EPAM Systems, Inc. (EPAM)

FairStock Score: 67/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach EPAM as a Graham-style analyst first: what is this business worth, and what am I paying? EPAM is a global digital engineering and software-development firm with 62,850 employees. The record is mixed. In fiscal 2025, revenue was $5.5B, but net income fell to $377.7M and diluted EPS to $6.72 from $454.5M and $7.84 in fiscal 2024. The latest quarter is better: in fiscal Q2 2026, the quarter ended 2026-06-30, net income was $103.0M and diluted EPS $1.97, up from $88.0M and $1.56 in fiscal Q2 2025. So there is recovery, but the five-year pattern FairStock labels a SLOW GROWER—profit up 2.9% a year, revenue up 15.5%—tells me not to pay for hypergrowth. The balance sheet is a strength: D/E 0.04 and Altman Z-Score 5.41, with Piotroski 7/9. Free cash flow is $482.6M, a 6.8% FCF yield. But returns are only moderate—ROE 11.18% and ROCE 8.45%—which suggests a competitive services business rather than a wide-moat franchise. At the 2026-10-26 close of $137.56, FairStock’s P/E is 18.69, P/B 2.02, EV/EBITDA 8.87 and PEG 1.09. FairStock reports a -28.20% margin of safety versus its $106.28 Graham Number. FairStock score is 67/100. I would call this a fair-quality business at a fair-to-full price, with volatility reflected by beta 1.38 and a 52-week range of $73.06–$222.53.

In plain English: EPAM Systems provides digital engineering and software development services to businesses around the world. It is financially sturdy, with little debt and real cash generation, but profit growth has been uneven and the business is not growing quickly. At $137.56, the shares look fair to full versus the company's numbers, not obviously cheap.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer