SIMULATIONS PLUS INC (SLP) Stock Fundamental Analysis
USA - NASDAQ:SLP - US8292141053 - Common Stock
16.02 USD
+0.47 (+3.02%)
16.02 USD
0 (0%)
Taking everything into account, SLP scores 6 out of 10 in our fundamental rating. SLP was compared to 35 industry peers in the Health Care Technology industry. SLP has an excellent financial health rating, but there are some minor concerns on its profitability. SLP is valued quite expensively, but it does show have an excellent growth rating.
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.
In the past 5 years SLP has always been profitable.
Each year in the past 5 years SLP had a positive operating cash flow.
1.2 Ratios
SLP has a worse Return On Assets (-47.03%) than 77.14% of its industry peers.
SLP has a Return On Equity of -51.05%. This is comparable to the rest of the industry: SLP outperforms 45.71% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.12%, SLP is in the better half of the industry, outperforming 77.14% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SLP is below the industry average of 6.80%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -47.03% | ||
| ROE | -51.05% | ||
| ROIC | 3.12% |
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's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 5.82%, SLP is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
In the last couple of years the Operating Margin of SLP has declined.
SLP has a Gross Margin (53.75%) which is comparable to the rest of the industry.
SLP's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.82% | ||
| PM (TTM) | N/A | ||
| GM | 53.75% |
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.
SLP has more shares outstanding than it did 5 years ago.
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 19.02 indicates that SLP is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 19.02, SLP belongs to the best of the industry, outperforming 91.43% 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 | 19.02 |
ROIC/WACC0.32
WACC9.74%
2.3 Liquidity
SLP has a Current Ratio of 5.11. This indicates that SLP is financially healthy and has no problem in meeting its short term obligations.
SLP has a better Current ratio (5.11) than 88.57% of its industry peers.
SLP has a Quick Ratio of 5.11. This indicates that SLP is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of SLP (5.11) is better than 88.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.11 | ||
| Quick Ratio | 5.11 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 38.30% over the past year.
The Earnings Per Share has been growing slightly by 0.41% on average over the past years.
SLP shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.01%.
The Revenue has been growing by 15.56% on average over the past years. This is quite good.
EPS 1Y (TTM)38.3%
EPS 3Y2.13%
EPS 5Y0.41%
EPS Q2Q%200%
Revenue 1Y (TTM)20.01%
Revenue growth 3Y14.64%
Revenue growth 5Y15.56%
Sales Q2Q%9.81%
3.2 Future
Based on estimates for the next years, SLP will show a very strong growth in Earnings Per Share. The EPS will grow by 21.41% on average per year.
Based on estimates for the next years, SLP will show a quite strong growth in Revenue. The Revenue will grow by 9.89% on average per year.
EPS Next Y-567.9%
EPS Next 2Y-7.23%
EPS Next 3Y6.04%
EPS Next 5Y21.41%
Revenue Next Year10.04%
Revenue Next 2Y6.37%
Revenue Next 3Y6.4%
Revenue Next 5Y9.89%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 24.65 indicates a rather expensive valuation of SLP.
Based on the Price/Earnings ratio, SLP is valued cheaply inside the industry as 91.43% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of SLP to the average of the S&P500 Index (27.86), we can say SLP is valued inline with the index average.
With a Price/Forward Earnings ratio of 37.99, SLP can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, SLP is valued a bit cheaper than the industry average as 62.86% of the companies are valued more expensively.
SLP's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.65 | ||
| Fwd PE | 37.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SLP is valued a bit cheaper than the industry average as 74.29% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SLP is valued a bit cheaper than the industry average as 74.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.57 | ||
| EV/EBITDA | 21.28 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)59.64
EPS Next 2Y-7.23%
EPS Next 3Y6.04%
5. Dividend
5.1 Amount
With a yearly dividend of 0.61%, SLP is not a good candidate for dividend investing.
SLP's Dividend Yield is rather good when compared to the industry average which is at 4.51. SLP pays more dividend than 94.29% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, SLP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
5.2 History
The dividend of SLP has a limited annual growth rate of 0.01%.
