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Simulations Plus has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
Good Sign:
Simulations Plus Inc shows strong financial strength.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
GuruFocus does not calculate Simulations Plus's interest coverage with the available data.
Simulations Plus's debt to revenue ratio for the quarter that ended in May. 2026 was 0.01.
As of today, Simulations Plus's Altman Z-Score is 16.93.
Simulations Plus (NAS:SLP) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Simulations Plus has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
Simulations Plus Financial Strength Related Terms
SLP vs CTEV, TBRG, CARL: Financial Strength Comparison
For the Health Information Services subindustry, Simulations Plus's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Simulations Plus's Financial Strength distribution charts can be found below:
* The bar in red indicates where Simulations Plus's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
GuruFocus does not calculate Simulations Plus's interest coverage with the available data.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Simulations Plus Inc has enough cash to cover all of its debt. Its financial situation is stable.
2. Debt to revenue ratio. The lower, the better.
Simulations Plus's Debt to Revenue Ratio for the quarter that ended in May. 2026 is
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Simulations Plus has a Z-score of 16.93, indicating it is in Safe Zones. This implies the Z-Score is strong.
Good Sign:
Altman Z-score of 16.93 is strong.
* 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.
Simulations Plus (SLP) has a Financial Strength of 8 as of May. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Simulations Plus and its competitors. This is 20% below median its historical median of 10.00. Over the past decade, Simulations Plus' Financial Strength has ranged from 8.00 to 10.00.
Is Simulations Plus' Financial Strength too high?
Simulations Plus' current Financial Strength of 8 is 20% below median its 10-year median of 10.00. Over the past 10 years, this metric has ranged from a low of 8.00 to a high of 10.00. Overall, Simulations Plus has a GF Score™ of 82/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Simulations Plus' Financial Strength compare to CTEV and TBRG?
Simulations Plus' Financial Strength of 8 can be compared against companies in the Healthcare Providers & Services industry. Historically, Simulations Plus' own Financial Strength has ranged from 8.00 to 10.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Healthcare Providers & Services company?
A good Financial Strength depends on the Healthcare Providers & Services industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Simulations Plus and its competitors. Simulations Plus's current Financial Strength is 8, which is 20% below median its own 10-year median of 10.00. 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 $35.59, compared to a current price of $18.24 — trading 48.7% below its estimated fair value. The current Financial Strength is 8, which is 20% below median its 10-year median of 10.00. Simulations Plus' overall GF Score™ is 82/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Simulations Plus (SLP), the current Financial Strength is 8 as of May. 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 $18.24 is trading 48.7% below its estimated GF Value™ of $35.59.
GuruFocus considers Simulations Plus to be Significantly Undervalued.
Key valuation signals for SLP:
Financial Strength: 8 (20% below median its 10-year median of 10.00)
GF Value™: $35.59 vs. price of $18.24 (48.7% below fair value)
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.
82GF Score
Get the complete analysis for SLP
Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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