Returns Breakdown
13.49
Return on Equity
Return Capital
14.14
Return on Investment
| Return on Investment | 14.14 | |
| Return on Assets | 15.11 | |
| Return on Equity | 13.49 | |
| Return Capital | 1.42 | |
| Return on Sales | 0.26 |
What can we learn from Simulations Plus (NASDAQ:SLP) recent price fluctuation
 | By Rifka Kats | Macroaxis Story |
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.
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Reviewed by Michael Smolkin
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.
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 toward taking a position in Simulations Plus.
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, anticipate that the market will even out over time. This tendency of Simulations Plus' 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.
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. Financial leverage can amplify the potential profits to Simulations Plus' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Simulations Plus' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Simulations Plus's total debt and its cash.
Simulations Plus Gross Profit
Simulations Plus Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Simulations Plus previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Simulations Plus Gross Profit growth over the last 10 years. Please check Simulations Plus' gross profit and other fundamental indicators for more details.
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.
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