Simulations Plus
Market Cap
US$1.4b
Last Updated
2021/01/15 23:39 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
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet with acceptable 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 +/- 8% a week.
Volatility Over Time: SLP's weekly volatility (8%) has been stable over the past year.
Market Performance
7 Day Return
-13.5%
SLP
0.08%
US Healthcare Services
-0.9%
US Market
1 Year Return
110.2%
SLP
62.2%
US Healthcare Services
19.6%
US Market
Return vs Industry: SLP exceeded the US Healthcare Services industry which returned 63.1% over the past year.
Return vs Market: SLP exceeded the US Market which returned 21% over the past year.
Shareholder returns
| SLP | Industry | Market | |
|---|---|---|---|
| 7 Day | -13.5% | 0.08% | -0.9% |
| 30 Day | 18.2% | 8.1% | 3.0% |
| 90 Day | -1.5% | 2.9% | 11.5% |
| 1 Year | 111.3%110.2% | 62.7%62.2% | 22.3%19.6% |
| 3 Year | 349.0%336.7% | 150.8%148.7% | 45.3%35.7% |
| 5 Year | 578.8%535.6% | 241.2%237.3% | 124.8%99.9% |
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
3 days ago | Simply Wall St
What Can We Conclude About Simulations Plus' (NASDAQ:SLP) CEO Pay?2 weeks ago | Simply Wall St
Do Its Financials Have Any Role To Play In Driving Simulations Plus, Inc.'s (NASDAQ:SLP) Stock Up Recently?1 month ago | Simply Wall St
Is Simulations Plus (NASDAQ:SLP) Likely To Turn Things Around?Valuation
Is Simulations Plus undervalued compared to its fair value and its price relative to the market?
134.3x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: SLP ($71.19) is trading above our estimate of fair value ($41.85)
Significantly Below Fair Value: SLP is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: SLP is poor value based on its PE Ratio (134.3x) compared to the US Healthcare Services industry average (133.6x).
PE vs Market: SLP is poor value based on its PE Ratio (134.3x) compared to the US market (21.3x).
Price to Earnings Growth Ratio
PEG Ratio: SLP is poor value based on its PEG Ratio (9.6x)
Price to Book Ratio
PB vs Industry: SLP is overvalued based on its PB Ratio (9x) compared to the US Healthcare Services industry average (6.4x).
Next Steps
Future Growth
How is Simulations Plus forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
14.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SLP's forecast earnings growth (14.1% per year) is above the savings rate (2%).
Earnings vs Market: SLP's earnings (14.1% per year) are forecast to grow slower than the US market (21.6% per year).
High Growth Earnings: SLP's earnings are forecast to grow, but not significantly.
Revenue vs Market: SLP's revenue (18.4% per year) is forecast to grow faster than the US market (10.2% per year).
High Growth Revenue: SLP's revenue (18.4% 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
Next Steps
Past Performance
How has Simulations Plus performed over the past 5 years?
16.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SLP has high quality earnings.
Growing Profit Margin: SLP's current net profit margins (22.7%) are lower than last year (25.4%).
Past Earnings Growth Analysis
Earnings Trend: SLP's earnings have grown by 16% per year over the past 5 years.
Accelerating Growth: SLP's earnings growth over the past year (7.1%) is below its 5-year average (16% per year).
Earnings vs Industry: SLP earnings growth over the past year (7.1%) exceeded the Healthcare Services industry -29.9%.
Return on Equity
High ROE: SLP's Return on Equity (6.2%) is considered low.
Next Steps
Financial Health
How is Simulations Plus's financial position?
Financial Position Analysis
Short Term Liabilities: SLP's short term assets ($131.2M) exceed its short term liabilities ($5.5M).
Long Term Liabilities: SLP's short term assets ($131.2M) exceed its long term liabilities ($7.0M).
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
Next Steps
Dividend
What is Simulations Plus's current dividend yield, its reliability and sustainability?
0.34%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: SLP's dividend (0.34%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.38%).
High Dividend: SLP's dividend (0.34%) is low compared to the top 25% of dividend payers in the US market (3.84%).
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.
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Management
How experienced are the management team and are they aligned to shareholders interests?
1.3yrs
Average management tenure
CEO
Shawn O'Connor (60 yo)
2.58yrs
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 ($USD3.85M).
Compensation vs Earnings: Shawn's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder & Chairman | 24.5yrs | US$231.82k | 23.04% $ 327.4m | |
| Chief Executive Officer | 2.58yrs | US$739.40k | no data | |
| President of the Lancaster Division | 3.33yrs | US$346.54k | 0.24% $ 3.4m | |
| 0.083yr | US$948.91k | 0% $ 0 | ||
| CFO & Secretary | 0.083yr | no data | no data | |
| Vice President of Operations | 1.25yrs | no data | no data | |
| Chief Scientist | no data | US$279.54k | no data | |
| Marketing Director | no data | no data | no data | |
| Executive Vice President of Cognigen | 1.33yrs | US$297.50k | no data | |
| Chief Scientific Officer of DILIsym Services | no data | no data | no data | |
| President of DILIsym Services | 3.58yrs | no data | no data | |
| President of Cognigen Division | no data | no data | no data |
1.3yrs
Average Tenure
61yo
Average Age
Experienced Management: SLP's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder & Chairman | 24.5yrs | US$231.82k | 23.04% $ 327.4m | |
| Independent Director | 3.67yrs | US$259.26k | 0.026% $ 373.2k | |
| Independent Director | 1.67yrs | US$257.37k | 0.011% $ 152.1k | |
| Independent Director | 8.83yrs | US$257.15k | 0.083% $ 1.2m | |
| Independent Director | 6.08yrs | US$269.57k | 0.019% $ 271.0k |
6.1yrs
Average Tenure
70yo
Average Age
Experienced Board: SLP's board of directors are considered experienced (6.1 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: SLP insiders have only sold shares 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 13.2%.
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: NasdaqCM
- Founded: 1996
- Industry: Health Care Technology
- Sector: Healthcare
- Market Cap: US$1.421b
- Shares outstanding: 19.96m
- Website: https://www.simulations-plus.com
Number of Employees
Location
- Simulations Plus, Inc.
- 42505 Tenth Street West
- Lancaster
- California
- 93534-7059
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SLP | NasdaqCM (Nasdaq Capital Market) | Yes | Common Stock | US | USD | Jun 1997 |
| SD3 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jun 1997 |
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/15 23:39 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/11/30 |
| Annual Earnings | 2020/08/31 |
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.