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EPAM Systems

NYSE:EPAM
Snowflake Description

Excellent balance sheet with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
EPAM
NYSE
$9B
Market Cap
  1. Home
  2. US
  3. Software
Company description

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. The last earnings update was 48 days ago. More info.


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EPAM Share Price and Events
7 Day Returns
-1.8%
NYSE:EPAM
1.4%
US IT
1.4%
US Market
1 Year Returns
40.6%
NYSE:EPAM
25.3%
US IT
4.9%
US Market
EPAM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
EPAM Systems (EPAM) -1.8% 1.9% 1.5% 40.6% 158.7% 305.6%
US IT 1.4% 5.4% 10.4% 25.3% 102.8% 112.3%
US Market 1.4% 3.8% 3.5% 4.9% 44.8% 40.1%
1 Year Return vs Industry and Market
  • EPAM outperformed the IT industry which returned 25.3% over the past year.
  • EPAM outperformed the Market in United States of America which returned 4.9% over the past year.
Price Volatility
EPAM
Industry
5yr Volatility vs Market

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of EPAM Systems to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for EPAM Systems.

NYSE:EPAM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 13 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.8%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:EPAM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
IT Unlevered Beta Simply Wall St/ S&P Global 1.01
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.013 (1 + (1- 21%) (2.07%))
1.02
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.02
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.02 * 5.96%)
8.81%

Discounted Cash Flow Calculation for NYSE:EPAM using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for EPAM Systems is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:EPAM DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.81%)
2019 216.00 Analyst x1 198.52
2020 310.00 Analyst x2 261.84
2021 392.00 Analyst x2 304.30
2022 428.00 Analyst x1 305.35
2023 457.83 Est @ 6.97% 300.19
2024 483.91 Est @ 5.7% 291.61
2025 507.18 Est @ 4.81% 280.89
2026 528.40 Est @ 4.18% 268.96
2027 548.20 Est @ 3.75% 256.45
2028 567.07 Est @ 3.44% 243.80
Present value of next 10 years cash flows $2,711.93
NYSE:EPAM DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $567.07 × (1 + 2.73%) ÷ (8.81% – 2.73%)
$9,584.98
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $9,584.98 ÷ (1 + 8.81%)10
$4,120.89
NYSE:EPAM Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $2,711.93 + $4,120.89
$6,832.82
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $6,832.82 / 54.63
$125.07
NYSE:EPAM Discount to Share Price
Calculation Result
Value per share (USD) From above. $125.07
Current discount Discount to share price of $170.49
= -1 x ($170.49 - $125.07) / $125.07
-36.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of EPAM Systems is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for EPAM Systems's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are EPAM Systems's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:EPAM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $4.39
NYSE:EPAM Share Price ** NYSE (2019-06-25) in USD $170.49
United States of America IT Industry PE Ratio Median Figure of 77 Publicly-Listed IT Companies 35.41x
United States of America Market PE Ratio Median Figure of 3,095 Publicly-Listed Companies 17.73x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of EPAM Systems.

NYSE:EPAM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:EPAM Share Price ÷ EPS (both in USD)

= 170.49 ÷ 4.39

38.85x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does EPAM Systems's expected growth come at a high price?
Raw Data
NYSE:EPAM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 38.85x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts
18.4%per year
United States of America IT Industry PEG Ratio Median Figure of 66 Publicly-Listed IT Companies 2.51x
United States of America Market PEG Ratio Median Figure of 2,133 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

NYSE:EPAM PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 38.85x ÷ 18.4%

2.11x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • EPAM Systems is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on EPAM Systems's assets?
Raw Data
NYSE:EPAM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $24.53
NYSE:EPAM Share Price * NYSE (2019-06-25) in USD $170.49
United States of America IT Industry PB Ratio Median Figure of 128 Publicly-Listed IT Companies 4.15x
United States of America Market PB Ratio Median Figure of 5,255 Publicly-Listed Companies 1.79x
NYSE:EPAM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:EPAM Share Price ÷ Book Value per Share (both in USD)

