Eplus Inc (NASDAQ: PLUS)

Sector: Technology Industry: Software - Application CIK: 0001022408
Market Cap 2.26 Bn
P/B 2.16
P/E 18.52
P/S 1.00
ROIC (Qtr) 9.94
Div Yield % 0.59
Rev 1y % (Qtr) 23.40
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00

About

EPlus Inc., a leading technology solutions provider, is publicly traded on the NASDAQ stock exchange under the symbol PLUS. The company operates in the dynamic and rapidly evolving IT industry, delivering comprehensive solutions to its customers since 1990. EPlus provides technology solutions to various industry segments, including telecommunications, media and entertainment, technology, state and local government, education, and financial services. EPlus's main business activities revolve around two main segments: technology and financing. The...

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Price action

Investment thesis

Bull case

  • Operating cash flow of 92.90M provides exceptional 85.31x coverage of interest expenses 1.09M, showing strong debt service capability.
  • Robust free cash flow of 90.25M exceeds capital expenditure of 2.65M by 34.01x, indicating strong organic growth funding capability.
  • Tangible assets of 1.49B provide exceptional 6.13x coverage of deferred revenue 243.69M, showing strong service capability backing.
  • Free cash flow of 90.25M provides exceptional 82.87x coverage of interest expense 1.09M, showing strong debt service ability.
  • Retained earnings of 916.85M provide strong 4.54x coverage of other current liabilities 202.05M, indicating earnings quality.

Bear case

  • Operating cash flow of 92.90M barely covers its investment activities of 153.75M, with a coverage ratio of 0.60, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 92.90M provides thin coverage of dividend payments of (6.59M) with a -14.09 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 402.16M provide limited coverage of acquisition spending of (280000), which is -1436.28x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 92.90M provides insufficient coverage of deferred revenue obligations of 243.69M, which is 0.38x, raising concerns about future service delivery capabilities.
  • High receivables of 721.11M relative to inventory of 154.14M (4.68 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.

Segments Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Software - Application
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SAP Sap Se 288.31 Bn 34.60 6.72 10.73 Bn
2 CRM Salesforce, Inc. 248.32 Bn 34.38 6.16 11.14 Bn
3 SHOP Shopify Inc. 212.27 Bn 119.19 19.85 1.12 Bn
4 INTU Intuit Inc. 180.73 Bn 43.89 9.30 6.78 Bn
5 UBER Uber Technologies, Inc 178.38 Bn 10.72 3.60 12.19 Bn
6 NOW ServiceNow, Inc. 146.98 Bn 84.91 11.60 2.40 Bn
7 ADBE Adobe Inc. 144.48 Bn 20.77 6.23 6.64 Bn
8 ADP Automatic Data Processing Inc 108.20 Bn 26.16 5.18 9.77 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.01 2.65
EV to Cash from Ops. EV/CFO 19.13 13.37
EV to Debt EV to Debt 0.00 57.69
EV to EBIT EV/EBIT 10.63 19.12
EV to EBITDA EV/EBITDA 9.83 15.00
EV to Free Cash Flow [EV/FCF] EV/FCF 19.69 14.69
EV to Market Cap EV to Market Cap 0.79 -92.28
EV to Revenue EV/Rev 0.79 4.60
Price to Book Value [P/B] P/B 2.16 4.26
Price to Earnings [P/E] P/E 18.52 -136.90
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 18.49 -3.95
Dividend Payout Ratio % Div Payout % (Qtr) 5.40 4.25
Dividend per Basic Share Div per Share (Qtr) 0.25 0.15
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 7.30 2.52
Interest Coverage Int. cover (Qtr) 153.50 -52.32
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 40.72 -259.78
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 114.45 9,763.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.61
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 12.36 -263.15
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 18.86 56.46
EBIT Growth (1y) % EBIT 1y % (Qtr) 14.15 -225.15
EBT Growth (1y) % EBT 1y % (Qtr) 14.75 -86.10
EPS Growth (1y) % EPS 1y % (Qtr) 13.83 123.84
FCF Growth (1y) % FCF 1y % (Qtr) -70.81 -36.82
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 15.18 95.08
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.28 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.07 0.02
Cash Ratio Cash Ratio (Qtr) 0.64 3.75
Current Ratio Curr Ratio (Qtr) 2.19 8.16
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.17
Interest Cover Ratio Int Coverage (Qtr) 153.50 -52.32
Times Interest Earned Times Interest Earned (Qtr) 153.50 -52.32
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 8.80 -100.06
EBIT Margin % EBIT Margin % (Qtr) 7.41 -164.24
EBT Margin % EBT Margin % (Qtr) 7.36 -116.94
Gross Margin % Gross Margin % (Qtr) 26.50 58.20
Net Profit Margin % Net Margin % (Qtr) 5.40 -121.65