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EPAM (EPAM Systems) Piotroski F-Score : 7 (As of Mar. 16, 2025)


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What is EPAM Systems Piotroski F-Score?

Good Sign:

Piotroski F-Score is 7, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

EPAM Systems has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for EPAM Systems's Piotroski F-Score or its related term are showing as below:

EPAM' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 5   Max: 7
Current: 7

During the past 13 years, the highest Piotroski F-Score of EPAM Systems was 7. The lowest was 3. And the median was 5.


EPAM Systems Piotroski F-Score Historical Data

The historical data trend for EPAM Systems's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

EPAM Systems Piotroski F-Score Chart

EPAM Systems Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.00 6.00 5.00 6.00 7.00

EPAM Systems Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 6.00 5.00 5.00 7.00

Competitive Comparison of EPAM Systems's Piotroski F-Score

For the Information Technology Services subindustry, EPAM Systems's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


EPAM Systems's Piotroski F-Score Distribution in the Software Industry

For the Software industry and Technology sector, EPAM Systems's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where EPAM Systems's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Dec24) TTM:Last Year (Dec23) TTM:
Net Income was 116.243 + 98.645 + 136.346 + 103.299 = $455 Mil.
Cash Flow from Operations was 129.92 + 57.027 + 241.962 + 130.259 = $559 Mil.
Revenue was 1165.465 + 1146.597 + 1167.527 + 1248.351 = $4,728 Mil.
Gross Profit was 331.131 + 335.74 + 403.535 + 380.037 = $1,450 Mil.
Average Total Assets from the begining of this year (Dec23)
to the end of this year (Dec24) was
(4352.365 + 4374.577 + 4223.329 + 4457.197 + 4750.473) / 5 = $4431.5882 Mil.
Total Assets at the begining of this year (Dec23) was $4,352 Mil.
Long-Term Debt & Capital Lease Obligation was $124 Mil.
Total Current Assets was $2,426 Mil.
Total Current Liabilities was $821 Mil.
Net Income was 102.292 + 120.033 + 97.204 + 97.554 = $417 Mil.

Revenue was 1210.941 + 1170.206 + 1152.136 + 1157.257 = $4,691 Mil.
Gross Profit was 355.04 + 361.491 + 357.871 + 359.624 = $1,434 Mil.
Average Total Assets from the begining of last year (Dec22)
to the end of last year (Dec23) was
(4009.151 + 4071.345 + 4093.697 + 4162.272 + 4352.365) / 5 = $4137.766 Mil.
Total Assets at the begining of last year (Dec22) was $4,009 Mil.
Long-Term Debt & Capital Lease Obligation was $135 Mil.
Total Current Assets was $3,091 Mil.
Total Current Liabilities was $645 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

EPAM Systems's current Net Income (TTM) was 455. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

EPAM Systems's current Cash Flow from Operations (TTM) was 559. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Dec23)
=454.533/4352.365
=0.10443357

ROA (Last Year)=Net Income/Total Assets (Dec22)
=417.083/4009.151
=0.10403275

EPAM Systems's return on assets of this year was 0.10443357. EPAM Systems's return on assets of last year was 0.10403275. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

EPAM Systems's current Net Income (TTM) was 455. EPAM Systems's current Cash Flow from Operations (TTM) was 559. ==> 559 > 455 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Dec24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec23 to Dec24
=123.62/4431.5882
=0.02789519

Gearing (Last Year: Dec23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec22 to Dec23
=135.387/4137.766
=0.03271983

EPAM Systems's gearing of this year was 0.02789519. EPAM Systems's gearing of last year was 0.03271983. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Dec24)=Total Current Assets/Total Current Liabilities
=2426.248/821.039
=2.9550947

Current Ratio (Last Year: Dec23)=Total Current Assets/Total Current Liabilities
=3091.361/644.932
=4.79331309

EPAM Systems's current ratio of this year was 2.9550947. EPAM Systems's current ratio of last year was 4.79331309. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

EPAM Systems's number of shares in issue this year was 57.434. EPAM Systems's number of shares in issue last year was 58.911. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=1450.443/4727.94
=0.30678118

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1434.026/4690.54
=0.30572727

EPAM Systems's gross margin of this year was 0.30678118. EPAM Systems's gross margin of last year was 0.30572727. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Dec23)
=4727.94/4352.365
=1.08629217

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Dec22)
=4690.54/4009.151
=1.16995843

EPAM Systems's asset turnover of this year was 1.08629217. EPAM Systems's asset turnover of last year was 1.16995843. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+1+0+1+1+0
=7

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

EPAM Systems has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

EPAM Systems  (NYSE:EPAM) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


EPAM Systems Piotroski F-Score Related Terms

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EPAM Systems Business Description

Traded in Other Exchanges
Address
41 University Drive, Suite 202, Newtown, PA, USA, 18940
EPAM Systems is 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 revenue. Offerings span assisting companies with new technologies, such as artificial intelligence, virtual reality, and robotics.
Executives
Jason D. Peterson officer: Chief Financial Officer 41 UNIVERSITY DRIVE SUITE 202, NEWTOWN PA 18940
Viktar Dvorkin officer: SVP/Head of Global Delivery C/O EPAM SYSTEMS, INC., 41 UNIVERSITY DRIVE, SUITE 202, NEWTOWN PA 18940
Arkadiy Dobkin director, 10 percent owner, officer: CEO, President, Chairman C/O EPAM SYSTEMS, INC., 41 UNIVERSITY DRIVE, SUITE 202, NEWTOWN PA 18940
Sergey Yezhkov officer: SVP/Co-Head of Global Business C/O EPAM SYSTEMS, INC., 41 UNIVERSITY DRIVE, SUITE 202, NEWTOWN PA 18940
Lawrence F Solomon officer: SVP & Chief People Officer 41 UNIVERSITY DRIVE SUITE 202, NEWTOWN PA 18940
Balazs Fejes officer: Chief Technology Officer C/O EPAM SYSTEMS, INC., 41 UNIVERSITY DRIVE, SUITE 202, NEWTOWN PA 18940
Elaina Shekhter officer: Chief Marketing Officer 860 GREAT OAKS TRAIL, EAGAN MN 55123
Eugene Roman director 72 EDENBRIDGE DRIVE, TORONTO A6 M9A3G2
Chandra Mcmahon director C/O EPAM SYSTEMS, INC., 41 UNIVERSITY DRIVE SUITE 202, NEWTOWN PA 18940
Deanne Aguirre director C/O HERCULES CAPITAL, INC., 400 HAMILTON AVENUE, SUITE 310, PALO ALTO CA 94301
Gary C Abrahams officer: VP, Corporate Controller, PAO 41 UNIVERSITY DRIVE SUITE 202, NEWTOWN PA 18940
Boris Shnayder officer: SVP/Co-Head of Global Business 41 UNIVERSITY DRIVE SUITE 202, NEWTOWN PA 18940
Ronald P Vargo director 41 UNIVERSITY DRIVE, SUITE 202, NEWTOWN PA 18940
Robert E. Segert director C/O EPAM SYSTEMS, INC., 41 UNIVERSITY DRIVE, SUITE 202, NEWTOWN PA 18940
Karl Robb director, officer: Pres. of EU Operations, EVP C/O EPAM SYSTEMS, INC., 41 UNIVERSITY DRIVE, SUITE 202, NEWTOWN PA 18940