0.34 | 1.50%
EPAM SYSTEMS INC's gross profit margin for the first quarter of its fiscal year 2013 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. EPAM SYSTEMS INC is extremely liquid. Currently, the Quick Ratio is 4.79 which clearly shows the ability to cover any short-term cash needs. EPAM managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.
At the same time, stockholders' equity ("net worth") has greatly increased by 34.26% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
| Income Statement | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Net Sales ($mil) | 124.2 | 94.38 |
| EBITDA ($mil) | 19.15 | 16.64 |
| EBIT ($mil) | 15.54 | 14.42 |
| Net Income ($mil) | 12.68 | 12.1 |
| Balance Sheet | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Cash & Equiv. ($mil) | 104.39 | 112.74 |
| Total Assets ($mil) | 356.75 | 274.61 |
| Total Debt ($mil) | 0.0 | 0.0 |
| Equity ($mil) | 303.46 | 226.01 |
| Profitability | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Gross Profit Margin | 37.23 | 35.62 |
| EBITDA Margin | 15.42 | 17.62 |
| Operating Margin | 12.51 | 15.28 |
| Sales Turnover | 1.3 | 0.0 |
| Return on Assets | 15.43 | 0.0 |
| Return on Equity | 18.14 | 0.0 |
| Debt | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Current Ratio | 5.28 | 4.74 |
| Debt/Capital | 0.0 | 0.0 |
| Interest Expense | 0.0 | 0.0 |
| Interest Coverage | 0.0 | 0.0 |
| Share Data | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Shares outstanding (mil) | 45.22 | 42.26 |
| Div / share | 0.0 | 0.0 |
| EPS | 0.27 | 0.29 |
| Book value / share | 6.71 | 5.35 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 177729.0 | 172342.0 |
HOLD. EPAM SYSTEMS INC's P/E ratio indicates a discount compared to an average of 25.27 for the IT Services industry and a value on par with the S&P 500 average of 18.80. Conducting a second comparison, its price-to-book ratio of 3.42 indicates a premium versus the S&P 500 average of 2.40 and a significant discount versus the industry average of 7.82. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, EPAM SYSTEMS INC proves to trade at a discount to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EPAM 19.47 | Peers 25.27 | EPAM NA | Peers 24.45 | |||||||||||||||||||||
|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. EPAM is trading at a discount to its peers. |
Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures. Ratio not available. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| EPAM 12.22 | Peers 17.32 | EPAM 0.57 | Peers 1.43 | |||||||||||||||||||||
|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. EPAM is trading at a discount to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. EPAM trades at a significant discount to its peers. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| EPAM 3.42 | Peers 7.82 | EPAM 26.88 | Peers 37.79 | |||||||||||||||||||||
|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. EPAM is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, EPAM is expected to significantly trail its peers on the basis of its earnings growth rate. |
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| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| EPAM 2.24 | Peers 4.16 | EPAM 68.01 | Peers 5.97 | |||||||||||||||||||||
|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. EPAM is trading at a significant discount to its industry on this measurement. |
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share. EPAM has a sales growth rate that significantly exceeds its peers. |
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