EPAMEPAM Systems, Inc.

Services-Computer Programming Services

Revenue: $5.5B; 15% YoY
Operating margin: 9.5%; 17% YoY
EBITDA: $645M; 1.7% YoY
Market cap: $7.2B
Employees: 53,150; $103K revenue each
Net debt / EBITDA: -1.2×; −$764M net debt
AI in 10-K: 10.2; mentions per 10K words

Takeover score 4 of 13

Fixable underperformance 2 of 7

TSR below peersYes
3 of 5 years
3+ of last 5 years
High CEO pay despite TSRNo
—
Median CEO pay ≥ $15M while TSR trails
Earnings not backed by cashNo
173% of net income
Cash flow under 80% of net income
Dilutive SBCNo
3% of revenue
Over 10% of revenue
Payouts exceed cash flowYes
101% of cash flow
Buybacks + dividends over cash flow
Goodwill-heavyNo
26% of assets
Over 40% of assets
Shareholder dissentNo
—
Any vote under 80% support

Buyer economics 2 of 4

Low revenue per employeeYes
$103K · 5th pct
Bottom quartile of its SIC industry
Quiet on AINo
10.2 per 10K words · 93rd pct
Bottom quartile of AI mentions in 10-Ks
Net cashYes
Net cash · 1.2× EBITDA
More cash than debt, positive EBITDA
Buyout-sizedNo
$7.2B market cap
Market cap $500M–$5B

Catalysts 0 of 2

Active 13DNo
0 filings
Active-intent 13D in 18 months
Net insider sellingNo
−$2M net
Net sales over $10M in 12 months

Financials

Metric	FY2021	FY2022	FY2023	FY2024	FY2025	YoY	Trend
Revenue	$3.8B	$4.8B	$4.7B	$4.7B	$5.5B	15%
Operating income	$542M	$573M	$501M	$545M	$520M	4.5%
Net income	$482M	$419M	$417M	$455M	$378M	17%
Operating cash flow	$572M	$464M	$563M	$559M	$655M	17%
Capex	$112M	$82M	$28M	$32M	$42M	31%
Stock-based comp	$112M	$100M	$148M	$167M	$177M	5.7%
Buybacks	$0	$0	$165M	$398M	$662M	66%

Deal filings

None.

13D filers

None on file.

Insider trading

Open-market buys, 12 mo: $45K · 6
Open-market sells, 12 mo: $2M · 4
Net: −$2M

Pay vs performance

Year	CEO total comp	Comp actually paid	TSR (indexed)	Peer TSR
FY2025	—	—	57	258
FY2024	—	—	110	300
FY2023	—	—	140	219
FY2022	—	—	154	139
FY2021	—	—	315	194