Simulations Plus, Inc (NASDAQ:SLP) Agrees $18.50 Altaris Acquisition; AI Ramp Strengthens Outlook

Acquisition terms and fresh AI collaborations shift near-term drivers toward deal-related support and accelerating product-level scale. Balance-sheet strength and thin debt underpin optionality amid mixed operational momentum.

Recent News

On June 15–16, 2026 Simulations Plus entered a definitive merger agreement to be acquired by affiliates of Altaris for approximately $375 million, with common stockholders to receive $18.50 per share.

On May 6, 2026 the company announced a technical collaboration with NVIDIA to enable GPU-accelerated simulation and AI-assisted modeling workflows for computationally intensive drug-development applications.

In late June 2026 the company disclosed additional partnership activity and program updates aimed at validating AI-driven ADMET model performance with academic collaborators.

Technical Analysis

ADX at 41.79 signals a very strong directional market move; that strength aligns with acquisition-driven headline flow and supports the recent premium relative to recent averages.

DI+ reading 30.48 with a dip & reversal indicates a bullish directional shift, while DI- at 11.77 and decreasing confirms waning bearish pressure—collectively reinforcing near-term upside bias tied to deal momentum.

MACD sits at 0.34 and shows a decreasing trend with the MACD below its signal line (0.44), indicating bearish momentum divergence despite headline strength; this warns that upward moves could stall without renewed buying pressure.

MRO at 25.55 and increasing places price above model target and implies downside potential as excess gains normalize; the magnitude suggests a material mean-reversion risk that tempers the price bias from corporate news.

RSI 63.63 with a dip & reversal reflects renewed buying interest but not overbought conditions; momentum gauges therefore point to limited immediate upside before consolidation.

Price sits at $18.34 above the 12-day EMA ($18.25), the 20-day average ($18.26) and the 200-day average ($16.11), indicating short- and long-term upward bias; the super-trend lower support at $17.83 provides a technical support floor near the deal-anchored level.

Volume of 240,696 runs below the 10-, 50- and 200-day averages, which suggests current moves show lower participation and that stronger conviction would require higher volume to sustain breakouts.

 


Fundamental Analysis

Revenue totaled $21,886,000 with YoY revenue growth of 7.35% while reported revenue growth (period measure) shows a -9.90% figure; QoQ revenue change reads -131.07% per the provided period comparison. These mixed top-line signals indicate modest annual expansion but quarter-to-quarter variability.

Gross margin stands at 69.12% and improved YoY by 7.999%, supporting high-margin software economics. Operating (EBIT) margin measures 20.56%, up 39.77% YoY but down 11.30% QoQ, reflecting strong margin structure with recent quarter-level pressure.

Net income reached $3,575,000 with EBIT $4,499,000 and EBITDA $5,867,000. EPS came in at $0.30 versus an estimate of $0.23, producing an EPS surprise of 30.44%—an earnings beat that bolsters short-term sentiment and corroborates strong per-share cash conversion.

Cash and short-term investments total $49,990,000 with cash alone $35,324,000 versus total debt $487,000; the current ratio at 5.54 and cash ratio 3.68 indicate a very conservative liquidity position and minimal leverage (debt-to-assets ~0.32%).

Free cash flow equals $7,948,000 with a free-cash-flow yield of 2.42% and free cash to net income ~2.22x, showing robust cash generation relative to reported earnings. Return on equity sits at 2.57% and return on assets at 2.39%, reflecting modest profitability on invested capital.

Valuation metrics the market assigns contrast with fundamentals: market capitalization registers $328,545,016 and enterprise value $279,042,016; price-to-earnings near 54.17 and forward P/E ~65.61. The enterprise multiple reads 47.56 while EVR stands at 12.75. The current valuation as determined by WMDST shows elevated multiples relative to underlying cash returns, with balance-sheet strength and strategic M&A interest the primary tensions supporting that premium.

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 8.7 M
 Capital Expenditures -761.00 K
 Change In Working Capital
 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

Six-Week Outlook

Deal announcement and the NVIDIA collaboration create a headline floor that should keep prices anchored near the announced $18.50 consideration, while technicals present a mixed picture: ADX shows a strong trend but MACD weakness and an elevated MRO point to meaningful mean reversion risk. Expect consolidation between support near $17.80–$18.00 and resistance toward the $21.37 mean analyst target, with breakouts dependent on renewed volume and confirmation of post-announcement operational progress.

About Simulations Plus, Inc.

Simulations Plus, Inc. (NASDAQ:SLP) develops advanced software solutions for drug discovery and development, leveraging artificial intelligence and machine learning technologies. The company operates through its Software and Services segments, offering a range of products designed to simulate and predict molecular properties and interactions. Key offerings include GastroPlus, which models the absorption and interaction of compounds in humans and animals, as well as DDDPlus and MembranePlus simulation tools. Simulations Plus also provides mechanistic and mathematical model-based products such as DILIsym, NAFLDsym, ILDsym, IPFsym, RENAsym, MITOsym, and OBESITYsym. These products assist in understanding complex biological systems and drug interactions. The company offers the ADMET Predictor, a chemistry-based program that predicts molecular properties from structures, and the MedChem Designer for molecular design and analysis. Additionally, Simulations Plus delivers consulting services in clinical pharmacology, including population pharmacokinetic and pharmacodynamic modeling, exposure-response analyses, and clinical trial simulations. Their consulting services support regulatory submissions and early drug discovery efforts. The company’s clientele spans pharmaceutical, biotechnology, agrochemical, cosmetics, and food industries, as well as academic and regulatory institutions. Established in 1996, Simulations Plus is headquartered in Lancaster, California.



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