Is the business good?
How good a business is EPAM?
EPAM Systems earns 16% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
16%
Return on invested capital · cost of capital 9.0% · 7.1 points above what the capital costs: growth creates value
- Operating margin
- 10%
Operating margin · Information Technology Services median 7.9% · 12 months to Q2 2026
- Cash conversion
- 1.20×
Cash conversion · 1.02× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −7.5%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 14% |
| FY2021 | 14% |
| FY2022 | 12% |
| FY2023 | 11% |
| FY2024 | 12% |
| FY2025 | 9.5% |
Details›
- Gross margin12 months to Q2 2026
- 29%
- Operating margin12 months to Q2 2026
- 10%
- Net margin12 months to Q2 2026
- 7.1%
- Free cash flow margin
- 8.6%
- Revenue, trailing twelve months
- $5.62B
- Free cash flow, trailing twelve months
- $483M
- Net income, trailing twelve months
- $402M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 16%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Information Technology Services
Ranks #25 of 37 by Smart Score