EPAM Systems Inc: Mid-Cap IT Stock Outperforming in 2025?

EPAM Systems Inc (EPAM) has been making waves in the mid-cap IT stock scene, drawing attention from investors and analysts alike. With a current share price of $265.27 and a daily gain of 0.38%, EPAM has witnessed a remarkable three-month change of 30.38%. But what sets EPAM apart from its peers is its impressive GF Score of 99 out of 100, indicating substantial growth potential in the near future. Let's delve into the factors contributing to EPAM's high score and explore how they align with an investment philosophy emphasizing stability, predictability, and consistent growth.



EPAM's robust financial strength is evident in its Altman Z-Score of 12.6, which signals a strong defense against financial distress. Additionally, the company's Debt-to-Revenue ratio of 0.04 demonstrates prudent management of capital structure, further solidifying its financial health. These metrics compare favorably to other mid-cap IT stocks, indicating that EPAM is well-positioned for long-term performance.



EPAM's impressive Profitability Rank, with a strong Predictability Rank of 5.0 stars out of five, underscores its consistent operational performance. This consistency provides investors with increased confidence in the company's ability to generate profits, aligning with the desire for predictability in investments. The company's operating margin stands at 11.44%, reflecting its efficiency in managing operational costs.

Moreover, EPAM's high Growth Rank demonstrates a strong commitment to expanding its business. The company's 3-Year Revenue Growth Rate of 20.4% outperforms 74.36% of companies in the Software industry. Additionally, EPAM has seen a robust increase in its earnings before interest, taxes, depreciation, and amortization (EBITDA) over the past few years, with a three-year growth rate of 8.7 and a five-year growth rate of 18.5. This trend accentuates the company's continued capability to drive growth.

EPAM's commitment to innovation and technological advancement positions the company well for future growth and helps maintain its competitive edge in the market. The company assists businesses in adopting new technologies such as artificial intelligence, virtual reality, and robotics, further solidifying its position as a compelling investment opportunity.

In conclusion, EPAM Systems Inc's financial strength, profitability, and growth metrics, as highlighted by its high 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 for investors seeking companies with strong GF Scores. For more options, GuruFocus Premium members can explore the GF Score Screen.