EPAM Systems
EPAM Systems, Inc. provides software product development and digital platform engineering services primarily in North America, Europe, Armenia, Belarus, Kazakhstan, Russia, Ukraine, Asia, and Australia. The last earnings update was 40 days ago. More info.
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EPAM Share Price and Events
7 Day Returns
1 Year Returns
EPAM Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| EPAM Systems (EPAM) | -2.7% | 1.8% | 2.5% | 40% | 143% | 293.9% |
| US IT | -0.5% | 3.3% | 9% | 19.3% | 89.5% | 109.3% |
| US Market | 0.3% | 0.4% | 0.6% | 0.7% | 37.2% | 37.4% |
1 Year Return vs Industry and Market
- EPAM outperformed the IT industry which returned 19.3% over the past year.
- EPAM outperformed the Market in United States of America which returned 0.7% over the past year.
Value
Is EPAM Systems undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
EPAM Systems
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for EPAM Systems.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 13 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 8.8% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| IT Unlevered Beta | Simply Wall St/ S&P Global | 1.01 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.011 (1 + (1- 21%) (2.04%)) |
1.019 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.02 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.019 * 5.96%) |
8.8% |
Discounted Cash Flow Calculation for NYSE:EPAM using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for EPAM Systems is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 8.8%) |
|
|---|---|---|---|
| 2019 | 216.00 | Analyst x1 | 198.53 |
| 2020 | 310.00 | Analyst x2 | 261.88 |
| 2021 | 392.00 | Analyst x2 | 304.36 |
| 2022 | 428.00 | Analyst x1 | 305.44 |
| 2023 | 457.83 | Est @ 6.97% | 300.29 |
| 2024 | 483.91 | Est @ 5.7% | 291.73 |
| 2025 | 507.18 | Est @ 4.81% | 281.02 |
| 2026 | 528.40 | Est @ 4.18% | 269.10 |
| 2027 | 548.20 | Est @ 3.75% | 256.60 |
| 2028 | 567.07 | Est @ 3.44% | 243.97 |
| Present value of next 10 years cash flows | $2,712.92 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $567.07 × (1 + 2.73%) ÷ (8.8% – 2.73%) |
$9,596.40 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $9,596.40 ÷ (1 + 8.8%)10 |
$4,128.55 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $2,712.92 + $4,128.55 |
$6,841.47 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $6,841.47 / 54.63 |
$125.23 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $125.23 |
| Current discount | Discount to share price of
$172.60
= -1 x ($172.60 - $125.23) / $125.23 |
-37.8% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of EPAM Systems is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for EPAM Systems's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
EPAM Systems's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2019-03-31) in USD | $4.39 |
| NYSE:EPAM Share Price ** | NYSE (2019-06-17) in USD | $172.6 |
| United States of America IT Industry PE Ratio | Median Figure of 77 Publicly-Listed IT Companies | 34.95x |
| United States of America Market PE Ratio | Median Figure of 3,093 Publicly-Listed Companies | 17.68x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of EPAM Systems.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:EPAM Share Price ÷ EPS (both in USD) = 172.6 ÷ 4.39 |
39.33x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- EPAM Systems is overvalued based on earnings compared to the US IT industry average.
- EPAM Systems is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does
EPAM Systems's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 39.33x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts |
18.4%per year |
| United States of America IT Industry PEG Ratio | Median Figure of 66 Publicly-Listed IT Companies | 2.45x |
| United States of America Market PEG Ratio | Median Figure of 2,125 Publicly-Listed Companies | 1.52x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 39.33x ÷ 18.4% |
2.13x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- EPAM Systems is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
EPAM Systems's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2019-03-31) in USD | $24.53 |
| NYSE:EPAM Share Price * | NYSE (2019-06-17) in USD | $172.6 |
| United States of America IT Industry PB Ratio | Median Figure of 128 Publicly-Listed IT Companies | 4.13x |
| United States of America Market PB Ratio | Median Figure of 5,245 Publicly-Listed Companies | 1.79x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:EPAM Share Price ÷ Book Value per Share (both in USD) = 172.6 ÷ 24.53 |
7.04x |
* Primary Listing of EPAM Systems.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- EPAM Systems is overvalued based on assets compared to the US IT industry average.
