| Snowflake Score | |
|---|---|
| Valuation | 0/6 |
| Future Growth | 5/6 |
| Past Performance | 4/6 |
| Financial Health | 6/6 |
| Dividends | 0/6 |
EPAM Stock Overview
EPAM Systems, Inc. provides digital platform engineering and software development services worldwide.
EPAM Systems Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$314.66 |
| 52 Week High | US$725.40 |
| 52 Week Low | US$168.59 |
| Beta | 1.78 |
| 1 Month Change | 13.69% |
| 3 Month Change | -26.44% |
| 1 Year Change | -35.04% |
| 3 Year Change | 88.07% |
| 5 Year Change | 273.93% |
| Change since IPO | 2,147.57% |
Recent News & Updates
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.
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
| EPAM | US IT | US Market | |
|---|---|---|---|
| 7D | 1.2% | 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
| EPAM volatility | |
|---|---|
| EPAM Average Weekly Movement | 20.2% |
| IT Industry Average Movement | 10.3% |
| Market Average Movement | 7.8% |
| 10% most volatile stocks in US Market | 16.9% |
| 10% least volatile stocks in US Market | 2.9% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1993 | 58,824 | Arkadiy Dobkin | https://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
| EPAM fundamental statistics | |
|---|---|
| Market Cap | US$17.98b |
| Earnings (TTM) | US$462.33m |
| Revenue (TTM) | US$4.15b |
38.9x
P/E Ratio4.3x
P/S RatioIs EPAM overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| EPAM income statement (TTM) | |
|---|---|
| Revenue | US$4.15b |
| Cost of Revenue | US$2.75b |
| Gross Profit | US$1.40b |
| Other Expenses | US$941.45m |
| Earnings | US$462.33m |
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 8.09 |
| Gross Margin | 33.83% |
| Net Profit Margin | 11.14% |
| Debt/Equity Ratio | 1.6% |
How did EPAM perform over the long term?
See historical performance and comparisonValuation
Is EPAM Systems undervalued compared to its fair value and its price relative to the market?
Valuation Score
0/6Valuation 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
5/6Future 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
4/6Past 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
6/6Financial 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
0/6Dividend 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/05/24 00:00 |
| End of Day Share Price | 2022/05/23 00:00 |
| Earnings | 2022/03/31 |
| Annual Earnings | 2021/12/31 |
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.