What Should Investors Know About EPAM Systems (EPAM) Stock?

EPAM Systems moved 1.9% this afternoon session, trading between a high of $211.85 and a low of $197.99 per share. Yesterday the stock finished at $203.25 per share, compared to an average analyst target price of $304.17.

EPAM Systems, Inc. provides digital platform engineering and software development services worldwide. The large-cap edp services company is based in the United States and has trailing twelve months earnings per share (EPS) of 5.77, which at today's prices amounts to a price to earnings (P/E) ratio of 35.9.

Based on its expected future earnings growth, the company has a price to earnings growth (PEG) ratio of 4.49. Usually a PEG ratio between 0 and 1 indicates a potentially undervalued company.

Overview of the Company's Gross Margins:

Date Reported Revenue ($ k) Cost of Revenue ($ k) Gross Margins (%) YoY Growth (%)
2022-12-31 4,824,698 3,286,683 31.88 -5.99
2021-12-31 3,758,144 2,483,697 33.91 -2.7
2020-12-31 2,659,478 1,732,522 34.85 -0.77
2019-12-31 2,293,798 1,488,198 35.12 n/a

EPAM Systems's 33.9% average gross margins are thinner than the 55.75% average of the Data Processing Services industry, implying that the firm might be lacking in competitivity.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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