EPAM SYSTEMS INC (1EPAM.MI) Stock Fundamental Analysis
Europe - BIT:1EPAM - US29414B1044 - Common Stock
127.9 EUR
-0.95 (-0.74%)
Taking everything into account, 1EPAM scores 6 out of 10 in our fundamental rating. 1EPAM was compared to 74 industry peers in the IT Services industry. 1EPAM is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. 1EPAM is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1EPAM was profitable.
In the past year 1EPAM had a positive cash flow from operations.
1EPAM had positive earnings in each of the past 5 years.
In the past 5 years 1EPAM always reported a positive cash flow from operatings.
1.2 Ratios
1EPAM's Return On Assets of 8.52% is amongst the best of the industry. 1EPAM outperforms 86.49% of its industry peers.
With a Return On Equity value of 10.94%, 1EPAM perfoms like the industry average, outperforming 45.95% of the companies in the same industry.
The Return On Invested Capital of 1EPAM (10.85%) is better than 70.27% of its industry peers.
1EPAM had an Average Return On Invested Capital over the past 3 years of 11.98%. This is in line with the industry average of 11.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.52% | ||
| ROE | 10.94% | ||
| ROIC | 10.85% |
ROA(3y)9.87%
ROA(5y)11.06%
ROE(3y)12.84%
ROE(5y)14.88%
ROIC(3y)11.98%
ROIC(5y)12.84%
1.3 Margins
Looking at the Profit Margin, with a value of 7.91%, 1EPAM belongs to the top of the industry, outperforming 83.78% of the companies in the same industry.
1EPAM's Profit Margin has declined in the last couple of years.
1EPAM has a better Operating Margin (10.91%) than 79.73% of its industry peers.
1EPAM's Operating Margin has declined in the last couple of years.
1EPAM has a worse Gross Margin (30.05%) than 68.92% of its industry peers.
In the last couple of years the Gross Margin of 1EPAM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.91% | ||
| PM (TTM) | 7.91% | ||
| GM | 30.05% |
OM growth 3Y-7.24%
OM growth 5Y-2.7%
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
1EPAM 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 1EPAM has been reduced compared to 1 year ago.
1EPAM has more shares outstanding than it did 5 years ago.
1EPAM has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.32 indicates that 1EPAM is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.32, 1EPAM belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Debt to FCF ratio of 1EPAM is 0.06, which is an excellent value as it means it would take 1EPAM, only 0.06 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.06, 1EPAM belongs to the top of the industry, outperforming 98.65% of the companies in the same industry.
1EPAM has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
1EPAM has a better Debt to Equity ratio (0.01) than 97.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.06 | ||
| Altman-Z | 7.32 |
ROIC/WACC1.25
WACC8.7%
2.3 Liquidity
1EPAM has a Current Ratio of 3.17. This indicates that 1EPAM is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of 1EPAM (3.17) is better than 97.30% of its industry peers.
A Quick Ratio of 3.17 indicates that 1EPAM has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 3.17, 1EPAM belongs to the best of the industry, outperforming 97.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.17 | ||
| Quick Ratio | 3.17 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.22% over the past year.
Measured over the past years, 1EPAM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.89% on average per year.
Looking at the last year, 1EPAM shows a quite strong growth in Revenue. The Revenue has grown by 9.73% in the last year.
1EPAM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.56% yearly.
EPS 1Y (TTM)7.22%
EPS 3Y6.34%
EPS 5Y14.89%
EPS Q2Q%13.06%
Revenue 1Y (TTM)9.73%
Revenue growth 3Y7.95%
Revenue growth 5Y15.56%
Sales Q2Q%18.04%
3.2 Future
The Earnings Per Share is expected to grow by 8.94% on average over the next years. This is quite good.
The Revenue is expected to grow by 9.84% on average over the next years. This is quite good.
EPS Next Y3.9%
EPS Next 2Y7.04%
EPS Next 3Y8.45%
EPS Next 5Y8.94%
Revenue Next Year15.27%
Revenue Next 2Y11.11%
Revenue Next 3Y10.45%
Revenue Next 5Y9.84%
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.
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
With a Price/Earnings ratio of 13.28, 1EPAM is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of 1EPAM indicates a somewhat cheap valuation: 1EPAM is cheaper than 79.73% of the companies listed in the same industry.
1EPAM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.50.
The Price/Forward Earnings ratio is 11.88, which indicates a very decent valuation of 1EPAM.
Based on the Price/Forward Earnings ratio, 1EPAM is valued a bit cheaper than 70.27% of the companies in the same industry.
1EPAM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.28 | ||
| Fwd PE | 11.88 |
4.2 Price Multiples
66.22% of the companies in the same industry are cheaper than 1EPAM, based on the Enterprise Value to EBITDA ratio.
