPAM is valuated reasonably with a Price/Forward Earnings ratio of 11.06.
- EPAM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EPAM is cheaper than 79.31% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.06, EPAM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.24 | ||
| Fwd PE | 11.06 |
4.2 Price Multiples
- EPAM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EPAM is cheaper than 73.56% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, EPAM is valued a bit cheaper than the industry average as 63.22% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.96 | ||
| EV/EBITDA | 9.99 |
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)1.15
PEG (5Y)0.97
EPS Next 2Y10.99%
EPS Next 3Y4.4%
5. Dividend
5.1 Amount
- No dividends for EPAM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
141
+2.38 (+1.72%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)02-19 2026-02-19/bmo
Earnings (Next)05-06 2026-05-06/bmo
Inst Owners100.2%
Inst Owner Change3.46%
Ins Owners3.62%
Ins Owner Change-0.21%
Market Cap7.79B
Revenue(TTM)5.46B
Net Income(TTM)371.62M
Analysts80.77
Price Target205.07 (45.44%)
Short Float %6.12%
Short Ratio3.85
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)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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.24 | ||
| Fwd PE | 11.06 | ||
| P/S | 1.47 | ||
| P/FCF | 16.96 | ||
| P/OCF | 15.51 | ||
| P/B | 2.09 | ||
| P/tB | 3.71 | ||
| EV/EBITDA | 9.99 |
EPS(TTM)11.52
EY8.17%
EPS(NY)12.74
Fwd EY9.04%
FCF(TTM)8.31
FCFY5.89%
OCF(TTM)9.09
OCFY6.45%
SpS95.91
BVpS67.46
TBVpS37.97
PEG (NY)1.15
PEG (5Y)0.97
Graham Number132.23
Profitability
| Industry Rank | Sector 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 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 | 6.69 |
F-Score7
WACC9.31%
ROIC/WACC1.13
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 12.24 and the Price/Book (PB) ratio is 2.09.