Eplus (PLUS) AI Stock Analysis

• Market Cap: $2.27B
• Dividend Yield: 0.56%
• Average Volume (3M): 136.79K
• Price to Earnings (P/E): 20.0
• Beta (1Y): 1.02
• 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: 117,429
• 30 Day Avg. Volume: 136,793
• 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: 0.90
• Enterprise Value/Revenue: 0.91
• Enterprise Value/Gross Profit: 3.49
• Enterprise Value/Ebitda: 10.82
• 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: 73 Outperform
• Price Target: $96.00 ▲(31.60% Upside)

The score is driven primarily by strong fundamentals (growth, profitability, and low leverage) and a very positive earnings call with raised FY2026 guidance and operating leverage. This is tempered by weaker near-term technical momentum and only moderate valuation support given the modest dividend yield.

Positive Factors

Revenue and Security Growth

Sustained double-digit net sales growth and a 52% surge in security billings indicate durable demand for high-margin, mission-critical solutions. This strengthens recurring managed-services adoption, diversifies revenue toward faster-growing security and AI areas, and supports multi-quarter top-line momentum.

Strong Liquid Balance Sheet

A cash position exceeding $400M, combined with a low debt-to-equity ratio, provides strategic flexibility to fund inorganic growth, invest in AI/security capabilities, and weather sector cyclicality. This capital buffer supports multi-quarter execution and reduces refinancing risk.

Operating Leverage and Profitability

Significant EBITDA outperformance versus sales demonstrates scalable cost structure and margin expansion potential. If maintained, operating leverage will convert revenue gains into durable cash earnings, enhancing reinvestment capacity and long-term return on invested capital.

Negative Factors

Weaker Cash Flow Generation

A notable decline in FCF and low operating-cash-to-net-income ratio signal that accounting profits are not fully converting to cash. Over several quarters this can constrain reinvestment, increase reliance on cash reserves for growth or M&A, and elevate risk if cash conversion doesn't recover.

Professional Services Margin Pressure

A material margin deterioration in Professional Services after an acquisition suggests integration or pricing pressure. If margins remain compressed, the services business could drag consolidated profitability and limit the firm's ability to fund margin-improving investments over the medium term.

State & Local Government Demand Risk

Exposure to budget-constrained state/local government customers creates demand cyclicality for IT spending. Prolonged public-sector weakness could dampen multi-quarter revenue predictability in key verticals, requiring greater diversification or offset from commercial segments to sustain 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

Strong income statement performance (revenue growth and solid margins) and a conservative balance sheet with low leverage support the score, partially offset by weaker cash-flow trends (TTM free cash flow decline and low operating cash flow to net income).

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: Negative
• 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 72.95 is below the 20-day moving average (MA) of 87.87, below the 50-day MA of 88.98, and below the 200-day MA of 74.00, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.80 is Neutral, neither overbought nor oversold. The STOCH value of 61.86 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
CXM	77 Outperform	$1.63B	16.08	21.35%	―	6.48%	168.94%
PLUS	73 Outperform	$2.27B	20.01	11.50%	0.56%	6.94%	9.98%
DV	71 Outperform	$1.70B	41.44	4.05%	―	14.86%	-30.25%
PRGS	67 Neutral	$1.66B	25.63	15.95%	―	31.41%	-40.89%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ALIT	47 Neutral	$815.80M	-0.38	-66.86%	8.12%	-12.37%	-754.18%

Eplus Corporate Events

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.