= 170.49 ÷ 24.53

6.95x

* Primary Listing of EPAM Systems.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • EPAM Systems is overvalued based on assets compared to the US IT industry average.
X
Value checks
We assess EPAM Systems's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. EPAM Systems has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
18.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is EPAM Systems expected to grow at an attractive rate?
  • EPAM Systems's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • EPAM Systems's earnings growth is expected to exceed the United States of America market average.
  • EPAM Systems's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:EPAM Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:EPAM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts 18.4%
NYSE:EPAM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 13 Analysts 17.7%
United States of America IT Industry Earnings Growth Rate Market Cap Weighted Average 16.6%
United States of America IT Industry Revenue Growth Rate Market Cap Weighted Average 10.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:EPAM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:EPAM Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 4,672 608 579 1
2022-12-31 3,945 508 485 1
2021-12-31 3,289 458 400 4
2020-12-31 2,737 355 323 13
2019-12-31 2,255 268 270 13
NYSE:EPAM Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 1,940 285 237
2018-12-31 1,843 292 240
2018-09-30 1,737 243 149
2018-06-30 1,647 203 126
2018-03-31 1,550 171 114
2017-12-31 1,450 193 73
2017-09-30 1,365 175 128
2017-06-30 1,285 175 112
2017-03-31 1,220 183 99
2016-12-31 1,160 167 99
2016-09-30 1,107 123 102
2016-06-30 1,045 117 99

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • EPAM Systems's earnings are expected to grow by 18.4% yearly, however this is not considered high growth (20% yearly).
  • EPAM Systems's revenue is expected to grow by 17.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:EPAM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below

All data from EPAM Systems Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:EPAM Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 10.06 10.06 10.06 1.00
2022-12-31 8.43 8.43 8.43 1.00
2021-12-31 7.01 7.43 6.53 4.00
2020-12-31 5.49 5.98 4.87 12.00
2019-12-31 4.66 4.77 4.62 10.00
NYSE:EPAM Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 4.39
2018-12-31 4.48
2018-09-30 2.80
2018-06-30 2.39
2018-03-31 2.16
2017-12-31 1.40
2017-09-30 2.49
2017-06-30 2.19
2017-03-31 1.96
2016-12-31 1.97
2016-09-30 2.04
2016-06-30 2.00

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • EPAM Systems is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess EPAM Systems's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
EPAM Systems has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has EPAM Systems performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare EPAM Systems's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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 (108.4% vs 23.7%)
  • EPAM Systems's earnings growth has exceeded the US IT industry average in the past year (108.4% vs 8.5%).
Earnings and Revenue History
EPAM Systems's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from EPAM Systems Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:EPAM Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 1,940.10 236.59 385.73
2018-12-31 1,842.91 240.26 373.59
2018-09-30 1,737.28 149.42 348.76
2018-06-30 1,646.62 126.43 337.46
2018-03-31 1,549.95 113.54 343.35
2017-12-31 1,450.45 72.76 327.59
2017-09-30 1,364.68 128.40 307.25
2017-06-30 1,285.45 111.94 289.66
2017-03-31 1,220.30 99.01 265.94
2016-12-31 1,160.13 99.27 264.63
2016-09-30 1,106.86 102.14 238.71
2016-06-30 1,044.62 98.84 226.00
2016-03-31 978.57 93.64 215.75
2015-12-31 914.13 84.46 199.71
2015-09-30 856.06 75.24 190.42
2015-06-30 812.77 71.41 179.50
2015-03-31 769.69 66.99 165.72
2014-12-31 730.03 69.64 152.78
2014-09-30 685.43 69.98 138.46
2014-06-30 632.81 67.37 126.38
2014-03-31 591.30 66.68 117.68
2013-12-31 555.12 61.99 112.08
2013-09-30 523.07 58.15 108.06
2013-06-30 493.00 55.70 101.32
2013-03-31 463.61 54.86 93.49
2012-12-31 433.80 51.14 85.87
2012-09-30 403.39 45.60 78.00
2012-06-30 379.73 37.74 72.67

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • EPAM Systems has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • EPAM Systems used its assets more efficiently than the US IT industry average last year based on Return on Assets.
  • EPAM Systems's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess EPAM Systems's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
EPAM Systems has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is EPAM Systems's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up EPAM Systems's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of EPAM Systems's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 49.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from EPAM Systems Company Filings, last reported 2 months ago.

