ePlus Inc (PLUS, Financial), a prominent player in the software industry, is currently trading at $69.16 with a market cap of $1.86 billion. The company's stock has seen a significant gain of 19.45% today and a 21.20% increase over the past four weeks. According to the GF Score, a stock performance ranking system developed by GuruFocus, ePlus Inc has an impressive score of 95 out of 100. This score indicates the highest outperformance potential, suggesting that the company's stock is likely to generate higher returns than those with lower GF Scores.
Financial Strength Analysis
The Financial Strength Rank of ePlus Inc stands at 8 out of 10, indicating a robust financial situation. The company's interest coverage is 41.20, suggesting a low debt burden. Furthermore, its debt to revenue ratio is 0.09, which is relatively low, and its Altman Z score is 4.41, indicating a low risk of bankruptcy.
Profitability Rank Analysis
ePlus Inc's Profitability Rank is 9 out of 10, reflecting high profitability. The company's Operating Margin is 8.24%, and its Piotroski F-Score is 6, indicating a healthy financial situation. The trend of the operating margin over the past five years is 7.90%, showing an uptrend profit margin. The company has also demonstrated consistent profitability over the past ten years.
Growth Rank Analysis
The Growth Rank of ePlus Inc is 10 out of 10, indicating strong growth in terms of its revenue and profitability. The company's 5-year revenue growth rate is 8.90%, and its 3-year revenue growth rate is 9.40%. Additionally, its 5-year EBITDA growth rate is 14.90%, suggesting a steady increase in its business operations.
GF Value Rank Analysis
ePlus Inc's GF Value Rank is 5 out of 10. This rank is determined by the price-to-GF-Value ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.
Momentum Rank Analysis
The company's Momentum Rank is 10 out of 10, indicating strong momentum in its stock price. This rank is determined using the standardized momentum ratio and other momentum indicators.
Competitor Analysis
When compared to its competitors in the same industry, ePlus Inc stands out with its high GF Score. E2open Parent Holdings Inc (ETWO, Financial) has a GF Score of 33, Alkami Technology Inc (ALKT, Financial) has a GF Score of 19, and SEMrush Holdings Inc (SEMR, Financial) has a GF Score of 20. This comparison further highlights the strong performance of ePlus Inc.
Conclusion
In conclusion, ePlus Inc's overall GF Score of 95 suggests a high potential for outperformance in the future. The GF Score is a valuable tool in evaluating a company's stock performance, and ePlus Inc's high score indicates its strong financial strength, profitability, growth, value, and momentum. Therefore, it is a promising investment option for value investors.
