EPAM Systems Financials

EPAM Stock  USD 276.16  0.21  0.08%   
Based on the key indicators related to EPAM Systems' liquidity, profitability, solvency, and operating efficiency, EPAM Systems is doing better financially then in previous quarter. It has a moderate probability of reporting better financial numbers in April. At this time, EPAM Systems' Accounts Payable is very stable compared to the past year. As of the 29th of March 2024, Cash is likely to grow to about 2.1 B, while Short and Long Term Debt Total is likely to drop about 137.6 M. Key indicators impacting EPAM Systems' financial strength include:
Current ValueLast YearChange From Last Year 10 Year Trend
Net Profit Margin0.120.0889
Significantly Up
Very volatile
Return On Assets0.130.0958
Significantly Up
Slightly volatile
Return On Equity0.110.1202
Significantly Down
Slightly volatile
Debt Equity Ratio0.01720.0181
Sufficiently Down
Slightly volatile
Operating Income553.5 M527.2 M
Sufficiently Up
Slightly volatile
Current Ratio3.354.7933
Way Down
Very volatile
The financial analysis of EPAM Systems is a critical element in measuring its lifeblood. The essential information of the day-to-day investment outlook for EPAM Systems includes many different criteria found on its balance sheet. For example, investors should never minimize EPAM Systems' ability to pay suppliers or employees on time, making sure interest payments are not accumulating or correctly timing where and how to re-invest extra cash. Any individual investor needs to monitor EPAM Systems' cash flow, debt, and profitability to effectively and accurately make more informed decisions on whether to invest in EPAM Systems.

Net Income

437.94 Million

With this module, you can analyze EPAM financials for your investing period. You should be able to track the changes in EPAM Systems individual financial statements over time to develop the understanding of its risk, liquidity, profitability, or other critical and vital indicators.
  
Understanding current and past EPAM Systems Financials, including the trends in assets, liabilities, equity and income are directly related to making proper and timely investing decisions. All of EPAM Systems' financial statements are interrelated, with each one affecting the others. For example, an increase in EPAM Systems' assets may result in an increase in income on the income statement.
Evaluating EPAM Systems' financials involves analyzing a range of financial metrics and ratios to gain insights into the company's financial health and performance. However, considering all of EPAM Systems' profitability, liquidity ratios, and efficiency indicators at the same time could be an enormous task, and our Financial Distress score can provide you with a snapshot of the EPAM Systems' relative financial performance

Chance Of Distress

Less than 3

 
100  
 
Zero
Very Low
EPAM Systems has less than 3 (%) percent chance of experiencing financial distress in the next two years of operations. The calculation of odds of distress for EPAM Systems stock is tightly coupled with the Probability of Bankruptcy. It complements the equity performance score by supplying investors with insight into company financials without requiring them to know too much about all of the complex accounting and financial indicators surrounding the entity.
Please note, EPAM Systems' odds of distress score SHOULD NOT be confused with the real chance of EPAM Systems filing for bankruptcy protection for chapters 7, 11, 12, or 13. We define Financial Distress as an operational condition where an entity such as EPAM is having difficulty meeting its current financial obligations towards its creditors or delivering on the expectations of its investors. Macroaxis derives these conditions daily from public financial statements and analysis of stock prices reacting to market conditions or economic downturns, including short-term and long-term historical volatility. Other factors considered include EPAM Systems' liquidity analysis, revenue patterns, R&D expenses, and commitments, as well as public headlines and social sentiment.
More Info
The data published in EPAM Systems' official financial statements usually reflect EPAM Systems' business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of EPAM Systems. For example, before you start analyzing numbers published by EPAM accountants, it's critical to develop an understanding of what EPAM Systems' liquidity, profitability, and earnings quality are in the context of the IT Services space in which it operates.
Please note, the presentation of EPAM Systems' financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, EPAM Systems' management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in EPAM Systems' accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of EPAM Systems. Please utilize our Beneish M Score to check the likelihood of EPAM Systems' management manipulating its earnings.

