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公司新浪纳斯达克(Sequoia Capital:SLP)股东在看到该公司股价在上个月下跌14%后可能会感到担忧。但这几乎不会减损该公司在五年内产生的真正稳健的长期回报。事实上,今天的股价上涨了261%。我们认为,关注长期回报比关注短期回报更重要。最终,企业业绩将决定股价是否继续保持积极的长期趋势。
鉴于该公司股价在过去一周下跌了9.9%,我们希望调查更长期的情况,看看基本面因素是否是该公司五年来正回报的驱动因素。
请参阅我们最新的分析,了解更多模拟功能
虽然有效市场假说继续被一些人传授,但事实证明,市场是过度反应的动态系统,投资者并不总是理性的。通过比较每股收益(EPS)和股价随时间的变化,我们可以感受到投资者对一家公司的态度随着时间的推移发生了怎样的变化。
在股价增长的五年中,Simulations Plus实现了每股收益(EPS)每年13%的复合增长。这一每股收益的增长慢于同期股价每年29%的增长。因此,可以公平地认为,市场对这项业务的看法比五年前更高。考虑到五年来盈利增长的记录,这并不一定令人惊讶。这种有利的情绪反映在其(相当乐观的)市盈率为92.02。
下图显示了EPS是如何随着时间的推移进行跟踪的(如果您点击该图像,您可以看到更多详细信息)。
NasdaqGS:SLP每股收益增长2022年9月20日可能值得注意的是,首席执行官的薪酬低于类似规模公司的中位数。但是,尽管CEO的薪酬总是值得检查的,但真正重要的问题是,公司能否在未来实现收益增长。在买卖股票之前,我们总是建议仔细检查一下历史增长趋势,可在此处找到。
那股息呢?
除了衡量股价回报外,投资者还应考虑总股东回报(TSR)。TSR包括任何剥离或贴现融资的价值,以及任何股息,基于股息再投资的假设。可以说,TSR更全面地描绘了一只股票产生的回报。我们注意到,过去5年的模拟加TSR为276%,好于上述股价回报。该公司支付的股息因此提振了总计股东回报。
不同的视角
很高兴看到Simulations Plus股东在过去一年中获得了35%的总股东回报。这确实包括了股息。这比过去五年30%的年化回报率要好,这意味着该公司最近的表现更好。在最好的情况下,这可能暗示着一些真正的商业势头,意味着现在可能是深入研究的好时机。在花更多时间在Simulation Plus上之前,明智的做法是点击此处,看看内部人士是否一直在买入或卖出股票。
当然了Simulations Plus可能不是买入的最佳股票。所以你可能想看看这个免费成长型股票的集合。
请注意,本文引用的市场回报反映了目前在美国交易所交易的股票的市场加权平均回报。
对这篇文章有什么反馈吗?担心内容吗? 保持联系直接与我们联系。或者,也可以给编辑组发电子邮件,地址是implywallst.com。
本文由Simply Wall St.撰写,具有概括性。我们仅使用不偏不倚的方法提供基于历史数据和分析师预测的评论,我们的文章并不打算作为财务建议。它不构成买卖任何股票的建议,也没有考虑你的目标或你的财务状况。我们的目标是为您带来由基本面数据驱动的长期重点分析。请注意,我们的分析可能不会将最新的对价格敏感的公司公告或定性材料考虑在内。Simply Wall St.对上述任何一只股票都没有持仓。
译文内容由第三方软件翻译。
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