SIMULATIONS PLUS INC (SLP) Stock Fundamental Analysis
NASDAQ:SLP - Nasdaq - US8292141053 - Common Stock - Currency: USD
Taking everything into account, SLP scores 6 out of 10 in our fundamental rating. SLP was compared to 36 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 has a correct valuation and a medium growth rate.
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
With an excellent Return On Assets value of 3.60%, SLP belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
Looking at the Return On Equity, with a value of 3.83%, SLP belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
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.
SLP has more shares outstanding than it did 1 year ago.
The number of shares outstanding for SLP has been increased compared to 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 19.55. This indicates that SLP is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 19.55, SLP belongs to the best of the industry, outperforming 88.89% 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 | 19.55 |
ROIC/WACC0.15
WACC10.11%
2.3 Liquidity
A Current Ratio of 4.37 indicates that SLP has no problem at all paying its short term obligations.
With an excellent Current ratio value of 4.37, SLP belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
SLP has a Quick Ratio of 4.37. This indicates that SLP is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of SLP (4.37) is better than 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 negative growth in Earnings Per Share. In the last year the EPS decreased by -32.69%.
SLP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.41% yearly.
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
The Earnings Per Share is expected to grow by 36.75% on average over the next years. This is a very strong growth
SLP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.62% yearly.
EPS Next Y3.27%
EPS Next 2Y20.35%
EPS Next 3Y16.29%
EPS Next 5Y36.75%
Revenue Next Year24.58%
Revenue Next 2Y15.32%
Revenue Next 3Y15.87%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
SLP is valuated quite expensively with a Price/Earnings ratio of 50.71.
72.22% of the companies in the same industry are more expensive than SLP, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of SLP to the average of the S&P500 Index (27.45), we can say SLP is valued expensively.
The Price/Forward Earnings ratio is 25.01, which means the current valuation is very expensive for SLP.
SLP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SLP is cheaper than 72.22% of the companies in the same industry.
SLP is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.71 | ||
| Fwd PE | 25.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SLP is valued a bit cheaper than the industry average as 72.22% 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 | 43.43 | ||
| EV/EBITDA | 29.15 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SLP has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as SLP's earnings are expected to grow with 16.29% in the coming years.
PEG (NY)15.52
PEG (5Y)122.72
EPS Next 2Y20.35%
EPS Next 3Y16.29%
5. Dividend
5.1 Amount
With a yearly dividend of 0.36%, SLP is not a good candidate for dividend investing.
In the last 3 months the price of SLP has falen by -30.88%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
SLP's Dividend Yield is rather good when compared to the industry average which is at 23.64. SLP pays more dividend than 88.89% of the companies in the same industry.
With a Dividend Yield of 0.36, SLP pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.36% |
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
SLP pays out 33.09% of its income as dividend. This is a sustainable payout ratio.
The dividend of SLP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP33.09%
EPS Next 2Y20.35%
EPS Next 3Y16.29%
17.75
-0.61 (-3.32%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)
Earnings (Next)
Inst Owners85.7%
Inst Owner Change5.74%
Ins Owners17.44%
Ins Owner Change-3.06%
Market Cap356.95M
Analysts84
Price Target36.98 (108.34%)
Short Float %11.19%
Short Ratio4.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.36% |
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)-22.21%
PT rev (3m)-26.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.52%
EPS NY rev (1m)-12.52%
EPS NY rev (3m)7.67%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-7.82%
Revenue NY rev (1m)-1.96%
Revenue NY rev (3m)-2.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.71 | ||
| Fwd PE | 25.01 | ||
| P/S | 4.54 | ||
| P/FCF | 43.43 | ||
| P/OCF | 30.4 | ||
| P/B | 1.88 | ||
| P/tB | 9.67 | ||
| EV/EBITDA | 29.15 |
EPS(TTM)0.35
EY1.97%
EPS(NY)0.71
Fwd EY4%
FCF(TTM)0.41
FCFY2.3%
OCF(TTM)0.58
OCFY3.29%
SpS3.91
BVpS9.43
TBVpS1.84
PEG (NY)15.52
PEG (5Y)122.72
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 | 19.55 |
F-Score5
WACC10.11%
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 Y3.27%
EPS Next 2Y20.35%
EPS Next 3Y16.29%
EPS Next 5Y36.75%
Revenue 1Y (TTM)21.49%
Revenue growth 3Y14.64%
Revenue growth 5Y15.56%
Sales Q2Q%22.55%
Revenue Next Year24.58%
Revenue Next 2Y15.32%
Revenue Next 3Y15.87%
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%