EPAM Systems Inc (EPAM, Financial) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $307.73, EPAM Systems Inc has witnessed a daily gain of 2.68%, marked against a three-month change of 29.54%. A thorough analysis, underlined by the GF Score, suggests that EPAM Systems Inc is well-positioned for substantial growth in the near future.
What Is the GF Score?
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 8/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 9/10
- Momentum rank: 8/10
Each one of these components is ranked and the ranks also have positive correlation with the long term performances of stocks. The GF score is calculated using the five key aspects of analysis. Through backtesting, we know that each of these key aspects has a different impact on the stock price performance. Thus, they are weighted differently when calculating the total score. With high ranks across the board, and particularly impressive scores in profitability and growth, GuruFocus assigned EPAM Systems Inc the GF Score of 99 out of 100, which signals the highest outperformance potential.
Understanding EPAM Systems Inc Business
EPAM Systems Inc, with a market cap of $17.76 billion and sales of $4.76 billion, operates as a global IT services firm that offers platform engineering, software development, and consulting services. EPAM's largest market is North America, which represents approximately 60% of revenues. The company is adept at assisting companies with new technologies, such as artificial intelligence, virtual reality, and robotics, showcasing a forward-thinking approach in a rapidly evolving industry. With an operating margin of 12.07%, EPAM Systems Inc demonstrates a strong ability to convert sales into profit.
Financial Strength Breakdown
According to the Financial Strength rating, EPAM Systems Inc's robust balance sheet exhibits resilience against financial volatility, reflecting prudent management of capital structure. With an Altman Z-Score of 15.47, EPAM Systems Inc exhibits a strong defense against financial distress, highlighting its robust financial stability. With a favorable Debt-to-Revenue ratio of 0.04, EPAM Systems Inc's strategic handling of debt solidifies its financial health.
Profitability Rank Breakdown
The Profitability Rank shows EPAM Systems Inc's impressive standing among its peers in generating profit. The Piotroski F-Score confirms EPAM Systems Inc's solid financial situation based on Joseph Piotroski's nine-point scale, which measures a company's profitability, funding and operating efficiency. EPAM Systems Inc's strong Predictability Rank of 4.5 stars out of five underscores its consistent operational performance, providing investors with increased confidence.
Growth Rank Breakdown
Ranked highly in Growth, EPAM Systems Inc demonstrates a strong commitment to expanding its business. The company's 3-Year Revenue Growth Rate is 27%, which outperforms better than 82.16% of 2394 companies in the Software industry. Moreover, EPAM Systems Inc has seen a robust increase in its earnings before interest, taxes, depreciation, and amortization (EBITDA) over the past few years. Specifically, the three-year growth rate stands at 19.8, and the rate over the past five years is 28.3. This trend accentuates the company's continued capability to drive growth.
Next Steps
Considering EPAM Systems Inc's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. Investors seeking to capitalize on such robust financial health and promising growth trajectory may find EPAM Systems Inc an attractive addition to their portfolios. With a GF Score near perfection, the company stands as a testament to the value of comprehensive financial analysis in identifying market leaders.
GuruFocus Premium members can find more companies with strong GF Scores using the following screener link: GF Score Screen
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
