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SLP

BEARISH
$14.37 Live
Simulations Plus, Inc. · NASDAQ
Target $23.67 (+64.7%)
$11.09 52W Range $36.45

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AI Analysis

AI-powered fundamental assessment

Confidence
85%
Simulations Plus (SLP) exhibits severe fundamental weakness, highlighted by a Piotroski F-Score of 2/9, indicating a deteriorating financial trend. While the company maintains an exceptionally clean balance sheet with zero debt and high liquidity (Current Ratio 5.47), this is offset by a disastrous profit margin of -77.96% and a long-term price collapse of -76.6% over five years. The valuation is problematic, with a PEG ratio of 9.88 suggesting the stock is significantly overvalued relative to its growth. Despite optimistic analyst price targets, the deterministic data and bearish insider sentiment point to continued instability.

Key Strengths

Zero debt (Debt/Equity: 0.00)
Excellent liquidity (Current Ratio: 5.47)
Strong Gross Margins (61.97%)
Positive Operating Margin (23.18%)
Positive analyst consensus with a target price of $23.67

Key Risks

Very weak Piotroski F-Score (2/9) indicating poor financial health trends
Extreme negative net profit margin (-77.96%)
Highly overvalued relative to growth (PEG Ratio: 9.88)
Severe long-term price depreciation (-76.6% over 5 years)
Bearish insider activity with net selling
AI Fair Value Estimate
Based on comprehensive analysis
$18.2
+26.7% above current price

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