SIMULATIONS PLUS INC (SLP) Stock Fundamental Analysis
NASDAQ:SLP - Nasdaq - US8292141053 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to SLP. SLP was compared to 39 industry peers in the Health Care Technology industry. SLP has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. While showing a medium growth rate, SLP is valued expensive at the moment. These ratings would make SLP suitable for quality investing!
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.
SLP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SLP has a better Return On Assets (4.17%) than 91.89% of its industry peers.
The Return On Equity of SLP (4.45%) is better than 89.19% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.34%, SLP belongs to the top of the industry, outperforming 83.78% 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 6.44%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.17% | ||
| ROE | 4.45% | ||
| ROIC | 2.34% |
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 of 11.04% is amongst the best of the industry. SLP outperforms 91.89% of its industry peers.
SLP's Profit Margin has declined in the last couple of years.
SLP has a better Operating Margin (7.12%) than 86.49% of its industry peers.
In the last couple of years the Operating Margin of SLP has declined.
SLP has a Gross Margin (58.47%) which is in line with its industry peers.
SLP's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.12% | ||
| PM (TTM) | 11.04% | ||
| GM | 58.47% |
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.
Compared to 5 years ago, SLP has more shares outstanding
SLP has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
SLP has an Altman-Z score of 32.28. This indicates that SLP is financially healthy and has little risk of bankruptcy at the moment.
SLP's Altman-Z score of 32.28 is amongst the best of the industry. SLP outperforms 97.30% of its industry peers.
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 | 32.28 |
ROIC/WACC0.23
WACC10.18%
2.3 Liquidity
SLP has a Current Ratio of 4.15. 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 4.15, SLP belongs to the top of the industry, outperforming 86.49% of the companies in the same industry.
SLP has a Quick Ratio of 4.15. This indicates that SLP is financially healthy and has no problem in meeting its short term obligations.
SLP has a better Quick ratio (4.15) than 86.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.15 | ||
| Quick Ratio | 4.15 |
3. Growth
3.1 Past
SLP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.08%.
SLP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.41% yearly.
The Revenue has grown by 19.85% in the past year. This is quite good.
The Revenue has been growing by 15.56% on average over the past years. This is quite good.
EPS 1Y (TTM)-23.08%
EPS 3Y2.13%
EPS 5Y0.41%
EPS Q2Q%-90%
Revenue 1Y (TTM)19.85%
Revenue growth 3Y14.64%
Revenue growth 5Y15.56%
Sales Q2Q%30.51%
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 Y-4.09%
EPS Next 2Y15.81%
EPS Next 3Y21.02%
EPS Next 5Y36.75%
Revenue Next Year27.33%
Revenue Next 2Y19.65%
Revenue Next 3Y17.14%
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 79.42, the valuation of SLP can be described as expensive.
Based on the Price/Earnings ratio, SLP is valued a bit cheaper than the industry average as 72.97% of the companies are valued more expensively.
SLP is valuated expensively when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
SLP is valuated quite expensively with a Price/Forward Earnings ratio of 48.34.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SLP indicates a somewhat cheap valuation: SLP is cheaper than 75.68% of the companies listed in the same industry.
SLP's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 79.43 | ||
| Fwd PE | 48.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SLP is valued a bit cheaper than the industry average as 64.86% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as SLP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 82.14 | ||
| EV/EBITDA | 50.22 |
4.3 Compensation for Growth
SLP has a very decent profitability rating, which may justify a higher PE ratio.
SLP's earnings are expected to grow with 21.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)192.2
EPS Next 2Y15.81%
EPS Next 3Y21.02%
5. Dividend
5.1 Amount
With a yearly dividend of 0.38%, 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 59.12. SLP pays more dividend than 86.49% of the companies in the same industry.
With a Dividend Yield of 0.38, SLP pays less dividend than the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
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
43.82% of the earnings are spent on dividend by SLP. This is a bit on the high side, but may be sustainable.
