Recent News
Mid‑June 2026 filings and press coverage show Simulations Plus agreed to an all‑cash acquisition by affiliates of Altaris, LLC at $18.50 per share (deal subject to stockholder and regulatory approvals), while multiple law firms announced shareholder investigations into the sale process and prior guidance/impairment disclosures; earlier spring releases highlighted collaborations with NVIDIA (May 6, 2026) and with Lonza and the U.S. FDA (April 21, 2026).
Technical Analysis
ADX & Directional Indicators: ADX at 40.46 indicates a very strong underlying trend; DI+ at 31.24 with a decreasing trend signals waning upside momentum, while DI‑ at 12.35 with a decreasing trend signals retreating downside pressure — together these readings point to a strong trend that now favors consolidation around the current valuation band rather than an immediate breakout.
MACD: MACD reads 0.48 with a decreasing trend and sits below the signal line (0.59); that configuration indicates bearish momentum has re‑emerged and reduces the probability of an immediate bullish acceleration absent a MACD reversal above the signal line.
MRO (Momentum/Regression Oscillator): MRO registers at -0.12 with a peak & reversal pattern, which places the price slightly below the WMDST target and implies modest upward pressure to re‑align with valuation rather than strong downside risk.
RSI & Price Structure: RSI at 63.65 with an increasing trend signals bullish momentum without overbought extremes. Price $18.23 sits near the 12‑day EMA ($18.20, increasing) and the 20‑day average ($18.29), above the 50‑day ($16.69) and 200‑day ($16.03) averages; Bollinger bands remain narrow (upper ~ $18.36 / lower ~ $18.22), suggesting low volatility and a technical environment favoring rangebound trading until one of the directional momentum indicators confirms continuation.
Support/Resistance Context: SuperTrend lower support at $17.54 and the 12/20‑day EMA cluster provide immediate support; the proximity to the analyst price‑target mean ($17.12) and the wide target range ($9.58–$33.50) frame near‑term upside as contingent on re‑acceleration of momentum indicators.
Fundamental Analysis
Profitability & Margins: Operating (EBIT) margin stands at 20.56%, improving YoY by 39.77% but down QoQ by 11.30%, indicating meaningful year‑over‑year operational leverage while recent quarters show margin compression versus the prior quarter.
Earnings: Reported EPS $0.30 versus an estimate of $0.23 produced an EPS surprise of +30.44%, while forward EPS of $0.2206 implies a forward P/E of 65.61; trailing P/E registers at 54.17, reflecting elevated valuation relative to near‑term earnings power.
Revenue & Growth: Total revenue $21,886,000 with YoY revenue growth of 7.35% but a reported QoQ revenue change of -131.07% (seasonal or one‑off effects appear in the sequential figure); the YoY increase shows underlying top‑line expansion despite quarter‑to‑quarter variability.
Cash, Liquidity & Leverage: Cash $35,324,000 and cash & short‑term investments $49,990,000 support a current ratio of 5.54 and a cash ratio of 3.68; total debt $487,000 produces debt‑to‑assets of 0.32% and debt‑to‑equity of 0.35%, indicating a near‑net‑cash balance sheet and strong liquidity coverage of short‑term obligations.
Cash Flow & Capital Efficiency: Free cash flow $7,948,000 (free cash flow yield 2.42%) and operating cash flow $7,342,000 produce a cash‑to‑earnings conversion above 200% (cash flow to earnings 2.05), highlighting robust cash generation versus reported net income. Asset turnover sits at 0.146, and return on equity equals 2.57%, reflecting capital‑light software economics but modest returns on invested capital.
