Last Updated: 19 Sep 2024
Executive Summary
EPAM Systems Inc. (EPAM) is a leading global provider of digital platform engineering and software development services. The company has a strong financial position, with a market capitalization of $11.27 billion, EBITDA of $625.98 million, and EPS of $6.99. EPAM's trailing PE ratio of 28.33 is in line with industry peers, and its forward PE ratio of 46.3 indicates potential for growth. The company's latest stock price of $198 is below its 52-week high of $317.5, but above its 52-week low of $169.43.
Company Overview
EPAM was founded in 1993 and is headquartered in Newtown, Pennsylvania. The company has a global presence with offices in North America, Europe, Russia, Belarus, Kazakhstan, Ukraine, Georgia, East Asia, Southeast Asia, and Australia. EPAM provides a wide range of services, including software development, digital platform engineering, and business consulting. The company's clients include Fortune 500 companies and government agencies.
Fundamental Analysis
EPAM's financial performance has been strong in recent years. The company's revenue has grown at a CAGR of 15% over the past five years. In 2023, EPAM reported revenue of $4.62 billion, up 12% year-over-year. The company's net income also grew by 12% in 2023, to $525.98 million. EPAM's profitability metrics are also strong. The company's gross margin is 34%, and its operating margin is 11%. EPAM's return on assets (ROA) is 8%, and its return on equity (ROE) is 12%.
Technical Analysis
EPAM's stock price has been in a downtrend since early 2023. The stock price is currently below its 50-day and 200-day moving averages. The relative strength index (RSI) is also below 50, indicating that the stock is oversold. However, the moving average convergence divergence (MACD) indicator is showing signs of a potential reversal.
Short Term Outlook
In the short term, EPAM's stock price is likely to remain volatile. The company's financial performance is strong, but the overall market sentiment is negative. If the market continues to decline, EPAM's stock price could fall further. However, if the market rebounds, EPAM's stock price could recover.
Long Term Outlook
In the long term, EPAM's stock price is likely to rise. The company is a leader in the digital platform engineering and software development market. The demand for these services is expected to grow in the coming years. EPAM is well-positioned to benefit from this growth.
Analyst Recommendations
Analysts are generally bullish on EPAM's stock. The consensus analyst rating is "Buy." The average analyst target price is $218.01, which represents a potential upside of 10% from the current stock price.
