SIMULATIONS PLUS INC (SLP) Stock Fundamental Analysis
NASDAQ:SLP - Nasdaq - US8292141053 - Common Stock - Currency: USD
SLP gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 36 industry peers in the Health Care Technology industry. SLP is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. SLP is growing strongly while it is still valued neutral. This is a good combination! With these ratings, SLP could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
SLP had positive earnings in the past year.
SLP had a positive operating cash flow in the past year.
SLP had positive earnings in each of the past 5 years.
Each year in the past 5 years SLP had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.60%, SLP belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
SLP has a better Return On Equity (3.83%) than 88.89% of its industry peers.
With an excellent Return On Invested Capital value of 1.55%, SLP belongs to the best of the industry, outperforming 80.56% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SLP is in line with the industry average of 6.38%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.6% | ||
| ROE | 3.83% | ||
| ROIC | 1.55% |
ROA(3y)5.68%
ROA(5y)5.6%
ROE(3y)6.11%
ROE(5y)6.04%
ROIC(3y)4.57%
ROIC(5y)5.03%
1.3 Margins
SLP has a Profit Margin of 9.24%. This is amongst the best in the industry. SLP outperforms 94.44% of its industry peers.
In the last couple of years the Profit Margin of SLP has declined.
SLP has a Operating Margin of 4.54%. This is in the better half of the industry: SLP outperforms 77.78% of its industry peers.
SLP's Operating Margin has declined in the last couple of years.
SLP has a Gross Margin (55.28%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of SLP has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.54% | ||
| PM (TTM) | 9.24% | ||
| GM | 55.28% |
OM growth 3Y-28.77%
OM growth 5Y-22.51%
PM growth 3Y-12.26%
PM growth 5Y-10.86%
GM growth 3Y-7.23%
GM growth 5Y-3.44%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SLP is destroying value.
The number of shares outstanding for SLP has been increased compared to 1 year ago.
Compared to 5 years ago, SLP has more shares outstanding
There is no outstanding debt for SLP. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 13.89 indicates that SLP is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 13.89, SLP belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
SLP has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 13.89 |
ROIC/WACC0.15
WACC10.65%
2.3 Liquidity
A Current Ratio of 4.37 indicates that SLP has no problem at all paying its short term obligations.
The Current ratio of SLP (4.37) is better than 83.33% of its industry peers.
A Quick Ratio of 4.37 indicates that SLP has no problem at all paying its short term obligations.
SLP's Quick ratio of 4.37 is amongst the best of the industry. SLP outperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.37 | ||
| Quick Ratio | 4.37 |
3. Growth
3.1 Past
SLP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.30%, which is quite impressive.
Measured over the past 5 years, SLP shows a small growth in Earnings Per Share. The EPS has been growing by 0.41% on average per year.
The Revenue has grown by 17.51% in the past year. This is quite good.
Measured over the past years, SLP shows a quite strong growth in Revenue. The Revenue has been growing by 15.56% on average per year.
EPS 1Y (TTM)38.3%
EPS 3Y2.13%
EPS 5Y0.41%
EPS Q2Q%200%
Revenue 1Y (TTM)17.51%
Revenue growth 3Y14.64%
Revenue growth 5Y15.56%
Sales Q2Q%9.79%
3.2 Future
SLP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 36.75% yearly.
Based on estimates for the next years, SLP will show a quite strong growth in Revenue. The Revenue will grow by 12.62% on average per year.
EPS Next Y-36.98%
EPS Next 2Y3.23%
EPS Next 3Y16.29%
EPS Next 5Y36.75%
Revenue Next Year16.81%
Revenue Next 2Y11.77%
Revenue Next 3Y12.54%
Revenue Next 5Y12.62%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.17, SLP is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of SLP indicates a rather cheap valuation: SLP is cheaper than 91.67% of the companies listed in the same industry.
SLP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.50.
Based on the Price/Forward Earnings ratio of 23.86, the valuation of SLP can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SLP indicates a somewhat cheap valuation: SLP is cheaper than 72.22% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.44, SLP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.17 | ||
| Fwd PE | 23.86 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SLP indicates a somewhat cheap valuation: SLP is cheaper than 77.78% of the companies listed in the same industry.
SLP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SLP is cheaper than 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.49 | ||
| EV/EBITDA | 19.48 |
4.3 Compensation for Growth
The decent profitability rating of SLP may justify a higher PE ratio.
SLP's earnings are expected to grow with 16.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)46.39
EPS Next 2Y3.23%
EPS Next 3Y16.29%
5. Dividend
5.1 Amount
With a yearly dividend of 0.48%, SLP is not a good candidate for dividend investing.
The stock price of SLP dropped by -61.88% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 17.36, SLP pays a better dividend. On top of this SLP pays more dividend than 91.67% of the companies listed in the same industry.
With a Dividend Yield of 0.48, SLP pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
5.2 History
The dividend of SLP has a limited annual growth rate of 0.01%.
SLP has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.01%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
SLP pays out 33.09% of its income as dividend. This is a sustainable payout ratio.
