Eplus (PLUS) AI Stock Analysis

• Market Cap: $2.46B
• Dividend Yield: 0.54%
• Average Volume (3M): 213.94K
• Price to Earnings (P/E): 20.9
• Beta (1Y): 1.08
• Revenue Growth: 6.94%
• EPS Growth: 9.98%
• Country: US
• Employees: 2,291
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 1.53
• Shares Outstanding: 26,438,875
• 10 Day Avg. Volume: 195,924
• 30 Day Avg. Volume: 213,938
• 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: 0.60
• Enterprise Value/Revenue: 0.65
• Enterprise Value/Gross Profit: 2.51
• Enterprise Value/Ebitda: 7.77
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 4.09
• Revenue Forecast (FY): $2.17B

• Rating: 81 Outperform
• Price Target: $103.00 ▲(41.19% Upside)

Eplus receives a strong overall score driven by robust financial performance and positive earnings call sentiment. The technical analysis supports a bullish outlook, while valuation metrics are moderate. The company's strategic focus on high-growth areas like AI and security further enhances its growth potential.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Eplus's services, enhancing its market position and supporting long-term expansion.

Strategic Focus on High-Growth Areas

Focusing on high-growth sectors like AI and security positions Eplus to capitalize on emerging trends, driving sustainable growth.

Healthy Balance Sheet

A strong cash position provides Eplus with the flexibility to invest in growth opportunities and weather economic uncertainties.

Negative Factors

Decline in Free Cash Flow Growth

A decline in free cash flow growth could limit Eplus's ability to fund new projects and return capital to shareholders.

Professional Services Margin Decline

Decreasing margins in Professional Services may indicate rising costs or pricing pressures, affecting profitability.

State and Local Government Challenges

Budget constraints in government sectors could limit Eplus's growth in these markets, impacting revenue diversification.

Eplus Business Overview & Revenue Model

Company Description

Eplus (PLUS) is a technology solutions provider that specializes in delivering a comprehensive range of IT services and products, including cloud computing, cybersecurity, data center optimization, and managed services. The company serves various sectors, including education, healthcare, and government, by offering customized technology solutions that enhance operational efficiency and drive digital transformation.

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

Eplus shows strong revenue growth and profitability with a solid balance sheet. However, cash flow metrics indicate areas for improvement, particularly with a decline in free cash flow growth.

Income Statement

Eplus demonstrates strong revenue growth with a 5.4% increase in TTM, supported by a healthy gross profit margin of 36.3%. The net profit margin of 7.4% and EBIT margin of 6.4% indicate solid profitability. However, the slight decline in EBIT margin from the previous annual report suggests some operational cost pressures.

Balance Sheet

The company maintains a stable financial position with a low debt-to-equity ratio of 0.09 in TTM, indicating conservative leverage. Return on equity is robust at 12.2%, reflecting efficient use of equity capital. The equity ratio of 59.2% suggests a strong capital structure, though a slight decrease in total assets warrants monitoring.

Cash Flow

Eplus shows a decline in free cash flow growth by 12.8% in TTM, which could impact future liquidity. The operating cash flow to net income ratio of 0.14 indicates moderate cash generation from operations. However, the free cash flow to net income ratio remains strong at 86.3%, suggesting good cash conversion efficiency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.26B	2.07B	2.23B	2.07B	1.82B	1.57B
Gross Profit	587.94M	550.50M	534.18M	517.52M	461.49M	393.55M
EBITDA	189.53M	171.69M	185.87M	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	98.53M	128.30M	141.29M	174.95M	179.61M	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	87.73M	295.54M	239.95M	-24.80M	-43.75M	117.99M
Operating Cash Flow	92.90M	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: Positive
• RSI: Neutral
• STOCH: 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 89.58, below the 50-day MA of 81.04, and above the 200-day MA of 70.71, indicating a bullish trend. The MACD of 2.77 indicates Positive momentum. The RSI at 63.30 is Neutral, neither overbought nor oversold. The STOCH value of 84.05 is Negative, 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	81 Outperform	$2.46B	20.95	11.50%	0.54%	6.94%	9.98%
CXM	77 Outperform	$1.98B	18.98	21.35%	―	6.48%	168.94%
PRGS	71 Outperform	$1.94B	40.77	10.75%	―	31.41%	-40.89%
DV	71 Outperform	$1.77B	41.55	4.05%	―	14.86%	-30.25%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ALIT	47 Neutral	$1.13B	―	-66.86%	7.58%	-12.37%	-754.18%

Eplus Corporate Events

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.

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.

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.