SIMULATIONS PLUS INC (SLP) Stock Fundamental Analysis
NASDAQ:SLP - Nasdaq - US8292141053 - Common Stock - Currency: USD
SLP gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 37 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 has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years SLP has been profitable.
In the past 5 years SLP always reported a positive cash flow from operatings.
1.2 Ratios
SLP's Return On Assets of 3.60% is amongst the best of the industry. SLP outperforms 89.19% of its industry peers.
The Return On Equity of SLP (3.83%) is better than 89.19% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.55%, SLP is in the better half of the industry, outperforming 78.38% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SLP is below the industry average of 7.17%.
| 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 91.89% of its industry peers.
SLP's Profit Margin has declined in the last couple of years.
The Operating Margin of SLP (4.54%) is better than 78.38% of its industry peers.
SLP's Operating Margin has declined in the last couple of years.
SLP has a Gross Margin of 55.28%. This is comparable to the rest of the industry: SLP outperforms 51.35% of its industry peers.
SLP's Gross Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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 34.99 indicates that SLP is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 34.99, SLP belongs to the top of the industry, outperforming 94.59% 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 | 34.99 |
ROIC/WACC0.15
WACC10.66%
2.3 Liquidity
SLP has a Current Ratio of 4.37. This indicates that SLP is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 4.37, SLP belongs to the best of the industry, outperforming 86.49% of the companies in the same industry.
A Quick Ratio of 4.37 indicates that SLP has no problem at all paying its short term obligations.
SLP has a Quick ratio of 4.37. This is amongst the best in the industry. SLP outperforms 86.49% 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 negative growth in Earnings Per Share. In the last year the EPS decreased by -32.69%.
The Earnings Per Share has been growing slightly by 0.41% on average over the past years.
The Revenue has grown by 21.49% in the past year. This is a very strong growth!
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)-32.69%
EPS 3Y2.13%
EPS 5Y0.41%
EPS Q2Q%-25%
Revenue 1Y (TTM)21.49%
Revenue growth 3Y14.64%
Revenue growth 5Y15.56%
Sales Q2Q%22.55%
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.
SLP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.67% yearly.
EPS Next Y18.04%
EPS Next 2Y26.63%
EPS Next 3Y19.58%
EPS Next 5Y36.75%
Revenue Next Year27.24%
Revenue Next 2Y19.36%
Revenue Next 3Y16.41%
Revenue Next 5Y17.67%
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
Based on the Price/Earnings ratio of 95.20, the valuation of SLP can be described as expensive.
SLP's Price/Earnings ratio is a bit cheaper when compared to the industry. SLP is cheaper than 72.97% of the companies in the same industry.
When comparing the Price/Earnings ratio of SLP to the average of the S&P500 Index (28.22), we can say SLP is valued expensively.
Based on the Price/Forward Earnings ratio of 42.40, the valuation of SLP can be described as expensive.
Based on the Price/Forward Earnings ratio, SLP is valued a bit cheaper than the industry average as 70.27% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 20.86. SLP is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 95.2 | ||
| Fwd PE | 42.4 |
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 64.86% 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 62.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 81.53 | ||
| EV/EBITDA | 55.56 |
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 19.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.28
PEG (5Y)230.38
EPS Next 2Y26.63%
EPS Next 3Y19.58%
5. Dividend
5.1 Amount
SLP has a yearly dividend return of 0.18%, which is pretty low.
SLP's Dividend Yield is rather good when compared to the industry average which is at 34.54. SLP pays more dividend than 89.19% 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 | 0.18% |
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.
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)0.01%
Div Incr Years0
Div Non Decr Years10
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 2Y26.63%
EPS Next 3Y19.58%
33.32
-0.24 (-0.72%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)
Earnings (Next)
Inst Owners80.36%
Inst Owner Change2.94%
Ins Owners17.83%
Ins Owner Change-3.04%
Market Cap670.07M
Analysts85.45
Price Target45.08 (35.29%)
Short Float %12.12%
Short Ratio6.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.18% |
Yearly Dividend0.24
Dividend Growth(5Y)0.01%
DP33.09%
Div Incr Years0
Div Non Decr Years10
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)-10.53%
PT rev (3m)-11.6%
EPS NQ rev (1m)-13.52%
EPS NQ rev (3m)-38.95%
EPS NY rev (1m)23.07%
EPS NY rev (3m)-36.51%
Revenue NQ rev (1m)-7.45%
Revenue NQ rev (3m)-8.08%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 95.2 | ||
| Fwd PE | 42.4 | ||
| P/S | 8.53 | ||
| P/FCF | 81.53 | ||
| P/OCF | 57.06 | ||
| P/B | 3.54 | ||
| P/tB | 18.15 | ||
| EV/EBITDA | 55.56 |
EPS(TTM)0.35
EY1.05%
EPS(NY)0.79
Fwd EY2.36%
FCF(TTM)0.41
FCFY1.23%
OCF(TTM)0.58
OCFY1.75%
SpS3.91
BVpS9.43
TBVpS1.84
PEG (NY)5.28
PEG (5Y)230.38
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 | 34.99 |
F-Score5
WACC10.66%
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)-32.69%
EPS 3Y2.13%
EPS 5Y0.41%
EPS Q2Q%-25%
EPS Next Y18.04%
EPS Next 2Y26.63%
EPS Next 3Y19.58%
EPS Next 5Y36.75%
Revenue 1Y (TTM)21.49%
Revenue growth 3Y14.64%
Revenue growth 5Y15.56%
Sales Q2Q%22.55%
Revenue Next Year27.24%
Revenue Next 2Y19.36%
Revenue Next 3Y16.41%
Revenue Next 5Y17.67%
EBIT growth 1Y-61.32%
EBIT growth 3Y-18.34%
EBIT growth 5Y-10.46%
EBIT Next Year253.38%
EBIT Next 3Y65.71%
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%