ePlus inc. (PLUS) AI Stock Analysis

ePlus inc. provides information technology solutions to optimize organizational IT environments and streamline supply chain operations globally. It operates through two segments: Technology and Financing. The Technology segment provides hardware, perpetual and subscription software, maintenance, software assurance, and specialized services such as security solutions, cloud consulting, hosting, staff augmentation, and project management. The Financing segment arranges sales-type and operating leases, loans, and consumption-based financing, alongside asset management and equipment disposal. Its client base spans commercial enterprises, state and local governments, government contractors, and educational institutions.

Between FY2021 and FY2026, revenue expanded at a 5-year CAGR of 9.3%. Annual revenue reached $2.44B in FY2026, up 18.1% year over year following a 7.0% decline in FY2025. Gross margin stood at 24.1% in FY2026, while operating margin was 6.8%, generating net income of $128.8M and diluted EPS of $4.79. Over the trailing twelve months, revenue was $2.45B with an operating margin of 6.0% and EPS of $4.66. In the latest quarter ended June 30, 2026, quarterly revenue rose 1.0% year over year, while quarterly earnings declined 28.0%.

As of June 30, 2026, ePlus held $448.9M in cash and short-term investments, with total assets of $1.87B and shareholders' equity of $1.07B. The company maintained a current ratio of 2.13. Operating cash flow in FY2026 was -$116.2M, and free cash flow was -$120.7M. During FY2026, capital expenditures were $4.4M. Capital returns included $30.6M spent on share buybacks and $19.7M paid in dividends, contributing to a 3.2% decrease in share count over 5 years.

PLUS trades at a trailing P/E of 20.2x and a forward P/E of 17.2x, compared to medians of 28.1x and 18.8x for US-listed Technology peers. The company's EV/EBITDA of 10.5x and price-to-sales of 1.0x also sit below the peer medians of 16.6x and 2.8x, respectively. Over the trailing 1-year period, the stock gained 33.4%, outperforming the S&P 500 benchmark return of 16.8%. Over a 5-year period, its return of 74.9% trailed the S&P 500 return of 83.0%.

ePlus pays a quarterly dividend with a forward annual payout of $1.08 per share, representing a dividend yield of 1.15%. The dividend payout ratio is 21.1%, and dividends have been paid for 2 consecutive years. The last ex-dividend date was August 25, 2026.

Wall Street coverage includes 1 Strong Buy rating, with 0 Buy, 0 Hold, and 0 Sell ratings. The mean price target is $111.00, representing an 18.0% upside compared to the October 16, 2026 closing price of $94.05. For the fiscal year ending March 31, 2027, consensus estimates forecast revenue of $2.56B and EPS of $5.47, indicating 1.6% EPS growth. The company beat EPS estimates in 3 of the last 4 quarters, with next earnings scheduled for November 5, 2026.

This page is an AI-written research summary of ePlus inc. (PLUS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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