EPAM Systems (NYSE:EPAM) Hasn't Managed To Accelerate Its Returns

Simply Wall St.10-17

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Firstly, we'll want to see a proven return on capital employed (ROCE) that is increasing, and secondly, an expanding ...

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Firstly, we'll want to see a proven return on capital employed (ROCE) that is increasing, and secondly, an expanding ...</p>\n\n<a href=\"https://finance.yahoo.com/news/epam-systems-nyse-epam-hasnt-180508672.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>EPAM Systems (NYSE:EPAM) Hasn't Managed To Accelerate Its Returns</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nEPAM Systems (NYSE:EPAM) Hasn't Managed To Accelerate Its Returns\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-17 02:05 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/epam-systems-nyse-epam-hasnt-180508672.html><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>If you're looking for a multi-bagger, there's a few things to keep an eye out for. Firstly, we'll want to see a proven return on capital employed (ROCE) that is increasing, and secondly, an expanding ...</p>\n\n<a href=\"https://finance.yahoo.com/news/epam-systems-nyse-epam-hasnt-180508672.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4588","symbol_name":"碎股","start_time":0,"source_url":"https://finance.yahoo.com/news/epam-systems-nyse-epam-hasnt-180508672.html","article_id":"2476925007","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/._HFmWFPcwt6muyT_tZE7g--~B/aD00MzI7dz0xMTk0O2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/simply_wall_st__316/b394072c431426666ba19d9f9857f297"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2476925007","pubTimestamp":1729101908,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"If you're looking for a multi-bagger, there's a few things to keep an eye out for. Firstly, we'll want to see a proven return on capital employed  that is increasing, and secondly, an expanding base of capital employed. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. With that in mind, the ROCE of EPAM Systems  looks decent, right now, so lets see what the trend of returns can tell us.Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income  a company earns on the capital invested in its business. To calculate this metric for EPAM Systems, this is the formula:. Thus, EPAM Systems has an ROCE of 15%.  On its own, that's a standard return, however it's much better than the 11% generated by the IT industry.What Can We Tell From EPAM Systems' ROCE Trend?","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4588":"碎股","LU2045819591.USD":"Natixis WCM Global Emerging Markets Equity R/A USD","BK4566":"资本集团","EPAM":"Epam Systems","IE00B0169N27.USD":"STEWARD INVESTORS GLOBAL EMERGING MARKETS LEADERS \"I\" (USD) ACC","NYSE":"纽交所","BK4134":"信息科技咨询与其它服务","AAQC":"Accelerate Acquisition Corp","EBIT":"Harbor AlphaEdge Small Cap Earners ETF","LU2125910500.SGD":"Natixis WCM Global Emerging Markets Equity H-R/A SGD","BK4585":"ETF&股票定投概念"},"translate_title":"EPAM Systems（纽约证券交易所股票代码：EPAM）未能加速其回报","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AAQC":1,"EBIT":1,"EPAM":1,"NYSE":1},"content_text":"If you're looking for a multi-bagger, there's a few things to keep an eye out for. Firstly, we'll want to see a proven return on capital employed (ROCE) that is increasing, and secondly, an expanding base of capital employed. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. With that in mind, the ROCE of EPAM Systems (NYSE:EPAM) looks decent, right now, so lets see what the trend of returns can tell us. \n Understanding Return On Capital Employed (ROCE) \n Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. To calculate this metric for EPAM Systems, this is the formula: \n Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) \n0.15 = US$538m ÷ (US$4.2b - US$602m) (Based on the trailing twelve months to June 2024).\n Thus, EPAM Systems has an ROCE of 15%.  On its own, that's a standard return, however it's much better than the 11% generated by the IT industry. \n Check out our latest analysis for EPAM Systems \n\n\n\n  NYSE:EPAM Return on Capital Employed October 16th 2024\n \n\n Above you can see how the current ROCE for EPAM Systems compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for EPAM Systems . \n What Can We Tell From EPAM Systems' ROCE Trend? \n While the returns on capital are good, they haven't moved much. The company has employed 118% more capital in the last five years, and the returns on that capital have remained stable at 15%. Since 15% is a moderate ROCE though, it's good to see a business can continue to reinvest at these decent rates of return. Over long periods of time, returns like these might not be too exciting, but with consistency they can pay off in terms of share price returns. \n In Conclusion... \n The main thing to remember is that EPAM Systems has proven its ability to continually reinvest at respectable rates of return. However, over the last five years, the stock has only delivered a 17% return to shareholders who held over that period. So to determine if EPAM Systems is a multi-bagger going forward, we'd suggest digging deeper into the company's other fundamentals. \n EPAM Systems could be trading at an attractive price in other respects, so you might find our  free intrinsic value estimation for EPAM  on our platform quite valuable. \n If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive returns on equity. \nHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. 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