Simulations Plus Inc (SLP) released its second quarter results on Tuesday, April 13, 2021. The company reported net earnings of $0.15 per share for the second quarter ending February 28, 2021. Earnings for this past quarter were up 28 percent compared to the same period a year ago.
The company was founded in 1996 and is headquartered in Lancaster, California. Simulations Plus, Inc. develops drug discovery and development software for mechanistic modeling and simulation, and prediction of properties of molecules utilizing artificial-intelligence- and machine-learning-based technology worldwide. The company offers GastroPlus, which simulates the absorption, pharmacokinetics (PK), pharmacodynamics, and drug-drug interactions of compounds administered to humans and animals; DDDPlus that simulates in vitro laboratory experiments; and MembranePlus, which simulates laboratory experiments.
Simulations Plus's revenue increased 21 percent over the past trailing twelve-month period versus the previous twelve-month period. Gross margins decreased to 77.86% for the second quarter compared to the same period in the previous year, and operating margins decreased to 26.52% over the same period. Net earnings for past trailing twelve months were $10.81 million, up 18% from the prior year.
Moving on to the balance sheet, Simulations Plus’s cash levels jumped 246% for the third quarter over the same period last year. Overall liquidity of the balance sheet, as measured by the current ratio, increased 360.31% this past year. The current ratio for Simulations Plus now stands at 20.72. The company increased share outstanding by 13.66%.
Shares of SLP are currently trading around $60.95. In terms of valuation, the stock is trading at a trailing twelve-month price to earnings ratio of 112.31 and price to book ratio of 7.87.