Value checks
We assess EPAM Systems's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the IT industry average (and greater than 0)? (1 check) EPAM Systems has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- EPAM Systems's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- EPAM Systems's earnings growth is expected to exceed the United States of America market average.
- EPAM Systems's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:EPAM Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts | 18.4% |
| NYSE:EPAM Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 13 Analysts | 17.7% |
| United States of America IT Industry Earnings Growth Rate | Market Cap Weighted Average | 16.8% |
| United States of America IT Industry Revenue Growth Rate | Market Cap Weighted Average | 10.3% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 13.8% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.3% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 13 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | 4,672 | 608 | 579 | 1 |
| 2022-12-31 | 3,945 | 508 | 485 | 1 |
| 2021-12-31 | 3,289 | 458 | 400 | 4 |
| 2020-12-31 | 2,737 | 355 | 323 | 13 |
| 2019-12-31 | 2,255 | 268 | 270 | 13 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2019-03-31 | 1,940 | 285 | 237 |
| 2018-12-31 | 1,843 | 292 | 240 |
| 2018-09-30 | 1,737 | 243 | 149 |
| 2018-06-30 | 1,647 | 203 | 126 |
| 2018-03-31 | 1,550 | 171 | 114 |
| 2017-12-31 | 1,450 | 193 | 73 |
| 2017-09-30 | 1,365 | 175 | 128 |
| 2017-06-30 | 1,285 | 175 | 112 |
| 2017-03-31 | 1,220 | 183 | 99 |
| 2016-12-31 | 1,160 | 167 | 99 |
| 2016-09-30 | 1,107 | 123 | 102 |
| 2016-06-30 | 1,045 | 117 | 99 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 13 Analyst Estimates (S&P Global) | See Below |
All data from EPAM Systems Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | 10.06 | 10.06 | 10.06 | 1.00 |
| 2022-12-31 | 8.43 | 8.43 | 8.43 | 1.00 |
| 2021-12-31 | 7.01 | 7.43 | 6.53 | 4.00 |
| 2020-12-31 | 5.49 | 5.98 | 4.87 | 12.00 |
| 2019-12-31 | 4.66 | 4.77 | 4.62 | 10.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2019-03-31 | 4.39 |
| 2018-12-31 | 4.48 |
| 2018-09-30 | 2.80 |
| 2018-06-30 | 2.39 |
| 2018-03-31 | 2.16 |
| 2017-12-31 | 1.40 |
| 2017-09-30 | 2.49 |
| 2017-06-30 | 2.19 |
| 2017-03-31 | 1.96 |
| 2016-12-31 | 1.97 |
| 2016-09-30 | 2.04 |
| 2016-06-30 | 2.00 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess EPAM Systems's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
EPAM Systems has a total score of 3/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has EPAM Systems performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- EPAM Systems has delivered over 20% year on year earnings growth in the past 5 years.
- EPAM Systems's 1-year earnings growth exceeds its 5-year average (108.4% vs 23.7%)
- EPAM Systems's earnings growth has exceeded the US IT industry average in the past year (108.4% vs 8.5%).
