Simulations Plus, Inc. (SLP) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Simulations Plus, Inc.

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Avantax, Inc.

Why is Simulations Plus, Inc. ?

Company has a low Debt to Equity ratio (avg) at times

The company has declared Negative results for the last 3 consecutive quarters

PRE-TAX PROFIT(Q) At USD 0.97 MM has Fallen at -48.97%
NET PROFIT(Q) At USD 0.68 MM has Fallen at -77.94%
DEBTORS TURNOVER RATIO(HY) Lowest at 4.28 times

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -54.66%, its profits have risen by 79.6% ; the PEG ratio of the company is 0.3

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -54.66% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Simulations Plus, Inc. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Simulations Plus, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Simulations Plus, Inc.

-54.78%

-1.10

68.47%

S&P 500

13.68%

0.71

19.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.90%

EBIT Growth (5y)

-9.67%

EBIT to Interest (avg)

9.97

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.23

Sales to Capital Employed (avg)

0.45

Tax Ratio

8.95%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

18.53%

ROE (avg)

7.23%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.92

EV to EBIT

29.07

EV to EBITDA

14.44

EV to Capital Employed

2.28

EV to Sales

2.65

PEG Ratio

0.25

Dividend Yield

ROCE (Latest)

7.84%

ROE (Latest)

9.83%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 23.63 MM

NET PROFIT(HY)

At USD -0.01 MM has Grown at 91.72%

RAW MATERIAL COST(Y)

Fallen by -5.59% (YoY

-8What is not working for the Company

PRE-TAX PROFIT(Q)

At USD 0.97 MM has Fallen at -48.97%

NET PROFIT(Q)

At USD 0.68 MM has Fallen at -77.94%

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.28 times

OPERATING PROFIT MARGIN(Q)

Lowest at 11.18 %

Here's what is working for Simulations Plus, Inc.

Operating Cash Flow

Highest at USD 23.63 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Raw Material Cost

Fallen by -5.59% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Simulations Plus, Inc.

Pre-Tax Profit

At USD 0.97 MM has Fallen at -48.97%

over average net sales of the previous four periods of USD 1.9 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 0.68 MM has Fallen at -77.94%

over average net sales of the previous four periods of USD 3.06 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Profit Margin

Lowest at 11.18 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 4.28 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio