EPAM Systems Inc Stock Research

Market Summary

USD279.93+3.66

Market Closed

1.32%

EPAM Stock Price

EPAM RSI Chart

EPAM Valuation

Market Cap

16.1B

Price/Earnings (Trailing)

38.48

Price/Sales (Trailing)

3.35

EV/EBITDA

24.05

Price/Free Cashflow

42.2

EPAM Price/Sales (Trailing)

EPAM Profitability

Operating Margin

31.88%

EBT Margin

10.51%

Return on Equity

13.97%

Return on Assets

10.46%

Free Cashflow Yield

2.37%

EPAM Fundamentals

EPAM Revenue

Revenue (TTM)

4.8B

Revenue Y/Y

11.18%

Revenue Q/Q

0.36%

EPAM Earnings

Earnings (TTM)

419.4M

Earnings Y/Y

8.97%

Earnings Q/Q

-0.65%

Price Action

52 Week Range

260.11462.99

(Low)(High)

Last 7 days

-9.9%

Last 30 days

-22.9%

Last 90 days

-17.8%

Trailing 12 Months

22.8%

EPAM Financial Health

Current Ratio

3.69

EPAM Investor Care

Shares Dilution (1Y)

1.42%

Diluted EPS (TTM)

7.09

Peers (Alternatives to EPAM Systems)

View All Peers In Detail

Name	Mkt Capsorted ascending	Revenue	Price %, 1M	Returns, 1Y	P/E	P/S	Rev 1-Yr	Inc 1-Yr
LARGE-CAP
ADP	89.4B	17.2B	-6.21%	0.92%	28.42	5.19	9.88%	14.66%
FISV	70.0B	17.7B	-6.17%	14.47%	27.68	3.95	9.31%	89.66%
SQ	44.5B	17.5B	-3.58%	-28.15%	-82.3	2.54	-0.73%	-425.19%
CTSH	29.7B	19.4B	-15.50%	-34.47%	12.98	1.53	4.98%	7.16%
VRSN	20.4B	1.4B	-9.85%	-6.11%	30.35	14.35	7.33%	-14.14%
MID-CAP
CACI	6.7B	6.5B	-6.29%	-5.62%	18.33	1.03	6.38%	-16.32%
SAIC	5.7B	7.5B	-2.29%	18.08%	21.29	0.76	2.58%	-9.12%
DXC	5.4B	14.8B	-21.29%	-25.03%	7.52	0.36	-10.79%	217.70%
SMALL-CAP
FSLY	2.0B	432.7M	15.63%	6.35%	-10.5	4.63	22.12%	14.33%
CSGS	1.6B	1.1B	-17.43%	-18.78%	36.68	1.48	4.13%	-39.09%
SABR	1.3B	2.5B	-42.49%	-58.08%	-3.03	0.52	50.22%	53.10%
TCX	257.5M	324.7M	-28.83%	-63.85%	-16	0.79	10.96%	-317.50%
UIS	233.9M	2.0B	-37.32%	-83.97%	-2.21	0.12	-3.63%	76.37%
INOD	193.8M	79.0M	12.39%	27.29%	-16.23	2.45	13.25%	-613.39%
BCOV	191.4K	211.0M	-33.86%	-33.86%	-0.02	9e-4	-0.04%	-267.04%

Financials for EPAM Systems

* denotes actual numbers (not divided by Millions)
Income Statement (Last 12 Months)					(In Millions)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Revenue	2.6%	4,825	4,701	4,462	4,149	3,758
Cost Of Revenue	3.3%	3,287	3,181	3,008	2,745	2,484
S&GA Expenses	1.6%	873	859	830	750	649
EBITDA	19.6%	601	503	615	617	-
EBITDA Margin	110.9%	0.12*	-1.14*	0.15*	0.16*	-
Earnings Before Taxes	8.8%	507	466	410	525	533
EBT Margin	6.1%	0.11*	0.10*	-0.93*	0.13*	-
Interest Expenses	301.7%	2.00	0.00	-	-	-
Net Income	3.1%	419	407	366	462	482
Net Income Margin	0.5%	0.09*	0.09*	-0.83*	0.11*	-
Free Cahsflow	-14.2%	382	446	397	384	-

Balance Sheet					(In Millions)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Assets	7.3%	4,009	3,736	3,564	3,508	3,523
Current Assets	9.2%	2,760	2,528	2,360	2,267	2,269
Cash Equivalents	13.0%	1,681	1,488	1,294	1,276	1,447
Net PPE	30.4%	273	210	211	220	236
Goodwill	4.7%	529	506	521	534	531
Liabilities	3.0%	1,006	977	940	954	1,027
Current Liabilities	2.7%	747	728	685	683	763
. Short Term Borrowings	-63.3%	3.00	8.00	7.00	10.00	16.00
LT Debt, Non Current	-1.8%	28.00	28.00	30.00	31.00	30.00
Shareholder's Equity	8.9%	3,002	2,757	2,624	2,554	2,487
Additional Paid-In Capital	5.7%	848	802	761	719	712
Shares Outstanding	0.3%	58.00	58.00	57.00	57.00	57.00
Minority Interest	0%	1.00	1.00	2.00	2.00	9.00

Cashflow (Last 12 Months)					(In Millions)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Cashflow From Operations	-17.5%	464	563	516	508	572
Share Based Compensation	-2.3%	100	102	98.00	94.00	112
Cashflow From Investing	49.5%	-182	-362	-394	-451	-368
Cashflow From Financing	96.3%	-2.02	-55.12	-51.19	-70.49	-59.56

Risks for EPAM

What is the probability of a big loss on EPAM?