Earnings and Revenue History
All data from EPAM Systems Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2019-03-31 | 1,940.10 | 236.59 | 385.73 | |
| 2018-12-31 | 1,842.91 | 240.26 | 373.59 | |
| 2018-09-30 | 1,737.28 | 149.42 | 348.76 | |
| 2018-06-30 | 1,646.62 | 126.43 | 337.46 | |
| 2018-03-31 | 1,549.95 | 113.54 | 343.35 | |
| 2017-12-31 | 1,450.45 | 72.76 | 327.59 | |
| 2017-09-30 | 1,364.68 | 128.40 | 307.25 | |
| 2017-06-30 | 1,285.45 | 111.94 | 289.66 | |
| 2017-03-31 | 1,220.30 | 99.01 | 265.94 | |
| 2016-12-31 | 1,160.13 | 99.27 | 264.63 | |
| 2016-09-30 | 1,106.86 | 102.14 | 238.71 | |
| 2016-06-30 | 1,044.62 | 98.84 | 226.00 | |
| 2016-03-31 | 978.57 | 93.64 | 215.75 | |
| 2015-12-31 | 914.13 | 84.46 | 199.71 | |
| 2015-09-30 | 856.06 | 75.24 | 190.42 | |
| 2015-06-30 | 812.77 | 71.41 | 179.50 | |
| 2015-03-31 | 769.69 | 66.99 | 165.72 | |
| 2014-12-31 | 730.03 | 69.64 | 152.78 | |
| 2014-09-30 | 685.43 | 69.98 | 138.46 | |
| 2014-06-30 | 632.81 | 67.37 | 126.38 | |
| 2014-03-31 | 591.30 | 66.68 | 117.68 | |
| 2013-12-31 | 555.12 | 61.99 | 112.08 | |
| 2013-09-30 | 523.07 | 58.15 | 108.06 | |
| 2013-06-30 | 493.00 | 55.70 | 101.32 | |
| 2013-03-31 | 463.61 | 54.86 | 93.49 | |
| 2012-12-31 | 433.80 | 51.14 | 85.87 | |
| 2012-09-30 | 403.39 | 45.60 | 78.00 | |
| 2012-06-30 | 379.73 | 37.74 | 72.67 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- EPAM Systems has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- EPAM Systems used its assets more efficiently than the US IT industry average last year based on Return on Assets.
- EPAM Systems's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess EPAM Systems's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
EPAM Systems has a total score of 4/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is EPAM Systems's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up EPAM Systems's finances.
The net worth of a company is the difference between its assets and liabilities.
- EPAM Systems is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- EPAM Systems's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- Low level of unsold assets.
- Debt is covered by short term assets, assets are 49.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from EPAM Systems Company Filings, last reported 2 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2019-03-31 | 1,338.23 | 192.79 | 762.53 |
| 2018-12-31 | 1,262.60 | 25.03 | 770.56 |
| 2018-09-30 | 1,195.94 | 25.03 | 685.11 |
| 2018-06-30 | 1,112.80 | 25.02 | 584.08 |
| 2018-03-31 | 1,055.35 | 25.03 | 535.86 |
| 2017-12-31 | 974.95 | 25.03 | 582.59 |
| 2017-09-30 | 985.15 | 25.04 | 513.30 |
| 2017-06-30 | 919.71 | 25.03 | 443.90 |
| 2017-03-31 | 835.10 | 25.04 | 398.82 |
| 2016-12-31 | 781.41 | 25.05 | 362.03 |
| 2016-09-30 | 750.11 | 33.16 | 330.63 |
| 2016-06-30 | 708.97 | 40.09 | 280.72 |
| 2016-03-31 | 657.62 | 40.12 | 244.88 |
| 2015-12-31 | 613.22 | 35.00 | 229.63 |
| 2015-09-30 | 572.87 | 15.00 | 244.44 |
| 2015-06-30 | 544.06 | 0.00 | 205.72 |
| 2015-03-31 | 487.83 | 0.00 | 222.36 |
| 2014-12-31 | 464.05 | 0.00 | 220.53 |
| 2014-09-30 | 445.70 | 0.00 | 192.31 |
| 2014-06-30 | 426.65 | 0.00 | 176.22 |
| 2014-03-31 | 396.28 | 0.00 | 180.95 |
| 2013-12-31 | 376.10 | 0.00 | 170.40 |
| 2013-09-30 | 351.61 | 0.00 | 122.98 |
| 2013-06-30 | 325.23 | 0.00 | 108.45 |
| 2013-03-31 | 303.46 | 0.00 | 104.37 |
| 2012-12-31 | 286.28 | 0.00 | 119.12 |
| 2012-09-30 | 265.15 | 0.00 | 107.43 |
| 2012-06-30 | 242.61 | 0.00 | 104.93 |
- EPAM Systems's level of debt (1.9%) compared to net worth is satisfactory (less than 40%).
