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Simulations Plus Inc. (SLP) Management Shows Route to Higher Value-Added Information Technology

Though this stock is ahead of its industry and sector in terms of recent sales growth and Gross Margin as well, these are not the most interesting reasons to consider investing in this particular software and programming business. Veteran investors in technology are aware that only continuous upgrades can protect stock value in a field of rapid margin erosion and even obsolescence.

This is the case of a company taking a firm position in extremely profitable and socially important fields of activity. The business relates to the invention and development of new drugs, education, productivity, and helping individuals with disabilities lead productive lives. The company main brands help pharmaceutical companies keep track of new organic syntheses, design appropriate delivery systems, and predict how novel medication may react in living bodies.

Other revenue lines in education extend from retail products to help people organize themselves better, to very specialized systems that help individuals with disabilities communicate better, and to work with computers as well. The business is clearly distinct from the normal members of the software and programming industry, and investors should see the premium Price to Earnings Ratio of 37.84, on a TTM (Trailing Twelve Months) basis, in this light.

The Research and Development function of Unilever has recently placed a major purchase order on the company, while Swiss pharmaceutical major Roche has decided to extend its license for company software by another year. The business appears on course for profitable and balanced growth from both industrial and consumer revenue lines.

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