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SLP

Simulations Plus NasdaqGS:SLP Stock Report

Last Price

US$65.10

Market Cap

US$1.3b

7D

-0.8%

1Y

44.9%

Updated

15 Aug, 2022

Data

Company Financials +
SLP fundamental analysis
Snowflake Score
Valuation0/6
Future Growth4/6
Past Performance2/6
Financial Health6/6
Dividends0/6

SLP Stock Overview

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

Rewards

Earnings are forecast to grow 20.57% per year

Earnings have grown 11.5% per year over the past 5 years

Risk Analysis

No risks detected for SLP from our risk checks.

Simulations Plus Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Simulations Plus
Historical stock prices
Current Share PriceUS$65.10
52 Week HighUS$67.59
52 Week LowUS$35.18
Beta0.42
1 Month Change15.96%
3 Month Change44.35%
1 Year Change44.89%
3 Year Change74.30%
5 Year Change350.52%
Change since IPO4,634.55%

Recent News & Updates

Jul 21

Simulations Plus goes ex-dividend tomorrow

Simulations Plus (NASDAQ:SLP) had declared $0.06/share quarterly dividend, in line with previous. Payable Aug. 1; for shareholders of record July 25; ex-div July 22. See SLP Dividend Scorecard, Yield Chart, & Dividend Growth.

Jul 05

Simulations Plus Q3 2022 Earnings Preview

Simulations Plus (NASDAQ:SLP) is scheduled to announce Q3 earnings results on Wednesday, July 6th, after market close. The consensus EPS Estimate is $0.17 (-5.6% Y/Y) and the consensus Revenue Estimate is $14.33M (+12.1% Y/Y). Over the last 1 year, SLP has beaten EPS estimates 75% of the time and has beaten revenue estimates 75% of the time. Over the last 3 months, EPS estimates have seen 1 upward revision and 0 downward. Revenue estimates have seen 0 upward revisions and 1 downward.

Shareholder Returns

SLPUS Healthcare ServicesUS Market
7D-0.8%-1.7%3.6%
1Y44.9%-42.8%-9.6%

Return vs Industry: SLP exceeded the US Healthcare Services industry which returned -44.1% over the past year.

Return vs Market: SLP exceeded the US Market which returned -10.2% over the past year.

Price Volatility

Is SLP's price volatile compared to industry and market?
SLP volatility
SLP Average Weekly Movement6.5%
Healthcare Services Industry Average Movement11.7%
Market Average Movement7.7%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

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.

About the Company

FoundedEmployeesCEOWebsite
1996141Shawn O'Connorhttps://www.simulations-plus.com

Simulations Plus, Inc. develops drug discovery and development software for modeling and simulation, and prediction of molecular properties utilizing artificial intelligence and machine learning based technology worldwide. It operates through four segments: Simulations Plus, Cognigen, DILIsym, and Lixoft. The company offers GastroPlus, which simulates the absorption and drug interaction of compounds administered to humans and animals; and DDDPlus and MembranePlus simulation products.

Simulations Plus Fundamentals Summary

How do Simulations Plus's earnings and revenue compare to its market cap?
SLP fundamental statistics
Market CapUS$1.30b
Earnings (TTM)US$11.83m
Revenue (TTM)US$52.01m

111.4x

P/E Ratio

25.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SLP income statement (TTM)
RevenueUS$52.01m
Cost of RevenueUS$10.93m
Gross ProfitUS$41.08m
Other ExpensesUS$29.26m
EarningsUS$11.83m

Last Reported Earnings

May 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.58
Gross Margin78.99%
Net Profit Margin22.74%
Debt/Equity Ratio0%

How did SLP perform over the long term?

See historical performance and comparison

Dividends

0.4%

Current Dividend Yield

41%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is SLP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SLP?

Other financial metrics that can be useful for relative valuation.

SLP key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue22.6x
Enterprise Value/EBITDA70.5x
PEG Ratio5.4x

Price to Earnings Ratio vs Peers

How does SLP's PE Ratio compare to its peers?

SLP PE Ratio vs Peers
The above table shows the PE ratio for SLP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average37.8x
HSTM HealthStream
103.8x18.2%US$730.3m
MDRX Allscripts Healthcare Solutions
15.5x17.8%US$1.9b
NUTX Nutex Health
15.9xn/aUS$2.5b
MPLN MultiPlan
16.1xn/aUS$2.6b
SLP Simulations Plus
111.4x20.6%US$1.3b

Price-To-Earnings vs Peers: SLP is expensive based on its Price-To-Earnings Ratio (111.4x) compared to the peer average (37.8x).


Price to Earnings Ratio vs Industry

How does SLP's PE Ratio compare vs other companies in the Global Healthcare Services Industry?

Price-To-Earnings vs Industry: SLP is expensive based on its Price-To-Earnings Ratio (111.4x) compared to the US Healthcare Services industry average (37.3x)


Price to Earnings Ratio vs Fair Ratio

What is SLP's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SLP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio111.4x
Fair PE Ratio31.6x

Price-To-Earnings vs Fair Ratio: SLP is expensive based on its Price-To-Earnings Ratio (111.4x) compared to the estimated Fair Price-To-Earnings Ratio (31.6x).


Share Price vs Fair Value

What is the Fair Price of SLP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SLP ($65.1) is trading above our estimate of fair value ($37.72)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is lower than the current share price.


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Future Growth

How is Simulations Plus forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


20.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SLP's forecast earnings growth (20.6% per year) is above the savings rate (1.9%).

Earnings vs Market: SLP's earnings (20.6% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: SLP's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SLP's revenue (18.1% per year) is forecast to grow faster than the US market (7.9% per year).

High Growth Revenue: SLP's revenue (18.1% 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


Discover growth companies

Past Performance

How has Simulations Plus performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


11.5%

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 (25.3%).


Past Earnings Growth Analysis

Earnings Trend: SLP's earnings have grown by 11.5% per year over the past 5 years.

Accelerating Growth: SLP's earnings growth over the past year (1.4%) is below its 5-year average (11.5% per year).

Earnings vs Industry: SLP earnings growth over the past year (1.4%) underperformed the Healthcare Services industry 2.8%.


Return on Equity

High ROE: SLP's Return on Equity (6.7%) is considered low.


Discover strong past performing companies

Financial Health

How is Simulations Plus's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: SLP's short term assets ($144.9M) exceed its short term liabilities ($5.9M).

Long Term Liabilities: SLP's short term assets ($144.9M) exceed its long term liabilities ($2.7M).


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


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


0.37%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SLP's dividend (0.37%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: SLP's dividend (0.37%) is low compared to the top 25% of dividend payers in the US market (3.95%).


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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

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


Discover strong dividend paying companies

Management

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

2.4yrs

Average management tenure


CEO

Shawn O'Connor (62 yo)

4.17yrs

Tenure

US$1,072,271

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 ($USD1.07M) is below average for companies of similar size in the US market ($USD5.40M).

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 considered experienced (2.4 years average tenure).


Board Members

Experienced Board: SLP's board of directors are not considered experienced ( 1.4 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Simulations Plus, Inc.'s 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
  • Implied Market Cap: US$1.299b
  • Shares outstanding: 20.24m
  • Website: https://www.simulations-plus.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/15 00:00
End of Day Share Price2022/08/15 00:00
Earnings2022/05/31
Annual Earnings2021/08/31


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.