Valuation Notes: WMDST values the stock as EVR 12.75 while enterprise multiple stands at 47.56; high cash balances and near‑zero leverage support that valuation stance, even as elevated P/E and forward P/E reflect compressed near‑term earnings growth expectations (forward EPS $0.2206) and the market’s premium for recurring, AI‑enabled software revenue.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-05-31 |
| REPORT DATE: | 2026-07-09 |
| NEXT REPORT DATE: | 2026-10-08 |
| CASH FLOW | Begin Period Cash Flow | $ 25.7 M |
| Operating Cash Flow | $ 7.3 M | |
| Capital Expenditures | $ -761.00 K | |
| Change In Working Capital | $ 1.6 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 9.6 M | |
| End Period Cash Flow | $ 35.3 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 21.9 M | |
| Forward Revenue | $ 6.8 M | |
| COSTS | ||
| Cost Of Revenue | $ 6.8 M | |
| Depreciation | $ 1.4 M | |
| Depreciation and Amortization | $ 1.4 M | |
| Research and Development | $ 3.4 M | |
| Total Operating Expenses | $ 17.4 M | |
| PROFITABILITY | ||
| Gross Profit | $ 15.1 M | |
| EBITDA | $ 5.9 M | |
| EBIT | $ 4.5 M | |
| Operating Income | $ 4.5 M | |
| Interest Income | $ 344.0 K | |
| Interest Expense | — | |
| Net Interest Income | $ 344.0 K | |
| Income Before Tax | $ 4.8 M | |
| Tax Provision | $ 1.2 M | |
| Tax Rate | 25.614 % | |
| Net Income | $ 3.6 M | |
| Net Income From Continuing Operations | $ 3.6 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.23 | |
| EPS Actual | $ 0.30 | |
| EPS Difference | $ 0.07 | |
| EPS Surprise | 30.435 % | |
| Forward EPS | $ 0.22 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 153.0 M | |
| Intangible Assets | $ 71.4 M | |
| Net Tangible Assets | $ 67.6 M | |
| Total Current Assets | $ 75.1 M | |
| Cash and Short-Term Investments | $ 50.0 M | |
| Cash | $ 35.3 M | |
| Net Receivables | $ 17.2 M | |
| Inventory | — | |
| Long-Term Investments | $ 1.4 M | |
| LIABILITIES | ||
| Accounts Payable | $ 2.2 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 13.6 M | |
| Net Debt | — | |
| Total Debt | $ 487.0 K | |
| Total Liabilities | $ 13.9 M | |
| EQUITY | ||
| Total Equity | $ 139.0 M | |
| Retained Earnings | $ -25.58 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 6.88 | |
| Shares Outstanding | 20.216 M | |
| Revenue Per-Share | $ 1.08 | |
| VALUATION | Market Capitalization | $ 328.5 M |
| Enterprise Value | $ 279.0 M | |
| Enterprise Multiple | 47.561 | |
| Enterprise Multiple QoQ | 44.688 % | |
| Enterprise Multiple YoY | -20.434 % | |
| Enterprise Multiple IPRWA | — | |
| EV/R | 12.75 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.1 | |
| Asset To Liability | 10.973 | |
| Debt To Capital | 0.003 | |
| Debt To Assets | 0.003 | |
| Debt To Assets QoQ | -8.357 % | |
| Debt To Assets YoY | -40.561 % | |
| Debt To Assets IPRWA | — | |
| Debt To Equity | 0.004 | |
| Debt To Equity QoQ | -7.895 % | |
| Debt To Equity YoY | -39.759 % | |
| Debt To Equity IPRWA | — | |
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 2.363 | |
| Price To Book QoQ | 14.016 % | |
| Price To Book YoY | -15.297 % | |
| Price To Book IPRWA | — | |
| Price To Earnings (P/E) | 54.171 | |
| Price To Earnings QoQ | 38.178 % | |
| Price To Earnings YoY | 0.456 % | |
| Price To Earnings IPRWA | — | |
| PE/G Ratio | -3.792 | |
| Price To Sales (P/S) | 15.012 | |
| Price To Sales QoQ | 31.524 % | |
| Price To Sales YoY | -11.478 % | |
| Price To Sales IPRWA | — | |
