ePlus inc. Common Stock (PLUS)

FairStock Score: 75/100 — HIGH CONVICTION

Key Financials

Strengths

• Generates $46 million in annual free cash flow (2.1% yield on market cap)
• Solid return on equity of 14.6% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.13, providing financial flexibility
• Revenue growth of 24.6% demonstrates strong top-line momentum
• FairStock composite score of 75/100 places it in the top tier across value, quality, and momentum factors

Concerns

• Weak Piotroski F-Score of 2/9 suggests deteriorating financial quality across multiple dimensions

AI Analysis

ePlus inc. Common Stock is a small-cap technology company valued at $2.2 billion. The business generates $2.4 billion in annual revenue with a 1.5% net margin and $46 million in free cash flow. From a quality standpoint, ePlus shows weak Piotroski F-Score of 2/9 signaling deteriorating fundamentals and healthy Altman Z-Score of 3.4. On valuation, the stock is reasonably priced at 15.2x earnings, with trades above its Graham Number with a negative 18% margin. Growth dynamics show revenue growing at 24.6% and profit growth of 45.3%. The 1.2% dividend yield adds an income component for patient holders. Our composite FairStock Score of 75/100 reflects strong fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

ePlus's 25% revenue growth trajectory could accelerate as it captures additional market share in the technology sector. With $46 million in annual free cash flow (2.1% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the technology space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer