NYSE:EPAM

Stock Analysis Report

Executive Summary

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.

Snowflake

Fundamentals

Excellent balance sheet with proven track record.


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


Market Performance


7 Day Return

4.0%

NYSE:EPAM

2.5%

US IT

2.1%

US Market


1 Year Return

38.7%

NYSE:EPAM

21.1%

US IT

-0.04%

US Market

EPAM outperformed the IT industry which returned 22.8% over the past year.

EPAM outperformed the Market in United States of America which returned 0.2% over the past year.


Share holder returns

EPAMIndustryMarket
7 Day4.0%2.5%2.1%
30 Day-0.7%-1.4%-3.2%
90 Day16.8%9.1%2.8%
1 Year38.7%38.7%22.4%21.1%2.2%-0.04%
3 Year188.2%188.2%101.3%92.8%41.5%32.3%
5 Year419.3%419.3%144.4%119.5%55.0%37.8%

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

Valuation

Is EPAM Systems undervalued based on future cash flows and its price relative to the stock market?

43.23x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

EPAM Systems's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

EPAM Systems's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

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

EPAM Systems is poor value based on expected growth next year.


Price Based on Value of Assets

EPAM Systems is overvalued based on assets compared to the US IT industry average.


Next Steps

Future Growth

How is EPAM Systems expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

19.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

EPAM Systems's revenue is expected to grow by 17.7% yearly, however this is not considered high growth (20% yearly).

EPAM Systems's earnings are expected to grow by 19.3% yearly, however this is not considered high growth (20% yearly).

EPAM Systems's revenue growth is expected to exceed the United States of America market average.

EPAM Systems's earnings growth is expected to exceed the United States of America market average.

EPAM Systems's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

EPAM Systems is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has EPAM Systems performed over the past 5 years?

26.2%

Historical annual earnings growth


Earnings and Revenue History


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 (93.9% vs 26.2%)

EPAM Systems's earnings growth has exceeded the US IT industry average in the past year (93.9% vs 11.2%).


Return on Equity

EPAM Systems has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

EPAM Systems used its assets more efficiently than the US IT industry average last year based on Return on Assets.


Return on Capital Employed

EPAM Systems's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is EPAM Systems's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

EPAM Systems's level of debt (1.8%) compared to net worth is satisfactory (less than 40%).

Unable to establish if EPAM Systems's debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (1077%, greater than 20% of total debt).

EPAM Systems earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 51.4x debt.


Next Steps

Dividend

What is EPAM Systems's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

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.

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.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as EPAM Systems has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of EPAM Systems's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of EPAM Systems's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Arkadiy Dobkin (59yo)

16.7yrs

Tenure

US$3,786,788

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

Arkadiy's remuneration is lower than average for companies of similar size in United States of America.

Arkadiy's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.8yrs

Average Tenure

51yo

Average Age

The tenure for the EPAM Systems management team is about average.


Board Age and Tenure

6.6yrs

Average Tenure

57yo

Average Age

The tenure for the EPAM Systems board of directors is about average.


Insider Trading

EPAM Systems individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$589,42118 Jun 19
Richard Mayoras
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Employee Director
Shares3,372
Max PriceUS$175.20
SellUS$63,95510 Jun 19
Gary Abrahams
EntityIndividual
Role
Chief Accounting Officer
VP, Corporate Controller & Chief Accounting Officer
Shares361
Max PriceUS$177.16
SellUS$330,08431 May 19
Jason Harman
EntityIndividual
Shares1,908
Max PriceUS$173.00
SellUS$1,335,76524 May 19
Elaina Shekhter
EntityIndividual
Shares7,801
Max PriceUS$171.23
SellUS$4,217,79916 May 19
Arkadiy Dobkin
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares25,000
Max PriceUS$170.18
SellUS$319,28011 Mar 19
Ronald Vargo
EntityIndividual
Role
Lead Director
Lead Independent Non-Employee Director
Shares2,000
Max PriceUS$159.64
SellUS$126,96026 Feb 19
Jason Peterson
EntityIndividual
Role
Chief Financial Officer
Senior VP
Shares800
Max PriceUS$158.70
SellUS$442,78727 Aug 18
Balazs Fejes
EntityIndividual
Role
Senior Key Executive
Executive VP & Co-Head of Global Business
Shares3,133
Max PriceUS$141.33

Ownership Breakdown


Management Team

  • Balazs Fejes (44yo)

    Executive VP & Co-Head of Global Business

    • Tenure: 7.0yrs
    • Compensation: US$1.78m
  • Arkadiy Dobkin (59yo)

    Co-Founder

    • Tenure: 16.7yrs
    • Compensation: US$3.79m
  • Jason Peterson (56yo)

    Senior VP

    • Tenure: 2.3yrs
    • Compensation: US$1.42m
  • Yuriy Goliyad

    Head of Global Operations & Senior VP

    • Tenure: 3.7yrs
  • Viktar Dvorkin (46yo)

    Senior VP & Head of Global Delivery

    • Tenure: 0.0yrs
    • Compensation: US$1.37m
  • Ed Rockwell (51yo)

    Senior VP

    • Tenure: 0.0yrs
  • Larry Solomon (54yo)

    Senior VP & Chief People Officer

    • Tenure: 2.8yrs
    • Compensation: US$1.36m
  • Gary Abrahams (51yo)

    VP, Corporate Controller & Chief Accounting Officer

    • Tenure: 2.3yrs
  • Philip Storm

    Senior VP & Chief Compliance Officer

    • Tenure: 1.9yrs
  • David Straube

    Head of Investor Relations

    • Tenure: 0.0yrs

Board Members

  • Mike Mayoras (57yo)

    Independent Non-Employee Director

    • Tenure: 6.6yrs
    • Compensation: US$188.83k
  • Karl Robb (57yo)

    Non-Employee Director

    • Tenure: 15.4yrs
    • Compensation: US$259.33k
  • Arkadiy Dobkin (59yo)

    Co-Founder

    • Tenure: 16.7yrs
    • Compensation: US$3.79m
  • Ron Vargo (64yo)

    Lead Independent Non-Employee Director

    • Tenure: 4.3yrs
    • Compensation: US$216.33k
  • Bob Segert (51yo)

    Independent Non-Employee Director

    • Tenure: 7.6yrs
    • Compensation: US$188.46k
  • Helen Shan (51yo)

    Non-Employee Director

    • Tenure: 0.9yrs
    • Compensation: US$117.85k
  • Jill Smart (59yo)

    Independent Non-Employee Director

    • Tenure: 3.1yrs
    • Compensation: US$180.33k

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$10.723b
  • Shares outstanding: 54.85m
  • Website: https://www.epam.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EPAMNYSE (New York Stock Exchange)YesCommon SharesUSUSDFeb 2012
E3MDB (Deutsche Boerse AG)YesCommon SharesDEEURFeb 2012

Biography

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. Th ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/23 00:19
End of Day Share Price2019/08/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.