Eplus (PLUS) AI Stock Analysis

• Market Cap: $2.21B
• Dividend Yield: 0.56%
• Average Volume (3M): 140.66K
• Price to Earnings (P/E): 17.2
• Beta (1Y): 1.03
• Revenue Growth: 6.94%
• EPS Growth: 9.98%
• Country: US
• Employees: 2,291
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 1.45
• Shares Outstanding: 26,392,561
• 10 Day Avg. Volume: 202,661
• 30 Day Avg. Volume: 140,658
• 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: 0.91
• Enterprise Value/Revenue: 0.86
• Enterprise Value/Gross Profit: 3.35
• Enterprise Value/Ebitda: 9.88
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 4.81
• Revenue Forecast (FY): $2.32B

• Rating: 64 Neutral
• Price Target: $92.00 ▲(26.11% Upside)

The score is driven mainly by strong, raised FY2026 guidance and Q3 profitability expansion, supported by a healthy balance sheet. Offsetting these positives are weak near-term cash-flow conversion and a softer technical setup, while valuation looks broadly reasonable but not a standout.

Positive Factors

Upward Guidance & Profitability

Management's material upward revision of FY26 net sales and adjusted EBITDA targets reflects durable demand and improved operating leverage. Sustained higher guidance supports multi-quarter planning, capital allocation for growth initiatives, and underpins longer-term margin expansion assumptions.

Healthy Balance Sheet

Very low leverage and a strong equity base provide financial flexibility to fund investments, acquisitions, and shareholder returns without needing near-term refinancing. This resilience supports continuity of operations through industry cycles and reduces solvency risk.

AI/Cloud Product Momentum

A sizable product revenue surge driven by AI, cloud and security indicates structural market tailwinds and reinforces ePlus's go-to-market strength. Broad-based product demand plus growing managed services helps diversify revenue and supports longer-term customer stickiness.

Negative Factors

Cash-Flow Volatility

A transition to negative TTM operating and free cash flow signals weaker cash conversion and raises the risk that reported earnings aren't fully cash-backed. Persistent cash-flow volatility can constrain reinvestment, M&A, or sustained dividends without raising leverage or cutting spend.

Inventory & Working-Capital Pressure

A large inventory build and longer cash-conversion cycle tie up liquidity and amplify execution risk. In a fast-changing tech market, excess inventory and extended working capital raise obsolescence and margin-pressuring markdown risks, and can necessitate reactive financing actions.

Revenue Volatility / TTM Decline

A pronounced TTM revenue decline indicates top-line volatility that undermines predictability of scale benefits and margin sustainability. Lumpy product cycles, timing shifts or structural mix changes can erode long-term planning, making it harder to sustain operating leverage and recurring revenue growth.

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 through multiple streams, primarily by providing IT infrastructure and solutions to businesses across different sectors. Their revenue model includes selling hardware and software products, offering consulting and implementation services, and providing ongoing managed services and support. Additionally, Eplus has established strategic partnerships with key technology vendors, enabling it to offer integrated solutions that meet client needs. The company's ability to deliver tailored solutions and maintain long-term relationships with clients contributes significantly to its earnings.

Eplus Financial Statement Overview

Summary

Balance sheet strength (low debt-to-equity and solid equity base) supports stability, but the financial profile is constrained by sharply weaker TTM revenue and a concerning swing to negative TTM operating and free cash flow, which raises earnings-quality and flexibility risk.

Income Statement

Profitability is solid but growth has weakened. Gross margin is steady in the mid‑20% range, and profitability remains positive with net margin around ~5% and EBIT margin ~7% in TTM (Trailing-Twelve-Months). However, revenue has turned sharply negative in TTM (Trailing-Twelve-Months) (down ~23%), and margins have generally trended modestly lower versus earlier years, which limits the score despite continued earnings.

Balance Sheet

The balance sheet looks healthy with modest leverage and a strong equity base. Debt-to-equity has improved versus prior years (from the ~0.27–0.32 range to ~0.09 in TTM (Trailing-Twelve-Months)), and equity has grown over time. Returns on equity remain attractive (low‑teens in TTM (Trailing-Twelve-Months)), though not at the peak levels seen a few years ago.

