DB:MLE

Stock Analysis Report

Executive Summary

ePlus inc., through its subsidiaries, provides information technology solutions that enable organizations to optimize their information technology (IT) environment and supply chain processes in the United States.


Snowflake Analysis

Proven track record and fair value.


Similar Companies

Share Price & News

How has ePlus's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MLE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.8%

MLE

2.9%

DE Electronic

2.1%

DE Market


1 Year Return

-32.1%

MLE

-25.6%

DE Electronic

-16.6%

DE Market

Return vs Industry: MLE underperformed the German Electronic industry which returned -25.6% over the past year.

Return vs Market: MLE underperformed the German Market which returned -16.6% over the past year.


Shareholder returns

MLEIndustryMarket
7 Day4.8%2.9%2.1%
30 Day-14.2%-15.1%-12.6%
90 Day-28.3%-20.6%-22.9%
1 Year-32.1%-32.1%-24.1%-25.6%-14.2%-16.6%
3 Year-10.8%-10.8%-1.6%-4.7%-14.8%-21.9%
5 Year37.4%37.4%58.4%46.9%-16.6%-27.8%

Price Volatility Vs. Market

How volatile is ePlus's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is ePlus undervalued compared to its fair value and its price relative to the market?

16.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MLE (€54.5) is trading below our estimate of fair value (€64.88)

Significantly Below Fair Value: MLE is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MLE is good value based on its PE Ratio (11.3x) compared to the Electronic industry average (18.6x).

PE vs Market: MLE is good value based on its PE Ratio (11.3x) compared to the German market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: MLE's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: MLE is overvalued based on its PB Ratio (1.7x) compared to the DE Electronic industry average (1.2x).


Next Steps

Future Growth

How is ePlus forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-4.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MLE's earnings are forecast to decline over the next 3 years (-4.5% per year).

Earnings vs Market: MLE's earnings are forecast to decline over the next 3 years (-4.5% per year).

High Growth Earnings: MLE's earnings are forecast to decline over the next 3 years.

Revenue vs Market: MLE's revenue (1.8% per year) is forecast to grow slower than the German market (3.9% per year).

High Growth Revenue: MLE's revenue (1.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MLE's Return on Equity is forecast to be low in 3 years time (11.1%).


Next Steps

Past Performance

How has ePlus performed over the past 5 years?

8.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MLE has a high level of non-cash earnings.

Growing Profit Margin: MLE's current net profit margins (4.6%) are higher than last year (4.1%).


Past Earnings Growth Analysis

Earnings Trend: MLE's earnings have grown by 8.9% per year over the past 5 years.

Accelerating Growth: MLE's earnings growth over the past year (24.3%) exceeds its 5-year average (8.9% per year).

Earnings vs Industry: MLE earnings growth over the past year (24.3%) exceeded the Electronic industry -12.3%.


Return on Equity

High ROE: MLE's Return on Equity (15%) is considered low.


Next Steps

Financial Health

How is ePlus's financial position?


Financial Position Analysis

Short Term Liabilities: MLE's short term assets ($690.0M) exceed its short term liabilities ($439.5M).

Long Term Liabilities: MLE's short term assets ($690.0M) exceed its long term liabilities ($40.6M).


Debt to Equity History and Analysis

Debt Level: MLE's debt to equity ratio (45.1%) is considered high.

Reducing Debt: MLE's debt to equity ratio has reduced from 67.6% to 45.1% over the past 5 years.

Debt Coverage: MLE's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if MLE's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is ePlus's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MLE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate MLE's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MLE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MLE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MLE's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.9yrs

Average management tenure


CEO

Mark Marron (57yo)

3.67s

Tenure

US$3,181,194

Compensation

Mr. Mark P. Marron serves as President and Chief Executive Officer at ePlus inc. since August 1, 2016 and has been its Director since November 14, 2018. Mr. Marron began his career at ePlus Technology, inc ...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD3.18M) is above average for companies of similar size in the German market ($USD1.30M).

Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Mark Marron
CEO, President & Director3.67yrsUS$3.18m0.64% $4.3m
Elaine Marion
Chief Financial Officer11.58yrsUS$1.69m0.41% $2.8m
Darren Raiguel
Chief Operating Officer1.92yrsUS$1.80m0.30% $2.0m
George King
Chief Information Officer1.75yrsno datano data
Kleyton Parkhurst
Senior VP of Corporate Development & Assistant Secretaryno dataUS$424.16kno data
Erica Stoecker
Chief Compliance Officer19.08yrsno datano data
Dawn Kerwick
Vice President of Marketing1.67yrsno datano data
Barbara Tiano
Vice President of Human Resources1.67yrsno datano data
Steven Mencarini
Senior Vice President of Business Operationsno dataUS$626.33kno data
Chris Finney
Senior Vice President of Sales no datano datano data

1.9yrs

Average Tenure

53.5yo

Average Age

Experienced Management: MLE's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Mark Marron
CEO, President & Director3.67yrsUS$3.18m0.64% $4.3m
Bruce Bowen
SVP, Business Development30.25yrsUS$200.75k0.14% $946.0k
Eric Hovde
Independent Director13.42yrsUS$151.79k0.20% $1.3m
C. Faulders
Independent Chairman0.58yrUS$151.79k0.15% $984.3k
John Callies
Independent Director9.75yrsUS$151.79k0.077% $518.2k
Ira Hunt
Independent Director5.58yrsUS$151.79k0.067% $445.5k
Ben Xiang
Independent Director0.75yrno data0.0087% $58.3k
Maureen Morrison
Independent Director1.83yrsUS$158.46k0.015% $99.7k

3.7yrs

Average Tenure

63.5yo

Average Age

Experienced Board: MLE's board of directors are considered experienced (3.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MLE insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

ePlus inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ePlus inc.
  • Ticker: MLE
  • Exchange: DB
  • Founded: 1990
  • Industry: Technology Distributors
  • Sector: Tech
  • Market Cap: US$721.719m
  • Listing Market Cap: US$668.962m
  • Shares outstanding: 13.51m
  • Website: https://www.eplus.com

Number of Employees


Location

  • ePlus inc.
  • 13595 Dulles Technology Drive
  • Herndon
  • Virginia
  • 20171
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PLUSNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 1996
MLEDB (Deutsche Boerse AG)YesCommon StockDEEURNov 1996
MLEBRSE (Berne Stock Exchange)YesCommon StockCHCHFNov 1996

Biography

ePlus inc., through its subsidiaries, provides information technology solutions that enable organizations to optimize their information technology (IT) environment and supply chain processes in the United States. 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 advanced professional and managed services, including ePlus managed, professional, security, staff augmentation, server and desktop support, and project management services. The Financing segment specializes in arrangements, such as direct financing, sales-type, and operating leases; loans and consumption-based financing arrangements; and underwriting and management of IT equipment and assets. Its financing operations comprise sales, pricing, credit, contracts, accounting, risk management, and asset management. This segment primarily finances IT equipment, communication-related equipment, 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/06 21:05
End of Day Share Price2020/04/06 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.