Simulations Story

<div class='circular--portrait' style='background:#006400;color: #FFE4E1;font-size:4em;'>SP</div>
SLP -- USA Stock  

USD 57.56  1.68  3.01%

It appears that Simulations Plus may not recover as fast as we have hopped for as its price went down 0.18% today. The entity's current daily volatility is 3.28 percent, with a beta of 0.44 and an alpha of 0.11 over DOW. As many millenniums are trying to avoid the recent volatility, we are going to recap Simulations Plus a little further to understand its historical price patterns. What exactly are Simulations Plus shareholders getting in December?
Published over two weeks ago
View all stories for Simulations Plus | View All Stories
Will Simulations Plus (NASDAQ:SLP) recent volatility roll up scare insiders?
Simulations Plus has roughly 7.35 M in cash with 9.17 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.41. The company has 1.01 M in debt with debt to equity (D/E) ratio of 0.02, which may show that Simulations Plus is not taking advantage of profits from borrowing. Simulations Plus has a current ratio of 2.79, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due.
Investing in Simulations Plus, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Simulations Plus along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.

How important is Simulations Plus's Liquidity

Simulations Plus financial leverage refers to using borrowed capital as a funding source to finance Simulations Plus ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Simulations Plus financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Simulations Plus's total debt and its cash.

How Simulations utilizes its cash?

To perform a cash flow analysis of Simulations Plus, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Simulations Plus is receiving and how much cash it distributes out in a given period. The Simulations Plus cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Simulations Plus Net Cash Flow from Operations is very stable at the moment as compared to the past year. Simulations Plus reported last year Net Cash Flow from Operations of 10.91 Million

Simulations Plus Correlation with Peers

Investors in Simulations can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Simulations Plus. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Simulations Plus and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Simulations is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of Simulations for more details

An Additional Perspective On Simulations Plus

Simulations Plus appears to be very steady, given 1 month investment horizon. Simulations Plus owns Efficiency Ratio (i.e. Sharpe Ratio) of 0.0607, which indicates the firm had 0.0607% of return per unit of risk over the last month. Our standpoint towards measuring the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for Simulations Plus, which you can use to evaluate future volatility of the company. Please operate Simulations Plus Risk Adjusted Performance of 0.0659, coefficient of variation of 2037.16, and Semi Deviation of 3.14 to confirm if our risk estimates are consistent with your expectations.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Simulations Plus is projected to stay under $69 in December

Semi deviation is down to 3.14. It may hint at a possible volatility decline. Simulations Plus shows above-average downside volatility for the selected time horizon. We advise investors to inspect Simulations Plus further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Simulations Plus future alpha.

The Current Takeaway on Simulations Plus Investment

Although many other companies in the health information services industry are either recovering or due for a correction, Simulations Plus may not be performing as strong as the other in terms of long-term growth potentials. To summarize, as of the 16th of November 2020, we believe that Simulations Plus is currently overvalued with close to average odds of financial distress in the next two years. Our primary 30 days advice on the firm is Sell.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Simulations Plus. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com