📊 SLP Key Takeaways
Is Simulations Plus, Inc. (SLP) a Good Investment?
Simulations Plus maintains a fortress balance sheet with minimal leverage (0.02x D/E), strong liquidity (5.47x current ratio), and solid free cash flow generation (24.8% FCF margin), indicating financial stability. However, the company faces significant operational headwinds, evidenced by a severe 750% year-over-year net income decline despite 13% revenue growth, coupled with concerning capital efficiency metrics (3.9% ROE, 3.6% ROA) that suggest either one-time charges, restructuring costs, or underlying operational deterioration requiring clarification.
Simulations Plus, Inc. Key Strengths (SLP)
- Fortress balance sheet with 0.02x debt-to-equity and $25.7M cash against only $3.3M long-term debt
- Exceptional liquidity position with 5.47x current and quick ratios providing substantial financial flexibility
- Capital-light business model with minimal capex ($46K) and strong free cash flow margin (24.8%)
- Solid revenue growth of 13.1% YoY and healthy gross margins of 63.3% indicating market demand and pricing power
- 288.3x interest coverage ratio eliminates any solvency risk
SLP Stock Risks: Simulations Plus, Inc. Investment Risks
- Severe net income decline of -750% YoY despite revenue growth signals major operational or non-recurring charges requiring investigation
- Diluted EPS collapsed -757% YoY, raising concerns about shareholder value destruction or unsustainable current profitability
- Concerning capital efficiency with only 3.9% ROE and 3.6% ROA despite substantial balance sheet suggests either excess undeployed assets or underlying business challenges
- Low operating margin of 14.9% and net margin of 12.2% relative to gross margin of 63.3% indicates significant operating expense growth or one-time charges eroding profits
- Lack of clarity on cause of earnings collapse creates visibility risk without access to detailed MD&A or 10-K disclosures
Key Metrics to Watch
- Net income trend and identification of one-time charges vs. operational deterioration in next quarterly earnings
- Operating expense ratio and breakdown to determine if margin compression is structural or temporary
- Return on equity trajectory to assess whether capital efficiency improves or deteriorates
- Free cash flow sustainability and cash deployment strategy given accumulating cash balance
- Revenue growth sustainability and gross margin maintenance amid potential market headwinds
Simulations Plus, Inc. (SLP) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 24.8% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 5.47x current ratio provides a solid financial cushion.
SLP Profit Margin, ROE & Profitability Analysis
SLP vs Technology Sector: How Simulations Plus, Inc. Compares
How Simulations Plus, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Simulations Plus, Inc. Stock Overvalued? SLP Valuation Analysis 2026
Based on fundamental analysis, Simulations Plus, Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Simulations Plus, Inc. Balance Sheet: SLP Debt, Cash & Liquidity
SLP Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Simulations Plus, Inc.'s revenue has grown significantly by 13% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.49 reflects profitable operations.
SLP Revenue Growth, EPS Growth & YoY Performance
SLP Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $22.4M | $206.0K | $0.15 |
| Q1 2026 | $18.4M | $206.0K | $0.01 |
| Q3 2025 | $18.5M | $206.0K | $0.15 |
| Q2 2025 | $18.3M | $3.1M | $0.15 |
| Q1 2025 | $14.5M | $206.0K | $0.01 |
| Q3 2024 | $16.2M | $3.1M | $0.15 |
| Q3 2020 | $9.9M | $1.5M | $0.16 |
| Q2 2020 | $8.5M | $1.5M | $0.12 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Simulations Plus, Inc. Dividends, Buybacks & Capital Allocation
SLP SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Simulations Plus, Inc. (CIK: 0001023459)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| May 13, 2026 | 4 | xslF345X06/wk-form4_1778702816.xml | View → |
| May 5, 2026 | 4 | xslF345X06/wk-form4_1778011816.xml | View → |
| May 5, 2026 | 4 | xslF345X06/wk-form4_1778011802.xml | View → |
| May 1, 2026 | 4 | xslF345X06/wk-form4_1777666024.xml | View → |
| May 1, 2026 | 4 | xslF345X06/wk-form4_1777665966.xml | View → |
❓ Frequently Asked Questions about SLP
What is the AI rating for SLP?
Simulations Plus, Inc. (SLP) has an AI grade of B with 55% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SLP's key strengths?
Claude: Fortress balance sheet with 0.02x debt-to-equity and $25.7M cash against only $3.3M long-term debt. Exceptional liquidity position with 5.47x current and quick ratios providing substantial financial flexibility.
What are the risks of investing in SLP?
Claude: Severe net income decline of -750% YoY despite revenue growth signals major operational or non-recurring charges requiring investigation. Diluted EPS collapsed -757% YoY, raising concerns about shareholder value destruction or unsustainable current profitability.
What is SLP's revenue and growth?
Simulations Plus, Inc. reported revenue of $42.7M.
Does SLP pay dividends?
Simulations Plus, Inc. does not currently pay dividends.
Where can I find SLP SEC filings?
Official SEC filings for Simulations Plus, Inc. (CIK: 0001023459) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SLP's EPS?
Simulations Plus, Inc. has a diluted EPS of $0.26.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is SLP's fundamental grade?
Based on our AI fundamental analysis in May 2026, Simulations Plus, Inc. has a B grade with 55% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is SLP stock overvalued or undervalued?
Valuation metrics for SLP: ROE of 3.9% (sector avg: 22%), net margin of 12.2% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is SLP's AI grade for 2026?
Our dual AI analysis gives Simulations Plus, Inc. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is SLP's free cash flow?
Simulations Plus, Inc.'s operating cash flow is $10.6M, with capital expenditures of $46.0K. FCF margin is 24.8%.
How does SLP compare to other Technology stocks?
Vs Technology sector averages: Net margin 12.2% (avg: 18%), ROE 3.9% (avg: 22%), current ratio 5.47 (avg: 2.5).