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.

Rewards

Earnings are forecast to grow 18.56% per year

Risk Analysis

No risks detected for SLP from our risk checks.


Snowflake Analysis

Flawless balance sheet with moderate growth potential.

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.5%

SLP

-1.3%

US Healthcare Services

-0.3%

US Market


1 Year Return

68.2%

SLP

29.4%

US Healthcare Services

18.6%

US Market

Return vs Industry: SLP exceeded the US Healthcare Services industry which returned 29.4% over the past year.

Return vs Market: SLP exceeded the US Market which returned 18.6% over the past year.


Shareholder returns

SLPIndustryMarket
7 Day-2.5%-1.3%-0.3%
30 Day-2.0%4.5%2.2%
90 Day-6.4%1.6%5.6%
1 Year69.8%68.2%29.6%29.4%21.1%18.6%
3 Year250.8%237.5%85.8%85.1%45.6%36.2%
5 Year467.5%418.6%68.9%67.5%71.1%52.2%

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?

66.38x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SLP ($32.57) is trading above our estimate of fair value ($14.46)

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 (66.4x) compared to the Healthcare Services industry average (64.1x).

PE vs Market: SLP is poor value based on its PE Ratio (66.4x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: SLP is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: SLP is overvalued based on its PB Ratio (15.2x) compared to the US Healthcare Services industry average (4x).


Next Steps

Future Growth

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

18.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SLP's forecast earnings growth (18.6% per year) is above the savings rate (1.7%).

Earnings vs Market: SLP's earnings (18.6% per year) are forecast to grow faster than the US market (14.2% per year).

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

Revenue vs Market: SLP's revenue (14.4% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: SLP's revenue (14.4% 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?

22.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SLP has high quality earnings.

Growing Profit Margin: SLP's current net profit margins (25.3%) are lower than last year (30.1%).


Past Earnings Growth Analysis

Earnings Trend: SLP's earnings have grown significantly by 22% per year over the past 5 years.

Accelerating Growth: SLP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SLP had negative earnings growth (-3.9%) over the past year, making it difficult to compare to the Healthcare Services industry average (-0.2%).


Return on Equity

High ROE: SLP's Return on Equity (22.8%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Simulations Plus's financial position?


Financial Position Analysis

Short Term Liabilities: SLP's short term assets ($21.2M) exceed its short term liabilities ($4.8M).

Long Term Liabilities: SLP's short term assets ($21.2M) 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

Inventory Level: SLP has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if SLP's debt is covered by short term assets.


Next Steps

Dividend

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

0.74%

Current Dividend Yield


Dividend Yield vs Market

company0.7%marketbottom25%1.4%markettop25%3.7%industryaverage0.7%forecastin3Years0.7%

Current dividend yield vs market & industry

Notable Dividend: SLP's dividend (0.74%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: SLP's dividend (0.74%) is low compared to the top 25% of dividend payers in the US market (3.7%).


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

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

1.9yrs

Average management tenure


CEO

Shawn O'Connor (59yo)

1.5yrs

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

Compensation vs Market: Shawn's total compensation ($USD618.42K) is below average for companies of similar size in the US market ($USD1.71M).

Compensation vs Earnings: Insufficient data to compare Shawn's compensation with company performance.


Management Age and Tenure

1.9yrs

Average Tenure

61yo

Average Age

Experienced Management: SLP's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Age and Tenure

5.0yrs

Average Tenure

71yo

Average Age

Experienced Board: SLP's board of directors are considered experienced (5 years average tenure).


Insider Trading

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


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

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Walt Woltosz (74yo)

    Co-Founder & Chairman

    • Tenure: 23.4yrs
    • Compensation: US$320.79k
  • Shawn O'Connor (59yo)

    Chief Executive Officer

    • Tenure: 1.5yrs
    • Compensation: US$618.42k
  • John DiBella (39yo)

    President of the Lancaster Division

    • Tenure: 2.3yrs
    • Compensation: US$265.39k
  • Bob Clark

    Senior Research Fellow

    • Tenure: 9.9yrs
    • Compensation: US$173.81k
  • Michael Bolger

    Chief Scientist

    • Tenure: 0yrs
    • Compensation: US$279.54k
  • Ted Grasela (65yo)

    Executive Vice President of Cognigen

    • Tenure: 0.3yrs
    • Compensation: US$286.00k
  • John Kneisel (61yo)

    Chief Financial Officer

    • Tenure: 6.1yrs
    • Compensation: US$222.73k
  • Jill Fiedler-Kelly

    President of Cognigen Division

    • Tenure: 0.3yrs
  • Brett Howell

    President of DILIsym Services

    • Tenure: 2.5yrs
  • Alexander Berg

    Vice President of Operations

    • Tenure: 0.2yrs

Board Members

  • Walt Woltosz (74yo)

    Co-Founder & Chairman

    • Tenure: 23.4yrs
    • Compensation: US$320.79k
  • Dan Weiner (69yo)

    Director

    • Tenure: 2.6yrs
    • Compensation: US$87.50k
  • Lisa LaVange

    Independent Director

    • Tenure: 0.6yrs
  • David Ralph (73yo)

    Director

    • Tenure: 7.8yrs
    • Compensation: US$87.50k
  • John Paglia (52yo)

    Director

    • Tenure: 5yrs
    • 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$570.467m
  • Shares outstanding: 17.62m
  • 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 Analysis2019/12/07 23:46
End of Day Share Price2019/12/06 00:00
Earnings2019/08/31
Annual Earnings2019/08/31


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.