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1. Company Snapshot

1.a. Company Description

ePlus inc., together with its subsidiaries, provides information technology (IT) solutions that enable organizations to optimize their IT environment and supply chain processes in the United States and internationally.It operates in two segments, Technology and Financing.The Technology segment offers hardware, perpetual and subscription software, maintenance, software assurance, and internally provided and outsourced services; and professional and managed services, including managed, professional, security solutions, cloud consulting and hosting, staff augmentation, server and desktop support, and project management services.


The Financing segment engages in financing arrangements, such as sales-type and operating leases; loans and consumption-based financing arrangements; and underwriting, management, and disposal of IT equipment and assets.Its financing operations comprise sales, pricing, credit, contracts, accounting, risk management, and asset management.This segment primarily finances IT, communication-related, and medical equipment; and industrial machinery and equipment, office furniture and general office equipment, transportation equipment, and other general business equipment directly, as well as through vendors.


ePlus inc.serves commercial entities, state and local governments, government contractors, and educational institutions.The company was formerly known as MLC Holdings, Inc.


and changed its name to ePlus inc.in 1999.ePlus inc.


was founded in 1990 and is headquartered in Herndon, Virginia.

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1.b. Last Insights on PLUS

The recent 3-month performance of ePlus inc. was negatively impacted by a series of events. The company's Q3 2026 earnings call highlighted accelerating demand for AI-driven infrastructure modernization, but also revealed a decrease in services revenues, which declined 0.7% year-over-year. Additionally, the company's gross billings increased 15.6% to $982.1 million, but this growth was not enough to offset the decline in services revenues. Furthermore, the company's announcement of a quarterly dividend of $0.25 per share may have been overshadowed by the decline in services revenues.

1.c. Company Highlights

2. ePlus Delivers Strong Q3 FY2026 Results with Double-Digit Growth Across Key Metrics

The company reported a robust third quarter with consolidated net sales increasing 24.6% to $615 million, driven by a strong performance in data center and cloud, networking, and security. Product sales grew 32.2% year-over-year, while net earnings from continuing operations surged 129.3% to $33.4 million. Adjusted EBITDA also saw a significant increase of 97% to $53.4 million, with a margin of 8.7%, 320 basis points higher than the same period last year. Earnings per share (EPS) came in at $1.45, beating estimates of $1.01.

Publication Date: Feb -24

📋 Highlights
  • Consolidated Net Sales Growth:: Increased 24.6% year-over-year to $615 million, driven by strong performance in data center, cloud, networking, and security segments.
  • Product Sales Surge:: Rose 32.2% YoY, led by AI-driven infrastructure modernization and demand in data center/cloud solutions.
  • Security Revenue Expansion:: Security gross billings grew 16.4% YoY and 27.6% for the trailing twelve months, reflecting heightened focus on governance, risk, and compliance.
  • Profitability Surge:: Net earnings from continuing operations jumped 129.3% to $33.4 million, while adjusted EBITDA rose 97% to $53.4 million, with margin expanding to 8.7%.
  • Full-Year Guidance Increase:: Net sales projected to grow 20-22% YoY, adjusted EBITDA to rise 41-43%, and gross profit to expand 19-21%, reflecting confidence in AI/cloud momentum and market share gains.

Business Drivers and Growth Areas

Demand tied to AI initiatives continues to drive infrastructure modernization across customers of all sizes, benefiting ePlus. The company's storage and cloud services saw an increase as the continued build-out of data centers and underlying infrastructure suggests a long runway of opportunity. Security remains a key business driver, with security gross billings for products and services growing 16.4% year-over-year. Mark Marron noted that AI is now a tailwind, driven by customers defining use cases and modernizing legacy systems, visible in their data center, cloud, and networking segments.

Valuation and Growth Expectations

With a P/E Ratio of 15.53 and an EV/EBITDA of 9.22, the company's valuation appears reasonable given its strong growth prospects. Analysts estimate next year's revenue growth at 5.7%, which may be conservative considering the company's historical performance and recent trends. The company's return on equity (ROE) stands at 12.93%, indicating efficient use of shareholder capital.

Outlook and Guidance

ePlus is increasing its full-year guidance for net sales, gross profit, and adjusted EBITDA growth, with net sales expected to grow 20% to 22% year-over-year. The company remains focused on expanding its solutions portfolio, growing its professional and managed services capabilities, and extending its geographic reach, positioning it well for continued growth and success.

