Eplus (PLUS) AI Stock Analysis

• Market Cap: $1.82B
• Dividend Yield: N/A
• Average Volume (3M): 196.12K
• Price to Earnings (P/E): 16.9
• Beta (1Y): 1.10
• Revenue Growth: -7.54%
• EPS Growth: -6.40%
• Country: US
• Employees: 2,291
• Sector: Technology
• Sector Strength: 94
• Industry: Software - Application
• EPS (TTM): 1.11
• Shares Outstanding: 26,526,783
• 10 Day Avg. Volume: 148,009
• 30 Day Avg. Volume: 196,119
• PEG Ratio: -0.81
• Price to Book (P/B): 1.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.20
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 0.18
• Enterprise Value/Gross Profit: 2.76
• Enterprise Value/Ebitda: 2.23
• 1Y Price Target: $85.00
• Price Target Upside: 24.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: $78.00 ▲(13.99%Upside)

Eplus's overall stock score reflects a strong financial footing and strategic moves to enhance growth in promising sectors like AI and cybersecurity. While the financial performance and corporate events are the most significant positives, technical analysis and earnings call insights point to mixed market sentiment and challenges with sales performance.

Positive Factors

Profit Growth

The growth in gross profit (nearly 12% year-over-year) indicates the ongoing shift to higher margin services and subscription revenue.

Strategic Focus

Divesting the financing segment simplifies ePlus’s business model and messaging, while strengthening its focus on higher-growth areas like AI, cybersecurity, data-center modernization, networking, and related consulting and managed services.

Negative Factors

Margin Pressure

The strategic sale of this small, high-margin revenue stream may modestly pressure margins near term but ultimately will enable ePlus to double-down on higher growth areas in technology and services.

Sales Decline

Technology net sales declined 10.4% year-over-year due to lower product sales, which saw particular weakness in networking as customers battled economic uncertainty.

Eplus Business Overview & Revenue Model

Company Description

Eplus (PLUS) is a leading telecommunications company based in Germany, primarily engaged in providing mobile network services. The company offers a wide range of products and services including voice, messaging, data services, and mobile broadband to both individual consumers and businesses. Eplus is recognized for its extensive network coverage and competitive pricing, catering to a broad customer base across Germany.

How the Company Makes Money

Eplus generates revenue primarily through the sale of mobile subscriptions and related telecommunications services. The company's key revenue streams include monthly subscription fees from individual and business customers, usage-based charges such as data overages and international calling, and sales of mobile devices and accessories. Additionally, Eplus benefits from strategic partnerships and roaming agreements with other telecommunications providers, which enhance its service offerings and expand its customer reach. The company also explores ancillary revenue opportunities through value-added services and bundled service packages.

Eplus Financial Statement Overview

Summary

Eplus demonstrates a strong equity base and efficient cash flow management, with a notable free cash flow growth rate and robust operating cash flow to net income ratio. However, the net profit margin is modest, and revenue growth is volatile, indicating areas for improvement.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.07B	2.23B	2.07B	1.82B	1.57B
Gross Profit	569.12M	550.79M	517.52M	460.98M	393.55M
EBITDA	180.65M	190.80M	185.70M	172.24M	128.83M
Net Income	107.98M	115.78M	119.36M	105.60M	74.40M
Balance Sheet
Total Assets	1.88B	1.65B	1.41B	1.17B	1.08B
Cash, Cash Equivalents and Short-Term Investments	389.38M	253.02M	103.09M	155.38M	129.56M
Total Debt	128.30M	141.29M	174.95M	175.50M	172.82M
Total Liabilities	907.18M	751.69M	632.56M	505.46M	514.37M
Stockholders Equity	977.62M	901.78M	782.26M	660.74M	562.41M
Cash Flow
Free Cash Flow	295.54M	239.95M	-24.80M	-43.75M	117.99M
Operating Cash Flow	302.14M	248.45M	-15.43M	-20.57M	129.51M
Investing Cash Flow	-128.87M	-61.96M	-18.93M	-1.26M	-35.76M
Financing Cash Flow	-37.58M	-36.62M	-20.95M	47.18M	-49.80M

Eplus Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 68.43
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• 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 Negative. The current price of 68.43 is below the 20-day moving average (MA) of 71.30, below the 50-day MA of 69.73, and below the 200-day MA of 74.62, indicating a bearish trend. The MACD of -0.30 indicates Positive momentum. The RSI at 41.01 is Neutral, neither overbought nor oversold. The STOCH value of 20.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PLUS.

Eplus Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SPNS	80 Outperform	$1.68B	23.20	16.09%	1.93%	3.84%	10.25%
PLUS	73 Outperform	$1.82B	16.88	11.49%	―	-7.54%	-6.40%
PD	67 Neutral	$1.35B	―	-23.09%	―	8.55%	60.23%
Sector *	63 Neutral	$34.60B	5.43	-11.64%	1.84%	5.30%	-18.55%
MLNK	60 Neutral	$1.25B	―	-6.49%	―	5.15%	28.27%
JAMF	59 Neutral	$1.07B	―	-6.48%	―	10.75%	56.37%
DBD	48 Neutral	$2.20B	0.78	-1.02%	―	-2.66%	-100.56%

Eplus Corporate Events

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.

The most recent analyst rating on (PLUS) stock is a Hold with a $85.00 price target. To see the full list of analyst forecasts on Eplus stock, see the PLUS Stock Forecast page.

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.

The most recent analyst rating on (PLUS) stock is a Hold with a $85.00 price target. To see the full list of analyst forecasts on Eplus stock, see the PLUS Stock Forecast page.