NYSE:EPAM Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 1,338.23 25.00 762.53
2018-12-31 1,262.60 25.03 770.56
2018-09-30 1,195.94 25.03 685.11
2018-06-30 1,112.80 25.02 584.08
2018-03-31 1,055.35 25.03 535.86
2017-12-31 974.95 25.03 582.59
2017-09-30 985.15 25.04 513.30
2017-06-30 919.71 25.03 443.90
2017-03-31 835.10 25.04 398.82
2016-12-31 781.41 25.05 362.03
2016-09-30 750.11 33.06 330.63
2016-06-30 708.97 40.09 280.72
2016-03-31 657.62 40.12 244.88
2015-12-31 613.22 35.00 229.63
2015-09-30 572.87 15.00 244.44
2015-06-30 544.06 0.00 205.72
2015-03-31 487.83 0.00 222.36
2014-12-31 464.05 0.00 220.53
2014-09-30 445.70 0.00 192.31
2014-06-30 426.65 0.00 176.22
2014-03-31 396.28 0.00 180.95
2013-12-31 376.10 0.00 170.40
2013-09-30 351.61 0.00 122.98
2013-06-30 325.23 0.00 108.45
2013-03-31 303.46 0.00 104.37
2012-12-31 286.28 0.00 119.12
2012-09-30 265.15 0.00 107.43
2012-06-30 242.61 0.00 104.93
  • EPAM Systems's level of debt (1.9%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 1.9% today).
  • Debt is well covered by operating cash flow (1138.7%, greater than 20% of total debt).
  • EPAM Systems earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess EPAM Systems's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. EPAM Systems has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from EPAM Systems dividends. Estimated to be 0% next year.
If you bought $2,000 of EPAM Systems shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 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.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:EPAM Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
United States of America IT Industry Average Dividend Yield Market Cap Weighted Average of 34 Stocks 1.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2012 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:EPAM Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.00 1.00
2022-12-31 0.00 1.00
2021-12-31 0.00 2.00
2020-12-31 0.00 3.00
2019-12-31 0.00 3.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of EPAM Systems's earnings are paid to the shareholders as a dividend.
  • 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.
X
Income/ dividend checks
We assess EPAM Systems's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can EPAM Systems afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. EPAM Systems has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Arkadiy Dobkin
COMPENSATION $3,786,788
AGE 58
TENURE AS CEO 16.5 years
CEO Bio

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 Russia where he worked at several emerging software companies. Mr. Dobkin held thought and technical leadership positions for companies like Prudential Insurance, Colgate Palmolive and SAP Labs. Mr. Dobkin began his career in Minsk, Belarus, where he worked for several emerging software development companies. In 2015, Mr. Dobkin was inducted into the Ernst & Young World Entrepreneur of the Year Academy and to the elite Entrepreneur of the Year Hall of Fame. Mr. Dobkin serves as a Board Member of RUSSOFT, Russian software development association and helps to promote capabilities of the Russian software talent pool in US and Europe. During the last several years Arkaidy's achievements have been chronicled numerous times in the US and Russian press. He has been a Director of EPAM Systems, Inc. since 2002. Mr. Dobkin has been a speaker at various international industry and technology events, such as Gartner Outsourcing Summits, Forrester's GigaWorld IT Forum Europe, Russian Outsourcing & Software Summits, SAP TechEd, etc. In 2004, Mr. Dobkin was spotlighted as a key industry influencer in the Foreign Relations category of CRN's Top 25 Executives issue. Mr. Dobkin holds an MS in Electrical Engineering from the Byelorussian National Technical University.

CEO Compensation
  • Arkadiy's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Arkadiy's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the EPAM Systems management team in years:

2.7
Average Tenure
50
Average Age
  • The tenure for the EPAM Systems management team is about average.
Management Team

Arkadiy Dobkin

TITLE
Co-Founder
COMPENSATION
$4M
AGE
58
TENURE
16.5 yrs

Jason Peterson

TITLE
Senior VP
COMPENSATION
$1M
AGE
55
TENURE
2.1 yrs

Larry Solomon

TITLE
Senior VP & Chief People Officer
COMPENSATION
$1M
AGE
53
TENURE
2.7 yrs

Balazs Fejes

TITLE
Executive VP & Co-Head of Global Business
COMPENSATION
$2M
AGE
43
TENURE
6.8 yrs

