EPAM Systems Inc

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EPAM : NYSE : Technology
$80.24 -0.58 | -0.72%
Today's Range: 80.4246 - 81.15
Avg. Daily Volume: 253000.0
08/22/17 - 9:55 AM ET

Financial Analysis

EPAM SYSTEMS INC's gross profit margin for the second quarter of its fiscal year 2017 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 5.88 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 29.72% 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.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)348.98283.83
EBITDA ($mil)48.7639.04
EBIT ($mil)41.7432.92
Net Income ($mil)37.3624.43

Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)446.54280.72
Total Assets ($mil)1079.38843.89
Total Debt ($mil)25.0340.09
Equity ($mil)919.71708.97

Profitability Q2 FY17 Q2 FY16
Gross Profit Margin36.9236.31
EBITDA Margin13.9713.75
Operating Margin11.9611.6
Sales Turnover1.191.24
Return on Assets10.3711.71
Return on Equity12.1713.94
Debt Q2 FY17 Q2 FY16
Current Ratio6.066.23
Interest Expense0.00.0
Interest Coverage0.00.0

Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)52.4650.87
Div / share0.00.0
Book value / share17.5313.94
Institutional Own % n/a n/a
Avg Daily Volume255079.0399727.0


BUY. This stock's P/E ratio indicates a premium compared to an average of 32.72 for the IT Services industry and a significant premium compared to the S&P 500 average of 24.23. To use another comparison, its price-to-book ratio of 4.56 indicates a significant premium versus the S&P 500 average of 3.02 and a significant discount versus the industry average of 8.83. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
EPAM 38.62 Peers 32.72   EPAM 23.64 Peers 20.35

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

EPAM is trading at a premium to its peers.


Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

EPAM is trading at a premium to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
EPAM 19.72 Peers 23.51   EPAM 0.50 Peers 1.32

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

EPAM is trading at a valuation on par with 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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
EPAM 4.56 Peers 8.83   EPAM 10.69 Peers 10.57

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.


Average. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

EPAM is expected to keep pace with its peers on the basis of earnings growth.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
EPAM 3.26 Peers 5.95   EPAM 23.05 Peers 13.22

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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