EPAM Stock Analysis: EPAM Systems | NYSE
Information Technology Services | NYSE, USA | Market Cap: 5.539m USD | 12M Return: -33.7% | US29414B1044 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 165M
EPS Trend: 58.2%
Qual. Beats: 2
Rev. Trend: 90.4%
Qual. Beats: 0
Warnings
Tailwinds
Seasonality 11.6 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
EPAM Systems is a global provider of digital platform engineering and software development services, headquartered in Newtown, Pennsylvania and founded in 1993. The company operates across the information technology sector, specifically within IT Consulting & Other Services, and was listed on the NYSE in February 2012.
Its service portfolio spans engineering, cloud transformation, data, analytics and AI, customer experience, marketing, and cybersecurity, alongside operational solutions that combine integrated engineering practices with smart automation. EPAM also offers end-to-end software product and platform development, covering research, design, prototyping, program management, full lifecycle testing, deployment, support, maintenance, and the modernization of legacy systems.
The company serves a diversified set of verticals, including financial services, consumer goods/retail/travel, software and hi-tech, business information and media, life sciences and healthcare, and emerging industries. As a mid-cap IT services firm with a market capitalization of approximately $4.9 billion USD, EPAM competes within an industry characterized by global delivery models that combine onshore client engagement with nearshore and offshore engineering centers.
- Geopolitical risk threatens Eastern European delivery operations
- Enterprise IT spending drives digital engineering services demand
- Wage inflation pressures margins amid tight tech labor market
| Net Income: 401.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.11 > 0.02 and ΔFCF/TA 1.85 > 1.0 |
| NWC/Revenue: 25.13% < 20% (prev 32.01%; Δ -6.88% < -1%) |
| CFO/TA 0.12 > 3% & CFO 538.8m > Net Income 401.7m |
| Net Debt (-509.9m) to EBITDA (684.8m): -0.74 < 3 |
| Current Ratio: 2.75 > 1.5 & < 3 |
| Outstanding Shares: last quarter (52.3m) vs 12m ago -8.13% < -2% |
| Gross Margin: 28.29% > 18% (prev 30.03%; Δ -1.73% > 0.5%) |
| Asset Turnover: 121.0% > 50% (prev 107.6%; Δ 13.34% > 0%) |
| Interest Coverage Ratio: error (cannot be calculated; needs correct EBIT TTM and Interest Expense TTM) |
| A: 0.31 (Total Current Assets 2.22b - Total Current Liabilities 804.4m) / Total Assets 4.57b |
| B: 0.45 (Retained Earnings 2.04b / Total Assets 4.57b) |
| C: 0.12 (EBIT TTM 548.6m / Avg Total Assets 4.64b) |
| D: 3.34 (Book Value of Equity 3.52b / Total Liabilities 1.05b) |
| Altman-Z'' = 7.77 = AAA |
| DSRI: 0.99 (Receivables 1.27b/1.16b, Revenue 5.62b/5.07b) |
| GMI: 1.06 (GM 30.03% / 28.29%) |
| AQI: 1.04 (AQ_t 0.44 / AQ_t-1 0.43) |
| SGI: 1.11 (Revenue 5.62b / 5.07b) |
| TATA: -0.03 (NI 401.7m - CFO 538.8m) / TA 4.57b) |
| Beneish M = -2.88 (Cap -4..+1) = A |
As of August 22, 2026, the stock is trading at USD 110.34 with a total of 1,398,771 shares traded. Over the past week, the price has changed by +9.79%, over one month by +23.67%, over three months by +6.93% and over the past year by -33.69%.
Current recommended Stop Loss: 103.50 (which is 6.2% or 1.2 ATR below the current price).
EPAM Systems has received a consensus analysts rating of 3.95. Therefore, it is recommended to buy EPAM.