- The level of debt compared to net worth has increased over the past 5 years (0% vs 1.9% today).
- Debt is well covered by operating cash flow (1138.7%, greater than 20% of total debt).
- EPAM Systems earns more interest than it pays, coverage of interest payments is not a concern.
Financial health checks
We assess EPAM Systems's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) EPAM Systems has a total score of 5/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is EPAM Systems's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
EPAM Systems
shares you are expected to receive
$0
in your first year as a dividend.
Dividend Amount
- Unable to evaluate EPAM Systems's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
- Unable to evaluate EPAM Systems's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 13 Analyst Estimates (S&P Global) | See Below |
| United States of America IT Industry Average Dividend Yield | Market Cap Weighted Average of 34 Stocks | 1.3% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2011 Stocks | 2.5% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.5% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.7% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2023-12-31 | 0.00 | 1.00 |
| 2022-12-31 | 0.00 | 1.00 |
| 2021-12-31 | 0.00 | 2.00 |
| 2020-12-31 | 0.00 | 3.00 |
| 2019-12-31 | 0.00 | 3.00 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Unable to perform a dividend volatility check as EPAM Systems has not reported any payouts.
- Unable to verify if EPAM Systems's dividend has been increasing as the company has not reported any payouts.
Income/ dividend checks
We assess EPAM Systems's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can EPAM Systems afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) EPAM Systems has a total score of 0/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | $3,786,788 |
| AGE | 58 |
| TENURE AS CEO | 16.5 years |
CEO Bio
Mr. Arkadiy Dobkin co-founded EPAM Systems, Inc., a subsidiary of B2BITS Corp. in 1993 and has been Chairman, Chief Executive Officer and President since December 2002. Mr. Dobkin began his career in Russia where he worked at several emerging software companies. Mr. Dobkin held thought and technical leadership positions for companies like Prudential Insurance, Colgate Palmolive and SAP Labs. Mr. Dobkin began his career in Minsk, Belarus, where he worked for several emerging software development companies. In 2015, Mr. Dobkin was inducted into the Ernst & Young World Entrepreneur of the Year Academy and to the elite Entrepreneur of the Year Hall of Fame. Mr. Dobkin serves as a Board Member of RUSSOFT, Russian software development association and helps to promote capabilities of the Russian software talent pool in US and Europe. During the last several years Arkaidy's achievements have been chronicled numerous times in the US and Russian press. He has been a Director of EPAM Systems, Inc. since 2002. Mr. Dobkin has been a speaker at various international industry and technology events, such as Gartner Outsourcing Summits, Forrester's GigaWorld IT Forum Europe, Russian Outsourcing & Software Summits, SAP TechEd, etc. In 2004, Mr. Dobkin was spotlighted as a key industry influencer in the Foreign Relations category of CRN's Top 25 Executives issue. Mr. Dobkin holds an MS in Electrical Engineering from the Byelorussian National Technical University.
CEO Compensation
- Arkadiy's compensation has been consistent with company performance over the past year, both up more than 20%.
- Arkadiy's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the EPAM Systems management team in years:
- The tenure for the EPAM Systems management team is about average.
Management Team
Arkadiy Dobkin
Co-Founder
$4M
58
16.5 yrs
Jason Peterson
Senior VP
$1M
55
2.1 yrs
Larry Solomon
Senior VP & Chief People Officer
$1M
53
2.7 yrs
Balazs Fejes
Executive VP & Co-Head of Global Business
$2M
43
6.8 yrs
Viktar Dvorkin
Senior VP & Head of Global Delivery
$1M
45
Yuriy Goliyad
Head of Global Operations & Senior VP
3.5 yrs
Gary Abrahams
VP, Corporate Controller & Chief Accounting Officer
50
2.2 yrs
David Straube
Head of Investor Relations
Philip Storm
Senior VP & Chief Compliance Officer
1.8 yrs
Ed Rockwell
Senior VP
50
Board of Directors Tenure
Average tenure and age of the EPAM Systems board of directors in years:
- The tenure for the EPAM Systems board of directors is about average.
