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In a challenging market environment, ePlus Inc . (NASDAQ:PLUS) stock has touched a 52-week low, with shares falling to $61.43. According to InvestingPro data, the company maintains strong fundamentals with a current ratio of 1.83 and more cash than debt on its balance sheet. The technology solutions provider has faced headwinds over the past year, reflected in a significant 37% decline over the past six months. Despite market pressures, the company maintains healthy financials with an EBITDA of $165 million and a robust free cash flow yield. For deeper insights into ePlus’s valuation and growth potential, InvestingPro subscribers can access comprehensive analysis and eight additional expert tips. The 52-week low marks a critical point for ePlus, as market watchers and stakeholders look for signs of a turnaround or further indicators of the company’s strategic direction in an increasingly digital economy. Based on InvestingPro’s Fair Value analysis, the stock appears slightly undervalued at current levels, with analysts maintaining a positive outlook and projecting profitability for the coming year.
In other recent news, ePlus reported its financial results for the fourth quarter of 2024, revealing a miss on both earnings and revenue forecasts. The company’s earnings per share (EPS) came in at $1.06, falling short of the anticipated $1.46, while revenue reached $511 million against a forecast of $566.3 million. Despite these results, ePlus highlighted a significant growth in services revenue, which increased by 52% year-over-year. The company also launched new AI programs, showcasing innovation in their product lineup. Furthermore, the acquisition of Bailiwick contributed positively, with organic managed services revenue increasing by 28% year-over-year.
Looking forward, ePlus projects fiscal 2025 revenue between $2.070 billion and $2.110 billion, with adjusted EBITDA forecasted at $165 million to $171 million. The company anticipates continued softness in product sales but expects improvement in the first quarter. Analysts from firms such as William Blair and Sidoti have engaged with the company, raising queries about the softening hardware demand and ongoing supply chain issues. CEO Mark Maran emphasized the company’s strategic priorities, including expanding their footprint and customer base, and noted the disparity between AI aspirations and readiness.
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