EPAM Systems (EPAM) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

EPAM Systems

NYSE•Technology•Information Technology Services

$117.10-0.07(<0.01%)After hours

Market Cap

$6.11B

P/E

15.2x

P/S

1.1x

P/B

1.7x

EPAM Systems, Inc. provides digital platform engineering and software development services worldwide. The company offers engineering services, including requirements analysis and platform selection, customization, cross-platform migration, implementation, and integration; cloud services for creating a roadmap to set and refine IT and business goals while identifying new and emerging opportunities leveraging cloud technologies; data, analytics, and artificial intelligence; customer experience; marketing; and cybersecurity. It also offers operation solutions comprising integrated engineering practices and smart automation services. In addition, the company offers software product and platform development services, which comprise product research, customer experience design and prototyping, program management, component design and integration, full lifecycle software testing, product deployment and end-user customization, performance tuning, product support and maintenance, managed services, as well as cross-platform migration and modernizing legacy platforms. The company has a collaboration with Wiz to help organizations turn cloud risk intelligence into continuous, AI-powered, and engineering-led remediation across complex multi-cloud environments. The company serves the financial services; consumer goods, retail, and travel; software and hi-tech; business information and media; life sciences and healthcare; and emerging vertical industries. EPAM Systems, Inc. was founded in 1993 and is headquartered in Newtown, Pennsylvania.

How this company scores

GoodMetricSide Score: 75/100

Strongest: Cash & Earnings Quality (21/25); weakest: Profitability (16/25).

Profitability16/25

Growth19/25

Balance Sheet & Red Flags19/25

Cash & Earnings Quality21/25

Strengths

Rising free cash flowLow leverageConsistent growthNet cash position

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 15.2x5y range 15.2x – 79.3x

Currently below its 20-quarter median.

P/S · 1.1x5y range 1.1x – 10.2x

Currently below its 20-quarter median.

P/B · 1.7x5y range 1.7x – 15.4x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

Some Concerns

Margin Pressure

Watch

Operating margins declined 6.9% — watch for continued compression, which may signal competitive or cost pressure.

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 4 quarters — monitor for earnings quality deterioration.

Price & Volume

Market Cap $6.11B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $5.62B
Q. Revenue: $1.41B
TTM EBITDA: $688.93M
TTM Op. Income: $563.19M
Q. Op. Income: $152.22M
TTM Net Income: $401.67M
Q. Net Income: $102.98M
EPS: $1.97
Shares Out.: $52.20M

$5.62B in TTM revenue grew 10.8% YoY, reaching $1.41B last quarter. TTM EBITDA of $688.93M and TTM operating income of $563.19M show growth is flowing through to the bottom line. TTM net income of $401.67M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 30.4%
EBITDA Margin: 13.0%
Op. Margin: 10.8%
Net Margin: 7.3%

Op. margin of 10.8% is up 1.4% YoY — cost efficiency is improving. Net margin at 7.3% and gross margin of 30.4% show how much of each revenue dollar survives to profit. Over the past year, operating margin is up 15% — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 15.2x
P/S Ratio: 1.1x
P/B Ratio: 1.7x

At 15.2x P/E, the stock trades within typical market levels. P/S of 1.1x and P/B of 1.7x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Across the last 8 quarters, P/E has fallen for 2 consecutive quarters — an improving trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $4.57B
Cash: $789.40M
Long-Term Debt: $25.00M
Book Value: $3.52B
D/E Ratio: 0.0
Debt/EBITDA: 0.1

With $4.57B in assets and $25.00M in long-term debt, D/E is 0.0and book value is $3.52B — a conservative capital structure with a cushion to weather downturns. Over the past year, debt/equity is up 4% — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $-2.42M
TTM Free Cash Flow: $482.64M
FCF Margin: 8.6%
FCF / Net Income: 1.2

TTM FCF of $482.64M on $-2.42M in operating cash flow. The FCF / Net Income ratio of 1.2x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has fallen for 2 consecutive quarters — a weakening trend.