EPAM SYSTEMS INC (1EPAM.MI) Stock Fundamental Analysis
BIT:1EPAM - Euronext Milan - US29414B1044 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to 1EPAM. 1EPAM was compared to 78 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
1EPAM had positive earnings in the past year.
1EPAM had a positive operating cash flow in the past year.
1EPAM had positive earnings in each of the past 5 years.
1EPAM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of 1EPAM (8.72%) is better than 89.74% of its industry peers.
1EPAM has a Return On Equity (11.30%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 10.61%, 1EPAM is in the better half of the industry, outperforming 70.51% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1EPAM is in line with the industry average of 11.17%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.72% | ||
| ROE | 11.3% | ||
| ROIC | 10.61% |
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
1EPAM has a better Profit Margin (8.47%) than 85.90% of its industry peers.
1EPAM's Profit Margin has declined in the last couple of years.
1EPAM's Operating Margin of 11.03% is amongst the best of the industry. 1EPAM outperforms 83.33% 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 30.20%, 1EPAM is doing worse than 65.38% of the companies in the same industry.
In the last couple of years the Gross Margin of 1EPAM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.03% | ||
| PM (TTM) | 8.47% | ||
| GM | 30.2% |
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
Compared to 1 year ago, 1EPAM has less shares outstanding
The number of shares outstanding for 1EPAM has been increased compared to 5 years ago.
The debt/assets ratio for 1EPAM has been reduced compared to a year ago.
2.2 Solvency
1EPAM has an Altman-Z score of 7.93. This indicates that 1EPAM is financially healthy and has little risk of bankruptcy at the moment.
1EPAM has a Altman-Z score of 7.93. This is amongst the best in the industry. 1EPAM outperforms 100.00% of its industry peers.
1EPAM has a debt to FCF ratio of 0.06. This is a very positive value and a sign of high solvency as it would only need 0.06 years to pay back of all of its debts.
The Debt to FCF ratio of 1EPAM (0.06) is better than 96.15% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that 1EPAM is not too dependend on debt financing.
1EPAM's Debt to Equity ratio of 0.01 is amongst the best of the industry. 1EPAM outperforms 93.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.06 | ||
| Altman-Z | 7.93 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
1EPAM has a Current Ratio of 3.06. This indicates that 1EPAM is financially healthy and has no problem in meeting its short term obligations.
1EPAM's Current ratio of 3.06 is amongst the best of the industry. 1EPAM outperforms 98.72% of its industry peers.
A Quick Ratio of 3.06 indicates that 1EPAM has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 3.06, 1EPAM belongs to the best of the industry, outperforming 98.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.06 | ||
| Quick Ratio | 3.06 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.27% 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.
1EPAM shows a small growth in Revenue. In the last year, the Revenue has grown by 4.72%.
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)2.27%
EPS 3Y6.34%
EPS 5Y14.89%
EPS Q2Q%-2.03%
Revenue 1Y (TTM)4.72%
Revenue growth 3Y7.95%
Revenue growth 5Y15.56%
Sales Q2Q%11.69%
3.2 Future
Based on estimates for the next years, 1EPAM will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.60% on average per year.
Based on estimates for the next years, 1EPAM will show a quite strong growth in Revenue. The Revenue will grow by 8.01% on average per year.
EPS Next Y1.5%
EPS Next 2Y6.7%
EPS Next 3Y8.64%
EPS Next 5Y8.6%
Revenue Next Year14.06%
Revenue Next 2Y10.67%
Revenue Next 3Y10.39%
Revenue Next 5Y8.01%
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
Based on the Price/Earnings ratio of 15.82, the valuation of 1EPAM can be described as correct.
Based on the Price/Earnings ratio, 1EPAM is valued a bit cheaper than 67.95% of the companies in the same industry.
When comparing the Price/Earnings ratio of 1EPAM to the average of the S&P500 Index (26.52), we can say 1EPAM is valued slightly cheaper.
The Price/Forward Earnings ratio is 13.83, which indicates a correct valuation of 1EPAM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1EPAM indicates a somewhat cheap valuation: 1EPAM is cheaper than 69.23% of the companies listed in the same industry.