The dividend of SLP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP43.82%
EPS Next 2Y15.81%
EPS Next 3Y21.02%
31.77
-0.07 (-0.22%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)
Earnings (Next)
Inst Owners80.36%
Inst Owner Change3.24%
Ins Owners17.83%
Ins Owner Change-2.98%
Market Cap638.26M
Analysts85.45
Price Target50.39 (58.61%)
Short Float %9.75%
Short Ratio6.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
Yearly Dividend0.24
Dividend Growth(5Y)0.01%
DP43.82%
Div Incr Years0
Div Non Decr Years10
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-50.33%
Min EPS beat(2)-90.66%
Max EPS beat(2)-9.99%
EPS beat(4)1
Avg EPS beat(4)-24.35%
Min EPS beat(4)-90.66%
Max EPS beat(4)4.22%
EPS beat(8)2
Avg EPS beat(8)-22.53%
EPS beat(12)4
Avg EPS beat(12)-16.01%
EPS beat(16)7
Avg EPS beat(16)-12.04%
Revenue beat(2)0
Avg Revenue beat(2)-3.38%
Min Revenue beat(2)-6.39%
Max Revenue beat(2)-0.37%
Revenue beat(4)2
Avg Revenue beat(4)0.13%
Min Revenue beat(4)-6.39%
Max Revenue beat(4)4.87%
Revenue beat(8)3
Avg Revenue beat(8)-1.16%
Revenue beat(12)6
Avg Revenue beat(12)-0.23%
Revenue beat(16)9
Avg Revenue beat(16)0.81%
PT rev (1m)-1.2%
PT rev (3m)-13.33%
EPS NQ rev (1m)-49.27%
EPS NQ rev (3m)-55.13%
EPS NY rev (1m)-48.41%
EPS NY rev (3m)-41.28%
Revenue NQ rev (1m)-9.28%
Revenue NQ rev (3m)5.22%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 79.43 | ||
| Fwd PE | 48.34 | ||
| P/S | 8.57 | ||
| P/FCF | 82.14 | ||
| P/OCF | 53.71 | ||
| P/B | 3.46 | ||
| P/tB | 20.7 | ||
| EV/EBITDA | 50.22 |
EPS(TTM)0.4
EY1.26%
EPS(NY)0.66
Fwd EY2.07%
FCF(TTM)0.39
FCFY1.22%
OCF(TTM)0.59
OCFY1.86%
SpS3.71
BVpS9.19
TBVpS1.53
PEG (NY)N/A
PEG (5Y)192.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.17% | ||
| ROE | 4.45% | ||
| ROCE | 2.83% | ||
| ROIC | 2.34% | ||
| ROICexc | 2.59% | ||
| ROICexgc | 28.94% | ||
| OM | 7.12% | ||
| PM (TTM) | 11.04% | ||
| GM | 58.47% | ||
| FCFM | 10.44% |
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 Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 60.16% | ||
| Cap/Sales | 5.53% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 97.92% | ||
| Profit Quality | 94.58% | ||
| Current Ratio | 4.15 | ||
| Quick Ratio | 4.15 | ||
| Altman-Z | 32.28 |
F-Score5
WACC10.18%
ROIC/WACC0.23
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)-23.08%
EPS 3Y2.13%
EPS 5Y0.41%
EPS Q2Q%-90%
EPS Next Y-4.09%
EPS Next 2Y15.81%
EPS Next 3Y21.02%
EPS Next 5Y36.75%
Revenue 1Y (TTM)19.85%
Revenue growth 3Y14.64%
Revenue growth 5Y15.56%
Sales Q2Q%30.51%
Revenue Next Year27.33%
Revenue Next 2Y19.65%
Revenue Next 3Y17.14%
Revenue Next 5Y17.67%
EBIT growth 1Y-39.88%
EBIT growth 3Y-18.34%
EBIT growth 5Y-10.46%
EBIT Next Year261.43%
EBIT Next 3Y68.46%
EBIT Next 5Y49.82%
FCF growth 1Y-49.61%
FCF growth 3Y-14.87%
FCF growth 5Y-1.4%
OCF growth 1Y-37.55%
OCF growth 3Y-11.47%
OCF growth 5Y2.73%