Board of Directors
Arkadiy Dobkin
Co-Founder
$4M
58
16.5 yrs
Bob Segert
Independent Non-Employee Director
$188K
50
7.4 yrs
Ron Vargo
Lead Independent Non-Employee Director
$216K
63
4.2 yrs
Jill Smart
Independent Non-Employee Director
$180K
58
2.9 yrs
Karl Robb
Non-Employee Director
$259K
56
15.3 yrs
Mike Mayoras
Independent Non-Employee Director
$189K
56
6.4 yrs
Peter Kuerpick
Independent Non-Employee Director
$173K
51
4.8 yrs
Helen Shan
Non-Employee Director
$118K
50
0.8 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 10. Jun 19 | Sell | Gary Abrahams | Individual | 10. Jun 19 | 10. Jun 19 | -361 | $177.16 | $-63,955 | ||
| 31. May 19 | Sell | Jason Harman | Individual | 30. May 19 | 30. May 19 | -1,908 | $173.00 | $-330,084 | ||
| 24. May 19 | Sell | Elaina Shekhter | Individual | 23. May 19 | 23. May 19 | -7,801 | $171.23 | $-1,335,765 | ||
| 16. May 19 | Sell | Arkadiy Dobkin | Individual | 15. May 19 | 15. May 19 | -25,000 | $170.18 | $-4,217,799 | ||
| 11. Mar 19 | Sell | Ronald Vargo | Individual | 08. Mar 19 | 08. Mar 19 | -2,000 | $159.64 | $-319,280 | ||
| 26. Feb 19 | Sell | Jason Peterson | Individual | 26. Feb 19 | 26. Feb 19 | -800 | $158.70 | $-126,960 | ||
| 27. Aug 18 | Sell | Balazs Fejes | Individual | 27. Aug 18 | 27. Aug 18 | -3,133 | $141.33 | $-442,787 | ||
Management checks
We assess EPAM Systems's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) EPAM Systems has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
Are EPAM Systems, Inc.’s (NYSE:EPAM) High Returns Really That Great?
The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for EPAM Systems: 0.17 = US$262m ÷ (US$1.8b - US$283m) (Based on the trailing twelve months to March 2019.) So, EPAM Systems has an ROCE of 17%. … How EPAM Systems's Current Liabilities Impact Its ROCE Short term (or current) liabilities, are things like supplier invoices, overdrafts, or tax bills that need to be paid within 12 months. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.
Simply Wall St - – Full articleAt US$173, Is It Time To Put EPAM Systems, Inc. (NYSE:EPAM) On Your Watch List?
Since EPAM Systems’s share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. … EPAM’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. … If you believe EPAM should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable.
Simply Wall St - – Full articleWhy EPAM Systems, Inc. (NYSE:EPAM) Looks Like A Quality Company
The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for EPAM Systems: 18% = US$237m ÷ US$1.3b (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Does EPAM Systems Have A Good Return On Equity? … EPAM Systems's Debt And Its 18% ROE Although EPAM Systems does use debt, its debt to equity ratio of 0.14 is still low.
Simply Wall St - – Full articleHow To Take Advantage Of EPAM Systems, Inc. (NYSE:EPAM) In A Bear Market
I'm talking about the well-proven, robust track record EPAM Systems, Inc.. … NYSE:EPAM Historical Debt, May 13th 2019 With US$193m debt on its books, EPAM Systems has to pay interest periodically. … Next Steps: EPAM Systems makes for a robust long-term investment based on its scale, financial health and track record.
Simply Wall St - – Full articleWith EPS Growth And More, EPAM Systems (NYSE:EPAM) Is Interesting
In contrast to all that, I prefer to spend time on companies like EPAM Systems (NYSE:EPAM), which has not only revenues, but also profits. … How Quickly Is EPAM Systems Increasing Earnings Per Share. … I like to take a look at earnings before interest and (EBIT) tax margins, as well as revenue growth, to get another take on the quality of the company's growth.
