EPAMEPAM
US • —
$79.35
P/E
11.38
PEG
—
FCF Yield
—
Rev Growth YoY
+14.2% YoY
Gross Margin
29.1%
Health Score
8/10
D/E Ratio
0.01
Confidence
MEDIUM
Business Snapshot
EPAM Systems is a global provider of digital platform engineering and software development services. The company operates in the IT services and consulting market, where it competes as a challenger against larger players like Accenture and Infosys while maintaining a strong niche in Central and Eastern European delivery centers. Market capitalisation data is unavailable for this analysis, but the company generates TTM revenue of over $4.5 billion based on prior reporting. A defining characteristic of EPAM is its highly asset-light model with a debt/equity ratio of just 0.01x, giving it significant financial flexibility to invest in growth or return capital to shareholders.
Financial Health
Gross margin of 29.1% and net margin of 7.0% indicate a modestly profitable services business, though gross margin trend versus the prior year cannot be determined from available data. The balance sheet is fortress-grade with a debt/equity ratio of just 0.01x and a current ratio of 2.59x, meaning the company has more than 2.5 times its short-term liabilities in current assets...
Risk Assessment
- EARNINGS QUALITY — Earnings declined 2.5% year-over-year despite 14.2% revenue growth, indicating margin compression that questions the quality of reported profits.
- REVENUE DECELERATION — Quarter-over-quarter revenue growth data is unavailable, preventing a full trend assessment, but the gap between positive revenue growth and negative earnings growth is a red flag.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- FCF / CASH BURN — Free cash flow data is not available, and the Python DCF model flagged negative or unavailable FCF, which could indicate weak cash generation relative to reported earnings....
Gross margin of 29.1% and net margin of 7.0% indicate a modestly profitable services business, though gross margin trend versus the prior year cannot be determined from available data. The balance sheet is fortress-grade with a debt/equity ratio of just 0.01x and a current ratio of 2.59x, meaning the company has more than 2.5 times its short-term liabilities in current assets. Return on equity of 10.7% reflects reasonable capital efficiency given the minimal leverage. Free cash flow figures are not available, preventing a full assessment of cash generation quality. Overall financial health appears solid, with ample liquidity and virtually no debt providing significant capacity for reinvestment, acquisitions, or shareholder returns without risking financial stability.
- EARNINGS QUALITY — Earnings declined 2.5% year-over-year despite 14.2% revenue growth, indicating margin compression that questions the quality of reported profits. - REVENUE DECELERATION — Quarter-over-quarter revenue growth data is unavailable, preventing a full trend assessment, but the gap between positive revenue growth and negative earnings growth is a red flag. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - FCF / CASH BURN — Free cash flow data is not available, and the Python DCF model flagged negative or unavailable FCF, which could indicate weak cash generation relative to reported earnings.
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