58.9%

Probability that EPAM Systems stock will be more than 20% underwater in next one year

41.1%

Probability that EPAM Systems stock will be more than 30% underwater in next one year.

20%

Probability that EPAM Systems stock will be more than 40% underwater in next one year.

*Calculated based on probability distribution of losses observed in actual data in the last 5 years.

How does EPAM drawdown profile look like?

Y-axis is the maximum loss one would have experienced if EPAM Systems was unfortunately bought at previous high price.

Drawdowns

Returns for EPAM

Cumulative Returns on EPAM

28.3%

10-Year Cumulative Returns

21.5%

7-Year Cumulative Returns

18.3%

5-Year Cumulative Returns

12.9%

3-Year Cumulative Returns

What are the long-term rolling returns for EPAM?

FIve years rolling returns for EPAM Systems.

Annualized Returns

Which funds bought or sold EPAM recently?

View All Details

Datesorted ascending	Fund Name	Type	% Chg	$ Change	$ Held	% Portfolio
2023-03-15	B. Riley Wealth Advisors, Inc.	sold off	-100	-210,000	-	-%
2023-03-10	VICTORY CAPITAL MANAGEMENT INC	added	6.57	-261,950	7,087,050	0.01%
2023-03-06	Rockefeller Capital Management L.P.	added	1.8	-206,000	2,407,000	0.01%
2023-03-06	NORTH STAR ASSET MANAGEMENT INC	unchanged	-	-68,520	655,480	0.04%
2023-03-02	LORING WOLCOTT & COOLIDGE FIDUCIARY ADVISORS LLP/MA	new	-	26,219	26,219	-%
2023-02-28	Voya Investment Management LLC	reduced	-3.96	-14,918,500	98,994,500	0.14%
2023-02-27	Parallax Volatility Advisers, L.P.	added	4,340	1,404,740	1,440,740	-%
2023-02-27	Cravens & Co Advisors, LLC	new	-	242,528	242,528	0.22%
2023-02-24	SRS Capital Advisors, Inc.	reduced	-13.11	-18,519	69,481	0.01%
2023-02-24	National Pension Service	added	8.32	-592,571	29,455,600	0.06%

Latest Funds Activity

Are funds buying EPAM calls or puts?

Calls

Puts

Are funds bullish or bearish(Calls - Puts)?

Net Call Options

No. of funds that own EPAM

No. of Funds

EPAM Systems News

Schedule 13G FIlings of EPAM Systems

Date Filed	Name of Filer	Percent of Class	No. of Shares	Form Type
Feb 14, 2023	alliancebernstein l.p.	6.1%	3,489,287	SC 13G
Feb 13, 2023	capital research global investors	11.9%	6,840,778	SC 13G/A
Feb 10, 2023	wcm investment management, llc	5.9%	3,414,098	SC 13G/A
Feb 09, 2023	vanguard group inc	11.29%	6,493,769	SC 13G/A
Feb 01, 2023	blackrock inc.	7.0%	4,005,541	SC 13G/A
Apr 08, 2022	capital research global investors	11.5%	6,534,789	SC 13G
Apr 07, 2022	morgan stanley	0.7%	374,858	SC 13G/A
Feb 11, 2022	morgan stanley	7.3%	4,150,272	SC 13G/A
Feb 03, 2022	blackrock inc.	8.2%	4,644,619	SC 13G/A
Jan 10, 2022	vanguard group inc	10.79%	6,119,526	SC 13G/A

EPAM Fair Value

EPAM Systems fair value in different scenarios

The table shows the Fair Value estimates for EPAM Systems for various scenarios. Disclaimer: These are just estimations from a model. None of the models are good at predicting the future. Please dont buy or sell stocks based on these outputs.

