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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Magnite, Inc.

Phreesia, Inc.

Amplitude, Inc.

Simulations Plus, Inc.

Open Lending Corp.

Everbridge, Inc.

ECARX Holdings, Inc.

SEMrush Holdings, Inc.

Definitive Healthcare Corp.

NeoGames SA

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

OPERATING CASH FLOW(Y) Lowest at USD 14.2 MM
ROCE(HY) Lowest at -41.49%
DIVIDEND PAYOUT RATIO(Y) Lowest at 0%

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 -47.68%, its profits have fallen by -55.9%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -47.68% 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.

-34.6%

-0.96

66.07%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.94%

EBIT Growth (5y)

-14.85%

EBIT to Interest (avg)

9.97

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.23

Sales to Capital Employed (avg)

0.39

Tax Ratio

8.95%

Dividend Payout Ratio

48.95%

Pledged Shares

Institutional Holding

96.85%

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

107

Industry P/E

Price to Book Value

2.92

EV to EBIT

134.36

EV to EBITDA

44.51

EV to Capital Employed

3.16

EV to Sales

6.78

PEG Ratio

Dividend Yield

0.22%

ROCE (Latest)

2.35%

ROE (Latest)

2.74%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

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

16What is working for the Company

PRE-TAX PROFIT(Q)

At USD 3.18 MM has Grown at 101.01%

DEBTORS TURNOVER RATIO(HY)

Highest at 4.9 times

OPERATING PROFIT(Q)

Highest at USD 5.29 MM

OPERATING PROFIT MARGIN(Q)

Highest at 26 %

NET PROFIT(Q)

Highest at USD 9.9 MM

-9What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 14.2 MM

ROCE(HY)

Lowest at -41.49%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

RAW MATERIAL COST(Y)

Grown by 10.63% (YoY

DIVIDEND PER SHARE(HY)

Lowest at USD 4.9

EPS(Q)

Lowest at USD -3.35

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

Net Profit

At USD 9.9 MM has Grown at 662.67%

over average net sales of the previous four periods of USD 1.3 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Pre-Tax Profit

At USD 3.18 MM has Grown at 101.01%

over average net sales of the previous four periods of USD 1.58 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Operating Profit

Highest at USD 5.29 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 26 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Net Profit

Highest at USD 9.9 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Debtors Turnover Ratio

Highest at 4.9 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

Highest at USD 2.3 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

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

Operating Cash Flow

Lowest at USD 14.2 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

EPS

Lowest at USD -3.35

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Dividend per share

Lowest at USD 4.9

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (USD)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Grown by 10.63% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales