NasdaqCM:SLP

Stock Analysis Report

Executive Summary

Simulations Plus, Inc. develops drug discovery and development software for mechanistic modeling and simulation, and machine-learning-based prediction of properties of molecules from their structure worldwide.

Snowflake

Fundamentals

Flawless balance sheet with reasonable growth potential.

Risks

  • Simulations Plus has significant price volatility in the past 3 months.
  • Simulations Plus is covered by less than 3 analysts.

Share Price & News

How has Simulations Plus's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

7.7%

SLP

1.6%

US Healthcare Services

-0.6%

US Market


1 Year Return

85.5%

SLP

9.9%

US Healthcare Services

0.7%

US Market

SLP outperformed the Healthcare Services industry which returned 10.2% over the past year.

SLP outperformed the Market in United States of America which returned 0.7% over the past year.


Share holder returns

SLPIndustryMarket
7 Day7.7%1.6%-0.6%
30 Day3.8%-0.06%4.9%
90 Day30.4%-1.4%1.7%
1 Year87.5%85.5%10.0%9.9%3.0%0.7%
3 Year350.8%332.1%52.6%52.2%44.8%35.4%
5 Year506.8%451.1%51.7%50.8%62.0%44.3%

Price Volatility Vs. Market

How volatile is Simulations Plus's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Simulations Plus undervalued based on future cash flows and its price relative to the stock market?

82.58x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Simulations Plus's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Simulations Plus's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Simulations Plus is overvalued based on earnings compared to the US Healthcare Services industry average.

Simulations Plus is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Simulations Plus is poor value based on expected growth next year.


Price Based on Value of Assets

Simulations Plus is overvalued based on assets compared to the US Healthcare Services industry average.


Next Steps

Future Growth

How is Simulations Plus expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

31.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Simulations Plus's revenue is expected to grow by 15.2% yearly, however this is not considered high growth (20% yearly).

Simulations Plus's earnings are expected to grow significantly at over 20% yearly.

Simulations Plus's revenue growth is expected to exceed the United States of America market average.

Simulations Plus's earnings growth is expected to exceed the United States of America market average.

Simulations Plus's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Simulations Plus will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Simulations Plus performed over the past 5 years?

22.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Simulations Plus has delivered over 20% year on year earnings growth in the past 5 years.

Simulations Plus's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Simulations Plus's 1-year earnings growth is negative, it can't be compared to the US Healthcare Services industry average.


Return on Equity

Simulations Plus has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Simulations Plus used its assets more efficiently than the US Healthcare Services industry average last year based on Return on Assets.


Return on Capital Employed

Simulations Plus's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Simulations Plus's financial position?


Financial Position Analysis

Simulations Plus is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Simulations Plus's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Simulations Plus has no debt.

Simulations Plus has not taken on any debt in the past 5 years.

Simulations Plus has no debt, it does not need to be covered by operating cash flow.

Simulations Plus has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Simulations Plus has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

What is Simulations Plus's current dividend yield, its reliability and sustainability?

0.65%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Simulations Plus's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Simulations Plus's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

Simulations Plus is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.

Simulations Plus is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of Simulations Plus's dividends as it is not paying a notable one for United States of America.


Future Payout to Shareholders

No need to calculate the sustainability of Simulations Plus's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of Simulations Plus's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Shawn O'Connor (59yo)

1.3yrs

Tenure

US$618,419

Compensation

Mr. Shawn M. O'Connor has been Chief Executive Officer of Simulations Plus, Inc. since June 26, 2018. Mr. O'Connor served as Chief Executive Officer of Entelos, Inc. since July, 2011. Mr. O'Connor is a sea ...


CEO Compensation Analysis

Shawn's remuneration is lower than average for companies of similar size in United States of America.

Insufficient data for Shawn to compare compensation growth.


Management Age and Tenure

2.3yrs

Average Tenure

63yo

Average Age

The tenure for the Simulations Plus management team is about average.


Board Age and Tenure

4.8yrs

Average Tenure

71yo

Average Age

The tenure for the Simulations Plus board of directors is about average.


Insider Trading

Simulations Plus individual insiders have only sold shares in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

SellUS$26,12306 Aug 19
John Paglia
EntityIndividual
Role
Member of the Board of Directors
Director
Shares690
Max PriceUS$37.86
SellUS$68,22015 Apr 19
David Ralph
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,000
Max PriceUS$22.74

Ownership Breakdown


Management Team

  • Walt Woltosz (74yo)

    Co-Founder & Chairman

    • Tenure: 23.2yrs
    • Compensation: US$320.79k
  • Virginia Woltosz (68yo)

    Co-Founder

    • Tenure: 0yrs
    • Compensation: US$60.00k
  • Shawn O'Connor (59yo)

    Chief Executive Officer

    • Tenure: 1.3yrs
    • Compensation: US$618.42k
  • John DiBella (39yo)

    President of the Lancaster Division

    • Tenure: 2yrs
    • Compensation: US$265.39k
  • Bob Clark

    Senior Research Fellow

    • Tenure: 9.7yrs
    • Compensation: US$173.81k
  • Ted Grasela (65yo)

    President of Cognigen Corporation

    • Tenure: 0yrs
    • Compensation: US$286.00k
  • John Kneisel (61yo)

    Chief Financial Officer

    • Tenure: 5.8yrs
    • Compensation: US$222.73k
  • Brett Howell

    President of DILIsym Services

    • Tenure: 2.3yrs
  • Cynthia Walawander

    Vice President of Operations

    • Tenure: 0yrs

Board Members

  • Walt Woltosz (74yo)

    Co-Founder & Chairman

    • Tenure: 23.2yrs
    • Compensation: US$320.79k
  • Dan Weiner (69yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: US$87.50k
  • Lisa LaVange

    Independent Director

    • Tenure: 0.3yrs
  • David Ralph (73yo)

    Director

    • Tenure: 7.5yrs
    • Compensation: US$87.50k
  • John Paglia (52yo)

    Director

    • Tenure: 4.8yrs
    • Compensation: US$93.50k

Company Information

Simulations Plus, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Simulations Plus, Inc.
  • Ticker: SLP
  • Exchange: NasdaqCM
  • Founded: 1996
  • Industry: Health Care Technology
  • Sector: Healthcare
  • Market Cap: US$652.171m
  • Shares outstanding: 17.53m
  • Website: https://www.simulations-plus.com

Number of Employees


Location

  • Simulations Plus, Inc.
  • 42505 Tenth Street West
  • Lancaster
  • California
  • 93534
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SLPNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDJun 1997
SD3DB (Deutsche Boerse AG)YesCommon StockDEEURJun 1997

Biography

Simulations Plus, Inc. develops drug discovery and development software for mechanistic modeling and simulation, and machine-learning-based prediction of properties of molecules from their structure worldw ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/22 23:45
End of Day Share Price2019/09/20 00:00
Earnings2019/05/31
Annual Earnings2018/08/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.