EPLUS INC (PLUS)
US2942681071 - Common Stock
PLUS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 127 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
PLUS had positive earnings in the past year.
PLUS had a positive operating cash flow in the past year.
In the past 5 years PLUS has always been profitable.
In multiple years PLUS reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.94%, PLUS belongs to the top of the industry, outperforming 85.60% of the companies in the same industry.
PLUS has a Return On Equity of 14.43%. This is amongst the best in the industry. PLUS outperforms 82.40% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.25%, PLUS belongs to the top of the industry, outperforming 88.00% 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 9.32%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.94% | ||
| ROE | 14.43% | ||
| ROIC | 13.25% |
ROA(3y)8.13%
ROA(5y)8.01%
ROE(3y)14.82%
ROE(5y)14.72%
ROIC(3y)14.06%
ROIC(5y)13.56%
1.3 Margins
Looking at the Profit Margin, with a value of 5.86%, PLUS is in the better half of the industry, outperforming 70.40% of the companies in the same industry.
PLUS's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 8.14%, PLUS is doing good in the industry, outperforming 74.40% of the companies in the same industry.
PLUS's Operating Margin has improved in the last couple of years.
The Gross Margin of PLUS (25.56%) is comparable to the rest of the industry.
PLUS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.14% | ||
| PM (TTM) | 5.86% | ||
| GM | 25.56% |
OM growth 3Y10.15%
OM growth 5Y6.47%
PM growth 3Y9.9%
PM growth 5Y8.26%
GM growth 3Y0.54%
GM growth 5Y1.88%
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.
The number of shares outstanding for PLUS remains at a similar level compared to 1 year ago.
The number of shares outstanding for PLUS has been reduced compared to 5 years ago.
The debt/assets ratio for PLUS has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.60 indicates that PLUS is not in any danger for bankruptcy at the moment.
PLUS has a Altman-Z score of 4.60. This is in the better half of the industry: PLUS outperforms 75.20% of its industry peers.
PLUS has a debt to FCF ratio of 0.18. This is a very positive value and a sign of high solvency as it would only need 0.18 years to pay back of all of its debts.
The Debt to FCF ratio of PLUS (0.18) is better than 81.60% of its industry peers.
PLUS has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of PLUS (0.01) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.18 | ||
| Altman-Z | 4.6 |
ROIC/WACC1.45
WACC9.16%
2.3 Liquidity
A Current Ratio of 1.93 indicates that PLUS should not have too much problems paying its short term obligations.
PLUS has a Current ratio of 1.93. This is in the lower half of the industry: PLUS underperforms 63.20% of its industry peers.
A Quick Ratio of 1.59 indicates that PLUS should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.59, PLUS perfoms like the industry average, outperforming 48.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.59 |
3. Growth
3.1 Past
PLUS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.56%, which is quite good.
PLUS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.50% yearly.
The Revenue has been growing slightly by 6.71% in the past year.
PLUS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.82% yearly.
EPS 1Y (TTM)14.56%
EPS 3Y17.88%
EPS 5Y19.5%
EPS growth Q2Q-14.49%
Revenue 1Y (TTM)6.71%
Revenue growth 3Y9.19%
Revenue growth 5Y7.82%
Revenue growth Q2Q-18.36%
3.2 Future
The Earnings Per Share is expected to grow by 5.67% 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 4.75% on average per year.
EPS Next Y4.84%
EPS Next 2Y5.67%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.1%
Revenue Next 2Y6.38%
Revenue Next 3Y4.75%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.98, the valuation of PLUS can be described as correct.
PLUS's Price/Earnings ratio is rather cheap when compared to the industry. PLUS is cheaper than 82.40% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.15. PLUS is valued slightly cheaper when compared to this.
PLUS is valuated correctly with a Price/Forward Earnings ratio of 14.30.
Based on the Price/Forward Earnings ratio, PLUS is valued a bit cheaper than 77.60% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PLUS to the average of the S&P500 Index (20.20), we can say PLUS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.98 | ||
| Fwd PE | 14.3 |
4.2 Price Multiples
PLUS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PLUS is cheaper than 77.60% of the companies in the same industry.
93.60% of the companies in the same industry are more expensive than PLUS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.19 | ||
| EV/EBITDA | 10.34 |
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)3.09
PEG (5Y)0.77
EPS Next 2Y5.67%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PLUS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
EPLUS INC
NASDAQ:PLUS (5/17/2024, 7:20:23 PM)
After market: 80.16 0 (0%)80.16
-0.03 (-0.04%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.16B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.98 | ||
| Fwd PE | 14.3 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.09
PEG (5Y)0.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.94% | ||
| ROE | 14.43% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.14% | ||
| PM (TTM) | 5.86% | ||
| GM | 25.56% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.59 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)14.56%
EPS 3Y17.88%
EPS 5Y
EPS growth Q2Q
EPS Next Y4.84%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.71%
Revenue growth 3Y9.19%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y