EPAM Systems (EPAM)
Information Technology · $5.8B market cap · SEC CIK 0001352010
fundamentals score out of 100
Next reports on Nov 4, 2026, before the open, with analysts expecting $3.47 in earnings per share.
The case for EPAM
- Holds more cash ($1.3B) than long-term debt ($25.0M).
- Free cash flow of 10.5% of its market value a year: a lot of cash for the price.
- Revenue growing 10.8% year over year.
- Reasonably priced at 14.5× earnings.
- 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.
The case against
- Down 27.6% over the past year.
- Net margin of 7% is thinner than 85% of Information Technology companies.
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. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 88 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 53 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 37 |
| Momentumhow the price has behaved lately | 46 |
| Stabilityhow violently it moves, what it owes and what it pays you | 52 |
- Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.
Key numbers
| Price / earnings | 14.5× |
|---|---|
| Price / book | 1.18× |
| Price / sales | 1.0× |
| Revenue growth (YoY) | +10.8% |
| EPS growth (YoY) | +5.3% |
| Gross margin | 29% |
| Operating margin | 10% |
| Net margin | 7% |
| Return on equity | 11% |
| Debt / equity | 0.01× |
| Current ratio | 2.75 |
| Dividend yield | none |
| Beta | 1.34 |
| 52-week range | $73.06 – $222.53 |
| Position in that range | 26% of the way up |
| 3-month return | +47.6% |
| 1-year return | -27.6% |
Five years of financials, as filed
Pulled from EPAM Systems's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $5.5B | $4.7B | $4.7B | $4.8B | $3.8B |
| Operating income | $520M | $545M | $501M | $573M | $542M |
| Net income | $378M | $455M | $417M | $419M | $482M |
| Operating cash flow | $655M | $559M | $563M | $464M | $572M |
| Capital expenditure | $42.2M | $32.1M | $28.4M | $81.6M | $112M |
| Total assets | $4.9B | $4.8B | $4.4B | $4.0B | $3.5B |
| Total liabilities | $1.2B | $1.1B | $881M | $1.0B | $1.0B |
| Shareholder equity | $3.7B | $3.6B | $3.5B | $3.0B | $2.5B |
| Cash | $1.3B | $1.3B | $2.0B | $1.7B | $1.4B |
| Long-term debt | $25.0M | $25.2M | $26.1M | $27.7M | $30.2M |
| Free cash flow | $613M | $527M | $534M | $382M | $461M |
| Operating margin | 9.5% | 11.5% | 10.7% | 11.9% | 14.4% |
| Net margin | 6.9% | 9.6% | 8.9% | 8.7% | 12.8% |
| Diluted shares | 56.2M | 58.0M | 59.1M | 59.2M | 59.1M |
Share count is down 4.8% over 4 years. Buybacks have been shrinking the pie.
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…
Risk factors EPAM lists in its 10-K
- Business Update Regarding the War in Ukraine
- (in thousands, except percentages and per share data)
- Income before provision for income taxes
- Cost of Revenues (Exclusive of Depreciation and Amortization)
- Selling, General and Administrative Expenses
- Depreciation and Amortization Expense
- Consolidated Statements of Cash Flow Data
- Cash, cash equivalents and restricted cash, end of period
- Off-Balance Sheet Commitments and Arrangements
- Concentration of Credit and Other Credit Risk
- Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures
- Changes in Internal Control Over Financial Reporting
- Management’s Report on Internal Control Over Financial Reporting
- Inherent Limitations on Effectiveness of Controls