EPAM Systems Company Summary

EPAM Systems competes with Marti Technologies, Mustang Bio, Usio, Valneva SE, and One Liberty. EPAM Systems, Inc. provides digital platform engineering and software development services worldwide. The company was founded in 1993 and is headquartered in Newtown, Pennsylvania. Epam Systems operates under Information Technology Services classification in the United States and is traded on New York Stock Exchange. It employs 60300 people.
Specialization
Information Technology, Information Technology Services
InstrumentUSA Stock View All
ExchangeNew York Stock Exchange
CIK Number0001352010
ISINUS29414B1044
CUSIP29414B104
RegionNorth America
LocationPennsylvania; U.S.A
Business Address41 University Drive,
SectorIT Services
IndustryInformation Technology
BenchmarkNYSE Composite
Websitewww.epam.com
Phone267 759 9000
CurrencyUSD - US Dollar
You should never invest in EPAM Systems without having analyzed its financial statements. Do not rely on someone else's analysis or guesses about the future performance of EPAM Stock, because this is throwing your money away. Analyzing the key information contained in EPAM Systems' financial statements can give you an edge over other investors and help to ensure that your investments perform well for you.

EPAM Systems Key Financial Ratios

Generally speaking, EPAM Systems' financial ratios allow both analysts and investors to convert raw data from EPAM Systems' financial statements into concise, actionable information that can be used to evaluate the performance of EPAM Systems over time and compare it to other companies across industries. There are many critical financial ratios that investors are exposed to on a daily basis, but they are usually grouped into few meaningful categories from each financial statement that EPAM Systems reports annually and quarterly.

EPAM Systems Key Balance Sheet Accounts

201920202021202220232024 (projected)
Total Assets2.2B2.7B3.5B4.0B4.4B4.6B
Other Current Liab312.4M377.6M632.6M637.4M548.4M575.8M
Net Debt(673.1M)(1.1B)(1.2B)(1.5B)(1.9B)(1.8B)
Retained Earnings1.0B1.3B1.8B2.2B2.5B2.6B
Accounts Payable7.8M10.2M24.8M30.9M32.0M33.6M
Cash936.6M1.3B1.4B1.7B2.0B2.1B
Other Assets114.4M375.1M200.8M192.3M221.1M232.2M
Net Receivables497.7M501.1M768.9M932.6M897.0M941.9M
Good Will195.0M212.0M530.7M529.1M562.5M590.6M
Other Current Assets39.9M29.6M53.9M85.3M97.4M102.2M
Total Liab648.1M738.3M1.0B1.0B880.9M924.9M
Total Current Assets1.5B1.9B2.3B2.8B3.1B3.2B
Short Term Debt57.5M60.8M66.1M43.2M36.6M66.4M
Intangible Assets56.3M52.0M101.1M77.7M71.1M47.1M
Common Stock55K56K57K58K66.7K49.8K
Other Liab55.2M66.7M90.9M108.6M124.9M131.2M
Long Term Debt25.1M25.0M30.2M27.7M26.1M22.4M

EPAM Systems Key Income Statement Accounts

An income statement is very similar to a cash flow statement, but instead of showing net revenue minus expenses, it only includes earnings before interest and taxes (EBIT). This number does not have all of the same line items that are on a cash flow statement, but it leaves out non-cash expenses like depreciation and amortization. For example, if you bought $100 worth of goods from Walmart (WMT) using your debit card that has an interest rate of 20%, then paid off the balance at the end of the month with a credit card that charges 30% interest, you would have an income statement showing EBIT of $80 because your expenses are lower than the amount that went into your pocket. The other reason investors look at the income statement is to determine what EPAM Systems' earnings per share (EPS) will be in order to see if they want to buy more shares or not. For example, if a company earned $20 million in the last quarter and has 100,000 shares outstanding, its EPS is 20 cents. If you find that this number beats analysts' forecasts or is higher than it was from the same period last year, then you might want to buy more of this stock even though its price per share may not have changed.
201920202021202220232024 (projected)
Interest Expense15.4M5.5M1.7M10.0M11.5M12.1M
Total Revenue2.3B2.7B3.8B4.8B4.7B4.9B
Gross Profit805.6M927.0M1.3B1.5B1.3B1.4B
Operating Income302.9M379.3M542.3M573.0M527.2M553.5M
Ebit302.9M379.3M542.3M573.0M527.2M553.5M
Ebitda360.2M446.9M632.9M741.0M619.0M649.9M
Cost Of Revenue1.5B1.7B2.5B3.3B3.3B3.5B
Income Before Tax299.5M378.5M533.4M507.3M536.6M563.4M
Net Income261.1M327.2M481.7M419.4M417.1M437.9M
Income Tax Expense38.5M51.3M51.7M87.8M119.5M125.5M
Tax Provision38.5M51.3M51.7M87.8M135.8M142.6M
Interest Income4.0M3.3M3.8M10.0M51.1M53.7M
Net Interest Income8.7M3.8M(1.7M)10.0M41.5M43.6M

