Eplus Inc (PLUS)
NASDAQ:PLUS
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Eplus
(NASDAQ:PLUS)
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Rating:64Neutral
Price Target:
$81.00
▲(11.03% Upside)
Action:DowngradedDate:02/05/26
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
Balance-sheet strength
Materially lower leverage and a growing equity base provide lasting financial flexibility. Modest debt levels support dividend and buyback capacity, cushion cyclical revenue swings, and enable strategic investments without immediate refinancing risk, improving resilience over the next several quarters.
Negative Factors
Negative TTM cash flow
A turn to negative TTM operating and free cash flow signals weakened cash conversion and raises questions on earnings quality. Persisting negative cash flows constrain reinvestment, shareholder returns, and increase sensitivity to working-capital swings over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet strength
Materially lower leverage and a growing equity base provide lasting financial flexibility. Modest debt levels support dividend and buyback capacity, cushion cyclical revenue swings, and enable strategic investments without immediate refinancing risk, improving resilience over the next several quarters.
Read all positive factors
Eplus (PLUS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.14B
Dividend Yield0.56%
Average Volume (3M)182.65K
Price to Earnings (P/E)16.4
Beta (1Y)1.05
Revenue Growth6.94%
EPS Growth9.98%
CountryUS
Employees2,291
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)1.45
Shares Outstanding26,392,561
10 Day Avg. Volume154,257
30 Day Avg. Volume182,646
Financial Highlights & Ratios
PEG Ratio-2.41
Price to Book (P/B)1.65
Price to Sales (P/S)0.78
P/FCF Ratio5.47
Enterprise Value/Market Cap0.92
Enterprise Value/Revenue0.84
Enterprise Value/Gross Profit3.27
Enterprise Value/Ebitda9.62
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)5.79
Revenue Forecast (FY)$2.57B
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,...
How the Company Makes Money
null...
Eplus Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Reveals profitability across different business segments, highlighting which areas are most lucrative and where there might be opportunities or challenges.
Reveals profitability across different business segments, highlighting which areas are most lucrative and where there might be opportunities or challenges.
Data provided by:
The Fly
The FlyEplus Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:May 27, 2026
Earnings Call Sentiment Positive
The call emphasized robust top-line growth, sizable margin and profitability expansion, strengthened cash deployment to shareholders, and upwardly revised guidance—driven by AI, cloud, networking, and security momentum. Offsetting items include a sizable inventory build and working capital pressure, modest softness in professional services due to retail project delays, reduced discontinued operations income, and an industry memory supply risk. Overall, the positives (strong revenue, profit, margin expansion, raised guidance, and shareholder returns) materially outweigh the operational and supply-chain headwinds.Positive Updates
Strong Revenue Growth
Consolidated net sales grew 24.6% year-over-year to $614.8 million for the quarter and are up 22.2% year-to-date to $1.86 billion, driven by broad-based demand across customer sizes and verticals.
Negative Updates
Inventory Build and Working Capital Pressure
Inventory increased to $241.0 million from $120.4 million year-over-year (sequential increase of ~$85 million), driving inventory days to 22 (vs 13 prior year) and contributing to an increase in the cash conversion cycle to 41 days (from 32 days prior-year quarter).
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Revenue Growth
Consolidated net sales grew 24.6% year-over-year to $614.8 million for the quarter and are up 22.2% year-to-date to $1.86 billion, driven by broad-based demand across customer sizes and verticals.
Read all positive updates
Company Guidance
Management raised full‑year fiscal 2026 targets to net sales growth of 20–22% year‑over‑year (vs. FY2025 continuing‑ops $2.01B), gross profit growth of 19–21% (vs. FY2025 $515.5M), and adjusted EBITDA growth of 41–43% (vs. FY2025 $141M). The move builds on a strong Q3: net sales of $614.8M (+24.6%), product revenue $501.9M (+32.2%), services $112.8M, adjusted EBITDA $53.4M (+97%) with an 8.7% margin (+320 bps), and YTD net sales and adjusted EBITDA up 22% and 55%, respectively; balance‑sheet/data points noted include $326.3M cash, $241M inventory (22 days, cash conversion cycle 41 days), a $0.25 quarterly dividend, and >200,000 shares repurchased, while management cautioned on a potential near‑term memory supply squeeze that could affect deployment timing.Eplus Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
79
Positive
Cash Flow
38
Negative
| 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
Positive
72.95
Price Trends
79.85
Positive
84.24
Negative
77.76
Positive
Market Momentum
-0.27
Negative
61.98
Neutral
85.11
Negative
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 76.29, below the 50-day MA of 79.85, and below the 200-day MA of 77.76, indicating a bullish trend. The MACD of -0.27 indicates Negative momentum. The RSI at 61.98 is Neutral, neither overbought nor oversold. The STOCH value of 85.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PLUS.
Eplus Risk Analysis
Eplus disclosed 28 risk factors in its most recent earnings report. Eplus reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Eplus Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $1.63B | 36.77 | 4.68% | ― | 14.86% | -30.25% | |
64 Neutral | $2.14B | 16.37 | 12.93% | 0.56% | 6.94% | 9.98% | |
64 Neutral | $1.41B | 69.87 | 3.93% | ― | 6.48% | 168.94% | |
62 Neutral | $1.21B | 19.35 | 17.82% | ― | 31.41% | -40.89% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
47 Neutral | $262.01M | -0.33 | -119.20% | 8.12% | -12.37% | -754.18% |
* Technology Sector Average
PLUS
Eplus
81.27
23.97
41.83%
PRGS
Progress Software
28.75
-28.09
-49.42%
ALIT
Alight
0.49
-4.33
-89.83%
DV
DoubleVerify Holdings
10.09
-2.56
-20.24%
CXM
Sprinklr
5.65
-1.98
-25.95%
Eplus Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
ePlus Updates Bylaws to Enhance Corporate Governance
Neutral
Feb 17, 2026
On February 17, 2026, ePlus inc. amended and restated its bylaws, introducing changes to strengthen corporate governance around director nominations, dividend authority, and election oversight. The revisions require the company to notify stockhold...
Business Operations and StrategyDividendsFinancial Disclosures
ePlus Delivers Strong Q3 Results on AI Infrastructure Demand
Positive
Feb 4, 2026
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 set...
Business Operations and StrategyFinancial DisclosuresM&A TransactionsRegulatory Filings and Compliance
ePlus Recasts Financials After Divesting U.S. Financing Unit
Neutral
Jan 26, 2026
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...
Business Operations and StrategyExecutive/Board Changes
ePlus Expands Board, Appoints Independent Financial Expert
Positive
Jan 8, 2026
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...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.