SIMULATIONS PLUS INC (SLP) Stock Fundamental Analysis
NASDAQ:SLP - Nasdaq - US8292141053 - Common Stock
SLP gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 39 industry peers in the Health Care Technology industry. SLP gets an excellent profitability rating and is at the same time showing great financial health properties. SLP has a decent growth rate and is not valued too expensively. 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's Return On Assets of 4.17% is amongst the best of the industry. SLP outperforms 91.89% of its industry peers.
SLP has a Return On Equity of 4.45%. This is amongst the best in the industry. SLP outperforms 89.19% of its industry peers.
SLP has a Return On Invested Capital of 2.34%. This is amongst the best in the industry. SLP outperforms 83.78% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SLP is in line with the industry average of 6.36%.
| 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
Looking at the Profit Margin, with a value of 11.04%, SLP belongs to the top of the industry, outperforming 91.89% of the companies in the same industry.
In the last couple of years the Profit Margin of SLP has declined.
SLP's Operating Margin of 7.12% is amongst the best of the industry. SLP outperforms 86.49% of its industry peers.
SLP's Operating Margin has declined in the last couple of years.
The Gross Margin of SLP (58.47%) 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 | 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.
Compared to 1 year ago, SLP has more shares outstanding
The number of shares outstanding for SLP has been increased compared to 5 years ago.
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 30.38. This indicates that SLP is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 30.38, SLP belongs to the top of the industry, outperforming 97.30% 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 | 30.38 |
ROIC/WACC0.24
WACC9.82%
2.3 Liquidity
A Current Ratio of 4.15 indicates that SLP has no problem at all paying its short term obligations.
SLP has a better Current ratio (4.15) than 86.49% of its industry peers.
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.
The Quick ratio of SLP (4.15) is better 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 small growth in Earnings Per Share. In the last year, the EPS has grown by 7.69%.
Measured over the past 5 years, SLP shows a small growth in Earnings Per Share. The EPS has been growing by 0.41% on average per year.
SLP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.85%.
SLP shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.56% yearly.
EPS 1Y (TTM)7.69%
EPS 3Y2.13%
EPS 5Y0.41%
EPS Q2Q%70%
Revenue 1Y (TTM)19.85%
Revenue growth 3Y14.64%
Revenue growth 5Y15.56%
Sales Q2Q%30.48%
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 17.67% yearly.
EPS Next Y85.92%
EPS Next 2Y49.2%
EPS Next 3Y45.36%
EPS Next 5Y36.75%
Revenue Next Year27.68%
Revenue Next 2Y19.85%
Revenue Next 3Y18.98%
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
A Price/Earnings ratio of 53.43 indicates a quite expensive valuation of SLP.
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's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.96.
Based on the Price/Forward Earnings ratio of 27.43, the valuation of SLP can be described as expensive.
Based on the Price/Forward Earnings ratio, SLP is valued cheaply inside the industry as 81.08% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of SLP to the average of the S&P500 Index (24.11), we can say SLP is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.43 | ||
| Fwd PE | 27.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SLP is valued a bit cheaper than the industry average as 62.16% of the companies are valued more expensively.
SLP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 77.36 | ||
| EV/EBITDA | 47.05 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SLP has a very decent profitability rating, which may justify a higher PE ratio.
SLP's earnings are expected to grow with 45.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.62
PEG (5Y)129.29
EPS Next 2Y49.2%
EPS Next 3Y45.36%
5. Dividend
5.1 Amount
SLP has a yearly dividend return of 0.60%, which is pretty low.
Compared to an average industry Dividend Yield of 36.82, SLP pays a better dividend. On top of this SLP pays more dividend than 89.19% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, SLP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
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.
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 43.82% of its income as dividend. This is a bit on the high side, but may be sustainable.
SLP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP43.82%
EPS Next 2Y49.2%
EPS Next 3Y45.36%
SIMULATIONS PLUS INC
NASDAQ:SLP (1/17/2025, 8:27:33 PM)
After market: 29.92 0 (0%)29.92
+0.08 (+0.27%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)
Earnings (Next)
Inst Owners75.18%
Inst Owner Change0%
Ins Owners18.27%
Ins Owner Change-2.98%
Market Cap601.09M
Analysts85.45
Price Target51 (70.45%)
Short Float %6.67%
Short Ratio4.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
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)1
Avg EPS beat(2)25.16%
Min EPS beat(2)-9.99%
Max EPS beat(2)60.3%
EPS beat(4)2
Avg EPS beat(4)13.39%
Min EPS beat(4)-9.99%
Max EPS beat(4)60.3%
EPS beat(8)3
Avg EPS beat(8)-3.66%
EPS beat(12)5
Avg EPS beat(12)-3.43%
EPS beat(16)8
Avg EPS beat(16)-2.6%
Revenue beat(2)0
Avg Revenue beat(2)-3.3%
Min Revenue beat(2)-6.39%
Max Revenue beat(2)-0.22%
Revenue beat(4)2
Avg Revenue beat(4)0.17%
Min Revenue beat(4)-6.39%
Max Revenue beat(4)4.87%
Revenue beat(8)3
Avg Revenue beat(8)-1.14%
Revenue beat(12)6
Avg Revenue beat(12)-0.22%
Revenue beat(16)9
Avg Revenue beat(16)0.82%
PT rev (1m)-5.21%
PT rev (3m)-12.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.54%
EPS NY rev (1m)0%
EPS NY rev (3m)42.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)15.98%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.43 | ||
| Fwd PE | 27.43 | ||
| P/S | 8.08 | ||
| P/FCF | 77.36 | ||
| P/OCF | 50.58 | ||
| P/B | 3.25 | ||
| P/tB | 19.5 | ||
| EV/EBITDA | 47.05 |
EPS(TTM)0.56
EY1.87%
EPS(NY)1.09
Fwd EY3.65%
FCF(TTM)0.39
FCFY1.29%
OCF(TTM)0.59
OCFY1.98%
SpS3.71
BVpS9.19
TBVpS1.53
PEG (NY)0.62
PEG (5Y)129.29
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 | 30.38 |
F-Score5
WACC9.82%
ROIC/WACC0.24
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)7.69%
EPS 3Y2.13%
EPS 5Y0.41%
EPS Q2Q%70%
EPS Next Y85.92%
EPS Next 2Y49.2%
EPS Next 3Y45.36%
EPS Next 5Y36.75%
Revenue 1Y (TTM)19.85%
Revenue growth 3Y14.64%
Revenue growth 5Y15.56%
Sales Q2Q%30.48%
Revenue Next Year27.68%
Revenue Next 2Y19.85%
Revenue Next 3Y18.98%
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%