| FORWARD MULTIPLES | ||
| Forward P/E | 65.611 | |
| Forward PE/G | -4.593 | |
| Forward P/S | 48.129 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 2.029 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.146 | |
| Asset Turnover Ratio QoQ | -14.455 % | |
| Asset Turnover Ratio YoY | 20.513 % | |
| Asset Turnover Ratio IPRWA | — | |
| Receivables Turnover | 1.237 | |
| Receivables Turnover Ratio QoQ | -22.759 % | |
| Receivables Turnover Ratio YoY | -4.975 % | |
| Receivables Turnover Ratio IPRWA | — | |
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 73.739 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 56.733 | |
| Cash Conversion Cycle Days QoQ | 21.064 % | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | — | |
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.356 | |
| CapEx To Revenue | -0.035 | |
| CapEx To Depreciation | -0.556 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 139.0 M | |
| Net Invested Capital | $ 139.0 M | |
| Invested Capital | $ 139.0 M | |
| Net Tangible Assets | $ 67.6 M | |
| Net Working Capital | $ 61.6 M | |
| LIQUIDITY | ||
| Cash Ratio | 3.685 | |
| Current Ratio | 5.538 | |
| Current Ratio QoQ | 1.173 % | |
| Current Ratio YoY | 8.359 % | |
| Current Ratio IPRWA | — | |
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 0.083 | |
| Cost Of Debt | 109.867 % | |
| Interest Coverage Ratio | 6.123 | |
| Interest Coverage Ratio QoQ | -20.089 % | |
| Interest Coverage Ratio YoY | 50.217 % | |
| Interest Coverage Ratio IPRWA | — | |
| Operating Cash Flow Ratio | 0.541 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 17.006 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 4.432 % | |
| Revenue Growth | -9.901 % | |
| Revenue Growth QoQ | -131.071 % | |
| Revenue Growth YoY | 7.351 % | |
| Revenue Growth IPRWA | — | |
| Earnings Growth | -14.286 % | |
| Earnings Growth QoQ | -108.442 % | |
| Earnings Growth YoY | -131.633 % | |
| Earnings Growth IPRWA | — | |
| MARGINS | ||
| Gross Margin | 69.117 % | |
| Gross Margin QoQ | 4.003 % | |
| Gross Margin YoY | 7.999 % | |
| Gross Margin IPRWA | — | |
| EBIT Margin | 20.557 % | |
| EBIT Margin QoQ | -11.304 % | |
| EBIT Margin YoY | 39.767 % | |
| EBIT Margin IPRWA | — | |
| Return On Sales (ROS) | 20.557 % | |
| Return On Sales QoQ | -11.304 % | |
| Return On Sales YoY | 39.767 % | |
| Return On Sales IPRWA | — | |
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 7.9 M | |
| Free Cash Flow Yield | 2.419 % | |
| Free Cash Flow Yield QoQ | 20.169 % | |
| Free Cash Flow Yield YoY | 18.404 % | |
| Free Cash Flow Yield IPRWA | — | |
| Free Cash Growth | 42.437 % | |
| Free Cash Growth QoQ | -37.006 % | |
| Free Cash Growth YoY | -13.183 % | |
| Free Cash Growth IPRWA | — | |
| Free Cash To Net Income | 2.223 | |
| Cash Flow Margin | 33.547 % | |
| Cash Flow To Earnings | 2.054 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 2.388 % | |
| Return On Assets QoQ | -25.141 % | |
| Return On Assets YoY | -105.956 % | |
| Return On Assets IPRWA | — | |
| Return On Capital Employed (ROCE) | 3.227 % | |
| Return On Equity (ROE) | 0.026 | |
| Return On Equity QoQ | -24.159 % | |
| Return On Equity YoY | -104.727 % | |
| Return On Equity IPRWA | — | |
| DuPont ROE | 2.621 % | |
| Return On Invested Capital (ROIC) | 2.407 % | |
| Return On Invested Capital QoQ | -25.779 % | |
| Return On Invested Capital YoY | 9.409 % | |
| Return On Invested Capital IPRWA | — | |