Eplus (PLUS) AI Stock Analysis

• Market Cap: $1.97B
• Dividend Yield: 0.34%
• Average Volume (3M): 146.63K
• Price to Earnings (P/E): 17.2
• Beta (1Y): 1.23
• Revenue Growth: -1.96%
• EPS Growth: 5.19%
• Country: US
• Employees: 2,291
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 1.53
• Shares Outstanding: 26,625,574
• 10 Day Avg. Volume: 140,116
• 30 Day Avg. Volume: 146,631
• PEG Ratio: -2.41
• Price to Book (P/B): 1.65
• Price to Sales (P/S): 0.78
• P/FCF Ratio: 5.47
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: $83.00 ▲(13.78% Upside)

Eplus's overall stock score is driven by strong financial performance and a positive outlook from the recent earnings call. The company's robust cash flow and balance sheet provide a solid foundation, while technical indicators suggest bullish momentum. However, the valuation is moderate, and investors should be mindful of potential pullbacks due to overbought conditions.

Positive Factors

Strong Cash Flow Management

Strong cash flow management supports reinvestment and debt servicing, providing a solid foundation for sustainable growth.

Strategic Focus on High-Growth Areas

Focusing on high-growth areas like AI and security positions Eplus to capitalize on emerging technology trends, driving future growth.

Healthy Balance Sheet

A strong balance sheet with substantial cash reserves allows Eplus to invest in growth opportunities and weather economic fluctuations.

Negative Factors

Revenue Growth Volatility

Volatile revenue growth may challenge Eplus's ability to maintain consistent financial performance and could impact long-term planning.

Professional Services Margin Decline

Declining margins in Professional Services could pressure overall profitability, necessitating efficiency improvements to sustain margins.

Challenges in State and Local Government Sector

Budget constraints in government sectors could limit growth opportunities, impacting Eplus's ability to expand in these markets.

Eplus Business Overview & Revenue Model

Company Description

Eplus (PLUS) is a technology solutions provider specializing in IT infrastructure, cloud services, and digital transformation solutions. The company operates across various sectors, including education, healthcare, and government, offering a wide range of products and services such as hardware procurement, software licensing, managed services, and IT consulting. Eplus aims to enhance organizational efficiency and support digital innovation through its comprehensive suite of technology offerings.

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	1.65B	2.07B	2.23B	2.07B	1.82B	1.57B
Gross Profit	596.99M	569.12M	550.79M	517.52M	460.98M	393.55M
EBITDA	187.83M	180.65M	190.80M	185.70M	172.24M	128.83M
Net Income	121.88M	107.98M	115.78M	119.36M	105.60M	74.40M
Balance Sheet
Total Assets	1.77B	1.88B	1.65B	1.41B	1.17B	1.08B
Cash, Cash Equivalents and Short-Term Investments	402.16M	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	720.75M	907.18M	751.69M	632.56M	505.46M	514.37M
Stockholders Equity	1.05B	977.62M	901.78M	782.26M	660.74M	562.41M
Cash Flow
Free Cash Flow	76.81M	295.54M	239.95M	-24.80M	-43.75M	117.99M
Operating Cash Flow	89.02M	302.14M	248.45M	-15.43M	-20.57M	129.51M
Investing Cash Flow	153.75M	-128.87M	-61.96M	-18.93M	-1.26M	-35.76M
Financing Cash Flow	-32.90M	-37.58M	-36.62M	-20.95M	47.18M	-49.80M

Eplus Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 72.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLUS, the sentiment is Positive. The current price of 72.95 is below the 20-day moving average (MA) of 73.59, below the 50-day MA of 72.97, and above the 200-day MA of 68.81, indicating a bullish trend. The MACD of 1.18 indicates Negative momentum. The RSI at 75.94 is Negative, neither overbought nor oversold. The STOCH value of 74.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PLUS.

Eplus Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLUS	76 Outperform	$1.97B	17.24	11.10%	0.34%	-1.96%	5.19%
CXM	73 Outperform	$1.84B	16.66	23.74%	―	6.08%	153.79%
DV	69 Neutral	$1.82B	35.77	4.80%	―	16.54%	-12.60%
PRGS	69 Neutral	$1.84B	38.18	10.75%	―	31.41%	-40.89%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ALIT	43 Neutral	$1.35B	―	-66.86%	5.93%	-12.37%	-754.18%

Eplus Corporate Events

Eplus Inc. Reports Strong Q3 Results Amid Strategic Shift

Eplus Inc. is a Delaware-based company that provides information technology solutions, consulting, professional, and managed services to medium and large enterprises, as well as state and local government and educational institutions in the United States and select international markets. The company recently transitioned to a pure-play technology solutions provider after divesting its domestic financing business.

ePlus Reports Strong Q2 2026 Financial Results

On November 6, 2025, ePlus inc. announced its financial results for the second quarter and first half of fiscal year 2026, showing significant growth across key metrics. The company reported a 23.4% increase in consolidated net sales to $608.8 million for the second quarter, with gross billings surpassing $1 billion for the first time. Net earnings from continuing operations rose by 92.7% to $38.2 million, and adjusted EBITDA increased by 61.6% to $58.7 million. The company also declared a quarterly cash dividend of $0.25 per common share. ePlus completed the acquisition of certain assets of Realwave to enhance its AI capabilities, aligning with its strategy to invest in high-growth areas. The results underscore ePlus’s strong market position and strategic execution.

The most recent analyst rating on (PLUS) stock is a Buy with a $81.00 price target. To see the full list of analyst forecasts on Eplus stock, see the PLUS Stock Forecast page.

Eplus Shareholders Approve Key Proposals at Annual Meeting

On September 16, 2025, ePlus inc. held its Annual Meeting where shareholders, representing 91.73% of eligible shares, voted on key proposals. The election of directors resulted in all nominees being successfully elected, while the advisory vote on executive compensation and the ratification of Deloitte & Touche LLP as the independent accounting firm for fiscal year 2026 were both approved. These decisions reflect shareholder support for the company’s leadership and financial oversight, potentially reinforcing its stability and strategic direction.

The most recent analyst rating on (PLUS) stock is a Buy with a $81.00 price target. To see the full list of analyst forecasts on Eplus stock, see the PLUS Stock Forecast page.

Eplus Completes Sale of Domestic Subsidiaries

On June 30, 2025, Eplus Inc. completed the sale of its domestic subsidiaries, which comprised the majority of its financing business segment, to Marlin Leasing Corporation. The transaction involved the sale of 100% membership interests of Expo Holdings, LLC, resulting in initial cash proceeds of $156.7 million. The company also provided supplemental pro forma financial information to reflect the transaction as if it occurred on April 1, 2020, offering insights into its financial performance over several fiscal years. This strategic move is expected to impact Eplus’s operations by focusing on its core business areas and potentially earning additional payments based on future performance metrics.

The most recent analyst rating on (PLUS) stock is a Buy with a $81.00 price target. To see the full list of analyst forecasts on Eplus stock, see the PLUS Stock Forecast page.

ePlus Inc. Reports Strong Q1 2026 Financial Results

ePlus Inc., a leading provider of technology solutions, operates in the technology sector, offering a wide range of services including artificial intelligence, cloud computing, and security solutions. The company recently released its financial results for the first quarter of fiscal year 2026, showcasing significant growth and strategic developments.