- StrongBuy: 7
- Buy: 7
- Hold: 6
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 122.8 | 11.3% |
P/E Trailing = 13.6084
P/E Forward = 7.5358
P/S = 0.9861
P/B = 1.4697
P/EG = 0.5346
Revenue TTM = 5.62b USD
EBIT TTM = 548.6m USD
EBITDA TTM = 684.8m USD
Long Term Debt = 25.0m USD (from longTermDebt, last quarter)
Short Term Debt = 39.3m USD (from shortTermDebt, last quarter)
Debt = 279.5m USD (from shortLongTermDebtTotal, last quarter) + Leases 127.2m
Net Debt = -509.9m USD (calculated: Debt 279.5m - CCE 789.4m)
Enterprise Value = 5.03b USD (5.54b + Debt 279.5m - CCE 789.4m)
Interest Coverage Ratio = unknown (Ebit TTM 548.6m / Interest Expense TTM 0.0)
EV/FCF = 10.42x (Enterprise Value 5.03b / FCF TTM 482.6m)
FCF Yield = 9.60% (FCF TTM 482.6m / Enterprise Value 5.03b)
FCF Margin = 8.59% (FCF TTM 482.6m / Revenue TTM 5.62b)
Net Margin = 7.15% (Net Income TTM 401.7m / Revenue TTM 5.62b)
Gross Margin = 28.29% ((Revenue TTM 5.62b - Cost of Revenue TTM 4.03b) / Revenue TTM)
Gross Margin QoQ = 30.36% (prev 25.46%)
Tobins Q-Ratio = 1.10 (Enterprise Value 5.03b / Total Assets 4.57b)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 279.5m)
Taxrate = 26.79% (147.0m / 548.6m)
NOPAT = 401.7m (EBIT 548.6m * (1 - 26.79%))
Current Ratio = 2.75 (Total Current Assets 2.22b / Total Current Liabilities 804.4m)
Debt / Equity = 0.08 (Debt 279.5m / totalStockholderEquity, last quarter 3.52b)
Debt / EBITDA = -0.74 (Net Debt -509.9m / EBITDA 684.8m)
Debt / FCF = -1.06 (Net Debt -509.9m / FCF TTM 482.6m)
Total Stockholder Equity = 3.59b (last 4 quarters mean from totalStockholderEquity)
RoA = 8.65% (Net Income 401.7m / Total Assets 4.57b)
RoE = 11.19% (Net Income TTM 401.7m / Total Stockholder Equity 3.59b)
RoCE = 15.18% (EBIT 548.6m / Capital Employed (Equity 3.59b + L.T.Debt 25.0m))
RoIC = 11.38% (NOPAT 401.7m / Invested Capital 3.53b)
WACC = 9.02% (E(5.54b)/V(5.82b) * Re(9.48%) + D(279.5m)/V(5.82b) * Rd(0.0%) * (1-Tc(0.27)))
Discount Rate = 9.48% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -94.82 | Cagr: -5.19%
[DCF] Terminal Value 75.82% ; FCFF base≈453.5m ; Y1≈519.8m ; Y5≈765.1m
[DCF] Fair Price = 209.4 (EV 10.3b - Net Debt -509.9m = Equity 10.8b / Shares 51.6m; r=9.02% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 58.20 | EPS CAGR: 2.80% | SUE: 3.94 | # QB: 2
Revenue Correlation: 90.43 | Revenue CAGR: 7.91% | SUE: 0.81 | # QB: 0
EPS current Quarter (2026-09-30): EPS=3.40 | Chg30d=-1.20% | Revisions=-67% | Analysts=17
EPS current Year (2026-12-31): EPS=13.15 | Chg30d=+0.74% | Revisions=+59% | GrowthEPS=+14.4% | GrowthRev=+3.7%
EPS next Year (2027-12-31): EPS=14.06 | Chg30d=-0.66% | Revisions=-32% | GrowthEPS=+6.9% | GrowthRev=+3.5%
[Analyst] Revisions Ratio: -13% (up=18, down=24)