EPAM Systems Inc (EPAM, Financial), a leading player in the software industry, is currently trading at $246.48 with a market capitalization of $14.27 billion. The company's stock price has seen a gain of 4.04% today and a 7.69% increase over the past four weeks. According to the GF Score, EPAM has a score of 93 out of 100, indicating the highest outperformance potential. This article will delve into the factors contributing to EPAM's high GF Score.
Financial Strength Analysis
The Financial Strength of a company is a measure of its ability to withstand economic downturns. EPAM's Financial Strength Rank is 8/10, indicating a strong financial position. The company's low debt to revenue ratio of 0.04 and high Altman Z score of 11.81 contribute to this high rank.
Profitability Rank Analysis
The Profitability Rank measures a company's profitability and its likelihood of remaining profitable. EPAM's Profitability Rank is 10/10, the highest possible score. This is due to its impressive operating margin of 11.60%, a Piotroski F-Score of 5, and a consistent profitability trend over the past 10 years.
Growth Rank Analysis
The Growth Rank measures a company's revenue and profitability growth. EPAM's Growth Rank is 10/10, indicating robust growth. The company's 5-year revenue growth rate of 24.90% and 3-year revenue growth rate of 27.00% contribute to this high rank.
GF Value Rank Analysis
The GF Value Rank is determined by the price-to-GF-Value ratio, a proprietary metric calculated based on historical multiples and an adjustment factor based on a company's past returns and growth. EPAM's GF Value Rank is 4/10, indicating that the stock is reasonably valued.
Momentum Rank Analysis
The Momentum Rank measures the momentum of a company's stock price. EPAM's Momentum Rank is 5/10, indicating moderate momentum.
Comparison with Competitors
When compared to its competitors in the software industry, EPAM stands out with its high GF Score. Broadridge Financial Solutions Inc (BR, Financial) has a GF Score of 92, Gartner Inc (IT, Financial) has a GF Score of 91, and Leidos Holdings Inc (LDOS, Financial) has a GF Score of 86.
Conclusion
In conclusion, EPAM Systems Inc's high GF Score of 93, backed by its strong financial strength, impressive profitability, robust growth, reasonable valuation, and moderate momentum, makes it a promising investment. Given its current performance and high GF Score, the company is likely to continue outperforming in the future.
