Simulations Plus, Inc.Find Ratings Reports
SIMULATIONS PLUS INC's gross profit margin for the second quarter of its fiscal year 2021 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its subsector. SIMULATIONS PLUS INC is extremely liquid. Currently, the Quick Ratio is 20.32 which clearly shows the ability to cover any short-term cash needs. SLP managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.
At the same time, stockholders' equity ("net worth") has greatly increased by 295.22% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
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|Income Statement||Q2 FY21||Q2 FY20|
|Net Sales ($mil)||13.15||10.35|
|Net Income ($mil)||3.21||2.15|
|Balance Sheet||Q2 FY21||Q2 FY20|
|Cash & Equiv. ($mil)||117.75||12.25|
|Total Assets ($mil)||175.77||49.2|
|Total Debt ($mil)||1.53||0.64|
|Profitability||Q2 FY21||Q2 FY20|
|Gross Profit Margin||77.86||80.75|
|Return on Assets||6.15||18.6|
|Return on Equity||6.7||22.41|
|Debt||Q2 FY21||Q2 FY20|
|Share Data||Q2 FY21||Q2 FY20|
|Shares outstanding (mil)||20.06||17.65|
|Div / share||0.06||0.06|
|Book value / share||8.05||2.32|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||203924.0||206433.0|
BUY. SIMULATIONS PLUS INC's P/E ratio indicates a significant premium compared to an average of 73.42 for the Publishing Industries (except Internet) subsector and a significant premium compared to the S&P 500 average of 43.85. For additional comparison, its price-to-book ratio of 7.89 indicates a significant premium versus the S&P 500 average of 4.34 and a discount versus the subsector average of 8.84. The price-to-sales ratio is well above both the S&P 500 average and the subsector average, indicating a premium. The valuation analysis reveals that, SIMULATIONS PLUS INC seems to be trading at a premium to investment alternatives.
|SLP 117.65||Peers 94.57||SLP NA||Peers 83.81|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
SLP is trading at a premium to its peers.
Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.
Ratio not available.
|SLP 99.27||Peers 62.44||SLP 11.77||Peers 2.26|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
SLP is trading at a significant premium to its peers.
Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
SLP trades at a significant premium to its peers.
|SLP 7.89||Peers 8.84||SLP 5.88||Peers -104.08|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
SLP is trading at a discount to its peers.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
SLP is expected to have an earnings growth rate that significantly exceeds its peers.
|SLP 27.89||Peers 19.99||SLP 21.14||Peers 38.34|
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
SLP is trading at a significant premium to its subsector.
Lower. A sales growth rate that trails the subsector implies that a company is losing market share.
SLP significantly trails its peers on the basis of sales growth.