NasdaqGS:PLUS

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.

Rewards

PE ratio (17.1x) is below the US market (18.5x)

Earnings are forecast to grow 6.35% per year

Earnings have grown 8.6% per year over the past 5 years

Risk Analysis

Debt is not well covered by operating cash flow



Snowflake Analysis

Proven track record with mediocre balance sheet.


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: PLUS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.3%

PLUS

-0.8%

US Electronic

-0.3%

US Market


1 Year Return

13.3%

PLUS

24.2%

US Electronic

18.6%

US Market

Return vs Industry: PLUS underperformed the US Electronic industry which returned 24.2% over the past year.

Return vs Market: PLUS underperformed the US Market which returned 18.6% over the past year.


Shareholder returns

PLUSIndustryMarket
7 Day1.3%-0.8%-0.3%
30 Day-12.5%0.5%2.2%
90 Day3.9%9.8%5.6%
1 Year13.3%13.3%25.5%24.2%21.1%18.6%
3 Year44.6%44.6%45.3%41.3%45.6%36.2%
5 Year135.8%135.8%84.4%75.4%71.1%52.2%

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

Valuation

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

17.12x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PLUS ($84.69) is trading above our estimate of fair value ($73)

Significantly Below Fair Value: PLUS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PLUS is good value based on its PE Ratio (17.1x) compared to the Electronic industry average (21.1x).

PE vs Market: PLUS is good value based on its PE Ratio (17.1x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: PLUS is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: PLUS is overvalued based on its PB Ratio (2.5x) compared to the US Electronic industry average (2.1x).


Next Steps

Future Growth

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

6.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PLUS's forecast earnings growth (6.4% per year) is above the savings rate (1.7%).

Earnings vs Market: PLUS's earnings (6.4% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: PLUS's earnings are forecast to grow, but not significantly.

Revenue vs Market: PLUS's revenue (4.2% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: PLUS's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PLUS's Return on Equity is forecast to be low in 3 years time (14.7%).


Next Steps

Past Performance

How has ePlus performed over the past 5 years?

8.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PLUS has high quality earnings.

Growing Profit Margin: PLUS's current net profit margins (4.5%) are higher than last year (4.2%).


Past Earnings Growth Analysis

Earnings Trend: PLUS's earnings have grown by 8.6% per year over the past 5 years.

Accelerating Growth: PLUS's earnings growth over the past year (14.6%) exceeds its 5-year average (8.6% per year).

Earnings vs Industry: PLUS earnings growth over the past year (14.6%) underperformed the Electronic industry 53.7%.


Return on Equity

High ROE: PLUS's Return on Equity (14.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is ePlus's financial position?


Financial Position Analysis

Short Term Liabilities: PLUS's short term assets ($641.6M) exceed its short term liabilities ($421.5M).

Long Term Liabilities: PLUS's short term assets ($641.6M) exceed its long term liabilities ($42.5M).


Debt to Equity History and Analysis

Debt Level: PLUS's debt to equity ratio (47.9%) is considered high.

Reducing Debt: PLUS's debt to equity ratio has reduced from 73.7% to 47.9% over the past 5 years.

Debt Coverage: PLUS's debt is not well covered by operating cash flow (1%).

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


Balance Sheet

Inventory Level: PLUS has a low level of unsold assets or inventory.

Debt Coverage by Assets: PLUS's debt is covered by short term assets (assets are 3x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Years0%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate PLUS'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 PLUS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PLUS'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 PLUS's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of ePlus's salary, the management and board of directors tenure and is there insider trading?

1.6yrs

Average management tenure


CEO

Mark Marron (57yo)

3.3yrs

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 ($USD3.18M) is about average for companies of similar size in the US market ($USD2.63M).

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


Management Age and Tenure

1.6yrs

Average Tenure

53.5yo

Average Age

Experienced Management: PLUS's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Age and Tenure

3.4yrs

Average Tenure

64yo

Average Age

Experienced Board: PLUS's board of directors are considered experienced (3.4 years average tenure).


Insider Trading

Insider Buying: PLUS insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$120,97812 Nov 19
Darren Raiguel
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares1,302
Max PriceUS$93.76
SellUS$108,27211 Jun 19
John Callies
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,500
Max PriceUS$72.18
SellUS$43,04210 Jun 19
Lawrence Herman
EntityIndividual
Shares600
Max PriceUS$71.74
SellUS$83,15613 Feb 19
Lawrence Herman
EntityIndividual
Shares1,000
Max PriceUS$83.16

Ownership Breakdown

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


Management Team

  • Steve Mencarini (63yo)

    Senior Vice President of Business Operations

    • Tenure: 0yrs
    • Compensation: US$158.28k
  • Kley Parkhurst (56yo)

    Senior VP of Corporate Development & Assistant Secretary

    • Tenure: 0yrs
    • Compensation: US$186.50k
  • Mark Marron (57yo)

    CEO, President & Director

    • Tenure: 3.3yrs
    • Compensation: US$3.18m
  • Erica Stoecker

    Chief Compliance Officer

    • Tenure: 18.8yrs
  • Elaine Marion (51yo)

    Chief Financial Officer

    • Tenure: 11.3yrs
    • Compensation: US$1.69m
  • Chris Finney

    Senior Vice President of Sales

    • Tenure: 0yrs
  • Doug King (51yo)

    Chief Information Officer

    • Tenure: 1.4yrs
  • Darren Raiguel (48yo)

    Chief Operating Officer

    • Tenure: 1.6yrs
    • Compensation: US$1.80m
  • Barbara Tiano

    Vice President of Human Resources

    • Tenure: 1.3yrs
  • Dawn Kerwick

    Vice President of Marketing

    • Tenure: 1.3yrs

Board Members

  • Bruce Bowen (67yo)

    Director

    • Tenure: 29.9yrs
    • Compensation: US$200.75k
  • Eric Hovde (55yo)

    Independent Director

    • Tenure: 13.1yrs
    • Compensation: US$151.79k
  • C. Faulders (69yo)

    Independent Chairman

    • Tenure: 0.3yrs
    • Compensation: US$151.79k
  • Mark Marron (57yo)

    CEO, President & Director

    • Tenure: 3.3yrs
    • Compensation: US$3.18m
  • John Callies (65yo)

    Independent Director

    • Tenure: 9.4yrs
    • Compensation: US$151.79k
  • Gus Hunt (63yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$151.79k
  • Ben Xiang (34yo)

    Independent Director

    • Tenure: 0.4yrs
  • Maureen Morrison (65yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$158.46k

Company Information

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


Key Information

  • Name: ePlus inc.
  • Ticker: PLUS
  • Exchange: NasdaqGS
  • Founded: 1990
  • Industry: Technology Distributors
  • Sector: Tech
  • Market Cap: US$1.119b
  • 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

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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 23:35
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
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.