EPAM Systems (EPAM) Hits New Lifetime High

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified EPAM Systems ( EPAM) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified EPAM Systems as such a stock due to the following factors:

  • EPAM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $35.6 million.
  • EPAM has traded 60,011 shares today.
  • EPAM is trading at a new lifetime high.

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More details on EPAM:

EPAM Systems, Inc. provides software engineering solutions and technology services worldwide. EPAM has a PE ratio of 54. Currently there are 5 analysts that rate EPAM Systems a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for EPAM Systems has been 434,900 shares per day over the past 30 days. EPAM Systems has a market cap of $3.5 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.03 and a short float of 1.6% with 1.78 days to cover. Shares are up 50.6% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates EPAM Systems as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 22.5%. Since the same quarter one year prior, revenues rose by 24.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • EPAM has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.53, which clearly demonstrates the ability to cover short-term cash needs.
  • 37.07% is the gross profit margin for EPAM SYSTEMS INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 7.35% trails the industry average.
  • Compared to its closing price of one year ago, EPAM's share price has jumped by 72.27%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • EPAM SYSTEMS INC's earnings per share declined by 17.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, EPAM SYSTEMS INC increased its bottom line by earning $1.40 versus $1.28 in the prior year. This year, the market expects an improvement in earnings ($2.66 versus $1.40).

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