EPLUS INC (PLUS) Stock Fundamental Analysis
NASDAQ:PLUS - Nasdaq - US2942681071 - Common Stock - Currency: USD
PLUS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 125 industry peers in the Electronic Equipment, Instruments & Components industry. PLUS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. PLUS has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
PLUS had positive earnings in the past year.
In the past year PLUS had a positive cash flow from operations.
Each year in the past 5 years PLUS has been profitable.
In multiple years PLUS reported negative operating cash flow during the last 5 years.
1.2 Ratios
PLUS has a better Return On Assets (5.73%) than 78.40% of its industry peers.
The Return On Equity of PLUS (11.04%) is better than 78.40% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.54%, PLUS belongs to the top of the industry, outperforming 81.60% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PLUS is above the industry average of 9.35%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.73% | ||
| ROE | 11.04% | ||
| ROIC | 9.54% |
ROA(3y)7.06%
ROA(5y)7.43%
ROE(3y)13.05%
ROE(5y)13.67%
ROIC(3y)11.86%
ROIC(5y)12.65%
1.3 Margins
PLUS has a Profit Margin of 5.22%. This is in the better half of the industry: PLUS outperforms 74.40% of its industry peers.
In the last couple of years the Profit Margin of PLUS has grown nicely.
The Operating Margin of PLUS (6.94%) is better than 72.80% of its industry peers.
In the last couple of years the Operating Margin of PLUS has grown nicely.
Looking at the Gross Margin, with a value of 27.51%, PLUS is in line with its industry, outperforming 44.80% of the companies in the same industry.
In the last couple of years the Gross Margin of PLUS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.94% | ||
| PM (TTM) | 5.22% | ||
| GM | 27.51% |
OM growth 3Y-5.37%
OM growth 5Y2.41%
PM growth 3Y-3.45%
PM growth 5Y3.71%
GM growth 3Y2.81%
GM growth 5Y2.24%
2. Health
2.1 Basic Checks
PLUS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
PLUS has less shares outstanding than it did 1 year ago.
PLUS has less shares outstanding than it did 5 years ago.
PLUS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.56 indicates that PLUS is not in any danger for bankruptcy at the moment.
PLUS has a better Altman-Z score (3.56) than 60.80% of its industry peers.
PLUS has a debt to FCF ratio of 0.13. This is a very positive value and a sign of high solvency as it would only need 0.13 years to pay back of all of its debts.
The Debt to FCF ratio of PLUS (0.13) is better than 87.20% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that PLUS is not too dependend on debt financing.
The Debt to Equity ratio of PLUS (0.01) is better than 62.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.13 | ||
| Altman-Z | 3.56 |
ROIC/WACC1.06
WACC9.01%
2.3 Liquidity
A Current Ratio of 1.71 indicates that PLUS should not have too much problems paying its short term obligations.
The Current ratio of PLUS (1.71) is worse than 69.60% of its industry peers.
PLUS has a Quick Ratio of 1.56. This is a normal value and indicates that PLUS is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of PLUS (1.56) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
PLUS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.28%.
PLUS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.74% yearly.
PLUS shows a decrease in Revenue. In the last year, the revenue decreased by -7.03%.
PLUS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.43% yearly.
EPS 1Y (TTM)-5.28%
EPS 3Y2.05%
EPS 5Y8.74%
EPS Q2Q%19.35%
Revenue 1Y (TTM)-7.03%
Revenue growth 3Y4.34%
Revenue growth 5Y5.43%
Sales Q2Q%-10.16%
3.2 Future
The Earnings Per Share is expected to grow by 4.25% on average over the next years.
Based on estimates for the next years, PLUS will show a small growth in Revenue. The Revenue will grow by 1.72% on average per year.
EPS Next Y0.8%
EPS Next 2Y4.25%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.61%
Revenue Next 2Y1.72%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.11, PLUS is valued correctly.
Based on the Price/Earnings ratio, PLUS is valued cheaply inside the industry as 88.80% of the companies are valued more expensively.
PLUS is valuated rather cheaply when we compare the Price/Earnings ratio to 26.32, which is the current average of the S&P500 Index.
PLUS is valuated correctly with a Price/Forward Earnings ratio of 14.99.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PLUS indicates a rather cheap valuation: PLUS is cheaper than 81.60% of the companies listed in the same industry.
PLUS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.11 | ||
| Fwd PE | 14.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PLUS is valued cheaper than 92.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PLUS is valued cheaper than 95.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.32 | ||
| EV/EBITDA | 8.6 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of PLUS may justify a higher PE ratio.
