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EPAM

EPAM Systems NYSE:EPAM Stock Report

Last Price

US$314.66

Market Cap

US$18.0b

7D

1.2%

1Y

-35.0%

Updated

24 May, 2022

Data

Company Financials +
EPAM fundamental analysis
Snowflake Score
Valuation0/6
Future Growth5/6
Past Performance4/6
Financial Health6/6
Dividends0/6

EPAM Stock Overview

EPAM Systems, Inc. provides digital platform engineering and software development services worldwide.

EPAM Systems Competitors

Price History & Performance

Summary of all time highs, changes and price drops for EPAM Systems
Historical stock prices
Current Share PriceUS$314.66
52 Week HighUS$725.40
52 Week LowUS$168.59
Beta1.78
1 Month Change13.69%
3 Month Change-26.44%
1 Year Change-35.04%
3 Year Change88.07%
5 Year Change273.93%
Change since IPO2,147.57%

Recent News & Updates

Apr 13

EPAM Systems: Providing Diversified Solutions Enables Broad Growth

EPAM Systems is an American software engineering company specializing in software developments, platform engineering, software design, and other related services. The company experienced large growth in the past year and is projecting even more rapid growth in the next few years. The company’s growth might be offset by a few developing factors but not enough to deter its rapid rise.

Apr 05

EPAM Systems: A Risky Buy With A Great Upside

EPAM's share price tumbled following the withdrawal of its guidance for 2022 due to the war in Ukraine. Although risky, the company's shares can be bought for a discount and I believe its revenues will recover. EPAM's business model is flexible and asset-light, so I believe a recovery is possible with a great upside for an equivalent amount of risk.

Shareholder Returns

EPAMUS ITUS Market
7D1.2%2.8%-0.5%
1Y-35.0%-27.5%-12.3%

Return vs Industry: EPAM underperformed the US IT industry which returned -28.1% over the past year.

Return vs Market: EPAM underperformed the US Market which returned -12.9% over the past year.

Price Volatility

Is EPAM's price volatile compared to industry and market?
EPAM volatility
EPAM Average Weekly Movement20.2%
IT Industry Average Movement10.3%
Market Average Movement7.8%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market2.9%

Stable Share Price: EPAM is more volatile than 90% of US stocks over the past 3 months, typically moving +/- 20% a week.

Volatility Over Time: EPAM's weekly volatility has increased from 11% to 20% over the past year.

About the Company

FoundedEmployeesCEOWebsite
199358,824Arkadiy Dobkinhttps://www.epam.com

EPAM Systems, Inc. provides digital platform engineering and software development services worldwide. 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$17.98b
Earnings (TTM)US$462.33m
Revenue (TTM)US$4.15b

38.9x

P/E Ratio

4.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EPAM income statement (TTM)
RevenueUS$4.15b
Cost of RevenueUS$2.75b
Gross ProfitUS$1.40b
Other ExpensesUS$941.45m
EarningsUS$462.33m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)8.09
Gross Margin33.83%
Net Profit Margin11.14%
Debt/Equity Ratio1.6%

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?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


38.9x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: EPAM ($314.66) is trading above our estimate of fair value ($285.44)

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 (38.9x) compared to the US IT industry average (27.4x).

PE vs Market: EPAM is poor value based on its PE Ratio (38.9x) compared to the US market (15.1x).


Price to Earnings Growth Ratio

PEG Ratio: EPAM is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: EPAM is overvalued based on its PB Ratio (7x) compared to the US IT industry average (3.1x).


Future Growth

How is EPAM Systems forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


29.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EPAM's forecast earnings growth (29.9% per year) is above the savings rate (1.9%).

Earnings vs Market: EPAM's earnings (29.9% per year) are forecast to grow faster than the US market (12.5% per year).

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

Revenue vs Market: EPAM's revenue (18.2% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: EPAM's revenue (18.2% 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 high in 3 years time (23.4%)


Past Performance

How has EPAM Systems performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


30.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: EPAM has high quality earnings.

Growing Profit Margin: EPAM's current net profit margins (11.1%) are lower than last year (12.6%).


Past Earnings Growth Analysis

Earnings Trend: EPAM's earnings have grown significantly by 30.4% per year over the past 5 years.

Accelerating Growth: EPAM's earnings growth over the past year (31.9%) exceeds its 5-year average (30.4% per year).

Earnings vs Industry: EPAM earnings growth over the past year (31.9%) exceeded the IT industry 21.4%.


Return on Equity

High ROE: EPAM's Return on Equity (18.1%) is considered low.


Financial Health

How is EPAM Systems's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: EPAM's short term assets ($2.3B) exceed its short term liabilities ($683.3M).

Long Term Liabilities: EPAM's short term assets ($2.3B) exceed its long term liabilities ($270.6M).


Debt to Equity History and Analysis

Debt Level: EPAM has more cash than its total debt.

Reducing Debt: EPAM had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: EPAM's debt is well covered by operating cash flow (1255%).

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 Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

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.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as EPAM has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

5.8yrs

Average management tenure


CEO

Arkadiy Dobkin (61 yo)

29.33yrs

Tenure

US$5,921,524

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 ($USD5.92M) is below average for companies of similar size in the US market ($USD13.34M).

Compensation vs Earnings: Arkadiy's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: EPAM's management team is seasoned and experienced (5.8 years average tenure).


Board Members

Experienced Board: EPAM's board of directors are considered experienced (5.8 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
  • Implied Market Cap: US$17.983b
  • Shares outstanding: 57.15m
  • 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 Analysis2022/05/24 00:00
End of Day Share Price2022/05/23 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.