EPLUS INC (PLUS) Stock Fundamental Analysis
USA - NASDAQ:PLUS - US2942681071 - Common Stock
73.33 USD
+0.63 (+0.87%)
73.33 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to PLUS. PLUS was compared to 124 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 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year PLUS was profitable.
In the past year PLUS had a positive cash flow from operations.
PLUS had positive earnings in each of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: PLUS reported negative operating cash flow in multiple years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.58%, PLUS belongs to the top of the industry, outperforming 80.65% of the companies in the same industry.
PLUS's Return On Equity of 11.60% is fine compared to the rest of the industry. PLUS outperforms 78.23% of its industry peers.
PLUS has a better Return On Invested Capital (9.34%) than 81.45% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PLUS is above the industry average of 9.32%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.58% | ||
| ROE | 11.6% | ||
| ROIC | 9.34% |
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 5.47%. This is in the better half of the industry: PLUS outperforms 70.16% of its industry peers.
In the last couple of years the Profit Margin of PLUS has grown nicely.
PLUS has a better Operating Margin (6.65%) than 69.35% of its industry peers.
PLUS's Operating Margin has improved in the last couple of years.
PLUS has a Gross Margin of 26.96%. This is comparable to the rest of the industry: PLUS outperforms 41.13% of its industry peers.
PLUS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.65% | ||
| PM (TTM) | 5.47% | ||
| GM | 26.96% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PLUS 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.
Compared to 1 year ago, PLUS has an improved debt to assets ratio.
2.2 Solvency
PLUS has an Altman-Z score of 4.14. This indicates that PLUS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of PLUS (4.14) is better than 61.29% of its industry peers.
PLUS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.14 |
ROIC/WACC1.03
WACC9.08%
2.3 Liquidity
A Current Ratio of 2.04 indicates that PLUS has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.04, PLUS is in line with its industry, outperforming 44.35% of the companies in the same industry.
A Quick Ratio of 1.89 indicates that PLUS should not have too much problems paying its short term obligations.
PLUS has a Quick ratio (1.89) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.04 | ||
| Quick Ratio | 1.89 |
3. Growth
3.1 Past
PLUS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.23%.
Measured over the past years, PLUS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.74% on average per year.
The Revenue has decreased by -1.55% in the past year.
The Revenue has been growing slightly by 5.43% on average over the past years.
EPS 1Y (TTM)3.23%
EPS 3Y2.05%
EPS 5Y8.74%
EPS Q2Q%11.5%
Revenue 1Y (TTM)-1.55%
Revenue growth 3Y4.34%
Revenue growth 5Y5.43%
Sales Q2Q%17.04%
3.2 Future
PLUS is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.48% yearly.
Based on estimates for the next years, PLUS will show a small growth in Revenue. The Revenue will grow by 1.60% on average per year.
EPS Next Y-10.59%
EPS Next 2Y-0.48%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.75%
Revenue Next 2Y1.6%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
PLUS is valuated correctly with a Price/Earnings ratio of 15.31.
Compared to the rest of the industry, the Price/Earnings ratio of PLUS indicates a rather cheap valuation: PLUS is cheaper than 89.52% of the companies listed in the same industry.
PLUS is valuated rather cheaply when we compare the Price/Earnings ratio to 27.55, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 15.89, the valuation of PLUS can be described as correct.
Based on the Price/Forward Earnings ratio, PLUS is valued cheaply inside the industry as 84.68% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of PLUS to the average of the S&P500 Index (23.04), we can say PLUS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.31 | ||
| Fwd PE | 15.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PLUS is valued cheaper than 92.74% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PLUS is valued cheaply inside the industry as 84.68% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.42 | ||
| EV/EBITDA | 8.42 |
4.3 Compensation for Growth
PLUS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.75
EPS Next 2Y-0.48%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PLUS has a Yearly Dividend Yield of 1.38%. Purely for dividend investing, there may be better candidates out there.
PLUS's Dividend Yield is rather good when compared to the industry average which is at 2.11. PLUS pays more dividend than 91.13% of the companies in the same industry.
With a Dividend Yield of 1.38, PLUS pays less dividend than the S&P500 average, which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
5.2 History
PLUS does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y-0.48%
EPS Next 3YN/A
73.33
+0.63 (+0.87%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners98.56%
Inst Owner Change0.01%
Ins Owners1.97%
Ins Owner Change-0.51%
Market Cap1.95B
Analysts85.71
Price Target93.84 (27.97%)
Short Float %3.33%
Short Ratio4.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.69%
Min EPS beat(2)5.58%
Max EPS beat(2)25.81%
EPS beat(4)2
Avg EPS beat(4)3.15%
Min EPS beat(4)-14.47%
Max EPS beat(4)25.81%
EPS beat(8)3
Avg EPS beat(8)-3.56%
EPS beat(12)7
Avg EPS beat(12)6.74%
EPS beat(16)10
Avg EPS beat(16)9.99%
Revenue beat(2)1
Avg Revenue beat(2)7.08%
Min Revenue beat(2)-6.78%
Max Revenue beat(2)20.93%
Revenue beat(4)1
Avg Revenue beat(4)-1.94%
Min Revenue beat(4)-12.39%
Max Revenue beat(4)20.93%
Revenue beat(8)2
Avg Revenue beat(8)-3.43%
Revenue beat(12)5
Avg Revenue beat(12)0.83%
Revenue beat(16)8
Avg Revenue beat(16)1.33%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-25.59%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.7%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.31 | ||
| Fwd PE | 15.89 | ||
| P/S | 0.9 | ||
| P/FCF | 19.42 | ||
| P/OCF | 18.41 | ||
| P/B | 1.91 | ||
| P/tB | 2.64 | ||
| EV/EBITDA | 8.42 |
EPS(TTM)4.79
EY6.53%
EPS(NY)4.62
Fwd EY6.29%
FCF(TTM)3.78
FCFY5.15%
OCF(TTM)3.98
OCFY5.43%
SpS81.17
BVpS38.32
TBVpS27.83
PEG (NY)N/A
PEG (5Y)1.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.58% | ||
| ROE | 11.6% | ||
| ROCE | 12.94% | ||
| ROIC | 9.34% | ||
| ROICexc | 16.45% | ||
| ROICexgc | 29.51% | ||
| OM | 6.65% | ||
| PM (TTM) | 5.47% | ||
| GM | 26.96% | ||
| FCFM | 4.65% |
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 Turnover1.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 17.6% | ||
| Cap/Sales | 0.25% | ||
| Interest Coverage | 83.88 | ||
| Cash Conversion | 60.65% | ||
| Profit Quality | 85% | ||
| Current Ratio | 2.04 | ||
| Quick Ratio | 1.89 | ||
| Altman-Z | 4.14 |
F-Score6
WACC9.08%
ROIC/WACC1.03
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)3.23%
EPS 3Y2.05%
EPS 5Y8.74%
EPS Q2Q%11.5%
EPS Next Y-10.59%
EPS Next 2Y-0.48%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-1.55%
Revenue growth 3Y4.34%
Revenue growth 5Y5.43%
Sales Q2Q%17.04%
Revenue Next Year3.75%
Revenue Next 2Y1.6%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-4.74%
EBIT growth 3Y-1.26%
EBIT growth 5Y7.97%
EBIT Next Year6.8%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y81.88%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y59.24%
OCF growth 3YN/A
OCF growth 5YN/A