Simulations Beneish M Score

SLP
 Stock
  

USD 41.88  0.42  1.01%   

This module uses fundamental data of Simulations Plus to approximate the value of its Beneish M Score. Simulations Plus M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Additionally, take a look at Simulations Plus Piotroski F Score and Simulations Plus Altman Z Score analysis.
  
Simulations Plus Total Debt is very stable at the moment as compared to the past year. Simulations Plus reported last year Total Debt of 11,458.6. As of 3rd of December 2022, Debt Current is likely to grow to about 11.8 K, while Issuance Repayment of Debt Securities is likely to drop (885.2 K). Simulations Plus Operating Margin is very stable at the moment as compared to the past year. Simulations Plus reported last year Operating Margin of 27.66. As of 3rd of December 2022, Cash and Equivalents Turnover is likely to grow to 1.45, while Enterprise Value over EBIT is likely to drop 14.39.
At this time, it appears that Simulations Plus is an unlikely manipulator. The earnings manipulation may begin if Simulations Plus' top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Simulations Plus executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Simulations Plus' earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.48
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.86Focus
Asset Quality1.0Focus
Expense Coverage1.0Focus
Gross Margin Strengs1.09Focus
Accruals Factor1.0Focus
Depreciation Resistance1.04Focus
Net Sales Growth1.08Focus
Financial Leverage Condition0.77Focus

Simulations Plus Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Simulations Plus' auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Selling General and Administrative Expense6.6 M6.1 M
Significantly Up
Increasing
Slightly volatile
Revenues58.2 M53.9 M
Significantly Up
Increasing
Slightly volatile
Trade and Non Trade Receivables1.6 M1.7 M
Significantly Down
Decreasing
Slightly volatile
Property Plant and Equipment Net79.7 K85.7 K
Significantly Down
Decreasing
Slightly volatile
Operating Income16.1 M14.9 M
Significantly Up
Increasing
Slightly volatile
Net Cash Flow from Operations19.3 M17.9 M
Significantly Up
Increasing
Slightly volatile
Liabilities Non CurrentM3.7 M
Significantly Up
Increasing
Slightly volatile
Current Liabilities8.3 M7.7 M
Significantly Up
Increasing
Slightly volatile
Total Liabilities8.4 M10.1 M
Significantly Down
Increasing
Slightly volatile
Investments Non Current671.1 K675 K
Slightly Down
Decreasing
Slightly volatile
Investments671.1 K675 K
Slightly Down
Decreasing
Slightly volatile
Gross Margin87.0679.9243
Significantly Up
Decreasing
Very volatile
Depreciation Amortization and Accretion195.7 K243.2 K
Significantly Down
Increasing
Slightly volatile
Debt Non Current15.1 K11.5 K
Significantly Up
Decreasing
Stable
Debt Current11.8 K11.5 K
Fairly Up
Decreasing
Slightly volatile
Total Debt11.8 K11.5 K
Fairly Up
Decreasing
Slightly volatile
Assets Non Current9.2 M8.5 M
Significantly Up
Increasing
Slightly volatile
Current Assets158.4 M146.8 M
Significantly Up
Increasing
Slightly volatile
Total Assets203.3 M188.4 M
Significantly Up
Increasing
Slightly volatile

Simulations Plus Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Simulations Plus' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Simulations Plus in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Simulations Plus' degree of accounting gimmicks and manipulations.

About Simulations Plus Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Operating Expenses

7.91 Million

Simulations Plus Operating Expenses is very stable at the moment as compared to the past year. Simulations Plus reported last year Operating Expenses of 7.33 Million

Simulations Plus Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Simulations Plus. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201720182019202020212022 (projected)
Revenues29.67 M33.97 M41.59 M46.47 M53.91 M58.16 M
Total Assets43.28 M45.2 M168.42 M179.98 M188.38 M203.25 M
Current Assets17.82 M21.17 M129.09 M139.31 M146.79 M158.38 M
Total Liabilities11.36 M7.52 M12.39 M14.2 M10.13 M8.39 M
Current Liabilities4.83 M4.78 M5.5 M11.57 M7.74 M8.35 M
Operating Income10.3 M10.65 M11.61 M11.25 M14.91 M16.09 M
Net Cash Flow from Operations9.29 M11.64 M10.91 M19.2 M17.9 M19.31 M
Gross Margin73.0573.4374.3977.1979.9287.06

About Simulations Plus Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Simulations Plus's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Simulations Plus using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Simulations Plus based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Simulations Plus, Inc. develops drug discovery and development software for modeling and simulation, and prediction of molecular properties utilizing artificial intelligence and machine learning based technology worldwide. Simulations Plus, Inc. was incorporated in 1996 and is headquartered in Lancaster, California. Simulations Plus is traded on NASDAQ Exchange in the United States.

Simulations Plus Investors Sentiment

The influence of Simulations Plus' investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Simulations. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to Simulations Plus' public news can be used to forecast risks associated with investment in Simulations. The trend in average sentiment can be used to explain how an investor holding Simulations can time the market purely based on public headlines and social activities around Simulations Plus. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Simulations Plus' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Simulations Plus' and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Simulations Plus' news discussions. The higher the estimated score, the more favorable is the investor's outlook on Simulations Plus.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Simulations Plus in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Simulations Plus' short interest history, or implied volatility extrapolated from Simulations Plus options trading.

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Additionally, take a look at Simulations Plus Piotroski F Score and Simulations Plus Altman Z Score analysis. You can also try CEO Directory module to screen CEOs from public companies around the world.

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When running Simulations Plus price analysis, check to measure Simulations Plus' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Simulations Plus is operating at the current time. Most of Simulations Plus' value examination focuses on studying past and present price action to predict the probability of Simulations Plus' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Simulations Plus' price. Additionally, you may evaluate how the addition of Simulations Plus to your portfolios can decrease your overall portfolio volatility.
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Is Simulations Plus' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Simulations Plus. If investors know Simulations will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Simulations Plus listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
3.1
Market Capitalization
841.5 M
Quarterly Revenue Growth YOY
0.19
Return On Assets
0.0506
Return On Equity
0.0726
The market value of Simulations Plus is measured differently than its book value, which is the value of Simulations that is recorded on the company's balance sheet. Investors also form their own opinion of Simulations Plus' value that differs from its market value or its book value, called intrinsic value, which is Simulations Plus' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Simulations Plus' market value can be influenced by many factors that don't directly affect Simulations Plus' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Simulations Plus' value and its price as these two are different measures arrived at by different means. Investors typically determine Simulations Plus value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Simulations Plus' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.