Simulations Plus, Inc. remains a Hold as business improvement is insufficient to warrant a Buy, despite stabilization post-earnings. Q2 2026 revenue grew 8% YoY to $24.3M, with strong software renewals (91%) and expanding services backlog (+18% YoY). SLP trades at ~14x blended earnings, appearing cheap versus history but still expensive on GAAP metrics given slow revenue and cash flow growth.
Simulations Plus trades at decade lows as investors question growth and AI disruption risks. SLP's Q2 sales grew 8% to $24.3M, but the full-year revenue outlook is flat to up 4%, with earnings guidance down. Valuation has compressed to 2.5x sales and ~20x realistic earnings, supported by a $42M net cash position.
SLP beats fiscal Q2 earnings and posts solid revenue growth, but cuts full-year EPS view even as backlog rises and margins expand across software and services.
| Health Care Equipment & Supplies Industry | Healthcare Sector | Shawn O'Connor CEO | XFRA Exchange | US8292141053 ISIN |
| US Country | 243 Employees | 29 Jul 2024 Last Dividend | 2 Oct 2007 Last Split | 18 Jun 1997 IPO Date |
Simulations Plus, Inc. is a pioneering company specializing in the development of advanced software tools for drug discovery and development. Utilizing cutting-edge artificial intelligence and machine learning technologies, the company has established a global presence in the field of molecular property simulation and prediction. Operating through two main segments, Software and Services, Simulations Plus caters to a wide range of industries including pharmaceuticals, biotechnology, agrochemical, cosmetics, and food, as well as academic institutions and regulatory agencies. Since its inception in 1996 and headquartered in Lancaster, California, the company has been at the forefront of providing innovative solutions that enhance the efficiency and effectiveness of drug development processes.
This flagship software simulates the absorption, distribution, metabolism, and elimination of compounds in humans and animals. It also predicts drug interactions, making it a vital tool for pharmaceutical research and development.
Simulations Plus offers these simulation products to further support the study of drug dissolution (DDDPlus) and permeability across membranes (MembranePlus), respectively. These tools are essential for understanding the bioavailability of drugs.
Products like DILIsym, NAFLDsym, ILDsym, RENAsym, IPFsym, and MITOsym utilize mechanistic and mathematical models to simulate and predict various drug-induced effects, including liver injury, nonalcoholic fatty liver disease, interstitial lung disease, renal injury, idiopathic pulmonary fibrosis, and mitochondrial toxicity.
This chemistry-based computer program takes molecular structures as inputs and predicts their ADMET properties, supporting the early stages of drug development and reducing the reliance on physical testing.
A tool designed to assist in the efficient design and modification of medicinal chemicals, facilitating the innovative development of new drug entities through an enhanced understanding of cheminformatics.
Simulations Plus provides MonolixSuite for robust modeling and simulation, enabling users to perform population analyses, clinical trial data analyses, and regulatory submission tasks more efficiently.
Beyond software, Simulations Plus offers a comprehensive range of consulting services aimed at supporting clinical-pharmacological research. This includes population pharmacokinetic and pharmacodynamic modeling, exposure-response analyses, clinical trial simulations, data programming, and technical writing services specifically tailored to meet the stringent requirements of regulatory submissions. The company further extends its support with early drug discovery services and insightful consulting services in the domain of quantitative systems pharmacology/quantitative systems toxicology modelling, underscoring its commitment to advancing drug development through innovation and expertise.