1EPAM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.25, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.82 | ||
| Fwd PE | 13.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1EPAM is valued a bit more expensive than 64.10% of the companies in the same industry.
1EPAM's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.16 | ||
| EV/EBITDA | 13.45 |
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.
1EPAM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)10.55
PEG (5Y)1.06
EPS Next 2Y6.7%
EPS Next 3Y8.64%
5. Dividend
5.1 Amount
No dividends for 1EPAM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1EPAM (6/2/2025, 7:00:00 PM)
150
+150 (+Infinity%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners94.26%
Inst Owner ChangeN/A
Ins Owners3.34%
Ins Owner ChangeN/A
Market Cap8.50B
Analysts78.46
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)2.52%
Min EPS beat(2)1.07%
Max EPS beat(2)3.97%
EPS beat(4)4
Avg EPS beat(4)6.18%
Min EPS beat(4)1.07%
Max EPS beat(4)13.33%
EPS beat(8)8
Avg EPS beat(8)6.49%
EPS beat(12)12
Avg EPS beat(12)9.86%
EPS beat(16)16
Avg EPS beat(16)10.91%
Revenue beat(2)1
Avg Revenue beat(2)0.14%
Min Revenue beat(2)-0.56%
Max Revenue beat(2)0.84%
Revenue beat(4)1
Avg Revenue beat(4)-0.44%
Min Revenue beat(4)-1.41%
Max Revenue beat(4)0.84%
Revenue beat(8)1
Avg Revenue beat(8)-0.76%
Revenue beat(12)3
Avg Revenue beat(12)-0.34%
Revenue beat(16)6
Avg Revenue beat(16)0.3%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.82 | ||
| Fwd PE | 13.83 | ||
| P/S | 1.99 | ||
| P/FCF | 23.16 | ||
| P/OCF | 21.39 | ||
| P/B | 2.66 | ||
| P/tB | 4.78 | ||
| EV/EBITDA | 13.45 |
EPS(TTM)9.48
EY6.32%
EPS(NY)10.84
Fwd EY7.23%
FCF(TTM)6.48
FCFY4.32%
OCF(TTM)7.01
OCFY4.68%
SpS75.25
BVpS56.35
TBVpS31.39
PEG (NY)10.55
PEG (5Y)1.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.72% | ||
| ROE | 11.3% | ||
| ROCE | 13.64% | ||
| ROIC | 10.61% | ||
| ROICexc | 15.11% | ||
| ROICexgc | 36.37% | ||
| OM | 11.03% | ||
| PM (TTM) | 8.47% | ||
| GM | 30.2% | ||
| FCFM | 8.61% |
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-Score5
Asset Turnover1.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.06 | ||
| Debt/EBITDA | 0.04 | ||
| Cap/Depr | 35.13% | ||
| Cap/Sales | 0.71% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.35% | ||
| Profit Quality | 101.68% | ||
| Current Ratio | 3.06 | ||
| Quick Ratio | 3.06 | ||
| Altman-Z | 7.93 |
F-Score5
WACCN/A
ROIC/WACCN/A
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)2.27%
EPS 3Y6.34%
EPS 5Y14.89%
EPS Q2Q%-2.03%
EPS Next Y1.5%
EPS Next 2Y6.7%
EPS Next 3Y8.64%
EPS Next 5Y8.6%
Revenue 1Y (TTM)4.72%
Revenue growth 3Y7.95%
Revenue growth 5Y15.56%
Sales Q2Q%11.69%
Revenue Next Year14.06%
Revenue Next 2Y10.67%
Revenue Next 3Y10.39%
Revenue Next 5Y8.01%
EBIT growth 1Y3.23%
EBIT growth 3Y0.14%
EBIT growth 5Y12.45%
EBIT Next Year14.2%
EBIT Next 3Y13.1%
EBIT Next 5YN/A
FCF growth 1Y-22.03%
FCF growth 3Y4.58%
FCF growth 5Y22.87%
OCF growth 1Y-24.83%
OCF growth 3Y-0.77%
OCF growth 5Y14.23%