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EPAM

EPAM SystemsNYSE:EPAM Stock Report

Market Cap

US$35.2b

7D

0.3%

1Y

99.9%

Updated

23 Sep, 2021

Data

Company Financials +
EPAM fundamental analysis
Snowflake Score
Valuation0/6
Future Growth6/6
Past Performance5/6
Financial Health6/6
Dividends0/6

EPAM Overview

EPAM Systems, Inc. provides digital platform engineering and software development services in North America, Europe, Russia, Belarus, Kazakhstan, Ukraine, Georgia, East Asia, Southeast Asia, and Australia.

EPAM Systems Competitors

Price History & Performance

Summary of all time highs, changes and price drops for EPAM Systems
Historical stock prices
Current Share PriceUS$629.53
52 Week HighUS$305.83
52 Week LowUS$648.72
Beta1.36
1 Month Change-0.60%
3 Month Change20.34%
1 Year Change99.86%
3 Year Change358.11%
5 Year Change823.74%
Change since IPO4,396.64%

Recent News & Updates

Shareholder Returns

EPAMUS ITUS Market
7D0.3%0.7%-0.5%
1Y99.9%30.5%37.5%

Return vs Industry: EPAM exceeded the US IT industry which returned 27.8% over the past year.

Return vs Market: EPAM exceeded the US Market which returned 36.2% over the past year.

Price Volatility

Is EPAM's price volatile compared to industry and market?
EPAM volatility
EPAM Beta1.36
Industry Beta1.18
Market Beta1

Stable Share Price: EPAM is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: EPAM's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199341,168Arkadiy Dobkinhttps://www.epam.com

EPAM Systems, Inc. provides digital platform engineering and software development services in North America, Europe, Russia, Belarus, Kazakhstan, Ukraine, Georgia, East Asia, Southeast 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 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.

EPAM Systems Fundamentals Summary

How do EPAM Systems's earnings and revenue compare to its market cap?
EPAM fundamental statistics
Market CapUS$35.17b
Earnings (TTM)US$398.69m
Revenue (TTM)US$3.04b

89.4x

P/E Ratio

11.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EPAM income statement (TTM)
RevenueUS$3.04b
Cost of RevenueUS$1.99b
Gross ProfitUS$1.05b
ExpensesUS$646.95m
EarningsUS$398.69m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)7.10
Gross Margin34.42%
Net Profit Margin13.12%
Debt/Equity Ratio1.1%

How did EPAM perform over the long term?

See historical performance and comparison

Valuation

Is EPAM Systems undervalued compared to its fair value and its price relative to the market?

89.42x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EPAM ($629.53) is trading above our estimate of fair value ($451.9)

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 (89.4x) compared to the US IT industry average (34.7x).

PE vs Market: EPAM is poor value based on its PE Ratio (89.4x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: EPAM is poor value based on its PEG Ratio (4.1x)


Price to Book Ratio

PB vs Industry: EPAM is overvalued based on its PB Ratio (16.1x) compared to the US IT industry average (5.3x).


Future Growth

How is EPAM Systems forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

21.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EPAM's forecast earnings growth (21.6% per year) is above the savings rate (2%).

Earnings vs Market: EPAM's earnings (21.6% per year) are forecast to grow faster than the US market (14.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: EPAM's revenue (20.9% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: EPAM's revenue (20.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EPAM's Return on Equity is forecast to be high in 3 years time (22.2%)


Past Performance

How has EPAM Systems performed over the past 5 years?

30.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EPAM has high quality earnings.

Growing Profit Margin: EPAM's current net profit margins (13.1%) are higher than last year (11.7%).


Past Earnings Growth Analysis

Earnings Trend: EPAM's earnings have grown significantly by 30.3% per year over the past 5 years.

Accelerating Growth: EPAM's earnings growth over the past year (35.7%) exceeds its 5-year average (30.3% per year).

Earnings vs Industry: EPAM earnings growth over the past year (35.7%) exceeded the IT industry 28%.


Return on Equity

High ROE: EPAM's Return on Equity (18%) is considered low.


Financial Health

How is EPAM Systems's financial position?


Financial Position Analysis

Short Term Liabilities: EPAM's short term assets ($2.0B) exceed its short term liabilities ($522.9M).

Long Term Liabilities: EPAM's short term assets ($2.0B) exceed its long term liabilities ($226.0M).


Debt to Equity History and Analysis

Debt Level: EPAM's debt to equity ratio (1.1%) is considered satisfactory.

Reducing Debt: EPAM's debt to equity ratio has reduced from 5.6% to 1.1% over the past 5 years.

Debt Coverage: EPAM's debt is well covered by operating cash flow (1664.7%).

Interest Coverage: EPAM earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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?

4.7yrs

Average management tenure


CEO

Arkadiy Dobkin (61 yo)

18.75yrs

Tenure

US$4,696,908

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 ($USD4.70M) is below average for companies of similar size in the US market ($USD11.36M).

Compensation vs Earnings: Arkadiy's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: EPAM's management team is considered experienced (4.7 years average tenure).


Board Members

Experienced Board: EPAM's board of directors are considered experienced (5.2 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 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$35.169b
  • Shares outstanding: 56.63m
  • Website: https://www.epam.com

Number of Employees


Location

  • EPAM Systems, Inc.
  • 41 University Drive
  • Suite 202
  • Newtown
  • Pennsylvania
  • 18940
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/23 23:02
End of Day Share Price2021/09/23 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.