# EPAM Systems (EPAM.US)

Canonical: https://gigainvestors.com/s/EPAM

Analysis as of: 2026-10-16T07:28:18.229Z. Financial observations: FY2009–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $122.26 per share; close as of 2026-10-15.

Estimated value: low $177.66 per share, central $248.16 per share, high $289.22 per share. Buy at or below the central value $248.16 per share. Valuation as of 2026-10-16T07:28:18.229Z; scenarios are not confidence intervals.

Expected annual return: 17.4% at the stated quote. About 17.4% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.13×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.12×

- FY2018: 0.13×

- FY2019: 0.13×

- FY2020: 0.14×

- FY2021: 0.14×

- FY2022: 0.12×

- FY2023: 0.11×

- FY2024: 0.12×

- FY2025: 0.10×

- LTM to Jun 2026: 0.10×

### moat: fail

- Recent gross margin fell 7.8pp below the typical margin (limit 4pp)

- ROIC, median of available years: 37.9%

- ROIC, second-lowest year: 25.0%

- Typical minus recent gross margin: 7.8 pp

- Typical gross margin (annual median): 34.4%

- Recent gross margin (lower of latest and 3-year median): 26.5%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.0%

- ROIC including acquisitions, ten-year median: 29.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 23.7%

- FY2017: 25.0%

- FY2018: 56.5%

- FY2019: 36.3%

- FY2020: 50.0%

- FY2021: 65.4%

- FY2022: 51.3%

- FY2023: 39.6%

- FY2024: 32.0%

- FY2025: 29.6%

### economics: pass

- Owner earnings / net income, 5-yr: 1.19×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $2.6B

- Net income, five-year total: $2.2B

- Return on incremental invested capital: 101.3%

- Working capital / revenue, annual change: -0.5 pp

- Working capital / revenue, change between three-year averages: -3.4 pp

- Working capital / revenue, final three-year average: 19.3%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.07×

- FY2022: 1.14×

- FY2023: 1.25×

- FY2024: 1.21×

- FY2025: 1.33×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 25.0% vs 32.0%

- Per-share earnings: 1.62 to 7.06 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.8%

- Ordinary dilution, 5-year annual growth: -0.8%

- Market cap gain: $7.8B

- Cumulative retained earnings: $1.8B

- Diluted shares, 10-year annual growth: 0.8%

- Diluted shares, 5-year annual growth: -0.8%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 20.2%

- Per-share value change: $5.43

- Per-share value, starting three-year median: $1.62

- Per-share value, ending three-year median: $7.06

- Buybacks concentrated in cheaper years (correlation): 0.47

- Average buyback yield: 1.1%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: $1.5B

- Cumulative net income, 10 years: $3.2B

- ROIC, first three-year median: 25.0%

- ROIC, last three-year median: 32.0%

Chart: Earnings per share; fiscal year observations.

- FY2016: $1.87

- FY2017: $1.32

- FY2018: $4.24

- FY2019: $4.53

- FY2020: $5.60

- FY2021: $8.15

- FY2022: $7.09

- FY2023: $7.06

- FY2024: $7.84

- FY2025: $6.72

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -5.7%

- Receivables to sales index (DSRI): 0.96×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 27.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.73×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.44×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -7.1%

- FY2017: -9.8%

- FY2018: -3.2%

- FY2019: -1.2%

- FY2020: -8.0%

- FY2021: -2.6%

- FY2022: -1.1%

- FY2023: -3.3%

- FY2024: -2.2%

- FY2025: -5.7%

## Holders

- [Edgar Wachenheim](https://gigainvestors.com/GA): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 82% since Oct 2021 · "EPAM cuts annual revenue forecast on weak software services demand, shares fall" (finance.yahoo.com, Aug 2026) · sales +2.9%

Story as of 2026-10-16T09:58:42.148Z; price observation 2026-10-15.

Price needs cash profits to shrink 3.1% a year for ten years

- 2025-05-08: EPAM Reports Results for First Quarter 2025 and Raises Full Year Revenue Outlook ([finance.yahoo.com](https://finance.yahoo.com/news/epam-reports-results-first-quarter-100000232.html))

- 2025-08-07: EPAM Reports Results for Second Quarter 2025 and Raises Full Year Revenue Outlook ([finance.yahoo.com](https://finance.yahoo.com/news/epam-reports-results-second-quarter-100000451.html))

- 2025-11-06: EPAM raises 2025 forecasts on strong IT services spending ([finance.yahoo.com](https://finance.yahoo.com/news/epam-raises-2025-forecasts-strong-123827588.html))

- 2026-02-23: EPAM Systems (EPAM) Is Down 16.5% After Cautious 2026 Outlook and AI Expansion Update ([finance.yahoo.com](https://finance.yahoo.com/news/epam-systems-epam-down-16-020826723.html))

- 2026-06-15: EPAM Systems' Weak Demand, AI Risks Limit Upside Potential, Wedbush Says ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/epam-systems-apos-weak-demand-151015959.html))

- 2026-08-06: EPAM cuts annual revenue forecast on weak software services demand, shares fall ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/epam-cuts-annual-revenue-forecast-112629816.html))

### Sales · FY2025–2026

sales +2.9%; source https://www.sec.gov/Archives/edgar/data/1352010/000135201026000015/epam-20251231.htm; observed 2026-02-26.