SLP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP33.09%
EPS Next 2Y3.23%
EPS Next 3Y16.29%
12.46
-0.33 (-2.58%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)
Earnings (Next)
Inst Owners85.7%
Inst Owner Change0%
Ins Owners17.44%
Ins Owner Change-3.07%
Market Cap250.57M
Analysts84
Price Target25.84 (107.38%)
Short Float %9.39%
Short Ratio3.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
Yearly Dividend0.24
Dividend Growth(5Y)0.01%
DP33.09%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-31.68%
Min EPS beat(2)-90.66%
Max EPS beat(2)27.29%
EPS beat(4)1
Avg EPS beat(4)-18.59%
Min EPS beat(4)-90.66%
Max EPS beat(4)27.29%
EPS beat(8)2
Avg EPS beat(8)-20.37%
EPS beat(12)4
Avg EPS beat(12)-17.77%
EPS beat(16)7
Avg EPS beat(16)-10.87%
Revenue beat(2)1
Avg Revenue beat(2)0.47%
Min Revenue beat(2)-0.37%
Max Revenue beat(2)1.3%
Revenue beat(4)2
Avg Revenue beat(4)-0.76%
Min Revenue beat(4)-6.39%
Max Revenue beat(4)2.42%
Revenue beat(8)4
Avg Revenue beat(8)-0.58%
Revenue beat(12)6
Avg Revenue beat(12)-0.21%
Revenue beat(16)9
Avg Revenue beat(16)0.8%
PT rev (1m)-13.69%
PT rev (3m)-26.62%
EPS NQ rev (1m)-55.19%
EPS NQ rev (3m)-55.19%
EPS NY rev (1m)-46.61%
EPS NY rev (3m)-34.29%
Revenue NQ rev (1m)-8.35%
Revenue NQ rev (3m)-8.72%
Revenue NY rev (1m)-8.08%
Revenue NY rev (3m)-8.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.17 | ||
| Fwd PE | 23.86 | ||
| P/S | 3.19 | ||
| P/FCF | 30.49 | ||
| P/OCF | 21.34 | ||
| P/B | 1.32 | ||
| P/tB | 6.79 | ||
| EV/EBITDA | 19.48 |
EPS(TTM)0.65
EY5.22%
EPS(NY)0.52
Fwd EY4.19%
FCF(TTM)0.41
FCFY3.28%
OCF(TTM)0.58
OCFY4.69%
SpS3.91
BVpS9.43
TBVpS1.84
PEG (NY)N/A
PEG (5Y)46.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.6% | ||
| ROE | 3.83% | ||
| ROCE | 1.87% | ||
| ROIC | 1.55% | ||
| ROICexc | 1.74% | ||
| ROICexgc | 17.65% | ||
| OM | 4.54% | ||
| PM (TTM) | 9.24% | ||
| GM | 55.28% | ||
| FCFM | 10.46% |
ROA(3y)5.68%
ROA(5y)5.6%
ROE(3y)6.11%
ROE(5y)6.04%
ROIC(3y)4.57%
ROIC(5y)5.03%
ROICexc(3y)12.97%
ROICexc(5y)16.03%
ROICexgc(3y)84.29%
ROICexgc(5y)97.41%
ROCE(3y)5.53%
ROCE(5y)6.08%
ROICexcg growth 3Y-24.94%
ROICexcg growth 5Y-20.15%
ROICexc growth 3Y-47.05%
ROICexc growth 5Y-36.7%
OM growth 3Y-28.77%
OM growth 5Y-22.51%
PM growth 3Y-12.26%
PM growth 5Y-10.86%
GM growth 3Y-7.23%
GM growth 5Y-3.44%
F-Score5
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 44.01% | ||
| Cap/Sales | 4.49% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 101.45% | ||
| Profit Quality | 113.21% | ||
| Current Ratio | 4.37 | ||
| Quick Ratio | 4.37 | ||
| Altman-Z | 13.89 |
F-Score5
WACC10.65%
ROIC/WACC0.15
Cap/Depr(3y)99.44%
Cap/Depr(5y)102.61%
Cap/Sales(3y)6.89%
Cap/Sales(5y)7.35%
Profit Quality(3y)126.28%
Profit Quality(5y)123.52%
High Growth Momentum
Growth
EPS 1Y (TTM)38.3%
EPS 3Y2.13%
EPS 5Y0.41%
EPS Q2Q%200%
EPS Next Y-36.98%
EPS Next 2Y3.23%
EPS Next 3Y16.29%
EPS Next 5Y36.75%
Revenue 1Y (TTM)17.51%
Revenue growth 3Y14.64%
Revenue growth 5Y15.56%
Sales Q2Q%9.79%
Revenue Next Year16.81%
Revenue Next 2Y11.77%
Revenue Next 3Y12.54%
Revenue Next 5Y12.62%
EBIT growth 1Y-61.32%
EBIT growth 3Y-18.34%
EBIT growth 5Y-10.46%
EBIT Next Year253.14%
EBIT Next 3Y65.11%
EBIT Next 5Y49.82%
FCF growth 1Y-54.72%
FCF growth 3Y-14.87%
FCF growth 5Y-1.4%
OCF growth 1Y-46.55%
OCF growth 3Y-11.47%
OCF growth 5Y2.73%