3. NewsRoom

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ePlus inc. $PLUS Shares Acquired by Public Sector Pension Investment Board

Feb -18

Source: defenseworld.net

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ePlus Q3 Earnings Call Highlights

Feb -06

Source: defenseworld.net

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ePlus inc. (PLUS) Q3 2026 Earnings Call Transcript

Feb -05

Source: seekingalpha.com

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ePlus Reports Third Quarter and First Nine Months Financial Results of Fiscal Year 2026

Feb -04

Source: prnewswire.com

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Vanguard 0-3 Month Treasury Bill ETF: A Key Addition in Steven Scruggs' Portfolio

Feb -02

Source: gurufocus.com

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ePlus Announces Third Quarter and Nine Month Fiscal Year 2026 Earnings Release Date and Conference Call

Jan -28

Source: prnewswire.com

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These Are The Stock Market's Newest Dividend Payers

Jan -25

Source: forbes.com

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This ePlus Director Dumped Shares Multiple Times In Late 2025

Jan -14

Source: fool.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.05%)

6. Segments

Technology

Expected Growth: 5%

ePlus inc.'s Technology segment growth is driven by increasing demand for cloud-based solutions, cybersecurity services, and digital transformation initiatives. The company's strong relationships with top OEMs, such as Cisco and HP, also contribute to its growth. Additionally, ePlus inc.'s expertise in IT consulting and managed services helps to drive revenue growth.

Financing

Expected Growth: 7%

ePlus inc.'s 7% growth is driven by increasing demand for digital transformation, cloud adoption, and cybersecurity solutions. Strong relationships with top vendors, strategic acquisitions, and a skilled workforce also contribute to growth. Additionally, the company's focus on providing a broad range of IT solutions and services to a diverse customer base helps to drive revenue expansion.

7. Detailed Products

IT Hardware and Software

ePlus offers a wide range of IT hardware and software products from leading manufacturers, including servers, storage, networking, and cybersecurity solutions.

Cloud and Data Center Solutions

ePlus offers cloud and data center solutions, including cloud migration, data center infrastructure, and managed services, to help organizations optimize their IT environments.

Cybersecurity Solutions

ePlus offers a range of cybersecurity solutions, including threat detection, incident response, and security assessments, to help organizations protect against cyber threats.

IT Consulting and Professional Services

ePlus offers IT consulting and professional services, including IT strategy, implementation, and management, to help organizations optimize their IT environments.

Managed Services

ePlus offers managed services, including monitoring, maintenance, and support, to help organizations optimize their IT operations.

Supply Chain and Logistics Services

ePlus offers supply chain and logistics services, including procurement, inventory management, and deployment, to help organizations optimize their IT supply chain.

8. ePlus inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

ePlus inc. faces moderate threat from substitutes due to the availability of alternative IT products and services from competitors.

Bargaining Power Of Customers

ePlus inc. has a diverse customer base, which reduces the bargaining power of individual customers, giving the company an upper hand in negotiations.

Bargaining Power Of Suppliers

ePlus inc. relies on a few large suppliers for its products and services, giving them some bargaining power, but the company's size and diversification mitigate this risk.

Threat Of New Entrants

The IT industry has high barriers to entry, including significant capital requirements and the need for specialized expertise, making it difficult for new entrants to compete with ePlus inc.

Intensity Of Rivalry

The IT industry is highly competitive, with many established players competing for market share, which increases the intensity of rivalry and puts pressure on ePlus inc. to differentiate itself.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 4.29%
Debt Cost 9.78%
Equity Weight 95.71%
Equity Cost 9.78%
WACC 9.78%
Leverage 4.48%

11. Quality Control: ePlus inc. passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Clear Secure

A-Score: 6.5/10

Value: 3.2

Growth: 9.8

Quality: 7.9

Yield: 5.0

Momentum: 9.0

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
Immersion

A-Score: 5.9/10

Value: 10.0

Growth: 6.7

Quality: 6.1

Yield: 6.0

Momentum: 1.5

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Upbound

A-Score: 5.7/10

Value: 8.8

Growth: 3.9

Quality: 6.4

Yield: 10.0

Momentum: 1.0

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
ePlus

A-Score: 5.2/10

Value: 4.5

Growth: 7.0

Quality: 5.8

Yield: 1.0

Momentum: 7.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
SilverSun Technologies

A-Score: 3.9/10

Value: 4.6

Growth: 5.2

Quality: 2.8

Yield: 5.0

Momentum: 6.0

Volatility: 0.0

1-Year Total Return ->

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Stock-Card
Daily Journal

A-Score: 3.9/10

Value: 4.6

Growth: 4.7

Quality: 8.0

Yield: 0.0

Momentum: 2.0

Volatility: 4.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

80.59$

Current Price

80.59$

Potential

-0.00%

Expected Cash-Flows