EPAM Stock Analysis: EPAM Systems | NYSE
Information Technology Services | NYSE, USA | Market Cap: 8.548m USD | 12M Return: -9.6% | US29414B1044 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 187M
EPS Trend: 74.3%
Qual. Beats: 3
Rev. Trend: 95.5%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
Seasonality 11.9 years of data, until 10/2026
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, ≥40 worth a closer look and ≥60 is strong.
EPAM Systems, Inc. (NYSE: EPAM) is a global provider of digital platform engineering and software development services, operating in the IT Consulting & Other Services sub-industry of the Information Technology sector. Founded in 1993 and headquartered in Newtown, Pennsylvania, the company has been publicly traded since its February 2012 IPO and currently sits in the mid-cap range.
The companys service portfolio covers the full software lifecycle, including requirements analysis, platform selection, cross-platform migration, implementation, and integration, alongside cloud services, data and AI, customer experience design, marketing, and cybersecurity offerings. EPAM also delivers integrated engineering and smart automation solutions, as well as product development work spanning research, prototyping, full lifecycle testing, deployment, managed services, and modernization of legacy platforms.
EPAM has established a collaboration with Wiz to translate cloud risk intelligence into AI-powered, engineering-led remediation across multi-cloud environments. Its client base spans financial services; consumer goods, retail, and travel; software and hi-tech; business information and media; life sciences and healthcare; and a range of emerging verticals.
- engineering services revenue accelerates across enterprise clients
- Eastern European delivery hubs expose margins to geopolitical disruption
- Enterprise IT spending cuts pressure utilization and pricing
| Net Income: 425.2m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.10 > 0.02 and ΔFCF/TA 0.57 > 1.0 |
| NWC/Revenue: 26.36% < 20% (prev 31.88%; Δ -5.51% < -1%) |
| CFO/TA 0.11 > 3% & CFO 532.9m > Net Income 425.2m |
| Net Debt (-691.6m) to EBITDA (739.5m): -0.94 < 3 |
| Current Ratio: 2.76 > 1.5 & < 3 |
| Outstanding Shares: last quarter (51.5m) vs 12m ago -7.79% < -2% |
| Gross Margin: 29.30% > 18% (prev 28.30%; Δ 1.01% > 0.5%) |
| Asset Turnover: 118.6% > 50% (prev 109.4%; Δ 9.21% > 0%) |
| Interest Coverage Ratio: error (cannot be calculated; needs correct EBIT TTM and Interest Expense TTM) |
| A: 0.32 (Total Current Assets 2.33b - Total Current Liabilities 844.0m) / Total Assets 4.68b |
| B: 0.45 (Retained Earnings 2.09b / Total Assets 4.68b) |
| C: 0.12 (EBIT TTM 581.4m / Avg Total Assets 4.76b) |
| D: 3.30 (Book Value of Equity 3.59b / Total Liabilities 1.09b) |
| Altman-Z'' = 7.83 = AAA |
| DSRI: 1.01 (Receivables 1.21b/1.13b, Revenue 5.65b/5.30b) |
| GMI: 0.97 (GM 28.30% / 29.30%) |
| AQI: 1.05 (AQ_t 0.43 / AQ_t-1 0.41) |
| SGI: 1.07 (Revenue 5.65b / 5.30b) |
| TATA: -0.02 (NI 425.2m - CFO 532.9m) / TA 4.68b) |
| Beneish M = -2.98 (Cap -4..+1) = A |
As of November 15, 2026, the stock is trading at USD 163.15 with a total of 1,001,203 shares traded. Over the past week, the price has changed by +2.41%, over one month by +41.26%, over three months by +60.66% and over the past year by -9.60%.
Current recommended Stop Loss: 154.10 (which is 5.5% or 1.2 ATR below the current price).
EPAM Systems has received a consensus analysts rating of 3.79. Therefore, it is recommended to hold EPAM.