Cash Flow

Cash generation is the key weakness. While the company produced strong positive operating cash flow and free cash flow in FY2024 and FY2025 annual results, TTM (Trailing-Twelve-Months) swung to negative operating cash flow and negative free cash flow, indicating either working-capital pressure or a meaningful change in cash conversion. This volatility reduces confidence in the current earnings quality and financial flexibility.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.36B	2.07B	2.23B	2.07B	1.82B	1.57B
Gross Profit	603.47M	550.50M	534.18M	517.52M	461.49M	393.55M
EBITDA	204.89M	171.69M	185.87M	185.70M	172.24M	128.83M
Net Income	132.80M	107.98M	115.78M	119.36M	105.60M	74.40M
Balance Sheet
Total Assets	1.83B	1.88B	1.65B	1.41B	1.17B	1.08B
Cash, Cash Equivalents and Short-Term Investments	326.29M	389.38M	253.02M	103.09M	155.38M	129.56M
Total Debt	133.15M	128.30M	141.29M	174.95M	179.61M	181.80M
Total Liabilities	768.39M	907.18M	751.69M	632.56M	505.46M	514.37M
Stockholders Equity	1.06B	977.62M	901.78M	782.26M	660.74M	562.41M
Cash Flow
Free Cash Flow	-65.35M	295.54M	239.95M	-24.80M	-43.75M	117.99M
Operating Cash Flow	-60.24M	302.14M	248.45M	-15.43M	-20.57M	129.51M
Investing Cash Flow	151.93M	-128.87M	-61.96M	-18.93M	-1.26M	-35.76M
Financing Cash Flow	-20.78M	-37.58M	-36.62M	-20.95M	47.18M	-49.80M

Eplus Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 72.95
• 50DMA: Negative
• 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 72.95 is below the 20-day moving average (MA) of 86.43, below the 50-day MA of 87.95, and below the 200-day MA of 75.91, indicating a neutral trend. The MACD of -0.55 indicates Positive momentum. The RSI at 42.48 is Neutral, neither overbought nor oversold. The STOCH value of 37.94 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
CXM	77 Outperform	$1.40B	13.43	21.35%	―	6.48%	168.94%
DV	71 Outperform	$1.55B	36.50	4.05%	―	14.86%	-30.25%
PRGS	67 Neutral	$1.72B	24.55	15.95%	―	31.41%	-40.89%
PLUS	64 Neutral	$2.21B	17.23	12.23%	0.56%	6.94%	9.98%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ALIT	47 Neutral	$757.14M	-0.35	-66.86%	8.12%	-12.37%	-754.18%

Eplus Corporate Events

ePlus Delivers Strong Q3 Results on AI Infrastructure Demand

On February 4, 2026, ePlus reported robust results for its third quarter and first nine months of fiscal 2026, ended December 31, 2025, driven by strong demand for AI-related infrastructure across cloud, networking, security and other solution sets, particularly among large enterprises and an expanding mid-market base. Third-quarter consolidated net sales rose 24.6% year-on-year to $614.8 million, gross billings grew 15.6% to $982.1 million and gross profit climbed 26.8% to $158.7 million, while net earnings from continuing operations surged 129.3% to $33.4 million and diluted EPS from continuing operations increased to $1.27; for the first nine months, net sales advanced 22.2% to $1.86 billion, gross profit increased 23.7% to $469.0 million and net earnings from continuing operations rose 68.5% to $98.7 million, underscoring significant operating leverage following the June 30, 2025 sale of its domestic financing business. Reflecting confidence in its performance and cash generation, the board declared a quarterly cash dividend of $0.25 per common share payable March 18, 2026 to shareholders of record on February 24, 2026, and management noted that revenue gains were broad-based across product and services segments, even as certain professional services projects were delayed and margins in some service lines moderated due to mix shifts and acquisitions.

The most recent analyst rating on (PLUS) stock is a Buy with a $98.00 price target. To see the full list of analyst forecasts on Eplus stock, see the PLUS Stock Forecast page.

ePlus Recasts Financials After Divesting U.S. Financing Unit

On June 30, 2025, ePlus completed the sale of Expo Holdings, LLC, its wholly owned subsidiary that housed its U.S. financing business, to Marlin Leasing Corporation, effectively divesting most of its financing segment and marking a strategic shift toward emphasizing its technology solutions operations. In connection with this divestiture, the company has determined that the domestic financing business qualifies as discontinued operations and has filed a Form 8-K to retrospectively recast selected sections of its fiscal 2025 Form 10-K so that the sold business is presented separately from continuing operations, without otherwise updating the prior annual report, thereby clarifying its financial presentation for investors and aligning historical disclosures with its reoriented business structure.

The most recent analyst rating on (PLUS) stock is a Buy with a $98.00 price target. To see the full list of analyst forecasts on Eplus stock, see the PLUS Stock Forecast page.

ePlus Expands Board, Appoints Independent Financial Expert

On January 6, 2026, ePlus inc. expanded its Board of Directors from seven to eight members and appointed Michael J. (Mike) Portegello, a 61-year-old global business executive and financial expert with more than 37 years of experience in accounting, finance and capital markets, to fill the new seat, with his term running until the next Annual Meeting of Shareholders. Portegello, a former Ernst & Young Global Client Service Partner whose experience spans SaaS, software, health technology, retail, e-commerce and biotech/life sciences and who has recently advised emerging technology companies focused on generative AI and health tech, was also named to the Audit and Compensation Committees and deemed an independent director under Nasdaq rules, signaling ePlus’s intent to strengthen its financial oversight, governance and strategic capabilities as it pursues long-term value creation amid volatile market conditions.

The most recent analyst rating on (PLUS) stock is a Buy with a $103.00 price target. To see the full list of analyst forecasts on Eplus stock, see the PLUS Stock Forecast page.

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.