EPAM SYSTEMS INC (EPAM) Stock Fundamental Analysis
NYSE:EPAM • US29414B1044
131.08 USD
+2.26 (+1.75%)
At close: Feb 25, 2026
131.08 USD
0 (0%)
After Hours: 2/25/2026, 5:53:56 PM
Taking everything into account, EPAM scores 6 out of 10 in our fundamental rating. EPAM was compared to 87 industry peers in the IT Services industry. EPAM is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. EPAM has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year EPAM was profitable.
- EPAM had a positive operating cash flow in the past year.
- EPAM had positive earnings in each of the past 5 years.
- EPAM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- The Return On Assets of EPAM (7.67%) is better than 77.01% of its industry peers.
- The Return On Equity of EPAM (9.97%) is better than 67.82% of its industry peers.
- EPAM has a better Return On Invested Capital (10.51%) than 80.46% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for EPAM is in line with the industry average of 10.57%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.67% | ||
| ROE | 9.97% | ||
| ROIC | 10.51% |
ROA(3y)8.95%
ROA(5y)10.2%
ROE(3y)11.6%
ROE(5y)13.63%
ROIC(3y)10.51%
ROIC(5y)12.05%
1.3 Margins
- EPAM has a better Profit Margin (7.01%) than 68.97% of its industry peers.
- EPAM's Profit Margin has declined in the last couple of years.
- EPAM has a Operating Margin of 10.43%. This is in the better half of the industry: EPAM outperforms 70.11% of its industry peers.
- In the last couple of years the Operating Margin of EPAM has declined.
- EPAM has a worse Gross Margin (28.92%) than 62.07% of its industry peers.
- EPAM'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-8.11%
OM growth 5Y-7.75%
PM growth 3Y-7.32%
PM growth 5Y-10.87%
GM growth 3Y-3.29%
GM growth 5Y-3.72%
2. Health
2.1 Basic Checks
- EPAM 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 EPAM has been reduced compared to 1 year ago.
- The number of shares outstanding for EPAM has been reduced compared to 5 years ago.
- The debt/assets ratio for EPAM has been reduced compared to a year ago.
2.2 Solvency
- EPAM has an Altman-Z score of 6.40. This indicates that EPAM is financially healthy and has little risk of bankruptcy at the moment.
- EPAM's Altman-Z score of 6.40 is amongst the best of the industry. EPAM outperforms 87.36% of its industry peers.
- The Debt to FCF ratio of EPAM is 0.05, which is an excellent value as it means it would take EPAM, only 0.05 years of fcf income to pay off all of its debts.
- EPAM's Debt to FCF ratio of 0.05 is amongst the best of the industry. EPAM outperforms 90.80% of its industry peers.
- A Debt/Equity ratio of 0.01 indicates that EPAM is not too dependend on debt financing.
- With an excellent Debt to Equity ratio value of 0.01, EPAM belongs to the best of the industry, outperforming 82.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.05 | ||
| Altman-Z | 6.4 |
ROIC/WACC1.12
WACC9.36%
2.3 Liquidity
- A Current Ratio of 3.02 indicates that EPAM has no problem at all paying its short term obligations.
- With a decent Current ratio value of 3.02, EPAM is doing good in the industry, outperforming 77.01% of the companies in the same industry.
- A Quick Ratio of 3.02 indicates that EPAM has no problem at all paying its short term obligations.
- With a decent Quick ratio value of 3.02, EPAM is doing good in the industry, outperforming 77.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.02 | ||
| Quick Ratio | 3.02 |
3. Growth
3.1 Past
- EPAM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.98%.
- Measured over the past years, EPAM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.65% on average per year.
- The Revenue has grown by 15.42% in the past year. This is quite good.
- Measured over the past years, EPAM shows a quite strong growth in Revenue. The Revenue has been growing by 15.46% on average per year.
EPS 1Y (TTM)5.98%
EPS 3Y1.86%
EPS 5Y12.65%
EPS Q2Q%14.79%
Revenue 1Y (TTM)15.42%
Revenue growth 3Y4.19%
Revenue growth 5Y15.46%
Sales Q2Q%12.75%
3.2 Future
- EPAM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.97% yearly.
- The Revenue is expected to grow by 10.16% on average over the next years. This is quite good.
EPS Next Y10.62%
EPS Next 2Y10.99%
EPS Next 3Y4.4%
EPS Next 5Y4.97%
Revenue Next Year7.1%
Revenue Next 2Y7.98%
Revenue Next 3Y6.49%
Revenue Next 5Y10.16%
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.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 11.38 indicates a reasonable valuation of EPAM.
- EPAM's Price/Earnings ratio is a bit cheaper when compared to the industry. EPAM is cheaper than 78.16% of the companies in the same industry.
