EPAM Systems Inc (EPAM, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance. With a current share price of $233.27, EPAM Systems Inc has experienced a modest daily increase of 0.15% and a significant three-month growth of 11.89%. A detailed analysis, supported by 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 representing the highest potential for outperformance. EPAM Systems Inc boasts a GF Score of 95, indicating a top-tier potential for market outperformance.
- Financial strength rank: 8/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 8/10
- Momentum rank: 4/10
Understanding EPAM Systems Inc Business
EPAM Systems Inc, with a market cap of $13.23 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 Systems 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 11.33, the company demonstrates a strong buffer against financial distress. Additionally, its Debt-to-Revenue ratio stands at a mere 0.04, underscoring a prudent approach to leveraging.
Profitability and Growth Metrics
EPAM Systems Inc is distinguished by its high Profitability Rank and consistent operational performance, as indicated by its 5-star Predictability Rank. The company's commitment to growth is further highlighted by its impressive Growth Rank. Over the past three years, EPAM has achieved a revenue growth rate of 20.4%, surpassing 74.15% of its peers in the software industry. Its EBITDA has also seen significant increases, 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, high profitability, and sustained growth metrics, the GF Score effectively highlights the company's exceptional position for potential market outperformance. For investors seeking similar opportunities, the GF Score Screen offers a valuable tool for identifying companies with strong investment potential.
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.
