Simulations Story

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SLP -- USA Stock  

USD 78.49  2.37  3.11%

Simulations Plus Market Capitalization is very stable at the moment as compared to the past year. Simulations Plus reported last year Market Capitalization of 102.62 Million. As of 11th of January 2021, Interest Coverage is likely to grow to 199.71, while Accounts Payable Turnover is likely to drop 111.81. The primary rationale for this perspective is to break down Simulations potential for February. We are going to focus on if Simulations Plus is reasonably priced going into February.
Published over two weeks ago
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What can we learn from Simulations Plus (NASDAQ:SLP) recent price fluctuation
Simulations Plus has performance score of 3 on a scale of 0 to 100. The entity has a beta of -0.0302, which indicates not very significant fluctuations relative to the market. Let's try to break down what Simulations's beta means in this case. As returns on the market increase, returns on owning Simulations Plus are expected to decrease at a much lower rate. During the bear market, Simulations Plus is likely to outperform the market. Although it is extremely important to respect Simulations Plus current price movements, it is better to be realistic regarding the information on equity historical returns. The philosophy towards measuring future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By inspecting Simulations Plus technical indicators, you can presently evaluate if the expected return of 0.16% will be sustainable into the future. Simulations Plus right now has a risk of 3.43%. Please validate Simulations Plus standard deviation, maximum drawdown, as well as the relationship between the Maximum Drawdown and expected short fall to decide if Simulations Plus will be following its existing price patterns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Simulations Plus. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Simulations Plus

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Simulations Plus' stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Simulations Plus in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Simulations Plus. Your research has to be compared to or analyzed against Simulations Plus' peers to derive any actionable benefits. When done correctly, Simulations Plus' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Simulations Plus.

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 9.82 Million

An Additional Perspective On Simulations Plus

The modest gains experienced by current holders of Simulations Plus created some momentum for insiders as it was traded today as low as 80.07 and as high as 82.39 per share. The company directors and management have been quite successful in maneuvering the stock at opportune times to take advantage of all market conditions in December. The stock standard deviation of daily returns for 30 days investing horizon is currently 3.43. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from Simulations Plus partners.

Returns Breakdown

13.49
Return on Equity
Return Capital
14.14
Return on Investment
Return on Investment14.14
Return on Assets15.11
Return on Equity13.49
Return Capital1.42
Return on Sales0.26

Can Simulations Plus build up on the recent roll up?

Recent expected short fall indicator falls down to -2.48. Possible price boost? 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 Bottom Line

Although some companies within the health information services industry are still a little expensive, even after the recent corrections, Simulations Plus may offer a potential longer-term growth to insiders. To conclude, as of the 11th of January 2021, our up-to-date 30 days buy-sell recommendation on the firm is Sell. We believe Simulations Plus is currently overvalued with below average chance of distress for the next two years.

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 Achuva Shats do not own shares of Simulations Plus. Please refer to our Terms of Use for any information regarding our disclosure principles.

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