- FY2017: $1.5B 

- FY2018: $1.8B 

- FY2019: $2.3B 

- FY2020: $2.7B 

- FY2021: $3.8B 

- FY2022: $4.8B 

- FY2023: $4.7B 

- FY2024: $4.7B 

- FY2025: $5.5B 

- FY2026: $5.6B 

### Gross margin · FY2025

gross margin 26.5%; source https://www.sec.gov/Archives/edgar/data/1352010/000135201026000015/epam-20251231.htm; observed 2026-02-26.

- FY2016: 36.5% 

- FY2017: 36.5% 

- FY2018: 35.6% 

- FY2019: 35.1% 

- FY2020: 34.9% 

- FY2021: 33.9% 

- FY2022: 31.9% 

- FY2023: 30.6% 

- FY2024: 30.7% 

- FY2025: 26.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in information technology services; annual sales are USD 5.5 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1352010/000135201026000015/epam-20251231.htm (filed 2026-02-26); FY2025: revenue 5457056000; grossProfit 1448710000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); EPAM.US: 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.

### Why customers stay

Margins ranged from 26.5% to 30.7% during 2023–25; it earns 37.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2023: grossProfit / revenue = 30.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2024: grossProfit / revenue = 30.7%.

- Source: https://www.sec.gov/Archives/edgar/data/1352010/000135201026000015/epam-20251231.htm (filed 2026-02-26); FY2025: grossProfit / revenue = 26.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); 10-year return on capital observations [[2016,0.23749182832822366],[2017,0.24954526182130576],[2018,0.5654414306161675],[2019,0.3625718078317562],[2020,0.5003569655188664],[2021,0.6538826289756895],[2022,0.512709729863602],[2023,0.39618432318692337],[2024,0.3201646080756391],[2025,0.29619430903160376]]; median 0.3793780655093398. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 4 of 10 years; bought back USD 662.2 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2016: growth capex 5930000; upkeep 23387000; owner earnings 99266000. Growth capex / owner earnings = 0.059738480446477144.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2017: growth capex 1244000; upkeep 28562000; owner earnings 72760000. Growth capex / owner earnings = 0.017097306212204507.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2018: growth capex 934000; upkeep 36640000; owner earnings 240256000. Growth capex / owner earnings = 0.003887519978689398.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2019: growth capex 0; upkeep 99308000; owner earnings 262925000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2020: growth capex 0; upkeep 68793000; owner earnings 387610000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2021: growth capex 0; upkeep 111501000; owner earnings 515302000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2022: growth capex 0; upkeep 81629000; owner earnings 477836000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2023: growth capex 0; upkeep 28415000; owner earnings 521370000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2024: growth capex 0; upkeep 32146000; owner earnings 549491000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1352010/000135201026000015/epam-20251231.htm (filed 2026-02-26); FY2025: growth capex 0; upkeep 42243000; owner earnings 501516000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,21500000],[2020,6278000],[2021,15312000],[2022,0],[2023,2969000],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1352010/000135201026000015/epam-20251231.htm (filed 2026-02-26); FY2025: cash repurchases 662159000 USD.

### Are managers owners

Insiders own 3.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); EPAM.US SharesStats.PercentInsiders = 3.279 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 3.1% yearly over ten years; actual growth was 18.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Ten-year compound average after fade. Initial solved rate -0.056985257856475735. Price 122.26; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 1.6245952049319246 → FY2025 8.918535379581385. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $64.37 per share

