Schrodinger (SDGR) AI Stock Analysis

• Market Cap: $1.54B
• Dividend Yield: N/A
• Average Volume (3M): 1.15M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.92
• Revenue Growth: 22.29%
• EPS Growth: -32.89%
• Country: US
• Employees: 891
• Sector: Healthcare
• Sector Strength: 40
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -0.82
• Shares Outstanding: 64,212,690
• 10 Day Avg. Volume: 1,104,711
• 30 Day Avg. Volume: 1,146,569
• PEG Ratio: -0.19
• Price to Book (P/B): 2.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.42
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 1.63
• Enterprise Value/Gross Profit: 9.40
• Enterprise Value/Ebitda: -1.69
• 1Y Price Target: $31.71
• Price Target Upside: 51.29% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 59 Neutral
• Price Target: $24.00 ▲(14.50%Upside)

Schrödinger's overall stock score is moderate, primarily influenced by strong revenue growth and strategic partnerships, despite ongoing net losses and valuation challenges. Technical analysis indicates stable momentum, while financial performance reflects both strengths in margins and weaknesses in profitability.

Positive Factors

Efficacy

SGR-1505 demonstrated a 22% overall response rate for 45 efficacy-evaluable patients across doses, with the strongest response seen in Waldenström macroglobulinemia patients.

Safety Profile

The safety profile of SGR-1505 remained largely consistent and favorable compared to competing treatments, with some adverse events but no severe bilirubin increases.

Negative Factors

Differentiation Challenges

There is skepticism about how SGR-1505 differentiates itself from competing assets, creating pressure on management to execute business development strategies.

Market Sentiment

Shares are down over 10% as concerns arise about bilirubin levels potentially indicating a liver toxicity signal for the MALT1 class.

Schrodinger Business Overview & Revenue Model

Company Description

Schrodinger (SDGR) is a technology company that specializes in computational software solutions for the life sciences and materials science sectors. The company develops advanced molecular simulation software, enabling customers to accelerate their research and development processes, particularly in drug discovery and materials design. Schrodinger's platform helps scientists achieve more accurate predictions of molecular behavior, thereby reducing the need for physical experiments.

How the Company Makes Money

Schrodinger generates revenue through the sale of its software products and licenses. Customers, which include pharmaceutical companies, biotechnology firms, academic institutions, and industrial corporations, pay for access to Schrodinger's computational platform and tools. The company also engages in collaborative projects and partnerships, where it provides its software and expertise in exchange for milestone payments, royalties, or co-development opportunities. Additionally, Schrodinger might participate in equity investments or joint ventures with other companies to further expand its revenue streams.

Schrodinger Financial Statement Overview

Summary

Schrödinger's financial statements show strong gross margins and a solid balance sheet with a low leverage ratio. However, consistent net losses and slow revenue growth are concerns. Recent improvements in cash flow are promising, but sustainable profitability is yet to be achieved.

Income Statement

The income statement shows mixed performance. Gross profit margin remains healthy at 62.6% for TTM (Trailing-Twelve-Months), indicating efficient cost management. However, the company has consistently reported net losses, with a negative net profit margin of -83.4% in TTM. Revenue growth has been slow, with a modest increase of approximately 11% from 2022 to 2024. EBIT and EBITDA margins are negative, reflecting ongoing operational challenges.

Balance Sheet

The balance sheet reveals a solid equity base with an equity ratio of 50.3% for TTM, suggesting a stable financial structure. The debt-to-equity ratio is manageable at 0.31, indicating a conservative leverage approach. However, return on equity is negative due to net losses, impacting overall profitability.

