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 | — | |