Simulations Plus, Inc. (SLP) AI Stock Analysis

Simulations Plus, Inc. specializes in the development of advanced software solutions for drug discovery and development, leveraging artificial intelligence and machine learning technologies globally. The company operates through two key segments: Software and Services, offering products tailored for modeling, simulation, and prediction of molecular properties. Key products include GastroPlus, DDDPlus, MembranePlus, and mechanistic models such as DILIsym, NAFLDsym, IPFsym, RENAsym, and MITOsym. It also offers ADMET Predictor, MedChem Designer, MonolixSuite, and PKPlus. Its Services segment provides clinical-pharmacology consulting, including pharmacokinetic and pharmacodynamic modeling, exposure-response analyses, clinical trial simulations, data programming, and regulatory technical writing.

Simulations Plus grew its revenue from $46.5M in FY2021 to $79.2M in FY2025, reflecting a 5-year revenue CAGR of 13.7%. Gross margin decreased from 77.2% in FY2021 to 58.4% in FY2025. Operating margin dropped sharply from 24.2% in FY2021 to -89.3% in FY2025, when the company posted a net income of -$64.7M. Over the trailing twelve months, revenue reached $82.1M with an operating margin of 22.8% and a profit margin of 9.9%. In the latest quarter ended May 31, 2026, quarterly revenue grew 7.5% year-over-year while quarterly earnings expanded 46.7%.

As of May 31, 2026, Simulations Plus held $50.0M in cash and short-term investments against $487,000 in total debt, resulting in net cash of $49.5M. The debt-to-equity ratio stood at 0.00 and the current ratio was 5.54. Shareholders' equity was $139.0M out of $153.0M in total assets. In FY2025, operating cash flow was $18.1M and free cash flow was $17.4M, with capital expenditures of $713,000. Over five years, the company's share count declined 2.5%.

Simulations Plus closed at $18.50 on October 7, 2026, giving it a market capitalization of $374.2M and an enterprise value of $323.0M. The stock trades at a trailing P/E of 46.2x and a forward P/E of 52.9x, compared to the median of its US-listed Healthcare peers of 24.6x trailing and 17.3x forward. Its price-to-sales multiple is 4.6x versus the peer median of 4.1x, and its EV/EBITDA is 18.9x versus 12.0x. Over the past year, the stock returned 12.1% compared to a 17.4% return for SPY, while its 5-year return of -51.5% lagged SPY's 89.4% gain.

Analysts maintain a mean price target of $18.50, matching the last close of $18.50 with a 0.0% implied change. For the fiscal year ending August 31, 2026, consensus estimates project revenue of $81.8M and an EPS of $0.82, down 20.4%. For the following fiscal year, 2 analysts project revenue to rise 4.8% to $85.8M and EPS to increase 7.9% to $0.89. The company beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is October 29, 2026.

This page is an AI-written research summary of Simulations Plus, Inc. (SLP). The text was generated on October 30, 2026 from Quotelinks data as of October 7, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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