Simply Wall St - – Full articleIs EPAM Systems, Inc. (NYSE:EPAM) As Strong As Its Balance Sheet Indicates?
Most investors favour these big stocks due to their strong balance sheet and high market liquidity, meaning there are an abundance of stock in the public market available for trading. … These firms won’t be left high and dry if liquidity dries up, and they will be relatively unaffected by rises in interest rates. … Using the most recent data for EPAM, I will determine its financial status based on its solvency and liquidity, and assess whether the stock is a safe investment.
Simply Wall St - – Full articleDespite Its High P/E Ratio, Is EPAM Systems, Inc. (NYSE:EPAM) Still Undervalued?
We'll show how you can use EPAM Systems, Inc.'s (NYSE:EPAM) P/E ratio to inform your assessment of the investment opportunity. … Based on the last twelve months, EPAM Systems's P/E ratio is 38.84. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleEPAM Systems, Inc. (NYSE:EPAM) Insiders Have Been Selling
So shareholders might well want to know whether insiders have been buying or selling shares in EPAM Systems, Inc. … EPAM Systems Insider Transactions Over The Last Year. … While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign.
Simply Wall St - – Full articleAnnouncing: EPAM Systems (NYSE:EPAM) Stock Soared An Exciting 460% In The Last Five Years
By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … Over half a decade, EPAM Systems managed to grow its earnings per share at 27% a year. … This EPS growth is slower than the share price growth of 41% per year, over the same period.
Simply Wall St - – Full articleHas EPAM Systems, Inc. (NYSE:EPAM) Got Enough Cash?
Small-caps and large-caps are wildly popular among investors, however, mid-cap stocks, such as EPAM Systems, Inc. … Today we will look at EPAM’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … EPAM’s Debt (And Cash Flows)
Simply Wall St - – Full articleCompany Info
Description
EPAM Systems, Inc. provides software product development and digital platform engineering services primarily in North America, Europe, Armenia, Belarus, Kazakhstan, Russia, Ukraine, Asia, and Australia. The company offers engineering services, including requirements analysis and platform selection, customization, cross-platform migration, implementation, and integration; infrastructure management services, such as software development, testing, and maintenance with private, public, and mobile infrastructures for application, database, network, server, storage, and systems operations management, as well as monitoring, incident notification, and resolution services; and maintenance and support services. It also provides operation solutions comprising its proprietary platforms, integrated engineering practices, and smart automation; and optimization solutions that include software application testing, test management, automation, and consulting services to enable customers enhance their existing software testing and quality assurance practices, as well as other testing services that identify threats and close loopholes to protect its customers’ business systems from information loss. In addition, the company offers industry, technology, experience, and technical advisory consulting services; and digital and service design solutions, which comprise strategy, design, creative, and program management services, as well as physical product development. It serves the financial services, travel and consumer, software and hi-tech, business information and media, life sciences and healthcare, and other industries. The company was founded in 1993 and is headquartered in Newtown, Pennsylvania.
Details
| Name: | EPAM Systems, Inc. |
| EPAM | |
| Exchange: | NYSE |
| Founded: | 1993 |
| $9,429,408,119 | |
| 54,631,565 | |
| Website: | http://www.epam.com |
| Address: |
EPAM Systems, Inc. 41 University Drive, Suite 202, Newtown, Pennsylvania, 18940, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NYSE | EPAM | Common Shares | New York Stock Exchange | US | USD | 08. Feb 2012 | |
| DB | E3M | Common Shares | Deutsche Boerse AG | DE | EUR | 08. Feb 2012 | |
| BMV | EPAM * | Common Shares | Bolsa Mexicana de Valores | MX | MXN | 08. Feb 2012 |
Number of employees
Current staff
Industry
| IT Consulting and Other Services | |
| Software |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/06/18 00:28 |
| End of day share price update: | 2019/06/17 00:00 |
| Last estimates confirmation: | 2019/06/14 |
| Last earnings filing: | 2019/05/09 |
| Last earnings reported: | 2019/03/31 |
| Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.
