ePlus Inc (PLUS) stock analysis

P/E above its 5-year median

ePlus's P/E of 19.4 is above its own 5-year median of 15.9.

P/E below the industry

ePlus's P/E of 19.4 is below the Professional and Commercial Equipment and Supplies median of 20.0.

EV/EBITDA above its 5-year median

ePlus's EV/EBITDA of 10.7 is above its 5-year median of 9.9.

P/B above the industry

ePlus's price-to-book of 2.31 is above the Professional and Commercial Equipment and Supplies median of 2.23.

Trading above fair value

The share price of $97.19 is above our fair value estimate of $86.06.

Margin of safety under 20%

The price is 12.9% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 5.7% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 3.9% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 6.0% over the last twelve months, against a 5-year average of 12.3% a year.

Growing slower than the industry

Revenue grew 13.1% over the last twelve months; the Professional and Commercial Equipment and Supplies median is 13.1%.

Guidance issued

The latest outlook (fiscal year 2026 Net sales, Feb 4, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin slipping

Gross margin was 25.4% over the last twelve months, against 25.8% a year earlier.

Return on equity under 15%

Return on equity was 12.2% over the last twelve months and averaged 14.4% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 18.7%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

ePlus's return on equity of 12.2% is above the Professional and Commercial Equipment and Supplies median of 10.9%.

Earnings grew over 5 years

Net income grew 12.3% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 5.2% over the last twelve months, against a 5-year average of 5.5%.

Net margin above the industry

ePlus's net margin of 5.2% is above the Professional and Commercial Equipment and Supplies median of 1.8%.

No debt

ePlus has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term assets cover short-term debts

Current assets are 1.99 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 4.44; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

ePlus paid dividends worth 1.1% of the share price over the last twelve months.

Yield below Treasuries

The 1.1% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; ePlus yields 1.1%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 20.8% of net income.

Covered by free cash flow

Dividends take 85.9% of free cash flow.