1EPAM's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. 1EPAM is more expensive than 62.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.12 | ||
| EV/EBITDA | 10.91 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)3.4
PEG (5Y)0.89
EPS Next 2Y7.04%
EPS Next 3Y8.45%
5. Dividend
5.1 Amount
No dividends for 1EPAM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1EPAM (10/7/2025, 7:00:00 PM)
127.9
-0.95 (-0.74%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners96.48%
Inst Owner ChangeN/A
Ins Owners3.6%
Ins Owner ChangeN/A
Market Cap7.12B
Analysts80.87
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.02%
Min EPS beat(2)3.97%
Max EPS beat(2)4.07%
EPS beat(4)4
Avg EPS beat(4)5.61%
Min EPS beat(4)1.07%
Max EPS beat(4)13.33%
EPS beat(8)8
Avg EPS beat(8)5.66%
EPS beat(12)12
Avg EPS beat(12)7.23%
EPS beat(16)16
Avg EPS beat(16)10.93%
Revenue beat(2)0
Avg Revenue beat(2)-0.52%
Min Revenue beat(2)-0.56%
Max Revenue beat(2)-0.48%
Revenue beat(4)1
Avg Revenue beat(4)-0.21%
Min Revenue beat(4)-0.64%
Max Revenue beat(4)0.84%
Revenue beat(8)1
Avg Revenue beat(8)-0.68%
Revenue beat(12)2
Avg Revenue beat(12)-0.74%
Revenue beat(16)5
Avg Revenue beat(16)0.24%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)4.15%
EPS NQ rev (3m)4.15%
EPS NY rev (1m)2.11%
EPS NY rev (3m)2.11%
Revenue NQ rev (1m)1.82%
Revenue NQ rev (3m)1.82%
Revenue NY rev (1m)1.01%
Revenue NY rev (3m)1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.28 | ||
| Fwd PE | 11.88 | ||
| P/S | 1.63 | ||
| P/FCF | 20.12 | ||
| P/OCF | 18.33 | ||
| P/B | 2.25 | ||
| P/tB | 4.08 | ||
| EV/EBITDA | 10.91 |
EPS(TTM)9.63
EY7.53%
EPS(NY)10.76
Fwd EY8.42%
FCF(TTM)6.36
FCFY4.97%
OCF(TTM)6.98
OCFY5.45%
SpS78.69
BVpS56.92
TBVpS31.39
PEG (NY)3.4
PEG (5Y)0.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.52% | ||
| ROE | 10.94% | ||
| ROCE | 13.96% | ||
| ROIC | 10.85% | ||
| ROICexc | 14.72% | ||
| ROICexgc | 33.69% | ||
| OM | 10.91% | ||
| PM (TTM) | 7.91% | ||
| GM | 30.05% | ||
| FCFM | 8.08% |
ROA(3y)9.87%
ROA(5y)11.06%
ROE(3y)12.84%
ROE(5y)14.88%
ROIC(3y)11.98%
ROIC(5y)12.84%
ROICexc(3y)23.91%
ROICexc(5y)27.45%
ROICexgc(3y)44.54%
ROICexgc(5y)48.5%
ROCE(3y)15.42%
ROCE(5y)16.54%
ROICexcg growth 3Y-11.88%
ROICexcg growth 5Y3.29%
ROICexc growth 3Y-20.35%
ROICexc growth 5Y-8.92%
OM growth 3Y-7.24%
OM growth 5Y-2.7%
PM growth 3Y-9.14%
PM growth 5Y-3.32%
GM growth 3Y-3.28%
GM growth 5Y-2.67%
F-Score6
Asset Turnover1.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.06 | ||
| Debt/EBITDA | 0.04 | ||
| Cap/Depr | 36.56% | ||
| Cap/Sales | 0.79% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 67.9% | ||
| Profit Quality | 102.14% | ||
| Current Ratio | 3.17 | ||
| Quick Ratio | 3.17 | ||
| Altman-Z | 7.32 |
F-Score6
WACC8.7%
ROIC/WACC1.25
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)7.22%
EPS 3Y6.34%
EPS 5Y14.89%
EPS Q2Q%13.06%
EPS Next Y3.9%
EPS Next 2Y7.04%
EPS Next 3Y8.45%
EPS Next 5Y8.94%
Revenue 1Y (TTM)9.73%
Revenue growth 3Y7.95%
Revenue growth 5Y15.56%
Sales Q2Q%18.04%
Revenue Next Year15.27%
Revenue Next 2Y11.11%
Revenue Next 3Y10.45%
Revenue Next 5Y9.84%
EBIT growth 1Y11.21%
EBIT growth 3Y0.14%
EBIT growth 5Y12.45%
EBIT Next Year16.3%
EBIT Next 3Y12.45%
EBIT Next 5Y7.75%
FCF growth 1Y-26.81%
FCF growth 3Y4.58%
FCF growth 5Y22.87%
OCF growth 1Y-26.87%
OCF growth 3Y-0.77%
OCF growth 5Y14.23%