Simulations Plus (NASDAQ:SLP) Sheds 9.9% This Week, as Yearly Returns Fall More in Line With Earnings Growth
Simulations Plus (NASDAQ:SLP) Sheds 9.9% This Week, as Yearly Returns Fall More in Line With Earnings Growth
Simulations Plus, Inc. (NASDAQ:SLP) shareholders might be concerned after seeing the share price drop 14% in the last month. But that scarcely detracts from the really solid long term returns generated by the company over five years. In fact, the share price is 261% higher today. We think it's more important to dwell on the long term returns than the short term returns. Ultimately business performance will determine whether the stock price continues the positive long term trend.
In light of the stock dropping 9.9% in the past week, we want to investigate the longer term story, and see if fundamentals have been the driver of the company's positive five-year return.
See our latest analysis for Simulations Plus
While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
During five years of share price growth, Simulations Plus achieved compound earnings per share (EPS) growth of 13% per year. This EPS growth is slower than the share price growth of 29% per year, over the same period. So it's fair to assume the market has a higher opinion of the business than it did five years ago. That's not necessarily surprising considering the five-year track record of earnings growth. This favorable sentiment is reflected in its (fairly optimistic) P/E ratio of 92.02.
The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).
NasdaqGS:SLP Earnings Per Share Growth September 20th 2022It's probably worth noting that the CEO is paid less than the median at similar sized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here..
What About Dividends?
As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for Simulations Plus the TSR over the last 5 years was 276%, which is better than the share price return mentioned above. The dividends paid by the company have thusly boosted the total shareholder return.
A Different Perspective
It's nice to see that Simulations Plus shareholders have received a total shareholder return of 35% over the last year. And that does include the dividend. That's better than the annualised return of 30% over half a decade, implying that the company is doing better recently. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. Before spending more time on Simulations Plus it might be wise to click here to see if insiders have been buying or selling shares.
Of course Simulations Plus may not be the best stock to buy. So you may wish to see this free collection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Simulations Plus公司新浪納斯達克(Sequoia Capital:SLP)股東在看到該公司股價在上個月下跌14%後可能會感到擔憂。但這幾乎不會減損該公司在五年內產生的真正穩健的長期回報。事實上,今天的股價上漲了261%。我們認為,關注長期回報比關注短期回報更重要。最終,企業業績將決定股價是否繼續保持積極的長期趨勢。
鑑於該公司股價在過去一週下跌了9.9%,我們希望調查更長期的情況,看看基本面因素是否是該公司五年來正回報的驅動因素。
請參閲我們最新的分析,瞭解更多模擬功能
雖然有效市場假説繼續被一些人傳授,但事實證明,市場是過度反應的動態系統,投資者並不總是理性的。通過比較每股收益(EPS)和股價隨時間的變化,我們可以感受到投資者對一家公司的態度隨着時間的推移發生了怎樣的變化。
在股價增長的五年中,Simulations Plus實現了每股收益(EPS)每年13%的複合增長。這一每股收益的增長慢於同期股價每年29%的增長。因此,可以公平地認為,市場對這項業務的看法比五年前更高。考慮到五年來盈利增長的記錄,這並不一定令人驚訝。這種有利的情緒反映在其(相當樂觀的)市盈率為92.02。
下圖顯示了EPS是如何隨着時間的推移進行跟蹤的(如果您點擊該圖像,您可以看到更多詳細信息)。
NasdaqGS:SLP每股收益增長2022年9月20日可能值得注意的是,首席執行官的薪酬低於類似規模公司的中位數。但是,儘管CEO的薪酬總是值得檢查的,但真正重要的問題是,公司能否在未來實現收益增長。在買賣股票之前,我們總是建議仔細檢查一下歷史增長趨勢,可在此處找到。
那股息呢?
除了衡量股價回報外,投資者還應考慮總股東回報(TSR)。TSR包括任何剝離或貼現融資的價值,以及任何股息,基於股息再投資的假設。可以説,TSR更全面地描繪了一隻股票產生的回報。我們注意到,過去5年的模擬加TSR為276%,好於上述股價回報。該公司支付的股息因此提振了總計股東回報。
不同的視角
很高興看到Simulations Plus股東在過去一年中獲得了35%的總股東回報。這確實包括了股息。這比過去五年30%的年化回報率要好,這意味着該公司最近的表現更好。在最好的情況下,這可能暗示着一些真正的商業勢頭,意味着現在可能是深入研究的好時機。在花更多時間在Simulation Plus上之前,明智的做法是點擊此處,看看內部人士是否一直在買入或賣出股票。
當然了Simulations Plus可能不是買入的最佳股票。所以你可能想看看這個免費成長型股票的集合。
請注意,本文引用的市場回報反映了目前在美國交易所交易的股票的市場加權平均回報。
對這篇文章有什麼反饋嗎?擔心內容嗎? 保持聯繫直接與我們聯繫。或者,也可以給編輯組發電子郵件,地址是implywallst.com。
本文由Simply Wall St.撰寫,具有概括性。我們僅使用不偏不倚的方法提供基於歷史數據和分析師預測的評論,我們的文章並不打算作為財務建議。它不構成買賣任何股票的建議,也沒有考慮你的目標或你的財務狀況。我們的目標是為您帶來由基本面數據驅動的長期重點分析。請注意,我們的分析可能不會將最新的對價格敏感的公司公告或定性材料考慮在內。Simply Wall St.對上述任何一隻股票都沒有持倉。
譯文內容由第三人軟體翻譯。
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