📊 EPAM Key Takeaways
Is EPAM a Good Investment? Thesis Analysis
EPAM demonstrates solid financial health with strong revenue growth of 15.4% YoY and robust free cash flow generation at 11.2% of revenue, indicating high-quality earnings. The company maintains excellent liquidity (2.59x current ratio) and minimal leverage (0.01x debt/equity), providing financial flexibility for growth investments and shareholder returns.
Why Buy EPAM? Key Strengths
- Strong revenue growth of 15.4% YoY demonstrates market demand and business expansion
- Excellent free cash flow conversion at 612.7M (11.2% FCF margin) shows cash generation efficiency
- Fortress balance sheet with 1.3B cash, minimal debt (25.0M), and 0.01x debt/equity ratio
- Healthy liquidity position with 2.59x current and quick ratios supporting operational flexibility
- Solid operating income of 520.0M on growing revenue base demonstrates scalability
EPAM Investment Risks to Consider
- EPS declined 14.3% YoY despite flat net income growth, suggesting share dilution or structural headwinds
- Net margin of 6.9% is modest for a software services company, indicating competitive pricing pressure
- ROE of 10.3% and ROA of 7.7% are below industry benchmarks for software/consulting, suggesting underutilized assets
- Flat net income growth (0.0% YoY) contrasts with strong revenue growth, indicating margin compression
- 9 Form 4 insider filings warrant monitoring for potential signaling of management confidence
Key Metrics to Watch
- Net profit margin trend - monitor for further compression or stabilization
- EPS trajectory relative to revenue growth - key indicator of operational leverage
- Operating margin expansion potential given 9.5% current level
- Free cash flow sustainability and conversion rate maintenance
- Asset utilization efficiency (ROE/ROA improvement)
EPAM Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 2.59x current ratio provides a solid financial cushion.
EPAM Profitability Ratios
EPAM vs Technology Sector
How EPAM Systems, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is EPAM Overvalued or Undervalued?
Based on fundamental analysis, EPAM Systems, Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
EPAM Balance Sheet & Liquidity
EPAM 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: EPAM Systems, Inc.'s revenue has grown significantly by 45% over the 5-year period, indicating strong business expansion. The most recent EPS of $7.06 reflects profitable operations.
EPAM Growth Metrics (YoY)
EPAM Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.2B | $73.5M | $1.91 |
| Q2 2025 | $1.1B | $73.5M | $1.56 |
| Q1 2025 | $1.2B | $73.5M | $1.28 |
| Q3 2024 | $1.2B | $97.2M | $1.65 |
| Q2 2024 | $1.1B | $98.6M | $1.70 |
| Q1 2024 | $1.2B | $102.3M | $1.73 |
| Q3 2023 | $1.2B | $18.6M | $1.65 |
| Q2 2023 | $1.2B | $18.6M | $0.32 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
EPAM Capital Allocation
EPAM SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for EPAM Systems, Inc. (CIK: 0001352010)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 17, 2026 | 4 | xslF345X05/wk-form4_1773750564.xml | View → |
| Mar 17, 2026 | 4 | xslF345X05/wk-form4_1773750509.xml | View → |
| Mar 17, 2026 | 4 | xslF345X05/wk-form4_1773750456.xml | View → |
| Mar 17, 2026 | 4 | xslF345X05/wk-form4_1773750402.xml | View → |
| Mar 17, 2026 | 4 | xslF345X05/wk-form4_1773750337.xml | View → |
❓ Frequently Asked Questions about EPAM
What is the AI rating for EPAM?
EPAM Systems, Inc. (EPAM) has an AI rating of BUY with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are EPAM's key strengths?
Claude: Strong revenue growth of 15.4% YoY demonstrates market demand and business expansion. Excellent free cash flow conversion at 612.7M (11.2% FCF margin) shows cash generation efficiency.
What are the risks of investing in EPAM?
Claude: EPS declined 14.3% YoY despite flat net income growth, suggesting share dilution or structural headwinds. Net margin of 6.9% is modest for a software services company, indicating competitive pricing pressure.
What is EPAM's revenue and growth?
EPAM Systems, Inc. reported revenue of $5.5B.
Does EPAM pay dividends?
EPAM Systems, Inc. does not currently pay dividends.
Where can I find EPAM SEC filings?
Official SEC filings for EPAM Systems, Inc. (CIK: 0001352010) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is EPAM's EPS?
EPAM Systems, Inc. has a diluted EPS of $6.72.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is EPAM a good stock to buy right now?
Based on our AI fundamental analysis in March 2026, EPAM Systems, Inc. has a BUY rating with 78% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is EPAM stock overvalued or undervalued?
Valuation metrics for EPAM: ROE of 10.3% (sector avg: 22%), net margin of 6.9% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy EPAM stock in 2026?
Our dual AI analysis gives EPAM Systems, Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is EPAM's free cash flow?
EPAM Systems, Inc.'s operating cash flow is $654.9M, with capital expenditures of $42.2M. FCF margin is 11.2%.
How does EPAM compare to other Technology stocks?
Vs Technology sector averages: Net margin 6.9% (avg: 18%), ROE 10.3% (avg: 22%), current ratio 2.59 (avg: 2.5).