Eplus (PLUS) AI Stock Analysis

• Market Cap: $1.89B
• Dividend Yield: N/A
• Average Volume (3M): 156.36K
• Price to Earnings (P/E): 17.6
• Beta (1Y): 1.14
• Revenue Growth: -2.22%
• EPS Growth: -17.25%
• Country: US
• Employees: 2,291
• Sector: Technology
• Sector Strength: 82
• Industry: Software - Application
• EPS (TTM): 1.11
• Shares Outstanding: 26,526,783
• 10 Day Avg. Volume: 133,256
• 30 Day Avg. Volume: 156,359
• PEG Ratio: 0.82
• Price to Book (P/B): 1.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -52.53
• Enterprise Value/Market Cap: 0.73
• Enterprise Value/Revenue: 0.17
• Enterprise Value/Gross Profit: 2.55
• Enterprise Value/Ebitda: 1.94
• 1Y Price Target: $85.00
• Price Target Upside: 19.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: ―

Eplus has demonstrated strong growth in revenue and operational efficiency, but faces challenges with liquidity, flat overall revenue, and declining adjusted EBITDA. Technical indicators suggest a bearish trend, while valuation is moderate. The earnings call highlighted mixed results, emphasizing strengths in service growth but also difficulties with expenses and net earnings.

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 centered around its mobile network services. The company earns income by offering prepaid and postpaid mobile plans, which include voice, text, and data services. Subscription fees from these plans form a significant portion of their revenue. Additionally, Eplus capitalizes on value-added services such as mobile internet, entertainment packages, and roaming services. The company may also engage in strategic partnerships with handset manufacturers and content providers to boost its service offerings and attract more customers. Furthermore, Eplus could derive revenue from wholesale arrangements, providing network access to mobile virtual network operators (MVNOs).

Eplus Financial Statement Overview

Summary

Eplus exhibits strong revenue growth and operational efficiency, although concerns over the negative gross profit margin in the TTM period and liquidity challenges need attention. Cash flow generation is robust, but historical volatility in operating cash flow requires monitoring.

Income Statement

Eplus has demonstrated consistent revenue growth over the years, with a notable increase from 2023 to the TTM (Trailing-Twelve-Months). The EBIT and EBITDA margins have also remained stable, indicating operational efficiency. However, the negative gross profit margin in the TTM period is concerning and needs to be addressed to maintain profitability.

Balance Sheet

The company maintains a healthy equity ratio, reflecting a solid capital structure. The debt-to-equity ratio is low, suggesting manageable leverage. However, the drop in cash and cash equivalents in the TTM period might indicate potential liquidity challenges.

Cash Flow

Eplus shows a strong free cash flow position in the TTM period, indicating good cash generation capabilities. The operating cash flow to net income ratio is favorable, suggesting efficient cash operations. However, the historical negative operating cash flow in previous years indicates past cash flow volatility.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
1.75B	2.23B	2.07B	1.82B	1.57B	1.59B
	Gross Profit
539.68M	550.79M	517.52M	460.98M	393.55M	391.19M
	EBIT
133.74M	158.26M	166.16M	147.32M	106.33M	95.28M
	EBITDA
168.53M	190.80M	185.70M	172.24M	128.83M	112.69M
	Net Income Common Stockholders
104.77M	115.78M	119.36M	105.60M	74.40M	69.08M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
253.07M	253.02M	103.09M	155.38M	129.56M	86.23M
	Total Assets
1.77B	1.65B	1.41B	1.17B	1.08B	909.11M
	Total Debt
149.54M	141.29M	174.95M	175.50M	172.82M	200.17M
	Net Debt
-103.53M	-111.73M	71.86M	20.12M	43.26M	113.94M
	Total Liabilities
803.44M	751.69M	632.56M	505.46M	514.37M	422.97M
	Stockholders Equity
962.34M	901.78M	782.26M	660.74M	562.41M	486.14M
Cash Flow		Free Cash Flow
240.61M	239.95M	-24.80M	-43.75M	117.99M	-81.18M
	Operating Cash Flow
246.16M	248.45M	-15.43M	-20.57M	129.51M	-74.17M
	Investing Cash Flow
-133.44M	-61.96M	-18.93M	-1.26M	-35.76M	-20.34M
	Financing Cash Flow
-1.39M	-36.62M	-20.95M	47.18M	-49.80M	100.63M

Eplus Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 71.25
• 50DMA: Positive
• 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 Positive. The current price of 71.25 is above the 20-day moving average (MA) of 70.22, above the 50-day MA of 65.43, and below the 200-day MA of 76.84, indicating a neutral trend. The MACD of 1.34 indicates Positive momentum. The RSI at 58.97 is Neutral, neither overbought nor oversold. The STOCH value of 40.57 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
SPNS	76 Outperform	$1.59B	21.94	16.09%	2.04%	3.84%	10.25%
PD	71 Outperform	$1.32B	―	-23.09%	―	8.55%	60.23%
DBD	67 Neutral	$1.94B	0.78	-1.02%	―	-2.66%	-100.56%
JAMF	63 Neutral	$1.22B	―	-6.48%	―	10.75%	56.37%
MLNK	63 Neutral	$1.24B	―	-6.49%	―	5.15%	28.27%
Sector *	62 Neutral	$11.95B	9.93	-7.21%	4.85%	7.32%	-8.25%
PLUS	61 Neutral	$1.89B	17.58	11.49%	―	-2.22%	-17.25%

Eplus Corporate Events

Eplus Welcomes Melissa J. Ballenger to Board

ePlus announced the appointment of Melissa J. Ballenger to its Board of Directors, increasing the board size from seven to eight members. Ballenger, an experienced financial executive with a background in financial technology and global finance, will also serve on the Audit Committee. Her extensive experience in strategic and financial planning, capital markets, and risk management is expected to enhance the board’s oversight and contribute to ePlus’s ongoing growth and shareholder value. The appointment reflects ePlus’s commitment to leveraging market conditions and enhancing its strategic growth areas.