EPAM Systems Key Cash Accounts

Cash flow analysis captures how much money flows into and out of EPAM Systems. It measures of how well EPAM is doing because it can show the actual money that comes into and out of the Company from sales instead of measuring expenses against revenue to determine earnings. You have to read the cash flow statement in three sections. The first section shows how much money EPAM Systems brought in, usually known as net revenue or sales. This is different from earnings because it does not include expenses when determining net revenue for use on this part of the cash flow statement. Next, are operating activities, which show how much money EPAM had leftover after paying for its expenses. This number can be calculated in two ways: by subtracting the total of all operating expenses from net revenue or by adding up changes to cash and other assets or liabilities on this part of the statement. The third section is about investing activities, which shows what EPAM Systems has done with the money that it received from the sale of assets or what it spent to acquire new ones. This section can be broken down into two parts: investing in existing businesses (in other words, buying more stock) and investing in non-business activities like paying off debt or making acquisitions.
201920202021202220232024 (projected)
Change To Inventory(899.5M)87.2M(4.2M)211.7M190.5M200.0M
Change In Cash166.0M385.8M125.8M234.3M354.5M372.2M
Free Cash Flow188.1M475.6M460.8M382.5M534.2M560.9M
Depreciation101.2M129.2M145.2M140.0M91.8M56.9M
Other Non Cash Items6.4M9.0M15.6M76.7M(325.3M)(309.0M)
Capital Expenditures99.3M68.8M111.5M81.6M28.4M43.2M
Net Income261.1M327.2M481.7M419.4M417.1M437.9M
End Period Cash Flow937.7M1.3B1.4B1.7B2.0B2.1B
Change To Netincome70.7M64.3M80.4M134.5M154.6M162.4M
Change Receivables(81.5M)(46.9M)(87.2M)4.2M3.8M4.0M
Investments(145.4M)(80.5M)57.5M(61.6M)(77.2M)(73.3M)
Net Borrowings(9K)(18K)55K(13.8M)(12.4M)(11.8M)

EPAM Financial Ratios Relationships

Comparative valuation techniques use various fundamental indicators to help in determining EPAM Systems's current stock value. Our valuation model uses many indicators to compare EPAM Systems value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across EPAM Systems competition to find correlations between indicators driving EPAM Systems's intrinsic value. More Info.
EPAM Systems is one of the top stocks in price to earnings to growth category among related companies. It is rated # 2 in working capital category among related companies reporting about  1,839,420,301  of Working Capital per Price To Earnings To Growth. As of the 29th of March 2024, Change In Working Capital is likely to grow to about 281.9 M, while Net Working Capital is likely to drop about 1.6 B.. Comparative valuation analysis is a catch-all model that can be used if you cannot value EPAM Systems by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for EPAM Systems' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the EPAM Systems' earnings, one of the primary drivers of an investment's value.

EPAM Systems Systematic Risk

EPAM Systems' systematic risk plays a vital role in portfolio allocation when considering its stock to be added to a well-diversified portfolio. EPAM Systems volatility which cannot be eliminated through diversification, requires returns over the risk-free rate. Over the long run, a well-diversified portfolio provides returns that match its exposure to systematic risk. In this case, investors face a trade-off between expected returns and systematic risk and, therefore, can only reduce a portfolio's exposure to systematic risk by sacrificing expected returns on the portfolio.
Incorrect Input. Please change your parameters or increase the time horizon required for running this function. The output start index for this execution was zero with a total number of output elements of zero. The Beta measures systematic risk based on how returns on EPAM Systems correlated with the market. If Beta is less than 0 EPAM Systems generally moves in the opposite direction as compared to the market. If EPAM Systems Beta is about zero movement of price series is uncorrelated with the movement of the benchmark. if Beta is between zero and one EPAM Systems is generally moves in the same direction as, but less than the movement of the market. For Beta = 1 movement of EPAM Systems is generally in the same direction as the market. If Beta > 1 EPAM Systems moves generally in the same direction as, but more than the movement of the benchmark.

About EPAM Systems Financials

What exactly are EPAM Systems Financials? Typically, a company's financial statements are the reports that show the financial position of the company. Three primary documents fall into the category of financial statements. These documents include EPAM Systems' income statement, its balance sheet, and the statement of cash flows. Potential EPAM Systems investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although EPAM Systems investors may use each financial statement separately, they are all related. The changes in EPAM Systems's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on EPAM Systems's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.

