The growth of the EPS is critical in understanding the current valuation of Simulations Plus. It is usually expressed as a percentage and is then referred to as the EPS growth rate, which at this time is hard to estimate, but revenue growth has been 20.50 % over the last twelve months. Growth in EPS is an important measure of administration performance because it shows how much money Simulations Plus is making for it’s investors or shareholders.



Simulations Plus trades as part of the technology sector and is part of the application software industry. The company CEO is Shawn O¿Connor. Simulations Plus Inc is a developer of drug discovery and development software for mechanistic modelling, simulation and machine learning based technologies. It also explores the application of machine learning technologies in other industries.

Previous Intraday Performance:

The SLP shares had a previous change of -6.87% which opened at 20.07 and closed at 18.98. It moved to an intraday high of 20.48 and a low of 18.41.

SeekingAlpha:  Lockheed Martin: Steady Dividend Increases And Share Buybacks Will Drive Stock Price

Historical Performance:

Over the last five trading days, SLP shares returned -1.91% and in the past 30 trading days it returned 0.05%. Over three months, it changed -3.17%. In one year it has changed 21.74% and within that year its 52-week high was 23.95 and its 52-week low was 14.25. SLP stock is 33.19% above its 52 Week Low.

Our calculations result in a 200 day moving average of 19.19 and a 50 day moving average of 19.62. Right now, SLP stock is trading -1.07% below its 200 day moving average and may be a great opportunity to buy, but should check other technical indicators to confirm a buy signal.

Business Wire:  Simulations Plus to Present at the 21st Annual Needham Growth Conference

Liquidity:

The company has a market cap of $331.4m with 17.5m shares outstanding and a float of 4.5m shares. Trading volume was 167,477 shares and has experienced an average volume of 64,908 shares. Our calculation, using the current average volume and close price, leads me to believe that the liquidity is bad, highly speculative and an investor may want to avoid this stock.

Earnings:

The last annual reported EPS for Simulations Plus was 0.49 which ended on 31st of August 2018, which according to the previous close, that is a PE of 38.73. Based on 1 analyst estimate, the estimated EPS for the next quarter is 0.06. The trailing twelve month EPS is 0.41, which comes to a trailing twelve month PE of 46.29. Historically, the PE high was 72.60 and the PE low was 25.90. If the stock reached its PE low, that would represent a price of 10.62, which is a decrease of -44.05%.

Below was the last reported quarterly earnings per share:
11-30-2018:  0.09
08-31-2018:  0.07
05-31-2018:  0.13
02-28-2018:  0.11



The dividend per share is currently 0.24, which is a dividend yield of 1.26%. Also, the payout ratio is 58.54%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 10.91, which means it might overvalued by -73.93%

Indicators Also to Watch:

Based on the latest filings, there is 74.80% of insider ownership and 52.90% of institutional ownership. Short-interest was 0, which was 0.00% of shares outstanding. The short-interest ratio or days-to-cover ratio was 0.00.

I calculated the beta to be -0.53

SeekingAlpha:  Simulations Plus, Inc. (SLP) CEO Shawn O’Connor on Q1 2019 Results – Earnings Call Transcript

Fundamental Numbers:

Based on last reported financials, the company’s return on equity is 30.96%, return on assets is 21.85%, profit margin is 31.94%, price-to-sales is 15.75 and price-to-book is 11.15.

Company Score Card:

Results are out of six:
 2  : Growth Expectations Result
 6  : Financial Safety Result
 6  : Past Performance Result
 1  : Valuation Result
 1  : Dividend Safety Result
 3  : Overall Result

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Jake McWilliams
I am an independent trader, analyst and algorithmic trading expert, having worked both for the sell side (brokerage) and the buy side (fund administration). I have been trading professionally for about 20 years. I trade stocks and forex and I play both long and short positions in underlying asset or through options. I have experience with discretionary and fully automated systems (Metatrader and Quantshare).

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