EPAM Systems

EPAM

Information Technology Services · Technology

Price

$88.66

+0.99 (+1.13%)

Market Cap

$4.63B

Winston Score

Winston is curious

Mixed quality — meaningful strengths and weaknesses.

Share count falling — buybacks

−4.8% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 59.1M (2021) → 56.2M (2025)

EPAM Systems is a technology services company that builds custom software for other businesses. It designs, develops, and tests software applications for clients in industries like finance, healthcare, media, and retail. The company does not sell its own software products — instead, it provides the engineers and expertise that other companies hire to build their digital tools.

EPAM earns revenue by billing clients for the hours or projects its software engineers work on, similar to a staffing and consulting model. The company was founded in Eastern Europe and built much of its workforce in Ukraine, Belarus, and nearby countries, though it has been expanding into other regions since Russia's invasion of Ukraine in 2022 disrupted its talent base significantly. That geographic concentration remains the company's biggest risk, as rebuilding its workforce in new locations while keeping costs competitive is an ongoing challenge to its growth and margins.

Winston Score History

Politician Trades

13 trades / 12mo

4 Congressional buys and 9 sells on EPAM in the last 12 months.

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+7.6% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+18.6% YoY

YoY Growth Rate

Steady EPS growth

R&D Spend

$0/ year

0.0% of revenue

Below sector average (15%)

Research and development spending

Insider Activity

3.5%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Runway

~5 years

$1.0B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

$1.0B cash & investments at current burn rate

Growth context

EPAM Systems is growing revenue at 8% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin

25.6%

Modest — 25.6% gross margin

Operating Margin

8.5%

Modest — 8.5% operating margin

ROCE

3.2%

Weak — 3.2% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+14.2%

Fast-growing sales (14.2% YoY)

EPS YoY

-3.0%

Earnings shrinking (-3.0% YoY)

Slight earnings drop. Typical near a cyclical low.

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion

154%

Turns 154% of profit into real cash

FCF Margin

9.8%

Modest free cash flow (9.8%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

0.08

Conservative — low debt load (0.08)

Interest Cover

100.00x

—

Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)

12.7x

Attractive valuation — P/E 12.7

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward

+6.0

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (12.7 → 6.7)

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Dividends

Not applicable for this business.

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