SIMULATIONS PLUS INC (SLP)
US8292141053 - Common Stock
We assign a fundamental rating of 7 out of 10 to SLP. SLP was compared to 40 industry peers in the Health Care Technology industry. SLP scores excellent points on both the profitability and health parts. This is a solid base for a good stock. SLP is not valued too expensively and it also shows a decent growth rate. These ratings could make SLP a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year SLP was profitable.
In the past year SLP had a positive cash flow from operations.
SLP had positive earnings in each of the past 5 years.
In the past 5 years SLP always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 5.42%, SLP belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
SLP has a Return On Equity of 5.94%. This is amongst the best in the industry. SLP outperforms 92.31% of its industry peers.
SLP's Return On Invested Capital of 4.31% is amongst the best of the industry. SLP outperforms 94.87% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SLP is in line with the industry average of 5.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.42% | ||
| ROE | 5.94% | ||
| ROIC | 4.31% |
ROA(3y)5.8%
ROA(5y)8.39%
ROE(3y)6.25%
ROE(5y)9.5%
ROIC(3y)5.58%
ROIC(5y)8.97%
1.3 Margins
SLP has a Profit Margin of 16.26%. This is amongst the best in the industry. SLP outperforms 92.31% of its industry peers.
SLP's Profit Margin has declined in the last couple of years.
SLP has a better Operating Margin (14.26%) than 92.31% of its industry peers.
In the last couple of years the Operating Margin of SLP has declined.
SLP has a Gross Margin of 75.14%. This is in the better half of the industry: SLP outperforms 79.49% of its industry peers.
In the last couple of years the Gross Margin of SLP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.26% | ||
| PM (TTM) | 16.26% | ||
| GM | 75.14% |
OM growth 3Y-19.31%
OM growth 5Y-15.85%
PM growth 3Y-9.34%
PM growth 5Y-11.1%
GM growth 3Y2.66%
GM growth 5Y1.96%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SLP is destroying value.
Compared to 1 year ago, SLP has less shares outstanding
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 36.94 indicates that SLP is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 36.94, SLP belongs to the best of the industry, outperforming 97.44% of the companies in the same industry.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 36.94 |
ROIC/WACC0.41
WACC10.49%
2.3 Liquidity
A Current Ratio of 8.81 indicates that SLP has no problem at all paying its short term obligations.
SLP's Current ratio of 8.81 is amongst the best of the industry. SLP outperforms 97.44% of its industry peers.
A Quick Ratio of 8.81 indicates that SLP has no problem at all paying its short term obligations.
SLP has a better Quick ratio (8.81) than 97.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.81 | ||
| Quick Ratio | 8.81 |
3. Growth
3.1 Past
SLP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.00%.
SLP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.20% yearly.
Looking at the last year, SLP shows a quite strong growth in Revenue. The Revenue has grown by 18.87% in the last year.
The Revenue has been growing by 14.96% on average over the past years. This is quite good.
EPS 1Y (TTM)4%
EPS 3Y-4.44%
EPS 5Y3.2%
EPS growth Q2Q0%
Revenue 1Y (TTM)18.87%
Revenue growth 3Y12.73%
Revenue growth 5Y14.96%
Revenue growth Q2Q16.22%
3.2 Future
SLP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 31.38% yearly.
Based on estimates for the next years, SLP will show a quite strong growth in Revenue. The Revenue will grow by 14.81% on average per year.
EPS Next Y38.17%
EPS Next 2Y30.15%
EPS Next 3Y35.41%
EPS Next 5Y31.38%
Revenue Next Year12.04%
Revenue Next 2Y11.98%
Revenue Next 3Y13.85%
Revenue Next 5Y14.81%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
SLP is valuated quite expensively with a Price/Earnings ratio of 97.98.
Based on the Price/Earnings ratio, SLP is valued a bit cheaper than the industry average as 71.79% of the companies are valued more expensively.
SLP is valuated expensively when we compare the Price/Earnings ratio to 28.15, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 62.67, SLP can be considered very expensive at the moment.
SLP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SLP is cheaper than 71.79% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SLP to the average of the S&P500 Index (20.20), we can say SLP is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 97.98 | ||
| Fwd PE | 62.67 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SLP is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SLP indicates a somewhat cheap valuation: SLP is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 79.76 | ||
| EV/EBITDA | 61.44 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of SLP may justify a higher PE ratio.
SLP's earnings are expected to grow with 35.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.57
PEG (5Y)30.59
EPS Next 2Y30.15%
EPS Next 3Y35.41%
5. Dividend
5.1 Amount
With a yearly dividend of 0.50%, SLP is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 32.93, SLP pays a better dividend. On top of this SLP pays more dividend than 89.74% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, SLP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
5.2 History
The dividend of SLP decreases each year by -0.04%.
SLP has been paying a dividend for at least 10 years, so it has a reliable track record.
SLP has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-0.04%
Div Incr Years0
Div Non Decr Years10
5.3 Sustainability
SLP pays out 45.60% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP45.6%
EPS Next 2Y30.15%
EPS Next 3Y35.41%
SIMULATIONS PLUS INC
NASDAQ:SLP (5/17/2024, 7:26:40 PM)
After market: 50.95 0 (0%)50.95
+0.75 (+1.48%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.02B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 97.98 | ||
| Fwd PE | 62.67 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.57
PEG (5Y)30.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.42% | ||
| ROE | 5.94% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.26% | ||
| PM (TTM) | 16.26% | ||
| GM | 75.14% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 8.81 | ||
| Quick Ratio | 8.81 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)4%
EPS 3Y-4.44%
EPS 5Y
EPS growth Q2Q
EPS Next Y38.17%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)18.87%
Revenue growth 3Y12.73%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
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OCF growth 5Y