Simulations Plus Operating Margin vs. Price To Earning

SLP Stock  USD 30.63  0.82  2.61%   
Based on Simulations Plus' profitability indicators, Simulations Plus' profitability may be sliding down. It has an above-average odds of reporting lower numbers next quarter. Profitability indicators assess Simulations Plus' ability to earn profits and add value for shareholders.

Simulations Plus Operating Profit Margin

0.11

At this time, Simulations Plus' Days Sales Outstanding is relatively stable compared to the past year. As of 12/11/2024, Sales General And Administrative To Revenue is likely to grow to 0.37, while Operating Cash Flow Sales Ratio is likely to drop 0.15. At this time, Simulations Plus' Net Interest Income is relatively stable compared to the past year. As of 12/11/2024, 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 Margin0.570.6163
Significantly Down
Slightly volatile
Net Profit Margin0.0960.1422
Way Down
Slightly volatile
Operating Profit Margin0.110.0876
Significantly Up
Slightly volatile
Pretax Profit Margin0.130.1773
Way Down
Slightly volatile
Return On Assets0.04350.0506
Fairly Down
Slightly volatile
Return On Equity0.05730.0546
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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To learn how to invest in Simulations Stock, please use our How to Invest in Simulations Plus guide.
Is Health Care Technology space 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.
Quarterly Earnings Growth
0.48
Dividend Share
0.24
Earnings Share
0.49
Revenue Per Share
3.503
Quarterly Revenue Growth
0.194
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 Price To Earning vs. Operating Margin 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 fifth in operating margin category among its peers. It also is rated fifth in price to earning category among its peers reporting about  968.69  of Price To Earning per Operating Margin. At this time, Simulations Plus' Operating Profit Margin is relatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Simulations Plus by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Simulations Price To Earning vs. Operating Margin

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Simulations Plus

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.08 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

Simulations Plus

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
75.17 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.

Simulations Price To Earning Comparison

Simulations Plus is currently under evaluation in price to earning category among its peers.

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-251 K-263.6 K
Operating Income6.1 M4.2 M
Income Before Tax12.4 M13 M
Total Other Income Expense Net6.3 M6.6 M
Net Income10 M10.5 M
Income Tax Expense2.5 M2.6 M
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 0.50  0.52 
Income Quality 1.34  1.41 
Net Income Per E B T 0.80  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.

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

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Target Risk ETFs Theme
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Additional Tools for Simulations Stock Analysis

When running Simulations Plus' price analysis, check to measure Simulations Plus' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Simulations Plus is operating at the current time. Most of Simulations Plus' value examination focuses on studying past and present price action to predict the probability of Simulations Plus' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Simulations Plus' price. Additionally, you may evaluate how the addition of Simulations Plus to your portfolios can decrease your overall portfolio volatility.