- EPAM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.05.
- A Price/Forward Earnings ratio of 10.29 indicates a reasonable valuation of EPAM.
- EPAM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EPAM is cheaper than 79.31% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.03, EPAM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.38 | ||
| Fwd PE | 10.29 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EPAM indicates a somewhat cheap valuation: EPAM is cheaper than 74.71% of the companies listed in the same industry.
- 66.67% of the companies in the same industry are more expensive than EPAM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.77 | ||
| EV/EBITDA | 9.15 |
4.3 Compensation for Growth
- EPAM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.07
PEG (5Y)0.9
EPS Next 2Y10.99%
EPS Next 3Y4.4%
5. Dividend
5.1 Amount
- EPAM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
131.08
+2.26 (+1.75%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)02-19 2026-02-19/bmo
Earnings (Next)05-06 2026-05-06/bmo
Inst Owners100.2%
Inst Owner Change3.46%
Ins Owners3.62%
Ins Owner Change-0.21%
Market Cap7.24B
Revenue(TTM)5.46B
Net Income(TTM)371.62M
Analysts80.77
Price Target205.07 (56.45%)
Short Float %6.12%
Short Ratio3.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
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)4.79%
PT rev (3m)9.78%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)-0.01%
EPS NY rev (1m)0%
EPS NY rev (3m)2.76%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.38 | ||
| Fwd PE | 10.29 | ||
| P/S | 1.37 | ||
| P/FCF | 15.77 | ||
| P/OCF | 14.42 | ||
| P/B | 1.94 | ||
| P/tB | 3.45 | ||
| EV/EBITDA | 9.15 |
EPS(TTM)11.52
EY8.79%
EPS(NY)12.74
Fwd EY9.72%
FCF(TTM)8.31
FCFY6.34%
OCF(TTM)9.09
OCFY6.94%
SpS95.91
BVpS67.46
TBVpS37.97
PEG (NY)1.07
PEG (5Y)0.9
Graham Number132.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.67% | ||
| ROE | 9.97% | ||
| ROCE | 13.78% | ||
| ROIC | 10.51% | ||
| ROICexc | 15.21% | ||
| ROICexgc | 36.93% | ||
| OM | 10.43% | ||
| PM (TTM) | 7.01% | ||
| GM | 28.92% | ||
| FCFM | 8.67% |
ROA(3y)8.95%
ROA(5y)10.2%
ROE(3y)11.6%
ROE(5y)13.63%
ROIC(3y)10.51%
ROIC(5y)12.05%
ROICexc(3y)18.6%
ROICexc(5y)23.31%
ROICexgc(3y)40.34%
ROICexgc(5y)45.92%
ROCE(3y)13.79%
ROCE(5y)15.84%
ROICexgc growth 3Y-7.38%
ROICexgc growth 5Y-3.77%
ROICexc growth 3Y-20.19%
ROICexc growth 5Y-14.56%
OM growth 3Y-8.11%
OM growth 5Y-7.75%
PM growth 3Y-7.32%
PM growth 5Y-10.87%
GM growth 3Y-3.29%
GM growth 5Y-3.72%
F-Score7
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 | 6.4 |
F-Score7
WACC9.36%
ROIC/WACC1.12
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)5.98%
EPS 3Y1.86%
EPS 5Y12.65%
EPS Q2Q%14.79%
EPS Next Y10.62%
EPS Next 2Y10.99%
EPS Next 3Y4.4%
EPS Next 5Y4.97%
Revenue 1Y (TTM)15.42%
Revenue growth 3Y4.19%
Revenue growth 5Y15.46%
Sales Q2Q%12.75%
Revenue Next Year7.1%
Revenue Next 2Y7.98%
Revenue Next 3Y6.49%
Revenue Next 5Y10.16%
EBIT growth 1Y3.34%
EBIT growth 3Y-4.26%
EBIT growth 5Y6.51%
EBIT Next Year18.81%
EBIT Next 3Y9.6%
EBIT Next 5Y10.22%
FCF growth 1Y-19.99%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-16.32%
OCF growth 3YN/A
OCF growth 5YN/A
EPAM SYSTEMS INC / EPAM FAQ
What is the fundamental rating for EPAM stock?
ChartMill assigns a fundamental rating of 6 / 10 to EPAM.
What is the valuation status for EPAM stock?
ChartMill assigns a valuation rating of 6 / 10 to EPAM SYSTEMS INC (EPAM). This can be considered as Fairly Valued.
What is the profitability of EPAM stock?
EPAM SYSTEMS INC (EPAM) 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 (EPAM) is 11.38 and the Price/Book (PB) ratio is 1.94.