Simulations PlusSLP +0.22%81 Gross Margin % is 66.46% as of Feb. 2026, which is 10% below its 10-year median of 74.13. GuruFocus rates SLP with a GF Score™ of 81/100 and a GF Value™ of $38.31 (Significantly Undervalued). The stock has 7 warning signs investors should review. Among 628 Healthcare Providers & Services companies, Simulations Plus ranks better than 71.18% on this metric.
Simulations Plus Inc gross margin has been in long-term decline. The average rate of decline per year is -5.2%.
The historical rank and industry rank for Simulations Plus's Gross Margin % or its related term are showing as below:
SLP'
s Gross Margin % Range Over the Past 10 Years
Min: 58.38 Med: 74.13 Max: 80.48
Current: 61.97
During the past 13 years, the highestGross Margin % of Simulations Plus was 80.48%. The lowest was 58.38%. And the median was 74.13%.
SLP's Gross Margin % is ranked better than 71.18% of 628
companies
in the Healthcare Providers & Services industry
Industry Median: 40.01
vs SLP: 61.97
Simulations Plus had a gross margin of 66.46% for the quarter that ended in Feb. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Simulations Plus was -5.20% per year.
Simulations Plus (NAS:SLP) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Simulations Plus had a gross margin of 66.46% for the quarter that ended in Feb. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Simulations Plus Gross Margin % Related Terms
Simulations Plus Gross Margin % Historical Data
* Premium members only.
The historical data trend for Simulations Plus's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Health Information Services subindustry, Simulations Plus's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Simulations Plus Gross Margin % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Simulations Plus's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Simulations Plus's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Simulations Plus (SLP) has a Gross Margin % of 66.46% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Simulations Plus and its competitors. This is 10% below median its historical median of 74.13. Over the past decade, Simulations Plus' Gross Margin % has ranged from 58.38 to 80.48. According to the industry distribution chart, Simulations Plus ranks #181 out of 628 companies in the Healthcare Providers & Services industry, placing it in the top 28.8%.
Is Simulations Plus' Gross Margin % too high?
Simulations Plus' current Gross Margin % of 66.46% is 10% below median its 10-year median of 74.13. Over the past 10 years, this metric has ranged from a low of 58.38 to a high of 80.48. The Healthcare Providers & Services industry median Gross Margin % is 40.01. Simulations Plus' value of 66.46% is 66.1% above this industry median. Based on the distribution chart, Simulations Plus ranks #181 out of 628 companies in the Healthcare Providers & Services industry, which is above the industry midpoint. Overall, Simulations Plus has a GF Score™ of 81/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Simulations Plus' Gross Margin % compare to TBRG and CARL?
According to the Healthcare Providers & Services industry distribution chart, Simulations Plus ranks #181 out of 628 companies for Gross Margin %. This puts Simulations Plus in the upper half of its industry. The industry median Gross Margin % is 40.01. Simulations Plus' value of 66.46% is 66.1% above this benchmark. Historically, Simulations Plus' own Gross Margin % has ranged from 58.38 to 80.48 over the past decade. While the company's 10-year median is 74.13 vs. the industry median of 40.01, Simulations Plus has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Healthcare Providers & Services company?
The median Gross Margin % among Healthcare Providers & Services companies is 40.01, based on 628 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Simulations Plus's current Gross Margin % of 66.46% is 66.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Simulations Plus and its competitors. For the Healthcare Providers & Services industry, the median Gross Margin % is 40.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Simulations Plus's current Gross Margin % is 66.46%, which is 10% below median its own 10-year median of 74.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Simulations Plus stock overvalued right now?
Based on GuruFocus' analysis, Simulations Plus (SLP) is currently considered Significantly Undervalued. The stock's GF Value™ is $38.31, compared to a current price of $18.38 — trading 52% below its estimated fair value. The current Gross Margin % is 66.46%, which is 10% below median its 10-year median of 74.13 and 66.1% above the Healthcare Providers & Services industry median of 40.01. Simulations Plus' overall GF Score™ is 81/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Simulations Plus (SLP), the current Gross Margin % is 66.46% as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Simulations Plus (SLP) Overvalued in 2026?
Based on GuruFocus' analysis, Simulations Plus stock appears to be undervalued.
The current stock price of $18.38 is trading 52% below its estimated GF Value™ of $38.31.
GuruFocus considers Simulations Plus to be Significantly Undervalued.
Key valuation signals for SLP:
Gross Margin %: 66.46% (10% below median its 10-year median of 74.13)
GF Value™: $38.31 vs. price of $18.38 (52% below fair value)
Industry Position: 66.1% above the Healthcare Providers & Services median (#181 of 628)
No single metric tells the full story. See the SLP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Simulations Plus Inc is engaged in the software industry. It develops and produces software for use in pharmaceutical research and education, and provides consulting and contract research services to the pharmaceutical industry. The company's operating segments include Software and services. The company offers software products for pharmaceutical research such as ADMET (Absorption, Distribution, Metabolism, Excretion, and Toxicity). It generates maximum revenue from the software segment. Maximum revenue is earned from USA following EMEA and Asia Pacific.
81GF Score
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