EPAM Systems Inc (EPAM, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance and promising growth trajectory. With its shares currently trading at $187.72 and experiencing a daily increase of 1.59%, despite a three-month decline of 30.88%, EPAM Systems Inc stands out as a potentially lucrative investment. A detailed analysis, supported by the GF Score, indicates that EPAM Systems Inc is poised for significant future growth.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, assessing stocks based on five key valuation aspects. This system has proven effective in correlating with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield better returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. EPAM Systems Inc boasts a GF Score of 93, reflecting its strong potential for market outperformance.
- Financial strength rank: 8/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 4/10
- Momentum rank: 5/10
Understanding EPAM Systems Inc Business
EPAM Systems Inc is a leading global IT services firm with a market cap of $10.88 billion and annual sales of $4.65 billion. The company specializes in platform engineering, software development, and consulting, with a significant presence in North America, which accounts for about 60% of its revenues. EPAM Systems Inc is at the forefront of integrating cutting-edge technologies like artificial intelligence, virtual reality, and robotics into its service offerings.
Financial Strength Breakdown
EPAM Systems Inc's financial resilience is evident in its robust balance sheet and strategic debt management. With an Altman Z-Score of 10.08, the company demonstrates a strong buffer against financial distress. Additionally, its Debt-to-Revenue ratio of 0.04 underscores a prudent approach to leveraging, further solidifying its financial health.
Profitability and Growth Metrics
EPAM Systems Inc excels in profitability, as evidenced by its top-tier Profitability Rank. The company's consistent operational performance is highlighted by its Predictability Rank of 5.0 stars. In terms of growth, EPAM Systems Inc has demonstrated a strong commitment to expansion, with a notable 3-Year Revenue Growth Rate of 20.4%, outperforming 73.92% of its peers in the software industry. This growth is complemented by significant increases in EBITDA over the past few years.
Conclusion
Given EPAM Systems Inc's robust financial strength, impressive profitability, and sustained growth metrics, the GF Score highlights the company's exceptional position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores through the 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.