Cash Flow

Cash flow analysis shows improvement, with positive free cash flow in the TTM at $22.2 million, compared to negative free cash flow in previous years. The operating cash flow to net income ratio is positive, indicating cash flow generation despite net losses. However, historical negative operating cash flows highlight potential cash flow management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	230.49M	207.54M	216.67M	180.96M	137.93M	108.09M
Gross Profit	144.32M	132.08M	140.69M	101.02M	65.62M	63.47M
EBITDA	-188.03M	-209.30M	-171.90M	-142.47M	-108.60M	-57.26M
Net Income	-192.21M	-187.12M	40.72M	-149.19M	-101.22M	-26.64M
Balance Sheet
Total Assets	743.03M	823.23M	802.96M	688.59M	756.49M	746.26M
Cash, Cash Equivalents and Short-Term Investments	500.30M	352.12M	463.00M	451.09M	576.48M	642.69M
Total Debt	116.16M	117.83M	127.88M	116.49M	79.87M	11.76M
Total Liabilities	369.53M	401.78M	254.40M	240.68M	199.40M	122.24M
Stockholders Equity	373.50M	421.44M	548.56M	447.89M	557.07M	624.01M
Cash Flow
Free Cash Flow	22.16M	-164.68M	-150.14M	-127.70M	-77.84M	14.22M
Operating Cash Flow	25.97M	-157.37M	-136.73M	-119.68M	-70.67M	16.76M
Investing Cash Flow	174.39M	148.84M	193.03M	90.02M	-16.81M	-381.72M
Financing Cash Flow	2.53M	10.12M	9.05M	2.11M	7.95M	541.27M

Schrodinger Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 20.96
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SDGR, the sentiment is Neutral. The current price of 20.96 is below the 20-day moving average (MA) of 22.13, below the 50-day MA of 23.05, and below the 200-day MA of 21.42, indicating a bearish trend. The MACD of -0.72 indicates Positive momentum. The RSI at 43.88 is Neutral, neither overbought nor oversold. The STOCH value of 46.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SDGR.

Schrodinger Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VEEV	81 Outperform	$46.18B	59.89	14.07%	―	14.78%	39.33%
CERT	71 Outperform	$1.86B	―	-0.25%	―	9.37%	95.72%
SLP	67 Neutral	$369.24M	51.39	3.96%	1.31%	21.49%	-31.23%
SDGR	59 Neutral	$1.54B	―	-43.33%	―	22.29%	-32.89%
DH	57 Neutral	$588.28M	―	-86.36%	―	-3.04%	-152.59%
SOPH	54 Neutral	$219.87M	―	-60.75%	―	4.66%	11.33%
Sector *	51 Neutral	$7.50B	0.32	-61.87%	2.27%	17.10%	1.59%

Schrodinger Corporate Events

Schrodinger Announces Board Elections and Approvals

At the 2025 Annual Meeting of Stockholders held on June 18, 2025, Schrödinger, Inc. announced the election of four Class II directors, the approval of executive compensation, and the ratification of KPMG LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. The election saw Jeffrey Chodakewitz, Michael Lynton, Nancy A. Thornberry, and Bridget van Kralingen appointed to the board for a three-year term. The executive compensation package received approval, and KPMG LLP’s appointment was ratified, indicating continued confidence in the company’s leadership and financial oversight.

The most recent analyst rating on (SDGR) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on Schrodinger stock, see the SDGR Stock Forecast page.

Schrödinger Appoints Richie Jain as New CFO

On May 16, 2025, Schrödinger, Inc. appointed Richie Jain as the new Executive Vice President, Chief Financial Officer, and Treasurer, succeeding Geoffrey Porges. Mr. Jain, who previously served as Senior Vice President of Strategic Finance, brings extensive experience from his tenure at Morgan Stanley. His appointment is expected to strengthen the company’s financial leadership and strategic planning capabilities. The transition includes a comprehensive compensation package and stock options, with Dr. Porges remaining as an advisor until June 6, 2025, to ensure a smooth transition.

The most recent analyst rating on (SDGR) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on Schrodinger stock, see the SDGR Stock Forecast page.

Schrödinger Announces Workforce Reduction Amid Restructuring

On May 19, 2025, Schrödinger, Inc. announced a restructuring of its operations aimed at reducing its workforce by approximately 60 employees, which is about 7% of its full-time staff. This move is part of a broader effort to cut costs and improve cash flow, with the company expecting to incur $3 million in restructuring charges within the fiscal year ending December 31, 2025. The restructuring is anticipated to reduce operating expenses by $30 million annually, with half of the savings resulting from the workforce reduction.

The most recent analyst rating on (SDGR) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on Schrodinger stock, see the SDGR Stock Forecast page.