- StrongBuy: 7
- Buy: 1
- Hold: 11
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 131.2 | -19.6% |
P/E Trailing = 18.6389
P/E Forward = 10.352
P/S = 1.5219
P/B = 2.0138
P/EG = 0.7341
Revenue TTM = 5.65b USD
EBIT TTM = 581.4m USD
EBITDA TTM = 739.5m USD
Long Term Debt = 25.0m USD (from longTermDebt, last fiscal year)
Short Term Debt = 38.2m USD (from shortTermDebt, last quarter)
Debt = 273.6m USD (from shortLongTermDebtTotal, last quarter) + Leases 127.2m
Net Debt = -691.6m USD (calculated: Debt 273.6m - CCE 965.2m)
Enterprise Value = 7.86b USD (8.55b + Debt 273.6m - CCE 965.2m)
Interest Coverage Ratio = unknown (Ebit TTM 581.4m / Interest Expense TTM 0.0)
EV/FCF = 16.70x (Enterprise Value 7.86b / FCF TTM 470.4m)
FCF Yield = 5.99% (FCF TTM 470.4m / Enterprise Value 7.86b)
FCF Margin = 8.33% (FCF TTM 470.4m / Revenue TTM 5.65b)
Net Margin = 7.53% (Net Income TTM 425.2m / Revenue TTM 5.65b)
Gross Margin = 29.30% ((Revenue TTM 5.65b - Cost of Revenue TTM 3.99b) / Revenue TTM)
Gross Margin QoQ = 31.26% (prev 30.36%)
Tobins Q-Ratio = 1.68 (Enterprise Value 7.86b / Total Assets 4.68b)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 273.6m)
Taxrate = 26.87% (156.2m / 581.4m)
NOPAT = 425.2m (EBIT 581.4m * (1 - 26.87%))
Current Ratio = 2.76 (Total Current Assets 2.33b / Total Current Liabilities 844.0m)
Debt / Equity = 0.08 (Debt 273.6m / totalStockholderEquity, last quarter 3.59b)
Debt / EBITDA = -0.94 (Net Debt -691.6m / EBITDA 739.5m)
Debt / FCF = -1.47 (Net Debt -691.6m / FCF TTM 470.4m)
Total Stockholder Equity = 3.56b (last 4 quarters mean from totalStockholderEquity)
RoA = 8.93% (Net Income 425.2m / Total Assets 4.68b)
RoE = 11.96% (Net Income TTM 425.2m / Total Stockholder Equity 3.56b)
RoCE = 16.24% (EBIT 581.4m / Capital Employed (Equity 3.56b + L.T.Debt 25.0m))
RoIC = 11.83% (NOPAT 425.2m / Invested Capital 3.59b)
WACC = 7.93% (E(8.55b)/V(8.82b) * Re(8.18%) + D(273.6m)/V(8.82b) * Rd(0.0%) * (1-Tc(0.27)))
Discount Rate = 8.18% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -94.89 | Cagr: -5.28%
[DCF] Terminal Value 75.76% ; FCFF base≈465.9m ; Y1≈477.4m ; Y5≈526.6m
[DCF] Fair Price = 171.5 (EV 8.16b - Net Debt -691.6m = Equity 8.85b / Shares 51.6m; r=8.35% [WACC [floored]]; 5y FCF grow 2.46% → 2.50% )
EPS Correlation: 74.25 | EPS CAGR: 4.68% | SUE: 2.44 | # QB: 3
Revenue Correlation: 95.52 | Revenue CAGR: 9.12% | SUE: 0.72 | # QB: 0
EPS current Quarter (2027-03-31): EPS=3.10 | Chg30d=-0.40% | Revisions=-17% | Analysts=13
EPS current Year (2026-12-31): EPS=13.16 | Chg30d=+0.03% | Revisions=+17% | GrowthEPS=+14.4% | GrowthRev=+3.7%
EPS next Year (2027-12-31): EPS=14.02 | Chg30d=-0.26% | Revisions=-29% | GrowthEPS=+6.6% | GrowthRev=+3.6%
[Analyst] Revisions Ratio: -15% (up=4, down=6)