Viktar Dvorkin

TITLE
Senior VP & Head of Global Delivery
COMPENSATION
$1M
AGE
45

Yuriy Goliyad

TITLE
Head of Global Operations & Senior VP
TENURE
3.5 yrs

Gary Abrahams

TITLE
VP, Corporate Controller & Chief Accounting Officer
AGE
50
TENURE
2.2 yrs

David Straube

TITLE
Head of Investor Relations

Philip Storm

TITLE
Senior VP & Chief Compliance Officer
TENURE
1.8 yrs

Ed Rockwell

TITLE
Senior VP
AGE
50
Board of Directors Tenure

Average tenure and age of the EPAM Systems board of directors in years:

5.6
Average Tenure
56
Average Age
  • The tenure for the EPAM Systems board of directors is about average.
Board of Directors

Arkadiy Dobkin

TITLE
Co-Founder
COMPENSATION
$4M
AGE
58
TENURE
16.5 yrs

Bob Segert

TITLE
Independent Non-Employee Director
COMPENSATION
$188K
AGE
50
TENURE
7.4 yrs

Ron Vargo

TITLE
Lead Independent Non-Employee Director
COMPENSATION
$216K
AGE
63
TENURE
4.2 yrs

Jill Smart

TITLE
Independent Non-Employee Director
COMPENSATION
$180K
AGE
58
TENURE
2.9 yrs

Karl Robb

TITLE
Non-Employee Director
COMPENSATION
$259K
AGE
56
TENURE
15.3 yrs

Mike Mayoras

TITLE
Independent Non-Employee Director
COMPENSATION
$189K
AGE
56
TENURE
6.4 yrs

Peter Kuerpick

TITLE
Independent Non-Employee Director
COMPENSATION
$173K
AGE
51
TENURE
4.8 yrs

Helen Shan

TITLE
Non-Employee Director
COMPENSATION
$118K
AGE
50
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • EPAM Systems individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
18. Jun 19 Sell Richard Mayoras Individual 14. Jun 19 14. Jun 19 -3,372 $175.20 $-589,421
10. Jun 19 Sell Gary Abrahams Individual 10. Jun 19 10. Jun 19 -361 $177.16 $-63,955
31. May 19 Sell Jason Harman Individual 30. May 19 30. May 19 -1,908 $173.00 $-330,084
24. May 19 Sell Elaina Shekhter Individual 23. May 19 23. May 19 -7,801 $171.23 $-1,335,765
16. May 19 Sell Arkadiy Dobkin Individual 15. May 19 15. May 19 -25,000 $170.18 $-4,217,799
11. Mar 19 Sell Ronald Vargo Individual 08. Mar 19 08. Mar 19 -2,000 $159.64 $-319,280
26. Feb 19 Sell Jason Peterson Individual 26. Feb 19 26. Feb 19 -800 $158.70 $-126,960
27. Aug 18 Sell Balazs Fejes Individual 27. Aug 18 27. Aug 18 -3,133 $141.33 $-442,787
X
Management checks
We assess EPAM Systems's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. EPAM Systems has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Does The Hype Around EPAM Systems, Inc.'s (NYSE:EPAM) Growth Justify Its June Share Price?

This illustrates that EPAM Systems is overvalued compared to the US market average ratio of 17.9x , and overvalued based on current earnings compared to the IT industry average of 35.16x. … A PE ratio of 39.54x and expected year-on-year earnings growth of 18% give EPAM Systems a quite high PEG ratio of 2.14x. … So, when we include the growth factor in our analysis, EPAM Systems appears overvalued , based on fundamental analysis.

Simply Wall St -

Are EPAM Systems, Inc.’s (NYSE:EPAM) High Returns Really That Great?

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for EPAM Systems: 0.17 = US$262m ÷ (US$1.8b - US$283m) (Based on the trailing twelve months to March 2019.) So, EPAM Systems has an ROCE of 17%. … How EPAM Systems's Current Liabilities Impact Its ROCE Short term (or current) liabilities, are things like supplier invoices, overdrafts, or tax bills that need to be paid within 12 months. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

Simply Wall St -

At US$173, Is It Time To Put EPAM Systems, Inc. (NYSE:EPAM) On Your Watch List?

