Epam Systems, Inc.

Technology
EDP Services
www.epam.com

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $9.01B
PE 20
Debt $25.19M
Cash $1.29B
EV $7.74B
FCF $527.02M

Earnings

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Sales & Net Margins

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Earnings	$454.53M
EBIT	$584.41M
ROE	13%
ROA	12%
FCF	$527.02M
Equity	$3.63B
Growth Stability	100%
PE	19.81
PEG	2.27
PB	2.48
P/FCF	17.09
P/S	1.9
Price/Cash	0.14
Debt/Equity	0.01
Debt/FCF	0.05
Net Margins	10%
Gross Margins	31%
Op. Margins	12%
Earnings CAGR	24%
Sales Growth YoY	8%
Sales Growth QoQ	7%
Sales CAGR	22%
FCF CAGR	23%
Equity CAGR	23%
Earnings Stability	0.84
Earnings Growth YoY	6%
Earnings Growth QoQ	-24%

Earnings CAGR 5Y	9%
Sales CAGR 5Y	17%
FCF CAGR 5Y	13%
Equity CAGR 5Y	19%
Earnings CAGR 3Y	2%
Sales CAGR 3Y	2%
FCF CAGR 3Y	15%
Equity CAGR 3Y	14%
Market Cap	$9.01B
Revenue	$4.73B
Assets	$4.75B
Total Debt	$25.19M
Cash	$1.29B
Shares Outstanding	56.87M
EV	7.74B
Earnings Score	94%
Moat Score	92%
Safety Score	98%
Final Score	95%
Working Capital	1.61B
Current Ratio	2.96
Gross Profit	$1.45B
Shares Growth 3y	-0%
Equity Growth QoQ	2%
Equity Growth YoY	5%

Assets & ROA

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Stockholders Equity & ROE

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EPAM Systems Inc provides software product development and digital platform engineering services to clients located around the world. The company services include Software Product Development, Custom Application Development, Application Testing, Enterprise Application Platforms, Application Maintenance, and Support and Infrastructure Management. The company focuses on innovative and scalable software solutions. The company uses industry standard and custom developed technology, tools, and platforms to deliver results to handle business challenges. The company primarily offers its solutions in the following industries: financial services, travel and consumer, software and hi-tech, life sciences and healthcare. The majority of revenue is generated from North American clients.

SEC Filings

Direct access to Epam Systems, Inc. (EPAM) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Epam Systems, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Epam Systems, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 24%

Stability 84%

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Epam Systems, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Epam Systems, Inc..

Years

Calculation mode

= $26B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$527M	$648M	$796M	$979M	$1.2B	$1.5B	$1.8B	$2.2B	$2.7B	$3.4B	$4.1B	$41B
DCF		$589M	$658M	$735M	$821M	$918M	$1B	$1.1B	$1.3B	$1.4B	$1.6B	$16B
Value	$26B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Net Margins	9%	9%	5%	13%	11%	12%	13%	9%	9%	10%	10%
ROA	-	14%	14%	15%	13%	14%	15%	14%	12%	12%	12%
ROE	-	13%	7%	19%	16%	16%	19%	14%	12%	13%	13%

Net Margins (9.61%)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Debt over FCF	-	0.18	0.15	0.1	0.13	0.05	0.1	0.08	0.05	0.05	0.05
Debt over Equity	0.06	0.03	0.03	0.02	0.02	0.01	0.02	0.01	0.01	0.01	0.01
Growth Stability	-	-	-	100%	100%	100%	100%	100%	100%	100%	100%

Good Debt/FCF ratio (0.05)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.01)

The company is not overleveraged and has a good balance between equity and debt.

Good Graham’s Stability (100%)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	CAGR 5Y
Revenue YoY growth	-	27%	25%	27%	24%	16%	41%	28%	-3%	1%	17%
Earnings YoY growth	-	18%	-27%	230%	9%	25%	47%	-13%	-1%	9%	9%
Equity YoY growth	-	27%	25%	30%	26%	24%	26%	20%	16%	5%	19%
FCF YoY growth	-	115%	22%	54%	-26%	153%	-3%	-17%	40%	-1%	13%