Steps to analyze EPAM Systems Financials for Investing

There are several different ways that investors can use financial statements to try and predict whether a stock price will go up or down. Unfortunately, there is no surefire formula, but there are some general guidelines you should consider when looking at the numbers. First, realize what kind of company it is so you know if its revenues are more likely to grow or shrink over time. For example, a software company's revenue is expected to increase yearly due to new products and services that its customers will want to buy. At the same time, a car manufacturer might not be able to sell as many cars when the economy slows down, so it would have less net income during those times. Second, pay attention to its debt-to-equity ratio because this number will tell you how much risk it has. If a company such as EPAM Systems is not taking on any additional risks, its debt-to-equity should be less than one. As a general rule of thumb, if the market value or book value (which can be found in the footnotes) of assets exceeds the company's liabilities, then it is probably in good shape. Finally, use other financial statements to determine if a stock price will go up or down because investors are always looking for growth opportunities when they buy new stocks. For example, if you see that the net revenue of EPAM has grown by more than 25% over the last five years, then there is a good chance that it will continue growing by at least 20% or more each year. On the other hand, if you see that net revenue has only increased by about 15%, which is barely above inflation levels, then chances are it will not grow much faster than this over time, and investors may shy away from buying it.
In summary, you can determine if EPAM Systems' financials are consistent with your investment objective using the following steps:
  • Review EPAM Systems' balance sheet accounts, such as liabilities and equity, to understand its overall financial position.
  • Analyze the income statement and examine the company's revenue, expenses, and profits over time to determine its financial performance.
  • Study the cash flow inflows and outflows to understand EPAM Systems' liquidity and solvency.
  • Look at the growth rates in revenue, earnings, and cash flow over time to determine its potential for future growth.
  • Compare EPAM Systems' financials to those of its peers to see how it stacks up and identify any potential red flags.
  • Use valuation ratios to evaluate the company's financials using commonly used ratios such as the price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and enterprise value-to-earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) ratio to determine if EPAM Systems' stock is overvalued or undervalued.
Remember, these are just guidelines and should not be the only basis for investment decisions. It is always important to analyze the leading stock market indicators., conduct additional research and seek professional advice if needed.
Today, most investors in EPAM Systems Stock are looking for potential investment opportunities by analyzing not only static indicators but also various EPAM Systems' growth ratios. Consistent increases or decreases in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's growth growth rates may not be enough to decide which company is a better investment. That's why investors frequently use static breakdown of EPAM Systems growth as a starting point in their analysis.

Price Earnings To Growth Ratio

(26.63)

At this time, EPAM Systems' Price Earnings To Growth Ratio is very stable compared to the past year.

EPAM Systems March 29, 2024 Opportunity Range

Along with financial statement analysis, the daily predictive indicators of EPAM Systems help investors to analyze its daily demand and supply, volume, patterns, and price swings to determine the real value of EPAM Systems. We use our internally-developed statistical techniques to arrive at the intrinsic value of EPAM Systems based on widely used predictive technical indicators. In general, we focus on analyzing EPAM Stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build EPAM Systems's daily price indicators and compare them against related drivers.
When determining whether EPAM Systems is a strong investment it is important to analyze EPAM Systems' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact EPAM Systems' future performance. For an informed investment choice regarding EPAM Stock, refer to the following important reports:
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in EPAM Systems. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation.
To learn how to invest in EPAM Stock, please use our How to Invest in EPAM Systems guide.
Note that the EPAM Systems information on this page should be used as a complementary analysis to other EPAM Systems' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

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When running EPAM Systems' price analysis, check to measure EPAM Systems' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy EPAM Systems is operating at the current time. Most of EPAM Systems' value examination focuses on studying past and present price action to predict the probability of EPAM Systems' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move EPAM Systems' price. Additionally, you may evaluate how the addition of EPAM Systems to your portfolios can decrease your overall portfolio volatility.
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Is EPAM Systems' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of EPAM Systems. If investors know EPAM will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about EPAM Systems listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.37)
Earnings Share
7.05
Revenue Per Share
81.111
Quarterly Revenue Growth
(0.06)
Return On Assets
0.0874
The market value of EPAM Systems is measured differently than its book value, which is the value of EPAM that is recorded on the company's balance sheet. Investors also form their own opinion of EPAM Systems' value that differs from its market value or its book value, called intrinsic value, which is EPAM Systems' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because EPAM Systems' market value can be influenced by many factors that don't directly affect EPAM Systems' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between EPAM Systems' value and its price as these two are different measures arrived at by different means. Investors typically determine if EPAM Systems is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, EPAM Systems' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.