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Eplus
(NASDAQ:PLUS)
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Rating:74Outperform
Price Target:
$109.00
▲(22.44% Upside)
Action:Reiterated
Date:08/05/26
Overall score reflects strong momentum and a constructive earnings outlook backed by a very strong balance sheet and capital-return actions. Offsetting these positives are weaker recent fundamentals in the financial statements (notably the sharp TTM revenue decline and uneven cash-flow trend) and only moderate valuation support (P/E ~18.8, ~1.1% yield).
Positive Factors
Balance Sheet Strength
Very low financial leverage and a sizable equity base give ePlus durable financial flexibility. Minimal debt reduces refinancing and interest risk while supporting capital returns, opportunistic M&A, and investments in services and AI/security initiatives without stressing liquidity.
Negative Factors
Revenue Volatility / Recent Decline
A sharp TTM revenue decline signals demand volatility and creates uncertainty around growth sustainability. Persistent or recurring top-line swings can erode pricing leverage, complicate capacity planning, and increase the reliance on one-time drivers to meet targets over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Very low financial leverage and a sizable equity base give ePlus durable financial flexibility. Minimal debt reduces refinancing and interest risk while supporting capital returns, opportunistic M&A, and investments in services and AI/security initiatives without stressing liquidity.
Read all positive factors
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 (PLUS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.31B
Dividend Yield1.15%
Average Volume (3M)256.19K
Price to Earnings (P/E)18.4
Beta (1Y)1.08
Revenue Growth15.01%
EPS Growth11.40%
CountryUS
Employees2,171
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)4.81
Shares Outstanding26,090,418
10 Day Avg. Volume291,788
30 Day Avg. Volume256,193
Financial Highlights & Ratios
PEG Ratio0.63
Price to Book (P/B)1.85
Price to Sales (P/S)0.81
P/FCF Ratio-16.36
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)5.45
Revenue Forecast (FY)$2.56B
Eplus Business Overview & Revenue Model
Company Description
ePlus inc., together with its subsidiaries, provides information technology (IT) solutions that enable organizations to optimize IT environment and supply chain processes in the United States and internationally. The company sells third-party hard...
How the Company Makes Money
Eplus historically generated revenue through a mix of product resale and services. A major portion of sales came from reselling third-party IT products (including hardware, software, and related maintenance/support) purchased from original equipme...
Eplus Earnings Call Summary
Earnings Call Date:May 28, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The call presented a strong operational and financial performance with record gross billings, double-digit top-line growth, substantial EBITDA and EPS expansion, improved recurring revenue and a strengthened balance sheet enabling dividends and buybacks. Key strategic wins (security growth, partner awards, NPS of 74) and the divestiture to focus on core IT solutions reinforce the positive trajectory. Notable challenges include margin pressure from product mix and large enterprise pricing, timing delays in professional services, a longer cash conversion cycle, a small Q4 charge tied to the financing divestiture, and external risks (memory shortages and geopolitical uncertainty). On balance the positive growth, profitability gains, and strategic positioning materially outweigh the transitory and structural headwinds.Positive Updates
Record Gross Billings
Full year gross billings reached a record $3.8 billion, up 17% year-over-year, driven by sustained demand across AI, cloud, networking and security.
Negative Updates
Margin Pressure from Product Mix
Consolidated gross margin declined to 25.2% for the full year (from 25.6% prior year) and Q4 gross margin fell to 24.6% from 26.5% year-over-year, driven primarily by lower product margins and a higher mix of large enterprise sales at competitive margins (product gross margin 22.2% vs 24.7% prior year).
Read all updates
Q4-2026 Updates
Positive
Negative
Record Gross Billings
Full year gross billings reached a record $3.8 billion, up 17% year-over-year, driven by sustained demand across AI, cloud, networking and security.
