EPAM SYSTEMS INC (1EPAM.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1EPAM - US29414B1044 - Common Stock
178.4 EUR
+54.3 (+43.76%)
1EPAM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 73 industry peers in the IT Services industry. 1EPAM has an excellent financial health rating, but there are some minor concerns on its profitability. While showing a medium growth rate, 1EPAM is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year 1EPAM was profitable.
1EPAM had a positive operating cash flow in the past year.
Each year in the past 5 years 1EPAM has been profitable.
In the past 5 years 1EPAM always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of 1EPAM (7.67%) is better than 82.35% of its industry peers.
Looking at the Return On Equity, with a value of 9.97%, 1EPAM is in line with its industry, outperforming 44.12% of the companies in the same industry.
1EPAM's Return On Invested Capital of 10.71% is fine compared to the rest of the industry. 1EPAM outperforms 69.12% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1EPAM is significantly below the industry average of 26.63%.
| 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
The Profit Margin of 1EPAM (7.01%) is better than 77.94% of its industry peers.
In the last couple of years the Profit Margin of 1EPAM has declined.
1EPAM has a Operating Margin of 10.43%. This is in the better half of the industry: 1EPAM outperforms 75.00% of its industry peers.
In the last couple of years the Operating Margin of 1EPAM has declined.
1EPAM has a Gross Margin of 28.92%. This is in the lower half of the industry: 1EPAM underperforms 69.12% of its industry peers.
In the last couple of years the Gross Margin of 1EPAM has declined.
| 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 1EPAM is still creating some value.
The number of shares outstanding for 1EPAM has been reduced compared to 1 year ago.
The number of shares outstanding for 1EPAM has been increased compared to 5 years ago.
1EPAM has a better debt/assets ratio than last year.
2.2 Solvency
1EPAM has an Altman-Z score of 8.80. This indicates that 1EPAM is financially healthy and has little risk of bankruptcy at the moment.
1EPAM has a better Altman-Z score (8.80) than 100.00% of its industry peers.
1EPAM 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 1EPAM (0.05) is better than 100.00% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that 1EPAM is not too dependend on debt financing.
1EPAM has a Debt to Equity ratio of 0.01. This is amongst the best in the industry. 1EPAM outperforms 95.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.05 | ||
| Altman-Z | 8.8 |
ROIC/WACC1.19
WACC9.04%
2.3 Liquidity
1EPAM has a Current Ratio of 3.02. This indicates that 1EPAM is financially healthy and has no problem in meeting its short term obligations.
1EPAM has a Current ratio of 3.02. This is amongst the best in the industry. 1EPAM outperforms 97.06% of its industry peers.
1EPAM has a Quick Ratio of 3.02. This indicates that 1EPAM is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 3.02, 1EPAM belongs to the best of the industry, outperforming 98.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.02 | ||
| Quick Ratio | 3.02 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.97% over the past year.
The Earnings Per Share has been growing by 14.89% on average over the past years. This is quite good.
1EPAM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.26%.
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)2.97%
EPS 3Y6.34%
EPS 5Y14.89%
EPS Q2Q%-1.28%
Revenue 1Y (TTM)14.26%
Revenue growth 3Y7.95%
Revenue growth 5Y15.56%
Sales Q2Q%19.43%
3.2 Future
1EPAM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.17% yearly.
1EPAM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.81% yearly.
EPS Next Y7.22%
EPS Next 2Y8.1%
EPS Next 3Y9.19%
EPS Next 5Y5.17%
Revenue Next Year15.96%
Revenue Next 2Y11.41%
Revenue Next 3Y10.52%
Revenue Next 5Y7.81%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 18.88, 1EPAM is valued on the expensive side.
60.29% of the companies in the same industry are more expensive than 1EPAM, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of 1EPAM to the average of the S&P500 Index (27.00), we can say 1EPAM is valued slightly cheaper.
A Price/Forward Earnings ratio of 16.50 indicates a correct valuation of 1EPAM.
The rest of the industry has a similar Price/Forward Earnings ratio as 1EPAM.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.70, 1EPAM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.88 | ||
| Fwd PE | 16.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1EPAM is valued a bit more expensive than the industry average as 72.06% of the companies are valued more cheaply.
1EPAM's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. 1EPAM is more expensive than 64.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.22 | ||
| EV/EBITDA | 16.07 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1EPAM does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.61
PEG (5Y)1.27
EPS Next 2Y8.1%
EPS Next 3Y9.19%
5. Dividend
5.1 Amount
1EPAM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
BIT:1EPAM (12/22/2025, 7:00:00 PM)
178.4
+54.3 (+43.76%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners100.2%
Inst Owner ChangeN/A
Ins Owners3.62%
Ins Owner ChangeN/A
Market Cap9.85B
Revenue(TTM)5.30B
Net Income(TTM)371.62M
Analysts80
Price Target180.4 (1.12%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)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)N/A
PT rev (3m)N/A
EPS NQ rev (1m)9%
EPS NQ rev (3m)9.17%
EPS NY rev (1m)2.74%
EPS NY rev (3m)3.19%
Revenue NQ rev (1m)1.07%
Revenue NQ rev (3m)1.07%
Revenue NY rev (1m)0.63%
Revenue NY rev (3m)0.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.88 | ||
| Fwd PE | 16.5 | ||
| P/S | 2.19 | ||
| P/FCF | 25.22 | ||
| P/OCF | 23.05 | ||
| P/B | 3.11 | ||
| P/tB | 5.52 | ||
| EV/EBITDA | 16.07 |
EPS(TTM)9.45
EY5.3%
EPS(NY)10.81
Fwd EY6.06%
FCF(TTM)7.07
FCFY3.96%
OCF(TTM)7.74
OCFY4.34%
SpS81.62
BVpS57.41
TBVpS32.32
PEG (NY)2.61
PEG (5Y)1.27
Graham Number110.48
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 | 8.8 |
F-Score6
WACC9.04%
ROIC/WACC1.19
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)2.97%
EPS 3Y6.34%
EPS 5Y14.89%
EPS Q2Q%-1.28%
EPS Next Y7.22%
EPS Next 2Y8.1%
EPS Next 3Y9.19%
EPS Next 5Y5.17%
Revenue 1Y (TTM)14.26%
Revenue growth 3Y7.95%
Revenue growth 5Y15.56%
Sales Q2Q%19.43%
Revenue Next Year15.96%
Revenue Next 2Y11.41%
Revenue Next 3Y10.52%
Revenue Next 5Y7.81%
EBIT growth 1Y3.34%
EBIT growth 3Y0.25%
EBIT growth 5Y12.52%
EBIT Next Year19.76%
EBIT Next 3Y13.13%
EBIT Next 5Y7.75%
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 / 1EPAM.MI FAQ
What is the fundamental rating for 1EPAM stock?
ChartMill assigns a fundamental rating of 5 / 10 to 1EPAM.MI.
What is the valuation status for 1EPAM stock?
ChartMill assigns a valuation rating of 2 / 10 to EPAM SYSTEMS INC (1EPAM.MI). This can be considered as Overvalued.
How profitable is EPAM SYSTEMS INC (1EPAM.MI) stock?
EPAM SYSTEMS INC (1EPAM.MI) 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 (1EPAM.MI) is 18.88 and the Price/Book (PB) ratio is 3.11.
Can you provide the financial health for 1EPAM stock?
The financial health rating of EPAM SYSTEMS INC (1EPAM.MI) is 9 / 10.