Simulations Plus, Inc.
$16.17
-3.6%Simulations Plus, Inc. develops drug discovery and development software for modeling and simulation, and prediction of molecular properties utilizing artificial intelligence and machine learning based technology worldwide. It operates through four segments: Simulations Plus, Cognigen, DILIsym, and Lixoft. The company offers GastroPlus, which simulates the absorption and drug interaction of compounds administered to humans and animals; and DDDPlus and MembranePlus simulation products. It also provides products based on mechanistic and mathematical models, such as DILIsym, a quantitative systems pharmacology software; NAFLDsym; IPFsym; RENAsym; and MITOsym. In addition, the company provides Absorption, Distribution, Metabolism, Excretion, and Toxicity Predictor for chemistry-based computer program that takes molecular structures as inputs and predicts their properties; and MedChem Designer, as well as modeling and simulation products comprising MonolixSuite and PKPlus. Further, it provides population modeling and simulation contract research services; training and consulting services designed to accelerate pharmacometrics studies; and clinical-pharmacology-based consulting services in support of regulatory submissions. The company serves pharmaceutical, biotechnology, agrochemical, cosmetics, and food companies, as well as academic and regulatory agencies. Simulations Plus, Inc. was incorporated in 1996 and is headquartered in Lancaster, California.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
Medium confidenceValuation multiple is compressed (P/E -5.0).
Valuation inputs: P/E -5.0, earnings yield N/A, momentum -3.6%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE -51.9%, ROIC -52.6%).
Profitability stack: net margin -81.7%, ROE -51.9%, ROIC -52.6%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +5.4%, momentum -3.6%, net margin -81.7%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Simulations Plus, Inc. Market vs Earnings Trajectory
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Simulations Plus, Inc. Fair Value Envelope
Simulations Plus, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Operating losses indicate the core business is unprofitable. Requires restructuring or revenue growth.
Net Profit Margin
Net losses indicate the company is burning cash. Sustainability depends on path to profitability.
Profitability Insight
Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.
Simulations Plus, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Negative free cash flow despite positive earnings raises concerns about cash generation ability or heavy capital requirements.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.
Working Capital Impact
Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.
Simulations Plus, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.
Debt-to-Equity Ratio
Conservative capital structure. The company relies primarily on equity financing, indicating low financial risk.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Balanced asset mix between current and non-current assets, typical of many stable businesses.
Financial Health Insight
Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.
Simulations Plus, Inc. Street Expectations Map
Wall Street analysts project that SLP stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 56.00, with estimates ranging from a low of 47.00 to a high of 65.00.
The consensus 1-year price target stands at 56.00, with estimates ranging from a low of 47.00 to a high of 65.00.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
Good consensus alignment. Moderate target spread reflects general agreement on value drivers with some variance in assumptions.
Analyst Conviction
Positive outlook with reasonable agreement. Analysts generally optimistic about prospects with manageable uncertainty.
Market Sentiment Insight
Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.
Simulations Plus, Inc. Insider Positioning
During the last 12 months, insiders have purchased $2.20M and sold $1.11M worth of SLP shares, resulting in $1.10M of net buying activity.
3 Months
0
0.00
33.0K
533.28K
-533K
-$533K
3-6 Months
0
0.00
0
0.00
+0
+$0
6-9 Months
137.5K
2.20M
20.9K
322.44K
+1.9M
+$1.88M
9-12 Months
0
0.00
14.0K
250.56K
-251K
-$251K
Top Buyers
Oconnor Shawn
Officer: Chief Executive Officer
$801K
Frederick William W
Officer: Evp/Cfo
$521K
Dibella John Anthony Ii
Officer: Chief Revenue Officer
$441K
Fiedler-Kelly Jill
Officer: President, Services Solutions
$441K
Top Sellers
Woltosz Walter S
Director, 10 Percent Owner:
$1.02M
Lavange Lisa
Director
$38K
Dibella John Anthony Ii
Officer: Chief Revenue Officer
$28K
Fiedler-Kelly Jill
Officer: President, Services Solutions
$17K
Insider Activity Analysis
Net Insider Sentiment
Moderately bullish with $1.10M net buying. Insiders show cautious optimism through measured share purchases.
Buy/Sell Ratio
Positive buy/sell ratio. Buying exceeds or matches selling, indicating net positive insider sentiment.
Recent Trend (3 Months)
Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.
Insider Participation
4 insider buyers and 4 sellers. Equal participation suggests mixed or neutral insider views.
Insider Activity Insight
Broad-based insider buying: When multiple insiders independently decide to purchase shares, it often reflects genuine confidence rather than coordinated optics. This pattern deserves attention, especially if buying followed a price decline.
slp Dividend History
Learning Layer
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Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.