Simulations Plus Profitability Analysis

SLP Stock  USD 50.04  0.91  1.79%   
Based on Simulations Plus' profitability indicators, Simulations Plus may not be well positioned to generate adequate gross income at this time. It has a very high odds of underperforming in June. Profitability indicators assess Simulations Plus' ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
1996-11-30
Previous Quarter
1.9 M
Current Value
M
Quarterly Volatility
1.2 M
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Simulations Plus' Price To Sales Ratio is relatively stable compared to the past year. As of 05/21/2024, Days Sales Outstanding is likely to grow to 60.30, while EV To Sales is likely to drop 6.58. At this time, Simulations Plus' Net Interest Income is relatively stable compared to the past year. As of 05/21/2024, Change To Netincome is likely to grow to about 5.4 M, while Net Income From Continuing Ops is likely to drop slightly above 8 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.570.72
Significantly Down
Slightly volatile
Net Profit Margin0.0960.15
Way Down
Slightly volatile
Operating Profit Margin0.110.13
Fairly Down
Slightly volatile
Pretax Profit Margin0.130.18
Way Down
Slightly volatile
Return On Assets0.04370.0482
Moderately Down
Slightly volatile
Return On Equity0.05540.0527
Sufficiently Up
Slightly volatile
For Simulations Plus profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Simulations Plus to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Simulations Plus utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Simulations Plus's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Simulations Plus over time as well as its relative position and ranking within its peers.
  

Simulations Plus' Revenue Breakdown by Earning Segment

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Is Simulations Plus' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Simulations Plus. If investors know Simulations will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Simulations Plus listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Dividend Share
0.24
Earnings Share
0.52
Revenue Per Share
3.241
Quarterly Revenue Growth
0.162
Return On Assets
0.0443
The market value of Simulations Plus is measured differently than its book value, which is the value of Simulations that is recorded on the company's balance sheet. Investors also form their own opinion of Simulations Plus' value that differs from its market value or its book value, called intrinsic value, which is Simulations Plus' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Simulations Plus' market value can be influenced by many factors that don't directly affect Simulations Plus' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Simulations Plus' value and its price as these two are different measures arrived at by different means. Investors typically determine if Simulations Plus is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Simulations Plus' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Simulations Plus Return On Asset vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Simulations Plus's current stock value. Our valuation model uses many indicators to compare Simulations Plus value to that of its competitors to determine the firm's financial worth.
Simulations Plus is rated third in return on equity category among related companies. It is rated second in return on asset category among related companies reporting about  0.72  of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Simulations Plus is roughly  1.39 . At this time, Simulations Plus' Return On Equity is relatively stable compared to the past year.Comparative valuation analysis is a catch-all model that can be used if you cannot value Simulations Plus by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Simulations Plus' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Simulations Plus' earnings, one of the primary drivers of an investment's value.

Simulations Plus' Earnings Breakdown by Geography

Simulations Return On Asset vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Simulations Plus

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0616
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Simulations Plus

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0443
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Simulations Return On Asset Comparison

Simulations Plus is currently under evaluation in return on asset category among related companies.

Simulations Plus Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Simulations Plus, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Simulations Plus will eventually generate negative long term returns. The profitability progress is the general direction of Simulations Plus' change in net profit over the period of time. It can combine multiple indicators of Simulations Plus, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-162.2 K-170.3 K
Operating Income10 M10.5 M
Income Before Tax13.4 M14.1 M
Total Other Income Expense Net3.4 M3.6 M
Net Income11.5 M12 M
Income Tax ExpenseMM
Net Income Applicable To Common Shares14.4 M15.1 M
Net Income From Continuing Ops11.5 MM
Interest Income4.8 MM
Non Operating Income Net Other234.6 K246.3 K
Net Interest Income4.8 MM
Change To Netincome5.1 M5.4 M
Net Income Per Share 0.45  0.47 
Income Quality 1.97  2.07 
Net Income Per E B T 0.98  0.95 

Simulations Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Simulations Plus. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Simulations Plus position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Simulations Plus' important profitability drivers and their relationship over time.

Simulations Plus Profitability Trends

Simulations Plus profitability trend refers to the progression of profit or loss within a business. An upward trend means that Simulations Plus' profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Simulations Plus' gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Simulations Plus Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Simulations Plus different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Simulations Plus in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Simulations Plus' future profitability.

Use Simulations Plus in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Simulations Plus position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Simulations Plus will appreciate offsetting losses from the drop in the long position's value.

Simulations Plus Pair Trading

Simulations Plus Pair Trading Analysis

The ability to find closely correlated positions to Simulations Plus could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Simulations Plus when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Simulations Plus - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Simulations Plus to buy it.
The correlation of Simulations Plus is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Simulations Plus moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Simulations Plus moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Simulations Plus can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Simulations Plus position

In addition to having Simulations Plus in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Alternative Energy Thematic Idea Now

Alternative Energy
Alternative Energy Theme
Large and mid-size companies, ETFs and funds that are either investing or directly involved in providing energy derived from sources not connected to fossil fuels, do not consume natural resources, and do not harm the environment. This includes wind power, nuclear and solar energy, biofuel, ethanol, hydrogen and others alternative sources of energy. The Alternative Energy theme has 42 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Alternative Energy Theme or any other thematic opportunities.
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When determining whether Simulations Plus is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Simulations Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Simulations Plus Stock. Highlighted below are key reports to facilitate an investment decision about Simulations Plus Stock:
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To learn how to invest in Simulations Stock, please use our How to Invest in Simulations Plus guide.
You can also try the Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.

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To fully project Simulations Plus' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Simulations Plus at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Simulations Plus' income statement, its balance sheet, and the statement of cash flows.
Potential Simulations Plus investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Simulations Plus investors may work on each financial statement separately, they are all related. The changes in Simulations Plus's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Simulations Plus's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.