(EPAM) EPAM Systems - Overview
Sector: Technology | Industry: Information Technology Services | Exchange: NYSE (USA) | Market Cap: 5.247m USD | Total Return: -45.3% in 12m
Industry Rotation: +4.7
Avg Turnover: 184M
EPS Trend: 33.7%
Qual. Beats: 1
Rev. Trend: 71.9%
Qual. Beats: 0
Warnings
Fakeout
Tailwinds
Confidence
EPAM Systems, Inc. is a global provider of digital platform engineering and software development services, specializing in complex software product development and digital transformation. The company’s service portfolio includes cloud migration, data analytics, artificial intelligence, and cybersecurity solutions across diverse sectors such as financial services, healthcare, and high-tech.
Operating within the IT consulting industry, EPAM utilizes a high-end engineering model that emphasizes full-lifecycle software testing and platform modernization. This business model relies heavily on a globally distributed workforce to deliver scalable technical solutions for legacy system integration and emerging technology adoption.
Investors can evaluate the companys valuation metrics and historical performance trends on ValueRay.
- Geopolitical stability in Eastern Europe impacts talent retention and delivery capacity
- Global enterprise demand for digital transformation and AI modernization drives revenue
- Utilization rates and wage inflation directly influence quarterly operating margins
- High client concentration in financial services exposes revenue to banking sector cycles
- Shift toward offshore and nearshore delivery centers optimizes global cost structure
| Net Income: 386.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.12 > 0.02 and ΔFCF/TA 2.69 > 1.0 |
| NWC/Revenue: 26.52% < 20% (prev 33.44%; Δ -6.92% < -1%) |
| CFO/TA 0.13 > 3% & CFO 594.4m > Net Income 386.7m |
| Net Debt (-749.0m) to EBITDA (678.5m): -1.10 < 3 |
| Current Ratio: 2.67 > 1.5 & < 3 |
| Outstanding Shares: last quarter (54.2m) vs 12m ago -5.38% < -2% |
| Gross Margin: 27.88% > 18% (prev 0.30%; Δ 2.76k% > 0.5%) |
| Asset Turnover: 117.9% > 50% (prev 103.0%; Δ 14.89% > 0%) |
| Interest Coverage Ratio: 766.3 > 6 (EBITDA TTM 678.5m / Interest Expense TTM 695k) |
| A: 0.31 (Total Current Assets 2.36b - Total Current Liabilities 884.3m) / Total Assets 4.70b |
| B: 0.44 (Retained Earnings 2.08b / Total Assets 4.70b) |
| C: 0.11 (EBIT TTM 532.5m / Avg Total Assets 4.71b) |
| D: 1.63 (Book Value of Equity 2.07b / Total Liabilities 1.27b) |
| Altman-Z'' Score: 5.97 = AAA |
| DSRI: 0.94 (Receivables 1.17b/1.09b, Revenue 5.56b/4.86b) |
| GMI: 1.08 (GM 27.88% / 30.20%) |
| AQI: 1.03 (AQ_t 0.43 / AQ_t-1 0.42) |
| SGI: 1.14 (Revenue 5.56b / 4.86b) |
| TATA: -0.04 (NI 386.7m - CFO 594.4m) / TA 4.70b) |
| Beneish M-Score: -2.92 (Cap -4..+1) = A |
Over the past week, the price has changed by +5.64%, over one month by -23.80%, over three months by -27.77% and over the past year by -45.30%.
- StrongBuy: 7
- Buy: 7
- Hold: 6
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 147.9 | 47.1% |
P/E Forward = 7.0922
P/S = 0.9446
P/B = 1.4164
P/EG = 0.479
Revenue TTM = 5.56b USD
EBIT TTM = 532.5m USD
EBITDA TTM = 678.5m USD
Long Term Debt = 165.0m USD (from longTermDebt, last quarter)
Short Term Debt = 36.8m USD (from shortTermDebt, last quarter)
Debt = 287.9m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -749.0m USD (from netDebt column, last quarter)
Enterprise Value = 4.50b USD (5.25b + Debt 287.9m - CCE 1.04b)
Interest Coverage Ratio = 766.3 (Ebit TTM 532.5m / Interest Expense TTM 695k)
EV/FCF = 8.27x (Enterprise Value 4.50b / FCF TTM 543.6m)
FCF Yield = 12.09% (FCF TTM 543.6m / Enterprise Value 4.50b)
FCF Margin = 9.79% (FCF TTM 543.6m / Revenue TTM 5.56b)
Net Margin = 6.96% (Net Income TTM 386.7m / Revenue TTM 5.56b)
Gross Margin = 27.88% ((Revenue TTM 5.56b - Cost of Revenue TTM 4.01b) / Revenue TTM)
Gross Margin QoQ = 25.46% (prev 30.07%)
Tobins Q-Ratio = 0.96 (Enterprise Value 4.50b / Total Assets 4.70b)
Interest Expense / Debt = 0.24% (Interest Expense 695k / Debt 287.9m)
Taxrate = 31.60% (38.1m / 120.6m)
NOPAT = 364.3m (EBIT 532.5m * (1 - 31.60%))
Current Ratio = 2.67 (Total Current Assets 2.36b / Total Current Liabilities 884.3m)
Debt / Equity = 0.08 (Debt 287.9m / totalStockholderEquity, last quarter 3.43b)
Debt / EBITDA = -1.10 (Net Debt -749.0m / EBITDA 678.5m)
Debt / FCF = -1.38 (Net Debt -749.0m / FCF TTM 543.6m)
Total Stockholder Equity = 3.63b (last 4 quarters mean from totalStockholderEquity)
RoA = 8.20% (Net Income 386.7m / Total Assets 4.70b)
RoE = 10.67% (Net Income TTM 386.7m / Total Stockholder Equity 3.63b)
RoCE = 14.05% (EBIT 532.5m / Capital Employed (Equity 3.63b + L.T.Debt 165.0m))
RoIC = 9.88% (NOPAT 364.3m / Invested Capital 3.69b)
WACC = 8.93% (E(5.25b)/V(5.54b) * Re(9.41%) + D(287.9m)/V(5.54b) * Rd(0.24%) * (1-Tc(0.32)))
Discount Rate = 9.41% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -91.11 | Cagr: -3.65%
[DCF] Terminal Value 76.11% ; FCFF base≈493.7m ; Y1≈525.7m ; Y5≈632.5m
[DCF] Fair Price = 194.5 (EV 9.41b - Net Debt -749.0m = Equity 10.16b / Shares 52.2m; r=8.93% [WACC]; 5y FCF grow 7.20% → 3.0% )
EPS Correlation: 33.71 | EPS CAGR: 5.02% | SUE: 1.07 | # QB: 1
Revenue Correlation: 71.88 | Revenue CAGR: 4.32% | SUE: 0.55 | # QB: 0
EPS current Quarter (2026-06-30): EPS=3.14 | Chg30d=+0.83% | Revisions=+37% | Analysts=16
EPS next Quarter (2026-09-30): EPS=3.45 | Chg30d=+1.44% | Revisions=+44% | Analysts=16
EPS current Year (2026-12-31): EPS=13.06 | Chg30d=+2.32% | Revisions=+80% | GrowthEPS=+13.6% | GrowthRev=+5.0%
EPS next Year (2027-12-31): EPS=14.11 | Chg30d=+1.32% | Revisions=+18% | GrowthEPS=+8.0% | GrowthRev=+6.0%
[Analyst] Revisions Ratio: +80%