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 is not valued too expensively and it also shows a decent growth rate.
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.
Each year in the past 5 years SLP has been profitable.
SLP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SLP has a Return On Assets of 3.60%. This is amongst the best in the industry. SLP outperforms 89.19% of its industry peers.
With an excellent Return On Equity value of 3.83%, SLP belongs to the best of the industry, outperforming 86.49% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 1.55%, SLP belongs to the top of the industry, outperforming 81.08% of the companies in the same industry.
SLP had an Average Return On Invested Capital over the past 3 years of 4.57%. This is in line with the industry average of 6.37%.
| 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
With an excellent Profit Margin value of 9.24%, SLP belongs to the best of the industry, outperforming 91.89% of the companies in the same industry.
SLP's Profit Margin has declined in the last couple of years.
SLP has a better Operating Margin (4.54%) than 78.38% of its industry peers.
In the last couple of years the Operating Margin of SLP has declined.
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
SLP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, SLP has more shares outstanding
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
SLP has an Altman-Z score of 34.46. This indicates that SLP is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 34.46, SLP belongs to the best of the industry, outperforming 97.30% 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 | 34.46 |
ROIC/WACC0.14
WACC10.74%
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.
Looking at the Current ratio, with a value of 4.37, SLP belongs to the top of the industry, outperforming 83.78% 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 83.78% 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.
Looking at the last year, SLP shows a very strong growth in Revenue. The Revenue has grown by 21.49%.
The Revenue has been growing by 15.56% on average over the past years. This is quite good.
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
Based on estimates for the next years, SLP will show a very strong growth in Earnings Per Share. The EPS will grow by 36.75% 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 17.67% on average per year.
EPS Next Y18.04%
EPS Next 2Y26.63%
EPS Next 3Y19.58%
EPS Next 5Y36.75%
Revenue Next Year27.08%
Revenue Next 2Y19.21%
Revenue Next 3Y15.87%
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
With a Price/Earnings ratio of 94.41, SLP can be considered very expensive at the moment.
SLP's Price/Earnings ratio is a bit cheaper when compared to the industry. SLP is cheaper than 67.57% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.91, SLP is valued quite expensively.
SLP is valuated quite expensively with a Price/Forward Earnings ratio of 42.05.
64.86% of the companies in the same industry are more expensive than SLP, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.77. SLP is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 94.41 | ||
| Fwd PE | 42.05 |
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.
Based on the Price/Free Cash Flow ratio, SLP is valued a bit cheaper than 62.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 80.85 | ||
| EV/EBITDA | 54.67 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SLP does not grow enough to justify the current Price/Earnings ratio.
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)5.23
PEG (5Y)228.47
EPS Next 2Y26.63%
EPS Next 3Y19.58%
5. Dividend
5.1 Amount
With a yearly dividend of 0.18%, 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 37.28. SLP pays more dividend than 89.19% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, 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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.01%
Div Incr Years0
Div Non Decr Years10
5.3 Sustainability
33.09% of the earnings are spent on dividend by SLP. This is a low number and sustainable payout ratio.
The dividend of SLP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP33.09%
EPS Next 2Y26.63%
EPS Next 3Y19.58%
33.045
+0.55 (+1.71%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)
Earnings (Next)
Inst Owners80.36%
Inst Owner Change5.74%
Ins Owners17.83%
Ins Owner Change-3.08%
Market Cap664.53M
Analysts85.45
Price Target47.53 (43.83%)
Short Float %12.11%
Short Ratio6.15
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)-5.67%
PT rev (3m)-5.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.52%
EPS NY rev (1m)0%
EPS NY rev (3m)23.07%
Revenue NQ rev (1m)-0.37%
Revenue NQ rev (3m)-7.8%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 94.41 | ||
| Fwd PE | 42.05 | ||
| P/S | 8.46 | ||
| P/FCF | 80.85 | ||
| P/OCF | 56.59 | ||
| P/B | 3.51 | ||
| P/tB | 18 | ||
| EV/EBITDA | 54.67 |
EPS(TTM)0.35
EY1.06%
EPS(NY)0.79
Fwd EY2.38%
FCF(TTM)0.41
FCFY1.24%
OCF(TTM)0.58
OCFY1.77%
SpS3.91
BVpS9.43
TBVpS1.84
PEG (NY)5.23
PEG (5Y)228.47
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 | 34.46 |
F-Score5
WACC10.74%
ROIC/WACC0.14
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 Year27.08%
Revenue Next 2Y19.21%
Revenue Next 3Y15.87%
Revenue Next 5Y17.67%
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%