PEG (NY)18.98
PEG (5Y)1.73
EPS Next 2Y4.25%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PLUS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
70.42
+1.05 (+1.51%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners97.34%
Inst Owner Change-12.74%
Ins Owners1.89%
Ins Owner Change5.51%
Market Cap1.87B
Analysts85.71
Price Target93.84 (33.26%)
Short Float %2.41%
Short Ratio3.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.67%
Min EPS beat(2)-14.47%
Max EPS beat(2)25.81%
EPS beat(4)1
Avg EPS beat(4)0.43%
Min EPS beat(4)-14.47%
Max EPS beat(4)25.81%
EPS beat(8)3
Avg EPS beat(8)0.78%
EPS beat(12)6
Avg EPS beat(12)6.15%
EPS beat(16)10
Avg EPS beat(16)11.14%
Revenue beat(2)0
Avg Revenue beat(2)-8.14%
Min Revenue beat(2)-9.5%
Max Revenue beat(2)-6.78%
Revenue beat(4)0
Avg Revenue beat(4)-8.13%
Min Revenue beat(4)-12.39%
Max Revenue beat(4)-3.85%
Revenue beat(8)2
Avg Revenue beat(8)-4.35%
Revenue beat(12)4
Avg Revenue beat(12)-1.25%
Revenue beat(16)8
Avg Revenue beat(16)0.31%
PT rev (1m)19.48%
PT rev (3m)13.58%
EPS NQ rev (1m)9.41%
EPS NQ rev (3m)5.74%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.05%
Revenue NQ rev (1m)-2.03%
Revenue NQ rev (3m)-3.41%
Revenue NY rev (1m)-3.07%
Revenue NY rev (3m)-4.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.11 | ||
| Fwd PE | 14.99 | ||
| P/S | 0.9 | ||
| P/FCF | 6.32 | ||
| P/OCF | 6.18 | ||
| P/B | 1.91 | ||
| P/tB | 2.7 | ||
| EV/EBITDA | 8.6 |
EPS(TTM)4.66
EY6.62%
EPS(NY)4.7
Fwd EY6.67%
FCF(TTM)11.14
FCFY15.82%
OCF(TTM)11.39
OCFY16.17%
SpS77.98
BVpS36.85
TBVpS26.11
PEG (NY)18.98
PEG (5Y)1.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.73% | ||
| ROE | 11.04% | ||
| ROCE | 13.21% | ||
| ROIC | 9.54% | ||
| ROICexc | 14.87% | ||
| ROICexgc | 25.13% | ||
| OM | 6.94% | ||
| PM (TTM) | 5.22% | ||
| GM | 27.51% | ||
| FCFM | 14.29% |
ROA(3y)7.06%
ROA(5y)7.43%
ROE(3y)13.05%
ROE(5y)13.67%
ROIC(3y)11.86%
ROIC(5y)12.65%
ROICexc(3y)15.62%
ROICexc(5y)16.4%
ROICexgc(3y)22.51%
ROICexgc(5y)23.6%
ROCE(3y)16.48%
ROCE(5y)17.62%
ROICexcg growth 3Y-1.93%
ROICexcg growth 5Y2.68%
ROICexc growth 3Y-8.34%
ROICexc growth 5Y-0.08%
OM growth 3Y-5.37%
OM growth 5Y2.41%
PM growth 3Y-3.45%
PM growth 5Y3.71%
GM growth 3Y2.81%
GM growth 5Y2.24%
F-Score6
Asset Turnover1.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.13 | ||
| Debt/EBITDA | 0.07 | ||
| Cap/Depr | 22.31% | ||
| Cap/Sales | 0.32% | ||
| Interest Coverage | 62.45 | ||
| Cash Conversion | 174.43% | ||
| Profit Quality | 273.71% | ||
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.56 | ||
| Altman-Z | 3.56 |
F-Score6
WACC9.01%
ROIC/WACC1.06
Cap/Depr(3y)35.21%
Cap/Depr(5y)51.72%
Cap/Sales(3y)0.39%
Cap/Sales(5y)0.63%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-5.28%
EPS 3Y2.05%
EPS 5Y8.74%
EPS Q2Q%19.35%
EPS Next Y0.8%
EPS Next 2Y4.25%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-7.03%
Revenue growth 3Y4.34%
Revenue growth 5Y5.43%
Sales Q2Q%-10.16%
Revenue Next Year0.61%
Revenue Next 2Y1.72%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-11.38%
EBIT growth 3Y-1.26%
EBIT growth 5Y7.97%
EBIT Next Year12.69%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y23.17%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y21.61%
OCF growth 3YN/A
OCF growth 5YN/A