SLP has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)0.01%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of SLP are negative and hence is the payout ratio. SLP will probably not be able to sustain this dividend level.
The dividend of SLP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-1.9%
EPS Next 2Y-7.23%
EPS Next 3Y6.04%
16.02
+0.47 (+3.02%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)
Earnings (Next)
Inst Owners86.07%
Inst Owner Change0%
Ins Owners17.37%
Ins Owner Change-1.85%
Market Cap322.48M
Analysts80
Price Target25.84 (61.3%)
Short Float %9.99%
Short Ratio3.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
Yearly Dividend0.24
Dividend Growth(5Y)0.01%
DP-1.9%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)160.9%
Min EPS beat(2)0.69%
Max EPS beat(2)321.12%
EPS beat(4)2
Avg EPS beat(4)55.29%
Min EPS beat(4)-90.66%
Max EPS beat(4)321.12%
EPS beat(8)3
Avg EPS beat(8)16.77%
EPS beat(12)4
Avg EPS beat(12)5.67%
EPS beat(16)7
Avg EPS beat(16)7.48%
Revenue beat(2)2
Avg Revenue beat(2)0.96%
Min Revenue beat(2)0.63%
Max Revenue beat(2)1.3%
Revenue beat(4)2
Avg Revenue beat(4)-1.21%
Min Revenue beat(4)-6.39%
Max Revenue beat(4)1.3%
Revenue beat(8)5
Avg Revenue beat(8)-0.3%
Revenue beat(12)6
Avg Revenue beat(12)-0.44%
Revenue beat(16)10
Avg Revenue beat(16)1.72%
PT rev (1m)0%
PT rev (3m)-30.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-165.22%
EPS NY rev (1m)0%
EPS NY rev (3m)-553.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-20.56%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-11.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.65 | ||
| Fwd PE | 37.99 | ||
| P/S | 4.01 | ||
| P/FCF | 30.57 | ||
| P/OCF | 22.71 | ||
| P/B | 2.61 | ||
| P/tB | 6.43 | ||
| EV/EBITDA | 21.28 |
EPS(TTM)0.65
EY4.06%
EPS(NY)0.42
Fwd EY2.63%
FCF(TTM)0.52
FCFY3.27%
OCF(TTM)0.71
OCFY4.4%
SpS3.99
BVpS6.15
TBVpS2.49
PEG (NY)N/A
PEG (5Y)59.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -47.03% | ||
| ROE | -51.05% | ||
| ROCE | 3.77% | ||
| ROIC | 3.12% | ||
| ROICexc | 4.04% | ||
| ROICexgc | 17.48% | ||
| OM | 5.82% | ||
| PM (TTM) | N/A | ||
| GM | 53.75% | ||
| FCFM | 13.12% |
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-Score4
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 40.33% | ||
| Cap/Sales | 4.55% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 103.33% | ||
| Profit Quality | N/A | ||
| Current Ratio | 5.11 | ||
| Quick Ratio | 5.11 | ||
| Altman-Z | 19.02 |
F-Score4
WACC9.74%
ROIC/WACC0.32
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-567.9%
EPS Next 2Y-7.23%
EPS Next 3Y6.04%
EPS Next 5Y21.41%
Revenue 1Y (TTM)20.01%
Revenue growth 3Y14.64%
Revenue growth 5Y15.56%
Sales Q2Q%9.81%
Revenue Next Year10.04%
Revenue Next 2Y6.37%
Revenue Next 3Y6.4%
Revenue Next 5Y9.89%
EBIT growth 1Y-33.13%
EBIT growth 3Y-18.34%
EBIT growth 5Y-10.46%
EBIT Next Year145.07%
EBIT Next 3Y49.49%
EBIT Next 5Y49.82%
FCF growth 1Y-52.99%
FCF growth 3Y-14.87%
FCF growth 5Y-1.4%
OCF growth 1Y-46.86%
OCF growth 3Y-11.47%
OCF growth 5Y2.73%