Why Fundamental Investors Might Love Simulations Plus, Inc. (NASDAQ:SLP)
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I've been keeping an eye on Simulations Plus, Inc. (NASDAQ:SLP) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe SLP has a lot to offer. Basically, it is a company with strong financial health as well as a buoyant future outlook. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Simulations Plus here.
Flawless balance sheet with reasonable growth potential
SLP's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that SLP has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. SLP currently has no debt on its balance sheet. This implies that the company is running its operations purely on off equity funding. which is typically normal for a small-cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.
Next Steps:
For Simulations Plus, I've put together three key factors you should further research:
Historical Performance: What has SLP's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Valuation: What is SLP worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether SLP is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SLP? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
