ePlus inc. Fundamental Analysis
ePlus inc. (PLUS) shows weak financial fundamentals with a PE ratio of 16.97, profit margin of 5.45%, and ROE of 12.69%. The company generates $2.4B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 49.6/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PLUS's fundamental strength across five key dimensions:
Efficiency Score
WeakPLUS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPLUS trades at attractive valuation levels.
Growth Score
ModeratePLUS shows steady but slowing expansion.
Financial Health Score
ExcellentPLUS maintains a strong and stable balance sheet.
Profitability Score
WeakPLUS struggles to sustain strong margins.
Key Financial Metrics
Is PLUS Expensive or Cheap?
P/E Ratio
PLUS trades at 16.97 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, PLUS's PEG of 0.82 indicates potential undervaluation.
Price to Book
The market values ePlus inc. at 2.04 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 12.49 times EBITDA. This signals the market has high growth expectations.
How Well Does PLUS Make Money?
Net Profit Margin
For every $100 in sales, ePlus inc. keeps $5.45 as profit after all expenses.
Operating Margin
Core operations generate 6.80 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.69 in profit for every $100 of shareholder equity.
ROA
ePlus inc. generates $7.34 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
ePlus inc. generates limited operating cash flow of $-116.34M, signaling weaker underlying cash strength.
Free Cash Flow
ePlus inc. generates weak or negative free cash flow of $-120.77M, restricting financial flexibility.
FCF Per Share
Each share generates $-4.62 in free cash annually.
FCF Yield
PLUS converts -5.55% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.97
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.82
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.04
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.89
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.12
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How PLUS Stacks Against Its Sector Peers
| Metric | PLUS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.97 | 36.52 | Better (Cheaper) |
| ROE | 12.69% | 725.00% | Weak |
| Net Margin | 5.45% | -142969.00% (disorted) | Weak |
| Debt/Equity | 0.02 | 0.46 | Strong (Low Leverage) |
| Current Ratio | 2.12 | 3.40 | Strong Liquidity |
| ROA | 7.34% | 224.00% | Weak |
PLUS outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews ePlus inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Growth, Innovation, High Beta
EPS CAGR
N/A
Industry Style: Growth, Innovation, High Beta
FCF CAGR
N/A
Industry Style: Growth, Innovation, High Beta