EPAM Systems Inc (EPAM, Financial) has recently captured the attention of investors and financial analysts with its strong financial performance. Currently trading at $206 per share, EPAM Systems Inc has experienced a daily increase of 2.74% and a significant three-month growth of 17.27%. A detailed analysis based on the GF Score indicates that EPAM Systems Inc is poised for substantial future growth.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects of valuation, which have shown a strong correlation with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield higher 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 97, signaling significant outperformance potential.
- Financial strength rank: 9/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 8/10
- Momentum rank: 5/10
Understanding EPAM Systems Inc Business
EPAM Systems Inc, with a market cap of $11.73 billion and annual sales of $4.62 billion, operates as a global IT services firm. It specializes in platform engineering, software development, and consulting, with North America accounting for about 60% of its revenues. EPAM is at the forefront of integrating new technologies like artificial intelligence, virtual reality, and robotics into its service offerings.
Financial Strength Breakdown
EPAM Systems Inc's financial resilience is reflected in its robust balance sheet and strategic debt management. With an Altman Z-Score of 11.03, the company demonstrates a strong buffer against financial distress. Additionally, its Debt-to-Revenue ratio of 0.04 underscores prudent financial management, enhancing its financial health.
Profitability and Growth Metrics
EPAM Systems Inc stands out with a Profitability Rank of 10/10, reflecting its superior ability to generate profits compared to its peers. The company's consistent operational performance is further evidenced by a Predictability Rank of 5 stars. In terms of growth, EPAM has demonstrated a remarkable 3-Year Revenue Growth Rate of 20.4%, outperforming 73.99% of its industry peers. The company's EBITDA has also seen significant growth, with a three-year growth rate of 8.7 and a five-year rate of 18.5.
Conclusion
Considering EPAM Systems Inc's robust financial strength, impressive profitability, and consistent 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 using 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.
