EPAM Systems
Market Cap
US$18.9b
Last Updated
2020/10/23 23:53 UTC
Data Sources
Company Financials +
Executive Summary
EPAM Systems, Inc. provides digital platform engineering and software development services in North America, Europe, Armenia, Belarus, Kazakhstan, Russia, Ukraine, Asia, and Australia. More Details
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet with moderate growth potential.
Similar Companies
Share Price & News
How has EPAM Systems's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: EPAM has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-3.3%
EPAM
-1.3%
US IT
-0.8%
US Market
1 Year Return
92.5%
EPAM
27.3%
US IT
18.0%
US Market
Return vs Industry: EPAM exceeded the US IT industry which returned 30.5% over the past year.
Return vs Market: EPAM exceeded the US Market which returned 17.8% over the past year.
Shareholder returns
| EPAM | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.3% | -1.3% | -0.8% |
| 30 Day | 7.7% | 4.0% | 6.8% |
| 90 Day | 23.7% | 6.7% | 8.9% |
| 1 Year | 92.5%92.5% | 28.6%27.3% | 20.7%18.0% |
| 3 Year | 272.8%272.8% | 90.0%82.6% | 41.5%32.1% |
| 5 Year | 338.3%338.3% | 151.5%131.4% | 84.6%63.8% |
Price Volatility Vs. Market
How volatile is EPAM Systems's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Will EPAM Systems (NYSE:EPAM) Multiply In Value Going Forward?2 weeks ago | Simply Wall St
Are Strong Financial Prospects The Force That Is Driving The Momentum In EPAM Systems, Inc.'s NYSE:EPAM) Stock?1 month ago | Simply Wall St
Is EPAM Systems (NYSE:EPAM) A Risky Investment?Valuation
Is EPAM Systems undervalued compared to its fair value and its price relative to the market?
63.76x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: EPAM ($337.26) is trading above our estimate of fair value ($197.89)
Significantly Below Fair Value: EPAM is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: EPAM is poor value based on its PE Ratio (63.4x) compared to the US IT industry average (32.6x).
PE vs Market: EPAM is poor value based on its PE Ratio (63.4x) compared to the US market (18.9x).
Price to Earnings Growth Ratio
PEG Ratio: EPAM is poor value based on its PEG Ratio (3.1x)
Price to Book Ratio
PB vs Industry: EPAM is overvalued based on its PB Ratio (10.7x) compared to the US IT industry average (3.7x).
Next Steps
Future Growth
How is EPAM Systems forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
20.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: EPAM's forecast earnings growth (20.6% per year) is above the savings rate (2.2%).
Earnings vs Market: EPAM's earnings (20.6% per year) are forecast to grow slower than the US market (22% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: EPAM's revenue (18% per year) is forecast to grow faster than the US market (10% per year).
High Growth Revenue: EPAM's revenue (18% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: EPAM's Return on Equity is forecast to be low in 3 years time (18.5%).
Next Steps
Past Performance
How has EPAM Systems performed over the past 5 years?
29.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: EPAM has high quality earnings.
Growing Profit Margin: EPAM's current net profit margins (11.7%) are lower than last year (12%).
Past Earnings Growth Analysis
Earnings Trend: EPAM's earnings have grown significantly by 29.9% per year over the past 5 years.
Accelerating Growth: EPAM's earnings growth over the past year (19.8%) is below its 5-year average (29.9% per year).
Earnings vs Industry: EPAM earnings growth over the past year (19.8%) exceeded the IT industry 8.1%.
Return on Equity
High ROE: EPAM's Return on Equity (16.8%) is considered low.
Next Steps
Financial Health
How is EPAM Systems's financial position?
Financial Position Analysis
Short Term Liabilities: EPAM's short term assets ($1.6B) exceed its short term liabilities ($365.6M).
Long Term Liabilities: EPAM's short term assets ($1.6B) exceed its long term liabilities ($270.5M).
Debt to Equity History and Analysis
Debt Level: EPAM's debt to equity ratio (1.4%) is considered satisfactory.
