Simulations Plus, Inc. SLP

Competitive advantage analysis · healthcare

Corporate Default
Overall moat score
51/100
Moderate

About Simulations Plus, Inc.

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. It operates through Software and Services segments. The company offers GastroPlus, which predicts absorption, biopharmaceutics, pharmacokinetics, and pharmacodynamics in humans and animals; and DDDPlus and MembranePlus simulation products. It also provides products based … Full SLP analysis →

Competitive advantage assessment

Key strengths

  • Strong Interest Coverage & Conservative Leverage Debt serviceability is strong (score 0.87), with robust interest coverage.
  • Consistent Cash Generation Cash generation is strong and consistent (score 0.90).

Key risks

  • ROIC Below WACC or Peers ROIC at 25.9th percentile suggests inefficient capital deployment.
  • Below-Peer Operating Efficiency Operating margin at 22.6th percentile indicates below-peer efficiency.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Developing
25

Where SLP ranks in Health Information Services

Simulations Plus, Inc. ranks #25 of 68 scored companies in Health Information Services by moat score — the top 37%. The widest moat in the group is Veeva Systems Inc. (VEEV) at 88/100.

Moat scores for companies ranked near SLP in Health Information Services
# Company Moat score Rating
21 10x Genomics, Inc. TXG 57/100 Moderate
22 Omnicell, Inc. OMCL 56/100 Moderate
23 Phreesia, Inc. PHR 56/100 Moderate
24 BrightSpring Health Services, I BTSGU 51/100 Moderate
25 Simulations Plus, Inc. SLP 51/100 Moderate
26 Talkspace, Inc. TALK 50/100 Moderate
27 Weave Communications, Inc. WEAV 49/100 Developing
28 Teladoc Health, Inc. TDOC 48/100 Developing
29 Health Catalyst, Inc HCAT 47/100 Developing

See every General Corporate company ranked by moat score →

How SLP scores on the Corporate Default defenses

Pricing Power

Score 25 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 44 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 93 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 28 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 90 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 33 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding SLP's moat

What is Simulations Plus, Inc.'s moat score?

Simulations Plus, Inc. (SLP) scores 51 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as moderate. It ranks #25 of 68 scored companies in Health Information Services, the top 37%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 67 companies in Health Information Services. Its strongest defense is Customer Stickiness (93/100) and its weakest is Pricing Power (25/100).

How does Simulations Plus, Inc. compare with other Health Information Services companies?

Simulations Plus, Inc. ranks #25 of 68 scored companies in Health Information Services by moat score. The widest moat in Health Information Services is Veeva Systems Inc. (VEEV) at 88/100. The companies ranked closest are BrightSpring Health Services, I (BTSGU) at 51 just above it and Talkspace, Inc. (TALK) at 50 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 67 companies in Health Information Services. The defenses are then weighted to produce the overall score out of 100.

Why is Simulations Plus, Inc. scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Simulations Plus, Inc.?

The Corporate Default template measures 6 defenses, and SLP scores: Pricing Power (25), Cost Advantage (44), Customer Stickiness (93), Capital Efficiency (28), Resilience (90), Scale & Market Position (33). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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