Download PDF

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.

Show Full description

1.b. Last Insights on PLUS

ePlus inc.'s recent performance was driven by its strong Q2 2026 earnings report, which showed a 23.4% increase in consolidated net sales to $608.8 million and a 19.4% rise in services revenues to $123.8 million. The company also raised its Fiscal 2026 guidance, citing double-digit growth in key fundamentals. Additionally, ePlus announced a quarterly dividend of $0.25 per share. The company's acquisition of Realwave, Inc.'s assets and expansion of managed services and enhanced maintenance support portfolios for Juniper Networks also contributed to its growth.

1.c. Company Highlights

2. ePlus Delivers Record $1 Billion in Gross Billings, Driven by Strong Demand Across Portfolio

ePlus reported a strong second quarter fiscal 2026, with consolidated net sales reaching $608.8 million, up 23.4% year-over-year, and gross billings hitting a record $1.02 billion, representing a 26.5% increase. The company's adjusted EBITDA grew at a rate more than twice that of net sales, demonstrating operating leverage. Earnings per share (EPS) came in at $1.53, significantly beating estimates of $0.95. The strong financial performance was driven by sustained demand across the company's focus areas of security, networking, and cloud.

Publication Date: Nov -12

📋 Highlights
  • $1.02 Billion Gross Billings:: Achieved record $1.02 billion in gross billings (Q2 FY2026), reflecting 26.5% YoY growth with 90% organic contribution.
  • 23.4% Net Sales Growth:: Consolidated net sales reached $608.8 million, up 23.4% YoY, driven by security, networking, and cloud demand.
  • Security Segment Surge:: Security gross billings rose 52% YoY, contributing 24% of trailing 12-month gross billings (up from 21% prior year).
  • EBITDA Operating Leverage:: Adjusted EBITDA growth outpaced net sales by over 2x, highlighting margin optimization amid sales expansion.
  • $400M Cash Reserves:: Strong balance sheet with >$400 million in cash, enabling $400M M&A and organic growth strategies as AI-driven demand accelerates.

Segment Performance

The security segment was a standout performer, with gross billings of security products and services up 52% year-over-year, now representing 24% of trailing 12-month gross billings. Networking posted its second consecutive quarter of sequential growth, fueled by AI-driven infrastructure investments. The Data Center and Cloud segment also saw significant growth, with net sales up nearly 30% year-to-date, driven by customer modernization initiatives tied to AI deployments. As Mark Marron noted, "We're seeing a lot of the AI initiatives with customers making investments, looking at data classification, data cleanliness and projects along those lines."

Guidance and Outlook

ePlus is increasing its fiscal year 2026 guidance for net sales, gross profit, and adjusted EBITDA. The company now expects net sales growth to be in the mid-teens, with gross profit also expected to grow at a rate in the mid-teens. The upward revision in guidance reflects the company's confidence in its continued momentum across its business segments.

Valuation and Growth Prospects

With a current P/E Ratio of 19.42 and an expected revenue growth rate of 10.7% next year, ePlus appears to be reasonably valued. The company's EV/EBITDA ratio stands at 10.5, indicating a relatively moderate valuation. Additionally, ePlus has a healthy balance sheet with over $400 million in cash, enabling disciplined capital allocation and fueling long-term growth. The company's return on equity (ROE) is 12.17%, and return on invested capital (ROIC) is 9.4%, indicating efficient use of capital.

3. NewsRoom

Card image cap

Buying the Best Top-Ranked Stocks in December

Dec -02

Source: zacks.com

Card image cap

Aviva PLC Decreases Stake in ePlus inc. $PLUS

Nov -14

Source: defenseworld.net

Card image cap

Why ePlus Stock Soared on Friday

Nov -07

Source: fool.com

Card image cap

ePlus inc. (PLUS) Q2 2026 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

Card image cap

ePlus Reports Fiscal Year 2026 Second Quarter and First Half Financial Results

Nov -06

Source: prnewswire.com

Card image cap

ePlus Announces Second Quarter and Six Month Fiscal Year 2026 Earnings Release Date and Conference Call

Oct -30

Source: prnewswire.com

Card image cap

New ePlus AI Industry Pulse Poll Reveals Strategic Shift: AI Moves from Efficiency to Expansion

Oct -21

Source: prnewswire.com

Card image cap

ePlus Expands Managed Services and Enhanced Maintenance Support Portfolios for Juniper Networks

Sep -30

Source: prnewswire.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
Immersion

A-Score: 6.0/10

Value: 9.3

Growth: 6.7

Quality: 6.0

Yield: 5.0

Momentum: 3.0

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
Clear Secure

A-Score: 5.8/10

Value: 3.7

Growth: 9.8

Quality: 7.6

Yield: 5.0

Momentum: 4.0

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
Upbound

A-Score: 5.4/10

Value: 7.9

Growth: 3.9

Quality: 5.4

Yield: 9.0

Momentum: 2.5

Volatility: 4.0

1-Year Total Return ->

View Full Report
Stock-Card
ePlus

A-Score: 4.5/10

Value: 5.8

Growth: 7.0

Quality: 6.0

Yield: 0.0

Momentum: 1.5

Volatility: 6.7

1-Year Total Return ->

View Full Report
Stock-Card
SilverSun Technologies

A-Score: 4.5/10

Value: 5.6

Growth: 7.3

Quality: 3.8

Yield: 5.0

Momentum: 5.0

Volatility: 0.0

1-Year Total Return ->

View Full Report
Stock-Card
Daily Journal

A-Score: 4.4/10

Value: 5.0

Growth: 4.7

Quality: 8.0

Yield: 0.0

Momentum: 5.0

Volatility: 4.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

89.79$

Current Price

89.79$

Potential

-0.00%

Expected Cash-Flows