EPAM SYSTEMS INC (1EPAM.MI) Stock Fundamental Analysis
BIT:1EPAM • US29414B1044
111.4 EUR
-71.8 (-39.19%)
Last: Feb 24, 2026, 07:00 PM
1EPAM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 75 industry peers in the IT Services industry. 1EPAM has an excellent financial health rating, but there are some minor concerns on its profitability. 1EPAM is not valued too expensively and it also shows 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.
- Each year in the past 5 years 1EPAM had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 7.67%, 1EPAM is in the better half of the industry, outperforming 78.67% of the companies in the same industry.
- 1EPAM has a Return On Equity (9.97%) which is in line with its industry peers.
- With a decent Return On Invested Capital value of 10.71%, 1EPAM is doing good in the industry, outperforming 62.67% of the companies in the same industry.
- 1EPAM had an Average Return On Invested Capital over the past 3 years of 11.99%. This is in line with the industry average of 11.55%.
| 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
- Looking at the Profit Margin, with a value of 7.01%, 1EPAM is in the better half of the industry, outperforming 76.00% of the companies in the same industry.
- 1EPAM's Profit Margin has declined in the last couple of years.
- 1EPAM has a Operating Margin of 10.43%. This is in the better half of the industry: 1EPAM outperforms 74.67% of its industry peers.
- 1EPAM's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 28.92%, 1EPAM is doing worse than 69.33% of the companies in the same industry.
- 1EPAM'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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1EPAM is creating some value.
- 1EPAM has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for 1EPAM has been increased compared to 5 years ago.
- Compared to 1 year ago, 1EPAM has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 6.48 indicates that 1EPAM is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 6.48, 1EPAM belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- The Debt to FCF ratio of 1EPAM is 0.05, which is an excellent value as it means it would take 1EPAM, only 0.05 years of fcf income to pay off all of its debts.
- With an excellent Debt to FCF ratio value of 0.05, 1EPAM belongs to the best of the industry, outperforming 100.00% 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 Debt to Equity ratio of 0.01. This is amongst the best in the industry. 1EPAM outperforms 97.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.05 | ||
| Altman-Z | 6.48 |
ROIC/WACC1.18
WACC9.06%
2.3 Liquidity
- A Current Ratio of 3.02 indicates that 1EPAM has no problem at all paying its short term obligations.
- 1EPAM has a better Current ratio (3.02) than 97.33% of its industry peers.
- A Quick Ratio of 3.02 indicates that 1EPAM has no problem at all paying its short term obligations.
- With an excellent Quick ratio value of 3.02, 1EPAM belongs to the best of the industry, outperforming 98.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.02 | ||
| Quick Ratio | 3.02 |
3. Growth
3.1 Past
- 1EPAM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.97%.
- 1EPAM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.89% yearly.
- The Revenue has grown by 14.26% in the past year. This is quite good.
- Measured over the past years, 1EPAM shows a quite strong growth in Revenue. The Revenue has been growing by 15.56% on average per year.
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
- Based on estimates for the next years, 1EPAM will show a small growth in Earnings Per Share. The EPS will grow by 5.17% on average per year.
- Based on estimates for the next years, 1EPAM will show a small growth in Revenue. The Revenue will grow by 7.81% on average per year.
EPS Next Y7.3%
EPS Next 2Y8.24%
EPS Next 3Y9.28%
EPS Next 5Y5.17%
Revenue Next Year15.96%
Revenue Next 2Y11.41%
Revenue Next 3Y10.53%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 11.85, the valuation of 1EPAM can be described as reasonable.
- 81.33% of the companies in the same industry are more expensive than 1EPAM, based on the Price/Earnings ratio.
- 1EPAM is valuated cheaply when we compare the Price/Earnings ratio to 27.13, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 10.33, the valuation of 1EPAM can be described as very reasonable.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of 1EPAM indicates a somewhat cheap valuation: 1EPAM is cheaper than 76.00% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 28.11. 1EPAM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.85 | ||
| Fwd PE | 10.33 |
4.2 Price Multiples
- 1EPAM's Enterprise Value to EBITDA ratio is in line with the industry average.
- The rest of the industry has a similar Price/Free Cash Flow ratio as 1EPAM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.82 | ||
| EV/EBITDA | 9.38 |
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)1.62
PEG (5Y)0.8
EPS Next 2Y8.24%
EPS Next 3Y9.28%
5. Dividend
5.1 Amount
- 1EPAM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
BIT:1EPAM (2/24/2026, 7:00:00 PM)
111.4
-71.8 (-39.19%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)11-06 2025-11-06/bmo
Earnings (Next)02-19 2026-02-19/amc
Inst Owners100.2%
Inst Owner ChangeN/A
Ins Owners3.62%
Ins Owner ChangeN/A
Market Cap6.15B
Revenue(TTM)5.30B
Net Income(TTM)371.62M
Analysts80
Price Target190.84 (71.31%)
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)-0.05%
EPS NQ rev (3m)8.94%
EPS NY rev (1m)0.08%
EPS NY rev (3m)2.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.85 | ||
| Fwd PE | 10.33 | ||
| P/S | 1.37 | ||
| P/FCF | 15.82 | ||
| P/OCF | 14.46 | ||
| P/B | 1.95 | ||
| P/tB | 3.46 | ||
| EV/EBITDA | 9.38 |
EPS(TTM)9.4
EY8.44%
EPS(NY)10.79
Fwd EY9.68%
FCF(TTM)7.04
FCFY6.32%
OCF(TTM)7.7
OCFY6.91%
SpS81.24
BVpS57.14
TBVpS32.17
PEG (NY)1.62
PEG (5Y)0.8
Graham Number109.93
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 | 6.48 |
F-Score6
WACC9.06%
ROIC/WACC1.18
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 Y7.3%
EPS Next 2Y8.24%
EPS Next 3Y9.28%
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 3Y10.53%
Revenue Next 5Y7.81%
EBIT growth 1Y3.34%
EBIT growth 3Y0.25%
EBIT growth 5Y12.52%
EBIT Next Year19.76%
EBIT Next 3Y13.1%
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 6 / 10 to 1EPAM.MI.
What is the valuation status for 1EPAM stock?
ChartMill assigns a valuation rating of 5 / 10 to EPAM SYSTEMS INC (1EPAM.MI). This can be considered as Fairly Valued.
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 11.85 and the Price/Book (PB) ratio is 1.95.
Can you provide the financial health for 1EPAM stock?
The financial health rating of EPAM SYSTEMS INC (1EPAM.MI) is 9 / 10.