Simulations Plus, Inc.
Simulations Plus, Inc. Fundamental Analysis
Simulations Plus, Inc. (SLP) shows moderate financial fundamentals with a PE ratio of -3.67, profit margin of -81.66%, and ROE of -45.47%. The company generates $0.1B in annual revenue with strong year-over-year growth of 13.09%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -62.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SLP's fundamental strength across five key dimensions:
Efficiency Score
WeakSLP struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSLP trades at attractive valuation levels.
Growth Score
ModerateSLP shows steady but slowing expansion.
Financial Health Score
ExcellentSLP maintains a strong and stable balance sheet.
Profitability Score
WeakSLP struggles to sustain strong margins.
Key Financial Metrics
Is SLP Expensive or Cheap?
P/E Ratio
SLP trades at -3.67 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SLP's PEG of -5.91 indicates potential undervaluation.
Price to Book
The market values Simulations Plus, Inc. at 1.86 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 18.16 times EBITDA. This signals the market has high growth expectations.
How Well Does SLP Make Money?
Net Profit Margin
For every $100 in sales, Simulations Plus, Inc. keeps $-81.66 as profit after all expenses.
Operating Margin
Core operations generate -89.15 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-45.47 in profit for every $100 of shareholder equity.
ROA
Simulations Plus, Inc. generates $-46.61 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Simulations Plus, Inc. generates strong operating cash flow of $23.64M, reflecting robust business health.
Free Cash Flow
Simulations Plus, Inc. generates strong free cash flow of $23.01M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.14 in free cash annually.
FCF Yield
SLP converts 9.75% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-3.67
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-5.91
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.86
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.001
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.004
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.62
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.45
vs 25 benchmark
ROA
Return on assets percentage
-0.47
vs 25 benchmark
ROCE
Return on capital employed
-0.55
vs 25 benchmark
How SLP Stacks Against Its Sector Peers
| Metric | SLP Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -3.67 | 29.43 | Better (Cheaper) |
| ROE | -45.47% | 800.00% | Weak |
| Net Margin | -81.66% | -20145.00% (disorted) | Weak |
| Debt/Equity | 0.00 | 0.30 | Strong (Low Leverage) |
| Current Ratio | 5.62 | 4.64 | Strong Liquidity |
| ROA | -46.61% | -17936.00% (disorted) | Weak |
SLP outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Simulations Plus, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
68.77%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
-714.78%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
47.25%
Industry Style: Defensive, Growth, Innovation
High Growth