(SLP) Simulations Plus - Overview
Sector: Healthcare | Industry: Health Information Services | Exchange: NASDAQ (USA) | Market Cap: 314m USD | Total Return: -35.1% in 12m
Avg Turnover: 3.90M
EPS Trend: 80.0%
Qual. Beats: 0
Rev. Trend: 96.1%
Qual. Beats: 1
Warnings
Interest Coverage Ratio -0.9 is critical
Altman Z'' -3.20 < 1.0 - financial distress zone
Choppy
Tailwinds
Idiosyncratic Leader
Simulations Plus (SLP) develops modeling and simulation software utilizing artificial intelligence and machine learning to support drug discovery and development. The company operates through two primary segments, Software and Services, providing tools such as GastroPlus and the ADMET Predictor to forecast molecular properties and pharmacokinetic outcomes. Its client base spans the pharmaceutical, biotechnology, agrochemical, and food industries, as well as regulatory agencies.
The business model relies on high-margin software licensing and specialized consulting services that assist clients with regulatory submissions. In the Health Care Technology sector, these predictive modeling tools are increasingly critical as they reduce the time and capital expenditure required for clinical trials by identifying potential drug failures early in the development cycle. Investors can evaluate these market dynamics and valuation metrics further on ValueRay.
- FDA adoption of modeling software accelerates pharmaceutical industry software licensing revenue
- Strategic acquisitions expand total addressable market within drug discovery and development
- High-margin software renewals provide recurring revenue stability and cash flow growth
- Expansion of consulting services drives cross-selling opportunities for proprietary software suites
- Research and development spending by biotechnology firms dictates long-term contract volume
| Net Income: -62.8m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.16 > 0.02 and ΔFCF/TA 10.95 > 1.0 |
| NWC/Revenue: 68.56% < 20% (prev 45.85%; Δ 22.71% < -1%) |
| CFO/TA 0.17 > 3% & CFO 24.4m > Net Income -62.8m |
| Net Debt/EBITDA: error (EBITDA <= 0) |
| Current Ratio: 5.47 > 1.5 & < 3 |
| Outstanding Shares: last quarter (20.2m) vs 12m ago -0.22% < -2% |
| Gross Margin: 61.97% > 18% (prev 0.55%; Δ 6.14k% > 0.5%) |
| Asset Turnover: 46.30% > 50% (prev 39.00%; Δ 7.29% > 0%) |
| Interest Coverage Ratio: -0.89 > 6 (EBITDA TTM -60.7m / Interest Expense TTM 75.9m) |
| A: 0.38 (Total Current Assets 67.6m - Total Current Liabilities 12.3m) / Total Assets 146.5m |
| B: -0.20 (Retained Earnings -29.2m / Total Assets 146.5m) |
| C: -0.39 (EBIT TTM -67.2m / Avg Total Assets 174.0m) |
| D: -2.31 (Book Value of Equity -29.4m / Total Liabilities 12.7m) |
| Altman-Z'' = -3.20 = D |
| DSRI: 1.07 (Receivables 18.2m/16.5m, Revenue 80.5m/78.6m) |
| GMI: 0.89 (GM 61.97% / 55.28%) |
| AQI: 0.70 (AQ_t 0.53 / AQ_t-1 0.76) |
| SGI: 1.03 (Revenue 80.5m / 78.6m) |
| TATA: -0.60 (NI -62.8m - CFO 24.4m) / TA 146.5m) |
| Beneish M = -3.84 (Cap -4..+1) = AAA |
As of June 01, 2026, the stock is trading at USD 17.11 with a total of 260,681 shares traded.
Over the past week, the price has changed by +13.24%,
over one month by +20.75%,
over three months by +41.06% and
over the past year by -35.12%.
Simulations Plus has received a consensus analysts rating of 4.67. Therefore, it is recommended to buy SLP.
- StrongBuy: 5
- Buy: 0
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 23.7 | 38.3% |
P/E Forward = 21.645
P/S = 3.9014
P/B = 2.3518
P/EG = 9.8847
Revenue TTM = 80.5m USD
EBIT TTM = -67.2m USD
EBITDA TTM = -60.7m USD
Long Term Debt = 370k USD (estimated: total debt 508k - short term 138k)
Short Term Debt = 138k USD (from shortTermDebt, last quarter)
Debt = 508k USD (from shortLongTermDebtTotal, last quarter) (leases 508k already included)
Net Debt = -41.3m USD (calculated: Debt 508k - CCE 41.8m)
Enterprise Value = 272.9m USD (314.2m + Debt 508k - CCE 41.8m)
Interest Coverage Ratio = -0.89 (Ebit TTM -67.2m / Interest Expense TTM 75.9m)
EV/FCF = 11.74x (Enterprise Value 272.9m / FCF TTM 23.2m)
FCF Yield = 8.52% (FCF TTM 23.2m / Enterprise Value 272.9m)
FCF Margin = 28.86% (FCF TTM 23.2m / Revenue TTM 80.5m)
Net Margin = -77.96% (Net Income TTM -62.8m / Revenue TTM 80.5m)
Gross Margin = 61.97% ((Revenue TTM 80.5m - Cost of Revenue TTM 30.6m) / Revenue TTM)
Gross Margin QoQ = 66.46% (prev 59.12%)
Tobins Q-Ratio = 1.86 (Enterprise Value 272.9m / Total Assets 146.5m)
Interest Expense / Debt = 14.9k% (Interest Expense 75.9m / Debt 508k)
Taxrate = 22.95% (1.35m / 5.89m)
NOPAT = -51.8m (EBIT -67.2m * (1 - 22.95%)) [loss with tax shield]
Current Ratio = 5.47 (Total Current Assets 67.6m / Total Current Liabilities 12.3m)
Debt / Equity = 0.00 (Debt 508k / totalStockholderEquity, last quarter 133.8m)
Debt / EBITDA = 0.68 (negative EBITDA) (Net Debt -41.3m / EBITDA -60.7m)
Debt / FCF = -1.78 (Net Debt -41.3m / FCF TTM 23.2m)
Total Stockholder Equity = 127.4m (last 4 quarters mean from totalStockholderEquity)
RoA = -36.09% (Net Income -62.8m / Total Assets 146.5m)
RoE = -40.11% (Net Income TTM -62.8m / Total Stockholder Equity 156.5m)
RoCE = -42.85% (EBIT -67.2m / Capital Employed (Equity 156.5m + L.T.Debt 370k))
RoIC = -38.57% (negative operating profit) (NOPAT -51.8m / Invested Capital 134.3m)
WACC = 9.96% (E(314.2m)/V(314.7m) * Re(9.98%) + (debt cost/tax rate unavailable))
Discount Rate = 9.98% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -28.89 | Cagr: -0.10%
[DCF] Terminal Value 72.93% ; FCFF base≈17.9m ; Y1≈20.5m ; Y5≈30.2m
[DCF] Fair Price = 19.56 (EV 353.9m - Net Debt -41.3m = Equity 395.2m / Shares 20.2m; r=9.96% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 80.02 | EPS CAGR: 30.03% | SUE: 0.50 | # QB: 0
Revenue Correlation: 96.06 | Revenue CAGR: 14.83% | SUE: 4.00 | # QB: 1
EPS current Year (2026-08-31): EPS=0.86 | Chg30d=-15.76% | Revisions=-40% | GrowthEPS=-16.3% | GrowthRev=+3.1%
EPS next Year (2027-08-31): EPS=0.92 | Chg30d=-13.46% | Revisions=-40% | GrowthEPS=+7.0% | GrowthRev=+6.0%
[Analyst] Revisions Ratio: -40%