EPAM Systems Inc (EPAM, Financial) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $246.67, EPAM Systems Inc has witnessed a daily loss of 0.8%, marked against a three-month change of 26.79%. A thorough analysis, underlined by the GF Score, suggests that EPAM Systems Inc is well-positioned for substantial growth in the near future.
Understanding the GF Score
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 8/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 10/10
- Momentum rank: 5/10
Each one of these components is ranked and the ranks also have positive correlation with the long-term performances of stocks. The GF score is calculated using the five key aspects of analysis. Through backtesting, we know that each of these key aspects has a different impact on the stock price performance. Thus, they are weighted differently when calculating the total score. GuruFocus assigned EPAM Systems Inc the GF Score of 97 out of 100, which signals the highest outperformance potential.
Understanding EPAM Systems Inc Business
EPAM Systems Inc is a global IT services firm that offers platform engineering, software development, and consulting services. With a market capitalization of $13.99 billion and sales amounting to $4.64 billion, EPAM Systems Inc has established a significant presence in the industry. The company's largest market is North America, which represents approximately 60% of its revenue. EPAM Systems Inc's offerings span assisting companies with new technologies, such as artificial intelligence, virtual reality, and robotics, showcasing its commitment to innovation and technological advancement.
Financial Strength Breakdown
According to the Financial Strength rating, EPAM Systems Inc's robust balance sheet exhibits resilience against financial volatility, reflecting prudent management of capital structure. With an Altman Z-Score of 12.29, EPAM Systems Inc exhibits a strong defense against financial distress, highlighting its robust financial stability. With a favorable Debt-to-Revenue ratio of 0.04, EPAM Systems Inc's strategic handling of debt solidifies its financial health.
Profitability Rank Breakdown
The Profitability Rank shows EPAM Systems Inc's impressive standing among its peers in generating profit. EPAM Systems Inc's strong Predictability Rank of 5.0 stars out of five underscores its consistent operational performance, providing investors with increased confidence.
Growth Rank Breakdown
Ranked highly in Growth, EPAM Systems Inc demonstrates a strong commitment to expanding its business. The company's 3-Year Revenue Growth Rate is 20.4%, which outperforms better than 74.21% of 2,489 companies in the Software industry. Moreover, EPAM Systems Inc has seen a robust increase in its earnings before interest, taxes, depreciation, and amortization (EBITDA) over the past few years. Specifically, the three-year growth rate stands at 8.7, and the rate over the past five years is 18.5. This trend accentuates the company's continued capability to drive growth.
Conclusion: EPAM Systems Inc's Path to Outperformance
EPAM Systems Inc's financial strength, profitability, and growth metrics, as highlighted by its impressive GF Score, underscore the firm's unparalleled position for potential outperformance. The company's strategic initiatives, robust financial health, and commitment to innovation position it as a compelling investment opportunity. As the market continues to evolve, EPAM Systems Inc's ability to adapt and thrive in the face of technological advancements and industry trends will be crucial. Investors seeking companies with strong growth potential and financial stability should consider EPAM Systems Inc as a viable option.
GuruFocus Premium members can find more companies with strong GF Scores using the following screener link: 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.