Reducing Debt: EPAM's debt to equity ratio has increased from 0.06% to 1.4% over the past 5 years.
Debt Coverage: EPAM's debt is well covered by operating cash flow (1809%).
Interest Coverage: EPAM earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is EPAM Systems's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate EPAM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate EPAM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if EPAM's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if EPAM's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of EPAM's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.4yrs
Average management tenure
CEO
Arkadiy Dobkin (60 yo)
17.83yrs
Tenure
US$4,325,620
Compensation
Mr. Arkadiy Dobkin co-founded EPAM Systems, Inc., a subsidiary of B2BITS Corp. in 1993 and has been Chairman, Chief Executive Officer and President since December 2002. Mr. Dobkin began his career in Russi ...
CEO Compensation Analysis
Compensation vs Market: Arkadiy's total compensation ($USD4.33M) is below average for companies of similar size in the US market ($USD11.20M).
Compensation vs Earnings: Arkadiy's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder | 17.83yrs | US$4.33m | 3.33% $ 630.2m | |
| Senior VP | 3.42yrs | US$1.81m | 0.0044% $ 825.6k | |
| Senior VP & Chief People Officer | 4yrs | US$1.51m | 0.013% $ 2.5m | |
| Executive VP & Co-Head of Global Business | 8.17yrs | US$1.96m | 0% $ 0 | |
| Senior VP & Head of Global Delivery | no data | US$1.52m | 0.024% $ 4.6m | |
| Head of Global Operations & Senior VP | 4.83yrs | no data | no data | |
| VP, Corporate Controller & Chief Accounting Officer | 3.5yrs | no data | 0.00067% $ 126.9k | |
| Head of Investor Relations | no data | no data | no data | |
| Senior VP & Chief Compliance Officer | 3.08yrs | no data | no data | |
| Senior VP | no data | no data | 0.00029% $ 54.9k | |
| Chief Marketing Officer | 5.58yrs | US$1.12m | 0.00039% $ 73.9k | |
| Senior Vice President of Business Solutions | no data | no data | no data |
4.4yrs
Average Tenure
51.5yo
Average Age
Experienced Management: EPAM's management team is considered experienced (4.4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder | 17.83yrs | US$4.33m | 3.33% $ 630.2m | |
| Independent Non-Employee Director | 7.75yrs | US$210.03k | 0.014% $ 2.6m | |
| Non-Employee Director | 16.58yrs | US$280.53k | 0.0089% $ 1.7m | |
| Independent Non-Employee Director | 0.67yr | no data | 0% $ 0 | |
| Lead Independent Non-Employee Director | 5.5yrs | US$237.53k | 0.013% $ 2.4m | |
| Independent Non-Employee Director | 8.75yrs | US$196.53k | 0.030% $ 5.7m | |
| Independent Non-Employee Director | 2.08yrs | US$198.41k | 0.0017% $ 323.8k | |
| Independent Non-Employee Director | 4.25yrs | US$201.53k | 0.0081% $ 1.5m |
6.6yrs
Average Tenure
59yo
Average Age
Experienced Board: EPAM's board of directors are considered experienced (6.6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: EPAM insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
EPAM Systems, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: EPAM Systems, Inc.
- Ticker: EPAM
- Exchange: NYSE
- Founded: 1993
- Industry: IT Consulting and Other Services
- Sector: Software
- Market Cap: US$18.937b
- Shares outstanding: 55.85m
- Website: https://www.epam.com
Number of Employees
Location
- EPAM Systems, Inc.
- 41 University Drive
- Suite 202
- Newtown
- Pennsylvania
- 18940
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| EPAM | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Feb 2012 |
| E3M | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Feb 2012 |
| EPAM * | BMV (Bolsa Mexicana de Valores) | Yes | Common Shares | MX | MXN | Feb 2012 |
Biography
EPAM Systems, Inc. provides digital platform engineering and software development services in North America, Europe, Armenia, Belarus, Kazakhstan, Russia, Ukraine, Asia, and Australia. The company offers e ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/10/23 23:53 |
| End of Day Share Price | 2020/10/23 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.