NasdaqGS:PLUS

Stock Analysis Report

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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. More Details


Snowflake Analysis

Adequate balance sheet with acceptable track record.


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: PLUS's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

6.1%

PLUS

3.3%

US Electronic

2.8%

US Market


1 Year Return

2.4%

PLUS

20.1%

US Electronic

20.9%

US Market

Return vs Industry: PLUS underperformed the US Electronic industry which returned 20.1% over the past year.

Return vs Market: PLUS underperformed the US Market which returned 20.9% over the past year.


Shareholder returns

PLUSIndustryMarket
7 Day6.1%3.3%2.8%
30 Day26.7%17.9%11.1%
90 Day11.5%19.5%6.5%
1 Year2.4%2.4%21.3%20.1%23.6%20.9%
3 Year9.0%9.0%33.0%29.2%47.3%37.6%
5 Year93.8%93.8%108.7%98.8%94.3%72.9%

Long-Term 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?

16.29x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PLUS ($85.54) is trading above our estimate of fair value ($61.74)

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 (16.3x) compared to the US Electronic industry average (25.4x).

PE vs Market: PLUS is good value based on its PE Ratio (16.3x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: PLUS is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: PLUS's PB Ratio (2.2x) is in line with the US Electronic industry average.


Next Steps

Future Growth

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

4.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PLUS's forecast earnings growth (4.6% per year) is above the savings rate (2.2%).

Earnings vs Market: PLUS's earnings (4.6% per year) are forecast to grow slower than the US market (22% per year).

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

Revenue vs Market: PLUS's revenue (1.1% per year) is forecast to grow slower than the US market (10.3% per year).

High Growth Revenue: PLUS's revenue (1.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if PLUS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has ePlus performed over the past 5 years?

9.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PLUS has high quality earnings.

Growing Profit Margin: PLUS's current net profit margins (4.4%) are lower than last year (4.5%).


Past Earnings Growth Analysis

Earnings Trend: PLUS's earnings have grown by 9.7% per year over the past 5 years.

Accelerating Growth: PLUS's earnings growth over the past year (5.7%) is below its 5-year average (9.7% per year).

Earnings vs Industry: PLUS earnings growth over the past year (5.7%) exceeded the Electronic industry -14.1%.


Return on Equity

High ROE: PLUS's Return on Equity (13.4%) is considered low.


Next Steps

Financial Health

How is ePlus's financial position?


Financial Position Analysis

Short Term Liabilities: PLUS's short term assets ($768.0M) exceed its short term liabilities ($476.5M).

Long Term Liabilities: PLUS's short term assets ($768.0M) exceed its long term liabilities ($39.1M).


Debt to Equity History and Analysis

Debt Level: PLUS's debt to equity ratio (49.6%) is considered high.

Reducing Debt: PLUS's debt to equity ratio has reduced from 55.7% to 49.6% over the past 5 years.

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

Interest Coverage: PLUS's interest payments on its debt are well covered by EBIT (176.7x coverage).


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 PLUS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

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

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

2.5yrs

Average management tenure


CEO

Mark Marron (58 yo)

4.25yrs

Tenure

US$4,043,073

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 ($USD4.04M) is above average for companies of similar size in the US market ($USD2.56M).

Compensation vs Earnings: Mark's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Mark Marron
CEO, President & Director4.25yrsUS$4.04m0.71%
$ 8.2m
Elaine Marion
Chief Financial Officer12.17yrsUS$2.20m0.46%
$ 5.3m
Darren Raiguel
Chief Operating Officer2.5yrsUS$2.20m0.36%
$ 4.1m
George King
Chief Information Officer2.33yrsno datano data
Kleyton Parkhurst
Senior VP of Corporate Development & Assistant Secretaryno dataUS$424.16kno data
Erica Stoecker
Chief Compliance Officer7.83yrsno datano data
Dawn Kerwick
Vice President of Marketing2.25yrsno datano data
Barbara Tiano
Vice President of Human Resources2.25yrsno 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
Dan Farrell
Senior Vice President of Servicesno datano datano data
Kenneth Farber
President of ePlus Software LLCno datano datano data

2.5yrs

Average Tenure

57yo

Average Age

Experienced Management: PLUS's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Marron
CEO, President & Director4.25yrsUS$4.04m0.71%
$ 8.2m
Bruce Bowen
Director30.83yrsUS$159.15k0.13%
$ 1.5m
Eric Hovde
Independent Director14yrsUS$159.29k0.21%
$ 2.5m
C. Faulders
Independent Chairman1.17yrsUS$186.08k0.15%
$ 1.8m
John Callies
Independent Director10.33yrsUS$159.32k0.079%
$ 912.0k
Ira Hunt
Independent Director6.17yrsUS$159.32k0.075%
$ 867.5k
Ben Xiang
Independent Director1.33yrsUS$148.04k0.017%
$ 198.5k
Maureen Morrison
Independent Director2.42yrsUS$159.32k0.023%
$ 270.0k

4.3yrs

Average Tenure

65yo

Average Age

Experienced Board: PLUS's board of directors are considered experienced (4.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: PLUS insiders have only sold shares 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: PLUS
  • Exchange: NasdaqGS
  • Founded: 1990
  • Industry: Technology Distributors
  • Sector: Tech
  • Market Cap: US$1.155b
  • Shares outstanding: 13.51m
  • Website: https://www.eplus.com

Number of Employees


Location

  • ePlus inc.
  • 13595 Dulles Technology Drive
  • Herndon
  • Virginia
  • 20171-3413
  • 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 Analysis2020/11/30 00:18
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.