$ePlus (PLUS.US)$In the analysis of January 3, 2023, it was ...

The American company, which was listed in 1996, is mainly in the IT solutions business. The main market is in the US, and the current price is 80.81.

It has grown amid fluctuations in revenue over the past 5 years, with an average growth rate of 7.8%. Operating profit increased for 4 years except in 2019, with an average growth rate of 14.8% and an average net profit growth rate of 16.6%. Interest expenses in 2023 account for 2.3% of operating profit, and the interest burden is very light. The gross margin increased slightly from 24% to 25% in the past 5 years, the net margin increased from 4.6% to 5.8%, and the return on net assets increased from 15.9% to 16.5%.

In the first three quarters of 2024, revenue increased 6.1%, operating profit increased 4.5%, and net profit increased 8.4%. 24Q3 revenue, operating profit, and net profit all shrank significantly, and growth seemed to be hampered.

The balance ratio has declined from 46% to 44.7% over the past 5 years, and both total assets and net assets have increased dramatically. Receivables and inventories increased a lot in 2023. Although the ratio is quite normal, it had a negative impact on cash flow. 24Q3 receivables grew to 758 million, which has significantly exceeded quarterly revenue, which is a very bad sign.

Goodwill and other intangible assets are $201 million, accounting for 23% of net assets of 888 million, and interest-bearing loans of $140 million, accounting for 16% of net assets. The leverage ratio is not high.

Currently, there is 142 million cash, a current ratio of 1.9, and a quick ratio of 1.4.

Net cash flow has been negative for 3 of the past 5 years. The total amount is lower than the net investment amount, and no shareholders' surpluses have been generated.

Currently, the price-earnings ratio is 18, and the price-earnings ratio is TTM17. Considering that cash flow does not show an advantage, continue to observe.