Read all positive updates
Company Guidance
ePlus guided to mid‑single‑digit growth in net sales, gross profit and adjusted EBITDA for fiscal 2027, noting the outlook is conservative given a tough FY26 comp (FY26 net sales $2.4B, +22.1% Y/Y; gross billings $3.8B, +17%; adjusted EBITDA $204.8M, +49.5%; diluted EPS from continuing operations $4.71 vs $2.87 prior year; non‑GAAP EPS $5.39) and risks from worldwide memory shortages, longer lead times and geopolitical uncertainty; management said supporting metrics — rising open orders and record backlog, cash and cash equivalents of $410.8M, a 51‑day cash conversion cycle, quarter repurchases of 90k shares, and an 8% raise in the quarterly dividend to $0.27 — give them flexibility to invest in growth and return capital.Eplus Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
86
Very Positive
Cash Flow
48
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.45B | 2.44B | 2.07B | 2.23B | 2.07B | 1.82B |
| Gross Profit | 606.53M | 589.54M | 550.50M | 534.18M | 517.52M | 461.49M |
| EBITDA | 198.69M | 201.05M | 171.69M | 185.87M | 185.70M | 172.24M |
| Net Income | 125.77M | 128.82M | 107.98M | 115.78M | 119.36M | 105.60M |
Balance Sheet | ||||||
| Total Assets | 1.87B | 1.81B | 1.88B | 1.65B | 1.41B | 1.17B |
| Cash, Cash Equivalents and Short-Term Investments | 448.85M | 410.77M | 389.38M | 253.02M | 103.09M | 155.38M |
| Total Debt | 0.00 | 16.20M | 128.30M | 141.29M | 174.95M | 179.61M |
| Total Liabilities | 795.02M | 745.51M | 907.18M | 751.69M | 632.56M | 505.46M |
| Stockholders Equity | 1.07B | 1.07B | 977.62M | 901.78M | 782.26M | 660.74M |
Cash Flow | ||||||
| Free Cash Flow | 54.77M | -120.66M | 295.54M | 239.95M | -24.80M | -43.75M |
| Operating Cash Flow | 59.21M | -116.23M | 302.14M | 248.45M | -15.43M | -20.57M |
| Investing Cash Flow | 3.10M | 159.81M | -128.87M | -61.96M | -18.93M | -1.26M |
| Financing Cash Flow | -92.70M | -22.94M | -37.58M | -36.62M | -20.95M | 47.18M |
Eplus Technical Analysis
Positive
89.02
Price Trends
86.28
Positive
84.40
Positive
84.17
Positive
Market Momentum
0.71
Positive
48.08
Neutral
14.12
Positive
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 89.02 is below the 20-day moving average (MA) of 90.58, above the 50-day MA of 86.28, and above the 200-day MA of 84.17, indicating a neutral trend. The MACD of 0.71 indicates Positive momentum. The RSI at 48.08 is Neutral, neither overbought nor oversold. The STOCH value of 14.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PLUS.
Eplus Risk Analysis
Eplus disclosed 27 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $2.31B | 18.41 | 11.84% | 1.15% | 15.01% | 11.40% | |
74 Outperform | $1.83B | 20.92 | 18.16% | ― | 15.50% | 56.73% | |
74 Outperform | $2.06B | 35.92 | 5.37% | ― | 7.64% | 17.54% | |
64 Neutral | $1.65B | 59.86 | 5.25% | ― | 8.10% | -73.21% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | $394.12M | -0.18 | -159.15% | 16.96% | -3.46% | -79.01% |
* Technology Sector Average
PLUS
Eplus
88.53
16.34
22.64%
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Eplus Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Eplus posts modest Q1 growth amid margin pressure
Positive
Aug 4, 2026
In its first quarter of fiscal 2027, ended June 30, 2026, ePlus posted modest top‑line growth, with net sales up 1.0% to $649.1 million and services revenue up 2.6%, but lower profitability as gross profit fell 1.5% and net earnings from con...
Business Operations and StrategyExecutive/Board Changes
ePlus Expands Board, Adds Independent Tech Executive
Positive
Jul 6, 2026
On July 6, 2026, ePlus inc. increased the size of its Board of Directors from eight to nine and appointed veteran technology and institutional executive John M. Lutz to the new seat. Lutz, who currently serves as Vice Chancellor for Development an...
Business Operations and StrategyDividendsFinancial Disclosures
ePlus Reports Strong Q4 Results, Raises Dividend Payout
Positive
May 28, 2026
On May 28, 2026, ePlus reported strong results for the fourth quarter and fiscal year ended March 31, 2026, highlighted by double-digit growth in net sales, gross billings and earnings per share despite slightly lower gross margins. Fourth-quarter...
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.