EPLUS INC (PLUS) Stock Fundamental Analysis
NASDAQ:PLUS - Nasdaq - US2942681071 - Common Stock - Currency: USD
Overall PLUS gets a fundamental rating of 6 out of 10. We evaluated PLUS against 125 industry peers in the Electronic Equipment, Instruments & Components industry. PLUS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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.
PLUS had a positive operating cash flow in the past year.
Each year in the past 5 years PLUS has been profitable.
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
PLUS has a better Return On Assets (5.73%) than 79.20% of its industry peers.
PLUS has a Return On Equity of 11.04%. This is in the better half of the industry: PLUS outperforms 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 82.40% 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 9.16%.
| 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
With a decent Profit Margin value of 5.22%, PLUS is doing good in the industry, outperforming 74.40% of the companies in the same industry.
In the last couple of years the Profit Margin of PLUS has grown nicely.
PLUS's Operating Margin of 6.94% is fine compared to the rest of the industry. PLUS outperforms 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.
PLUS's Gross Margin has improved in the last couple of years.
| 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.
The number of shares outstanding for PLUS has been reduced compared to 1 year ago.
The number of shares outstanding for PLUS has been reduced compared to 5 years ago.
PLUS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.59 indicates that PLUS is not in any danger for bankruptcy at the moment.
PLUS has a Altman-Z score of 3.59. This is comparable to the rest of the industry: PLUS outperforms 60.00% 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.
PLUS's Debt to FCF ratio of 0.13 is amongst the best of the industry. PLUS outperforms 87.20% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that PLUS is not too dependend on debt financing.
PLUS's Debt to Equity ratio of 0.01 is fine compared to the rest of the industry. PLUS outperforms 62.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.13 | ||
| Altman-Z | 3.59 |
ROIC/WACC1.02
WACC9.35%
2.3 Liquidity
A Current Ratio of 1.71 indicates that PLUS should not have too much problems paying its short term obligations.
PLUS's Current ratio of 1.71 is on the low side compared to the rest of the industry. PLUS is outperformed by 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.
PLUS has a Quick ratio (1.56) which is in line with its industry peers.
| 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%.
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 -7.03% in the past year.
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
Based on estimates for the next years, PLUS will show a small growth in Earnings Per Share. The EPS will grow by 6.69% on average per year.
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 Y5.94%
EPS Next 2Y6.69%
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
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 15.08.
Compared to the rest of the industry, the Price/Earnings ratio of PLUS indicates a rather cheap valuation: PLUS is cheaper than 88.80% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, PLUS is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 14.23, the valuation of PLUS can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PLUS indicates a rather cheap valuation: PLUS is cheaper than 88.80% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of PLUS to the average of the S&P500 Index (21.76), we can say PLUS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.08 | ||
| Fwd PE | 14.23 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PLUS indicates a rather cheap valuation: PLUS is cheaper than 95.20% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.31 | ||
| EV/EBITDA | 8.88 |
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)2.54
PEG (5Y)1.73
EPS Next 2Y6.69%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PLUS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
70.27
-0.95 (-1.33%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners97.34%
Inst Owner Change0.72%
Ins Owners1.89%
Ins Owner Change-1.1%
Market Cap1.86B
Analysts85.71
Price Target93.84 (33.54%)
Short Float %2.48%
Short Ratio3.62
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)5.88%
EPS NQ rev (3m)11.96%
EPS NY rev (1m)5.1%
EPS NY rev (3m)1.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.08 | ||
| Fwd PE | 14.23 | ||
| P/S | 0.9 | ||
| P/FCF | 6.31 | ||
| P/OCF | 6.17 | ||
| P/B | 1.91 | ||
| P/tB | 2.69 | ||
| EV/EBITDA | 8.88 |
EPS(TTM)4.66
EY6.63%
EPS(NY)4.94
Fwd EY7.03%
FCF(TTM)11.14
FCFY15.85%
OCF(TTM)11.39
OCFY16.21%
SpS77.98
BVpS36.85
TBVpS26.11
PEG (NY)2.54
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 | 3.59 |
F-Score6
WACC9.35%
ROIC/WACC1.02
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 Y5.94%
EPS Next 2Y6.69%
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