EPAM SYSTEMS INC (EPAM) Stock Fundamental Analysis
NYSE:EPAM • US29414B1044
138.85 USD
-0.31 (-0.22%)
At close: Feb 20, 2026
138.85 USD
0 (0%)
After Hours: 2/20/2026, 8:04:00 PM
We assign a fundamental rating of 5 out of 10 to EPAM. EPAM was compared to 87 industry peers in the IT Services industry. While EPAM has a great health rating, its profitability is only average at the moment. EPAM is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year EPAM was profitable.
- EPAM had a positive operating cash flow in the past year.
- Of the past 5 years EPAM 4 years were profitable.
- Of the past 5 years EPAM 4 years had a positive operating cash flow.
1.2 Ratios
- EPAM has a better Return On Assets (7.67%) than 77.01% of its industry peers.
- The Return On Equity of EPAM (9.97%) is better than 66.67% of its industry peers.
- With a decent Return On Invested Capital value of 10.71%, EPAM is doing good in the industry, outperforming 79.31% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for EPAM is in line with the industry average of 10.62%.
| 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
- With a decent Profit Margin value of 7.01%, EPAM is doing good in the industry, outperforming 68.97% of the companies in the same industry.
- EPAM's Profit Margin has declined in the last couple of years.
- With a decent Operating Margin value of 10.43%, EPAM is doing good in the industry, outperforming 71.26% of the companies in the same industry.
- 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.
- 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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- An Altman-Z score of 6.71 indicates that EPAM is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 6.71, 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.
- EPAM has a better Debt to Equity ratio (0.01) than 82.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.05 | ||
| Altman-Z | 6.71 |
ROIC/WACC1.13
WACC9.51%
2.3 Liquidity
- A Current Ratio of 3.02 indicates that EPAM has no problem at all paying its short term obligations.
- EPAM has a Current ratio of 3.02. This is in the better half 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.
- 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%.
- EPAM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.65% yearly.
EPS 1Y (TTM)5.98%
EPS 3Y1.86%
EPS 5Y12.65%
EPS Q2Q%14.79%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
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
- The EPS 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 12.05, which indicates a correct valuation of EPAM.
- 75.86% of the companies in the same industry are more expensive than EPAM, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 26.99. EPAM is valued rather cheaply when compared to this.
- EPAM is valuated reasonably with a Price/Forward Earnings ratio of 10.90.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of EPAM indicates a somewhat cheap valuation: EPAM is cheaper than 78.16% of the companies listed in the same industry.
- EPAM is valuated cheaply when we compare the Price/Forward Earnings ratio to 28.06, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.05 | ||
| Fwd PE | 10.9 |
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 74.71% of the companies listed in the same industry.
- 60.92% of the companies in the same industry are more expensive than EPAM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.71 | ||
| EV/EBITDA | 10.04 |
4.3 Compensation for Growth
- EPAM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.13
PEG (5Y)0.95
EPS Next 2Y10.99%
EPS Next 3Y4.4%
5. Dividend
5.1 Amount
- EPAM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
138.85
-0.31 (-0.22%)
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 Change3.44%
Ins Owners3.62%
Ins Owner Change-0.21%
Market Cap7.67B
Revenue(TTM)N/A
Net Income(TTM)371.62M
Analysts80.77
Price Target232.54 (67.48%)
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)8.15%
PT rev (3m)11.07%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)2.4%
EPS NY rev (1m)0.08%
EPS NY rev (3m)2.76%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.28%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.05 | ||
| Fwd PE | 10.9 | ||
| P/S | 1.45 | ||
| P/FCF | 16.71 | ||
| P/OCF | 15.27 | ||
| P/B | 2.06 | ||
| P/tB | 3.66 | ||
| EV/EBITDA | 10.04 |
EPS(TTM)11.52
EY8.3%
EPS(NY)12.74
Fwd EY9.18%
FCF(TTM)8.31
FCFY5.99%
OCF(TTM)9.09
OCFY6.55%
SpS95.91
BVpS67.46
TBVpS37.97
PEG (NY)1.13
PEG (5Y)0.95
Graham Number132.23
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 | 6.71 |
F-Score6
WACC9.51%
ROIC/WACC1.13
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)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)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
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 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 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 4 / 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 12.05 and the Price/Book (PB) ratio is 2.06.