SLP

Simulations Plus, Inc.

Fundamental data last updated:September 7, 2026

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company profile

SECTOR

Healthcare

industry

Medical - Healthcare Information Services

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

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.

 


VALUATION

P/E

-5.34

Market Cap ($M USD)

$336.22M

Forward P/E

10.67

PEG

0.07

PRICE TO SALES

4.17

PRICE TO BOOK

2.51

EV / EBITDA

18.49

5-Year Average P/E

Free Cash Flow Yield

7.07%

DCF Value

$20.50

Graham Number

N/A

Price to FCF

14.14

EV to FCF

13.08

Earnings Yield

-18.73%

FCF Yield

7.07%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

-$3.12

Next Year EPS Growth Estimate

$1.56

Next Year Revenue Growth Estimate

$117.10M

Return on Equity (ROE)

-49.30%

FREE CASH FLOW

Operating Margin

-83.47%

Debt-to-Equity

0.00

Piotroski F-Score

5

Altman Z-Score

15.86

Return on Invested Capital (ROIC)

-50.11%

Current Ratio

5.47

Quick Ratio

5.47

Net Debt to EBITDA

-1.50

Interest Coverage

0.00

Gross Profit margin

61.97%

FCF PER SHARE

$1.18

REVENUE PER SHARE

$4.00

Gainseekers Quantitative Analysis

Summary

Simulations Plus, Inc. presents a fascinating valuation conundrum. Despite a negative P/E ratio, the stock has traded below its DCF value, suggesting potential undervaluation. The Forward P/E of 10.69 indicates optimism for future earnings growth, while the Altman Z-score of 16.86 underscores its financial stability. However, the negative earnings yield and ROIC highlight operational inefficiencies. The market seems to be pricing in a turnaround, but execution remains critical.

AI Exposure / Tech Reliance

Operating within the Medical - Healthcare Information Services industry, Simulations Plus is well-positioned to leverage AI and tech advancements. Its focus on healthcare simulations aligns with the increasing demand for data-driven solutions. This adaptability could enhance its competitive edge in a rapidly evolving landscape.

The Bull Case

For the discerning GARP investor, Simulations Plus offers compelling strengths. The Piotroski F-Score of 5 indicates moderate financial health, while a robust FCF yield of 7.05% suggests efficient capital allocation. Despite a negative ROIC, the company’s gross profit margin of 61.97% reflects strong pricing power. These metrics paint a picture of a company with potential for growth and capital efficiency.

The Bear Case

Yet, the stock is not without its pitfalls. The negative operating margin of 83.47% and ROE of -49.30% reveal significant profitability challenges. Trading at a Price/Sales ratio of 4.18 and Price/Book of 2.51, the stock appears overvalued relative to its fundamentals. Additionally, being extended 103.90% from its 52-week high suggests technical overextension, posing a risk for new investors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$56.00

Institutional Ownership %

1-Year Beta

1.28

Insider Buying % (6 Mo)

Distance to 52-Week High

94.23%

Distance to 52-Week Low

33.35%

EARNINGS SURPRISE %

29.63%

50-DAY SMA

$13.79

200-DAY SMA

$15.52

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.