Since EPAM Systems’s share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. … EPAM’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. … If you believe EPAM should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable.

Simply Wall St -

Why EPAM Systems, Inc. (NYSE:EPAM) Looks Like A Quality Company

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for EPAM Systems: 18% = US$237m ÷ US$1.3b (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Does EPAM Systems Have A Good Return On Equity? … EPAM Systems's Debt And Its 18% ROE Although EPAM Systems does use debt, its debt to equity ratio of 0.14 is still low.

Simply Wall St -

How To Take Advantage Of EPAM Systems, Inc. (NYSE:EPAM) In A Bear Market

I'm talking about the well-proven, robust track record EPAM Systems, Inc.. … NYSE:EPAM Historical Debt, May 13th 2019 With US$193m debt on its books, EPAM Systems has to pay interest periodically. … Next Steps: EPAM Systems makes for a robust long-term investment based on its scale, financial health and track record.

Simply Wall St -

With EPS Growth And More, EPAM Systems (NYSE:EPAM) Is Interesting

In contrast to all that, I prefer to spend time on companies like EPAM Systems (NYSE:EPAM), which has not only revenues, but also profits. … How Quickly Is EPAM Systems Increasing Earnings Per Share. … I like to take a look at earnings before interest and (EBIT) tax margins, as well as revenue growth, to get another take on the quality of the company's growth.

Simply Wall St -

Is EPAM Systems, Inc. (NYSE:EPAM) As Strong As Its Balance Sheet Indicates?

Most investors favour these big stocks due to their strong balance sheet and high market liquidity, meaning there are an abundance of stock in the public market available for trading. … These firms won’t be left high and dry if liquidity dries up, and they will be relatively unaffected by rises in interest rates. … Using the most recent data for EPAM, I will determine its financial status based on its solvency and liquidity, and assess whether the stock is a safe investment.

Simply Wall St -

Despite Its High P/E Ratio, Is EPAM Systems, Inc. (NYSE:EPAM) Still Undervalued?

We'll show how you can use EPAM Systems, Inc.'s (NYSE:EPAM) P/E ratio to inform your assessment of the investment opportunity. … Based on the last twelve months, EPAM Systems's P/E ratio is 38.84. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

EPAM Systems, Inc. (NYSE:EPAM) Insiders Have Been Selling

So shareholders might well want to know whether insiders have been buying or selling shares in EPAM Systems, Inc. … EPAM Systems Insider Transactions Over The Last Year. … While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign.

Simply Wall St -

Announcing: EPAM Systems (NYSE:EPAM) Stock Soared An Exciting 460% In The Last Five Years

By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … Over half a decade, EPAM Systems managed to grow its earnings per share at 27% a year. … This EPS growth is slower than the share price growth of 41% per year, over the same period.

Simply Wall St -

Company Info

Description

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. 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 its proprietary platforms, 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. In addition, the company offers industry, technology, experience, and technical advisory consulting services; and digital and service design solutions, which comprise strategy, design, creative, and program management services, as well as physical product development. It serves the financial services, travel and consumer, software and hi-tech, business information and media, life sciences and healthcare, and other industries. The company was founded in 1993 and is headquartered in Newtown, Pennsylvania.

Details
Name: EPAM Systems, Inc.
EPAM
Exchange: NYSE
Founded: 1993
$9,314,135,516
54,631,565
Website: http://www.epam.com
Address: EPAM Systems, Inc.
41 University Drive,
Suite 202,
Newtown,
Pennsylvania, 18940,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE EPAM Common Shares New York Stock Exchange US USD 08. Feb 2012
DB E3M Common Shares Deutsche Boerse AG DE EUR 08. Feb 2012
BMV EPAM * Common Shares Bolsa Mexicana de Valores MX MXN 08. Feb 2012
Number of employees
Current staff
Staff numbers
30,156
EPAM Systems employees.
Industry
IT Consulting and Other Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/26 00:59
End of day share price update: 2019/06/25 00:00
Last estimates confirmation: 2019/06/14
Last earnings filing: 2019/05/09
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.