- 2016-11: $65.90 per share

- 2016-12: $64.31 per share

- 2017-01: $64.36 per share

- 2017-02: $73.63 per share

- 2017-03: $75.52 per share

- 2017-04: $77.00 per share

- 2017-05: $83.88 per share

- 2017-06: $84.09 per share

- 2017-07: $85.93 per share

- 2017-08: $81.33 per share

- 2017-09: $87.93 per share

- 2017-10: $91.15 per share

- 2017-11: $101.44 per share

- 2017-12: $107.43 per share

- 2018-01: $117.48 per share

- 2018-02: $113.12 per share

- 2018-03: $114.52 per share

- 2018-04: $114.35 per share

- 2018-05: $123.18 per share

- 2018-06: $124.33 per share

- 2018-07: $130.21 per share

- 2018-08: $142.93 per share

- 2018-09: $137.70 per share

- 2018-10: $119.47 per share

- 2018-11: $130.25 per share

- 2018-12: $116.01 per share

- 2019-01: $141.48 per share

- 2019-02: $161.78 per share

- 2019-03: $169.13 per share

- 2019-04: $179.36 per share

- 2019-05: $172.59 per share

- 2019-06: $173.10 per share

- 2019-07: $193.79 per share

- 2019-08: $191.33 per share

- 2019-09: $182.32 per share

- 2019-10: $175.96 per share

- 2019-11: $211.85 per share

- 2019-12: $212.16 per share

- 2020-01: $228.14 per share

- 2020-02: $223.20 per share

- 2020-03: $185.66 per share

- 2020-04: $220.89 per share

- 2020-05: $230.64 per share

- 2020-06: $252.01 per share

- 2020-07: $290.08 per share

- 2020-08: $327.10 per share

- 2020-09: $323.28 per share

- 2020-10: $308.95 per share

- 2020-11: $322.33 per share

- 2020-12: $358.35 per share

- 2021-01: $344.43 per share

- 2021-02: $373.61 per share

- 2021-03: $396.69 per share

- 2021-04: $457.75 per share

- 2021-05: $477.60 per share

- 2021-06: $510.96 per share

- 2021-07: $559.80 per share

- 2021-08: $632.81 per share

- 2021-09: $570.48 per share

- 2021-10: $673.24 per share

- 2021-11: $608.55 per share

- 2021-12: $668.45 per share

- 2022-01: $476.14 per share

- 2022-02: $207.75 per share

- 2022-03: $296.61 per share

- 2022-04: $264.99 per share

- 2022-05: $338.52 per share

- 2022-06: $294.78 per share

- 2022-07: $349.25 per share

- 2022-08: $426.50 per share

- 2022-09: $362.19 per share

- 2022-10: $350.00 per share

- 2022-11: $368.58 per share

- 2022-12: $327.74 per share

- 2023-01: $332.65 per share

- 2023-02: $307.65 per share

- 2023-03: $299.00 per share

- 2023-04: $282.44 per share

- 2023-05: $256.62 per share

- 2023-06: $224.75 per share

- 2023-07: $236.81 per share

- 2023-08: $258.99 per share

- 2023-09: $255.69 per share

- 2023-10: $217.57 per share

- 2023-11: $258.19 per share

- 2023-12: $297.34 per share

- 2024-01: $278.11 per share

- 2024-02: $304.40 per share

- 2024-03: $276.16 per share

- 2024-04: $235.26 per share

- 2024-05: $177.93 per share

- 2024-06: $188.11 per share

- 2024-07: $215.13 per share

- 2024-08: $200.76 per share

- 2024-09: $199.03 per share

- 2024-10: $188.65 per share

- 2024-11: $243.92 per share

- 2024-12: $233.82 per share

- 2025-01: $253.96 per share

- 2025-02: $206.14 per share

- 2025-03: $168.84 per share

- 2025-04: $156.91 per share

- 2025-05: $174.49 per share

- 2025-06: $176.82 per share

- 2025-07: $157.71 per share

- 2025-08: $176.36 per share

- 2025-09: $150.79 per share

- 2025-10: $163.54 per share

- 2025-11: $187.00 per share

- 2025-12: $204.88 per share

- 2026-01: $208.60 per share

- 2026-02: $141.00 per share

- 2026-03: $135.40 per share

- 2026-04: $113.78 per share

- 2026-05: $102.46 per share

- 2026-06: $79.35 per share

- 2026-07: $105.56 per share

- 2026-08: $117.83 per share

- 2026-09: $108.36 per share

- 2026-10: $122.26 per share

## Annual estimated value (USD per share)

- FY2016: low $29.64 per share, central $32.85 per share, high $37.12 per share

- FY2017: low $36.71 per share, central $40.38 per share, high $45.27 per share

- FY2018: low $45.78 per share, central $50.31 per share, high $56.34 per share

- FY2019: low $65.41 per share, central $86.81 per share, high $99.28 per share

- FY2020: low $93.65 per share, central $124.03 per share, high $141.73 per share

- FY2021: low $135.99 per share, central $184.32 per share, high $212.46 per share

- FY2022: low $172.32 per share, central $234.25 per share, high $270.32 per share

- FY2023: low $157.61 per share, central $210.62 per share, high $241.49 per share

- FY2024: low $149.42 per share, central $204.63 per share, high $236.78 per share

- FY2025: low $167.75 per share, central $230.59 per share, high $267.19 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1352010/000135201026000015/epam-20251231.htm); period 2025-12-31, filed 2026-02-26.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.