NasdaqGS:SLP

Stock Analysis Report

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Market Cap

US$950.1m

Last Updated

2021/07/31 22:56 UTC

Data Sources

Company Financials +

Executive Summary

Simulations Plus, Inc. develops drug discovery and development software for mechanistic modeling and simulation, and prediction of properties of molecules utilizing artificial-intelligence- and machine-learning-based technology worldwide. More Details


Snowflake Analysis

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SLP is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: SLP's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-0.3%

SLP

0.6%

US Healthcare Services

-0.5%

US Market


1 Year Return

-33.0%

SLP

11.9%

US Healthcare Services

35.9%

US Market

Return vs Industry: SLP underperformed the US Healthcare Services industry which returned 11.8% over the past year.

Return vs Market: SLP underperformed the US Market which returned 35.9% over the past year.


Shareholder returns

SLPIndustryMarket
7 Day-0.3%0.6%-0.5%
30 Day-15.2%-0.5%0.09%
90 Day-25.3%0.2%3.2%
1 Year-32.7%-33.0%12.1%11.9%38.0%35.9%
3 Year166.1%160.7%120.8%118.9%62.8%52.6%
5 Year507.8%473.4%206.7%202.7%121.2%96.9%

Long-Term 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 compared to its fair value and its price relative to the market?

79.22x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SLP ($47.19) is trading above our estimate of fair value ($41.89)

Significantly Below Fair Value: SLP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SLP is good value based on its PE Ratio (79.2x) compared to the US Healthcare Services industry average (109.5x).

PE vs Market: SLP is poor value based on its PE Ratio (79.2x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: SLP is poor value based on its PEG Ratio (4.2x)


Price to Book Ratio

PB vs Industry: SLP is good value based on its PB Ratio (5.7x) compared to the US Healthcare Services industry average (6.4x).


Future Growth

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

18.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SLP's forecast earnings growth (18.9% per year) is above the savings rate (2%).

Earnings vs Market: SLP's earnings (18.9% per year) are forecast to grow faster than the US market (14.9% per year).

High Growth Earnings: SLP's earnings are forecast to grow, but not significantly.

Revenue vs Market: SLP's revenue (19.2% per year) is forecast to grow faster than the US market (9.2% per year).

High Growth Revenue: SLP's revenue (19.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SLP's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Simulations Plus performed over the past 5 years?

15.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SLP has high quality earnings.

Growing Profit Margin: SLP's current net profit margins (25.3%) are higher than last year (23%).


Past Earnings Growth Analysis

Earnings Trend: SLP's earnings have grown by 15.6% per year over the past 5 years.

Accelerating Growth: SLP's earnings growth over the past year (26.8%) exceeds its 5-year average (15.6% per year).

Earnings vs Industry: SLP earnings growth over the past year (26.8%) underperformed the Healthcare Services industry 28.5%.


Return on Equity

High ROE: SLP's Return on Equity (7.1%) is considered low.


Financial Health

How is Simulations Plus's financial position?


Financial Position Analysis

Short Term Liabilities: SLP's short term assets ($138.7M) exceed its short term liabilities ($7.3M).

Long Term Liabilities: SLP's short term assets ($138.7M) exceed its long term liabilities ($6.3M).


Debt to Equity History and Analysis

Debt Level: SLP is debt free.

Reducing Debt: SLP has not had any debt for past 5 years.

Debt Coverage: SLP has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: SLP has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

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

0.51%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SLP's dividend (0.51%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: SLP's dividend (0.51%) is low compared to the top 25% of dividend payers in the US market (3.54%).


Stability and Growth of Payments

Stable Dividend: SLP is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: SLP is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: SLP is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SLP's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Shawn O'Connor (61 yo)

3yrs

Tenure

US$739,400

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

Compensation vs Market: Shawn's total compensation ($USD739.40K) is below average for companies of similar size in the US market ($USD2.42M).

Compensation vs Earnings: Shawn's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: SLP's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: SLP's board of directors are not considered experienced ( 0.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 13%.


Top Shareholders

Company Information

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


Key Information

  • Name: Simulations Plus, Inc.
  • Ticker: SLP
  • Exchange: NasdaqGS
  • Founded: 1996
  • Industry: Health Care Technology
  • Sector: Healthcare
  • Market Cap: US$950.072m
  • Shares outstanding: 20.13m
  • Website: https://www.simulations-plus.com

Number of Employees


Location

  • Simulations Plus, Inc.
  • 42505 Tenth Street West
  • Lancaster
  • California
  • 93534-7059
  • United States

Listings


Biography

Simulations Plus, Inc. develops drug discovery and development software for mechanistic modeling and simulation, and prediction of properties of molecules utilizing artificial-intelligence- and machine-lea...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 22:56
End of Day Share Price2021/07/30 00:00
Earnings2021/05/31
Annual Earnings2020/08/31


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.