Eplus (PLUS) AI Stock Analysis

• Market Cap: $1.99B
• Dividend Yield: 0.34%
• Average Volume (3M): 195.23K
• Price to Earnings (P/E): 17.4
• Beta (1Y): 1.19
• Revenue Growth: -1.96%
• EPS Growth: 5.19%
• Country: US
• Employees: 2,291
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 1.26
• Shares Outstanding: 26,625,574
• 10 Day Avg. Volume: 241,577
• 30 Day Avg. Volume: 195,230
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.71
• Enterprise Value/Revenue: 0.66
• Enterprise Value/Gross Profit: 2.47
• Enterprise Value/Ebitda: 7.86
• 1Y Price Target: $81.00
• Price Target Upside: 12.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: $81.00 ▲(12.99% Upside)

Eplus demonstrates a solid financial foundation with strong cash flow and balance sheet metrics. The technical indicators suggest positive momentum, although valuation is moderate. Recent corporate events and strategic focus on high-growth areas like AI and security bolster the outlook, despite challenges in product sales and economic uncertainties.

Positive Factors

Strong Cash Position

A strong cash position provides Eplus with the flexibility to invest in strategic growth opportunities, enhance its service offerings, and manage economic uncertainties effectively.

Shift to Services

The significant growth in services revenue indicates a successful strategic shift towards services-led solutions, which can provide more stable and recurring revenue streams.

Strategic Divestiture

Divesting the financing business allows Eplus to concentrate resources on expanding its core technology solutions, potentially leading to higher growth and market share in emerging tech areas.

Negative Factors

Decline in Product Sales

A decline in product sales can impact overall revenue growth and profitability, posing a challenge if the trend continues, especially amid economic uncertainties.

Operating Income Decline

The decline in operating income reflects increased operating expenses and lower product sales, which could strain profitability if not addressed.

Challenges in Networking Segment

Ongoing challenges in the networking segment may hinder Eplus's ability to capitalize on growth opportunities in this critical area, impacting long-term competitive positioning.

Eplus Business Overview & Revenue Model

Company Description

ePlus inc., together with its subsidiaries, provides information technology (IT) solutions that enable organizations to optimize their IT environment and supply chain processes in the United States and internationally. It operates in two segments, Technology and Financing. The Technology segment offers hardware, perpetual and subscription software, maintenance, software assurance, and internally provided and outsourced services; and professional and managed services, including managed, professional, security solutions, cloud consulting and hosting, staff augmentation, server and desktop support, and project management services. The Financing segment engages in financing arrangements, such as sales-type and operating leases; loans and consumption-based financing arrangements; and underwriting, management, and disposal of IT equipment and assets. Its financing operations comprise sales, pricing, credit, contracts, accounting, risk management, and asset management. This segment primarily finances IT, communication-related, and medical equipment; and industrial machinery and equipment, office furniture and general office equipment, transportation equipment, and other general business equipment directly, as well as through vendors. ePlus inc. serves commercial entities, state and local governments, government contractors, and educational institutions. The company was formerly known as MLC Holdings, Inc. and changed its name to ePlus inc. in 1999. ePlus inc. was founded in 1990 and is headquartered in Herndon, Virginia.

How the Company Makes Money

Eplus generates revenue primarily through the sale of IT products and solutions, which includes hardware and software sales, managed services, and consulting services. The company has a diversified revenue model with key streams including direct sales to end-users, recurring revenue from managed services, and project-based consulting fees. Strategic partnerships with leading technology vendors allow Eplus to leverage their products and services, enhancing its offerings and driving sales. Additionally, Eplus benefits from long-term contracts and agreements with clients in various sectors, contributing to stable and predictable revenue streams.

Eplus Financial Statement Overview

Summary

Eplus presents a well-rounded financial profile with strengths in cash flow and balance sheet stability, although there is room for improvement in income statement metrics such as net profit margin and revenue growth. The company's ability to manage debt effectively and generate consistent cash flows provides a solid foundation for future growth, despite current revenue volatility.

Income Statement

The company shows a solid gross profit margin of approximately 27.5% in the latest year, highlighting efficient cost management. However, the net profit margin is modest at around 5.2%, indicating room for improvement in profitability. Revenue growth is volatile, with a slight decline observed recently, which could pose challenges if sustained. Despite these fluctuations, the company maintains a stable EBIT margin of about 6.8%, suggesting resilient core operations.

Balance Sheet

Eplus demonstrates a strong equity base with an equity ratio of around 51.9%, indicating a healthy capital structure. The debt-to-equity ratio is relatively low at 0.13, reflecting prudent leverage management. Return on equity stands at approximately 11.0%, showcasing effective utilization of shareholder funds. Overall, the balance sheet is robust, with manageable debt levels and solid equity support.

