Simulations Plus Inc. Common Stock (SLP)

FairStock Score: 60/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a durable business bought at a sensible price. Simulations Plus sells specialized modeling and simulation software to drug developers, a niche where switching costs can exist, but the record is uneven. In fiscal 2023, the year ended 2023-08-31, revenue was $59.6M and net income was $10.0M, or $0.49 per diluted share. In fiscal 2024, the year ended 2024-08-31, revenue was $70.0M and net income was again $10.0M, or $0.49 per diluted share. Then in fiscal 2025, the year ended 2025-08-31, revenue rose to $79.2M, but net income was -$64.7M, or -$3.22 per diluted share. FairStock classifies this as a TURNAROUND — Loss in the latest year after earlier profits. Recent quarters show recovery: in fiscal Q1 2026, the quarter ended 2025-11-30, net income was $676,000, or $0.03; in fiscal Q2 2026, the quarter ended 2026-02-28, net income was $4.5M, or $0.22; and in fiscal Q3 2026, the quarter ended 2026-05-31, net income was $3.6M, or $0.18. The balance sheet is debt-free with D/E 0.00 and Altman Z-Score 16.59. But returns are modest: ROE 6.17% and ROCE 5.48%. At the close on 2026-10-07, the price was $18.50. FairStock calculates P/E 46.25, P/B 2.69, EV/EBITDA 19.82, FCF yield 5.8%, Graham Number $7.87, and margin of safety -135.07%. The trailing FCF is $21.7M. I see a real business with a possible turnaround, but the price already assumes the recovery lasts. Graham would demand more margin of safety.

In plain English: Simulations Plus sells specialized software and services that help drug researchers use computer models to study medicines. The business has been uneven: it earned profits in fiscal 2024, lost money in fiscal 2025, and has been profitable again in recent quarters. At $18.50, the stock looks expensive compared with the company's current earnings and net assets, so it depends on a strong rebound continuing.

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Data as of 2026-10-07 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-05-31) · fiscal Q2 2026 10-Q (period ended 2026-02-28) · fiscal Q1 2026 10-Q (period ended 2025-11-30) · fiscal Q3 2025 10-Q (period ended 2025-05-31) · FY2025 10-K (period ended 2025-08-31) · FY2024 10-K (period ended 2024-08-31) · FY2023 10-K (period ended 2023-08-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer