EPAM Systems (EPAM)

Information Technology · $8.0B market cap · SEC CIK 0001352010

Next reports on Feb 17, 2027, after the close, with analysts expecting $3.61 in earnings per share.

52-week range $73.06 to $222.53. 26% below its 52-week high and 125% above its low.

The case for EPAM

• Holds more cash ($1.3B) than long-term debt ($25.0M).
• Free cash flow of 7.7% of its market value a year: a lot of cash for the price.
• Revenue growing 10.8% year over year.
• Trades at 1.18× book value, close to what the balance sheet says it owns.
• Has compounded revenue at 15.5% a year over five years.
• Carries essentially no debt.

The case against

• Profitability is weak (37/100): return on equity 11%, net margin 7.2%, gross margin 29%, 162% of profit turned to cash.
• Trailed the S&P 500 by 23 points over the past year.

What the score is made of

Each factor is half a curve over reported figures and half a rank among the other Information Technology companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.

• Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.

The financials

The financials, five years deep

Pulled from EPAM Systems's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.

What EPAM Systems says it does

Overview EPAM has used its software engineering expertise to become a leading global provider of digital engineering, cloud and artificial intelligence-enabled transformation services, and a leading business and experience consulting partner for global enterprises and ambitious start-ups. We address our clients’ transformation challenges by fusing EPAM Continuum’s integrated strategy, experience and technology consulting with our 30+ years of engineering execution to speed our clients’ time to market and drive greater value from their innovations and digital investments. We leverage AI to deliver transformative solutions that accelerate our clients' digital innovation and enhance their competitive edge. Through platforms like EPAM AI/RUN™ and initiatives like DIALX Lab™, we integrate advanced AI technologies into tailored business strategies, driving significant industry impact and fostering continuous innovation. We deliver business…

Risk factors EPAM lists in its 10-K

• The invasion of Ukraine and the resulting war has had and could continue to have a material adverse effect on our personnel, business, and finances
• If we are unable to keep pace with the adoption and use of AI technology in our business and effectively implement AI in our workforce planning and deployment, we could become less competitive in our industry
• Increased Adoption of AI-Based Software Tools May Reduce Demand for Our Services
• We may be unable to effectively manage our growth or achieve anticipated growth, which could place significant strain on our management, systems, resources, and results of operations
• We must successfully attract, hire, train and retain qualified personnel to service our clients’ projects and we must productively utilize those personnel to remain profitable
• There may be adverse tax and employment law consequences if the independent contractor status of some of our personnel or the exempt status of our employees is successfully challenged
• Increases in wages, equity compensation, and other compensation expenses could limit our competitive advantage, increase our costs, and result in dilution to our stockholders
• Our operations in emerging markets subject us to greater economic, financial, and banking risks than we would face in more developed markets
• If we are unable to compete successfully against others in our industry, pricing pressures or loss of market share could have a material adverse effect on our business
• The focus on environmental, social and governance topics, including commitments and disclosures we have made and may need to make, may result in additional operational costs and negative reputational impacts
• Our operating results may be negatively impacted by the loss of certain tax benefits provided to companies in our industry by the governments of Belarus, Poland, and other countries
• Existing policy and substantial changes to fiscal, political, regulatory and other federal policies may adversely affect our business and financial results
• Our revenues are highly dependent on a limited number of industries, and any decrease in demand for outsourced services in these industries could reduce our revenues and adversely affect our results of operations
• There is a long selling and implementation cycle for our services that require us to make significant resource commitments prior to realizing revenues for those services
• If we are unable to adapt to rapidly changing technologies, methodologies and evolving industry standards, we may lose clients and our business could be materially adversely affected
• A significant failure in our systems, telecommunications or IT infrastructure could harm our service model, which could result in a reduction of our revenues and otherwise disrupt our business
• Our ability to generate and retain business could depend on our reputation in the marketplace
• We may not be able to prevent unauthorized use of our intellectual property, and our intellectual property rights may not be adequate to protect our business and competitive position
• Security breaches and other disruptions to our network security that compromise our information expose us to liability and cause our business and reputation to suffer
• Development and deployment of measures to protect our information security or that of our clients may be inadequate and could adversely affect our results of operations
• Changes in privacy and data protection regulations could expose us to risks of noncompliance and costs associated with compliance
• Undetected software design defects, errors or failures may result in loss of business or in liabilities that could materially adversely affect our business
• Our hedging program is subject to counterparty default risk
• War, terrorism, other acts of violence or natural or man-made disasters may affect the markets in which we operate, our clients, and our service delivery
• Our effective tax rate could be materially adversely affected by several factors

Filings

Other Information Technology companies