Cash Flow

The company exhibits strong cash flow management with a notable free cash flow growth rate of 23.2% in the latest year. The operating cash flow to net income ratio is robust at 2.8, indicating efficient conversion of earnings into cash. Free cash flow to net income ratio is similarly strong at 2.7, further highlighting effective cash flow generation relative to net income. These metrics reflect a sound cash flow position, supporting potential reinvestment and debt servicing capabilities.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.16B	2.07B	2.23B	2.07B	1.82B	1.57B
Gross Profit	575.79M	569.12M	550.79M	517.52M	460.98M	393.55M
EBITDA	180.82M	180.65M	190.80M	185.70M	172.24M	128.83M
Net Income	118.34M	107.98M	115.78M	119.36M	105.60M	74.40M
Balance Sheet
Total Assets	1.80B	1.88B	1.65B	1.41B	1.17B	1.08B
Cash, Cash Equivalents and Short-Term Investments	480.18M	389.38M	253.02M	103.09M	155.38M	129.56M
Total Debt	0.00	128.30M	141.29M	174.95M	186.51M	181.80M
Total Liabilities	778.70M	907.18M	751.69M	632.56M	505.46M	514.37M
Stockholders Equity	1.02B	977.62M	901.78M	782.26M	660.74M	562.41M
Cash Flow
Free Cash Flow	93.54M	295.54M	239.95M	-24.80M	-43.75M	117.99M
Operating Cash Flow	99.02M	302.14M	248.45M	-15.43M	-20.57M	129.51M
Investing Cash Flow	28.90M	-128.87M	-61.96M	-18.93M	-1.26M	-35.76M
Financing Cash Flow	-7.26M	-37.58M	-36.62M	-20.95M	47.18M	-49.80M

Eplus Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 71.69
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLUS, the sentiment is Neutral. The current price of 71.69 is below the 20-day moving average (MA) of 72.92, above the 50-day MA of 70.27, and above the 200-day MA of 69.41, indicating a neutral trend. The MACD of 0.84 indicates Positive momentum. The RSI at 47.22 is Neutral, neither overbought nor oversold. The STOCH value of 27.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PLUS.

Eplus Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLUS	75 Outperform	$1.99B	17.43	11.10%	0.34%	-1.96%	5.19%
SPNS	71 Outperform	2.40B	35.25	13.72%	1.37%	3.08%	-1.02%
JAMF	66 Neutral	1.48B	-29.45	-6.32%	―	11.36%	46.67%
PD	64 Neutral	1.51B	-103.84	-7.33%	―	8.20%	82.75%
MLNK	63 Neutral	1.47B	-67.26	-5.73%	―	5.96%	50.29%
DBD	45 Neutral	2.08B	-165.55	-1.77%	―	-3.75%	-100.59%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Eplus Corporate Events

ePlus Announces Strong Q1 2026 Financial Results

On August 7, 2025, ePlus announced its first quarter fiscal year 2026 financial results, highlighting a 19.0% increase in consolidated net sales to $637.3 million and a 48.8% rise in services revenues. The company also declared its first-ever quarterly dividend of $0.25 per share and introduced a new stock repurchase program. The quarter saw the sale of its domestic financing business, enhancing its position as a pure-play technology company. The financial results reflect strong growth across all customer sizes and product offerings, particularly in data center, cloud, and security products. ePlus is optimistic about its future, raising its fiscal year 2026 guidance and emphasizing its commitment to long-term stakeholder value through organic expansion and strategic opportunities.

ePlus Sells U.S. Financing Business for $180 Million

On June 30, 2025, ePlus inc. completed the sale of its U.S. financing business to Marlin Leasing Corporation, operating as PEAC Solutions, for approximately $180 million. This strategic move allows ePlus to concentrate on expanding its technology solutions and services, providing additional capital for organic and inorganic growth. The transaction is expected to enhance ePlus’s ability to deliver value to its customers, shareholders, and partners by focusing on emerging technologies and expanding its solutions portfolio. The company plans to update its fiscal 2026 guidance in the upcoming earnings call, reflecting the impact of this transaction.

ePlus Sells U.S. Financing Business to PEAC Solutions

On June 20, 2025, ePlus inc. entered into an agreement to sell its U.S. financing business to Marlin Leasing Corporation, operating as PEAC Solutions. This divestiture, valued at approximately $180 million, is part of ePlus’s strategy to focus on growth in technology and services, particularly in high-growth areas like AI and cybersecurity. The sale allows ePlus to invest in expanding its technology solutions and services, while PEAC Solutions will continue to offer financing services to ePlus’s technology customers. The transaction is expected to close within 60 days, subject to customary conditions.