Fair Value	Very Pessimistic	Pessimistic	Base Case	Optimistic	Very Optimistic
Very Low Inflation	264.81 -5.40%	356.40 27.32%	529.46 89.14%	711.49 154.17%	850.95 203.99%
Current Inflation	241.51 -13.72%	319.56 14.16%	464.95 66.10%	616.39 120.19%	733.57 162.05%
Very High Inflation	212.93 -23.93%	275.30 -1.65%	389.30 39.07%	506.60 80.97%	598.70 113.87%

Historical EPAM Systems Fair Value Estimates

Very Pessimistic Case

Pessimistic Case

Fair Value

Optimistic Case

Very Optimistic Case

Closing Stock Price

Recent SEC filings of EPAM Systems

View All Filings

Date Filed	Form Type	Document
Mar 14, 2023	3	Insider Trading
Mar 14, 2023	4	Insider Trading
Mar 14, 2023	8-K	Current Report
Feb 24, 2023	10-K	Annual Report
Feb 16, 2023	8-K	Current Report
Feb 14, 2023	SC 13G	Major Ownership Report
Feb 13, 2023	4	Insider Trading
Feb 13, 2023	SC 13G/A	Major Ownership Report
Feb 10, 2023	SC 13G/A	Major Ownership Report
Feb 09, 2023	SC 13G/A	Major Ownership Report

Latest Insider Trading transactions for EPAM

Filter Transactions

Datesorted ascending	Name	Buy/Sell	$ Value	Avg. Price	# Shares	Title
2023-03-10	Aguirre DeAnne	acquired	-	-	338	-
2023-02-11	Roman Eugene	sold (taxes)	-6,060	356	-17.00	-
2022-12-12	Segert Robert E.	gifted	-	-	-72.00	-
2022-11-11	Peterson Jason D.	sold	-350,000	350	-1,000	chief financial officer
2022-11-11	Peterson Jason D.	acquired	169,130	169	1,000	chief financial officer
2022-10-31	Solomon Lawrence F	acquired	7,602	245	31.00	svp & chief people officer
2022-10-31	Rockwell Edward	acquired	7,602	245	31.00	svp/general counsel
2022-10-31	Shekhter Elaina	acquired	1,961	245	8.00	svp, chief marketing officer
2022-10-31	Fejes Balazs	acquired	7,602	245	31.00	evp/co-head of global business
2022-10-31	Peterson Jason D.	acquired	7,602	245	31.00	chief financial officer

About EPAM Systems

EPAM Income Statement

2022-12-31

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Statement [Abstract]
Revenues	$ 4,824,698	$ 3,758,144	$ 2,659,478
Operating expenses:
Cost of revenues (exclusive of depreciation and amortization)	3,286,683	2,483,697	1,732,522
Selling, general and administrative expenses	872,777	648,736	484,758
Depreciation and amortization expense	92,272	83,395	62,874
Income from operations	572,966	542,316	379,324
Interest and other income/(loss), net	10,025	(1,727)	3,822
Foreign exchange loss	(75,733)	(7,197)	(4,667)
Income before provision for income taxes	507,258	533,392	378,479
Provision for income taxes	87,842	51,740	51,319
Net income	$ 419,416	$ 481,652	$ 327,160
Net income per share:
Basic (in dollars per share)	$ 7.32	$ 8.52	$ 5.87
Diluted (in dollars per share)	$ 7.09	$ 8.15	$ 5.60
Shares used in calculation of net income per share:
Basic (in shares)	57,291	56,511	55,727
Diluted (in shares)	59,169	59,064	58,446

EPAM Balance Sheet

2022-12-31

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Current assets
Cash and cash equivalents	$ 1,681,344	$ 1,446,625
Trade receivables and contract assets, net of allowance of $15,310 and $5,521, respectively	932,626	768,928
Short-term investments	60,336	0
Prepaid and other current assets	85,319	53,927
Total current assets	2,759,625	2,269,480
Property and equipment, net	273,348	236,214
Operating lease right-of-use assets, net	148,780	184,841
Intangible assets, net	77,652	101,143
Goodwill	529,072	530,723
Deferred tax assets	172,797	143,928
Other noncurrent assets	47,877	56,898
Total assets	4,009,151	3,523,227
Current liabilities
Accounts payable	30,852	24,847
Accrued compensation and benefits expenses	475,871	502,997
Accrued expenses and other current liabilities	151,478	142,014
Short-term debt	2,861	16,018
Income taxes payable, current	46,069	27,440
Operating lease liabilities, current	40,352	50,104
Total current liabilities	747,483	763,420
Long-term debt	27,693	30,234
Operating lease liabilities, noncurrent	122,317	142,802
Other noncurrent liabilities	108,648	90,934
Total liabilities	1,006,141	1,027,390
Commitments and contingencies (Note 16)
Stockholders’ equity
Common stock, $0.001 par value; 160,000 authorized; 57,668 and 56,868 shares issued, 57,655 and 56,849 shares outstanding at December 31, 2022 and December 31, 2021, respectively	58	57
Additional paid-in capital	847,965	711,912
Retained earnings	2,248,948	1,829,532
Treasury stock	(118)	(177)
Accumulated other comprehensive loss	(95,321)	(54,207)
Total EPAM Systems Inc. stockholders’ equity	3,001,532	2,487,117
Noncontrolling interest in consolidated subsidiaries	1,478	8,720
Total equity	3,003,010	2,495,837
Total liabilities and stockholders’ equity	$ 4,009,151	$ 3,523,227