Schrodinger (SDGR) AI Stock Analysis

• Market Cap: $1.42B
• Dividend Yield: N/A
• Average Volume (3M): 1.03M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.76
• Revenue Growth: 18.59%
• EPS Growth: 10.96%
• Country: US
• Employees: 891
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -0.59
• Shares Outstanding: 64,441,780
• 10 Day Avg. Volume: 1,070,371
• 30 Day Avg. Volume: 1,029,229
• PEG Ratio: 0.01
• Price to Book (P/B): 3.33
• Price to Sales (P/S): 6.75
• P/FCF Ratio: -8.51
• Enterprise Value/Market Cap: 0.80
• Enterprise Value/Revenue: 4.75
• Enterprise Value/Gross Profit: 8.12
• Enterprise Value/Ebitda: -6.40
• 1Y Price Target: $27.00
• Price Target Upside: 39.90% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 50 Neutral
• Price Target: $20.00 ▲(3.63% Upside)

Schrodinger's overall stock score reflects a mixed outlook. Financial performance is hindered by profitability challenges, while technical indicators suggest bearish momentum. Valuation is unattractive due to negative earnings. However, the earnings call and corporate events provide some optimism for future growth, driven by revenue increases and strategic initiatives.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Schrodinger's software and drug discovery services, enhancing its market position.

Strategic Partnerships

These partnerships can drive innovation and revenue, leveraging Schrodinger's technology to access new markets and enhance R&D capabilities.

Cost Management

Effective cost management enhances profitability and cash flow, allowing Schrodinger to reinvest in growth and innovation.

Negative Factors

Profitability Challenges

Persistent profitability issues limit financial flexibility and could hinder long-term growth if not addressed effectively.

Software Gross Margin Decline

Declining margins may impact overall profitability, requiring strategic adjustments to maintain competitive pricing and cost efficiency.

Biotech Sector Challenges

Sector-wide challenges could slow customer acquisition and revenue growth, requiring strategic adaptation to changing market conditions.

Schrodinger Business Overview & Revenue Model

Company Description

Schrödinger, Inc., together with its subsidiaries, provides physics-based software platform that enables discovery of novel molecules for drug development and materials applications. The company operates in two segments, Software and Drug Discovery. The Software segment is focused on selling its software for drug discovery in the life sciences industry, as well as to customers in materials science industries. The Drug Discovery segment focuses on building a portfolio of preclinical and clinical programs, internally and through collaborations. The company serves biopharmaceutical and industrial companies, academic institutions, and government laboratories worldwide. Schrödinger, Inc. was incorporated in 1990 and is based in New York, New York.

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

Schrodinger's financial performance is mixed. The company shows modest revenue growth and a healthy gross profit margin. However, significant profitability challenges persist, with negative net income and operational inefficiencies. The balance sheet is moderately leveraged, but the negative return on equity is concerning. Cash flow trends show some improvement, but operational cash flow remains a challenge.

Income Statement

Schrodinger's income statement shows a mixed performance. The company has achieved a modest revenue growth of 3.22% TTM, indicating some positive momentum. However, the net profit margin is significantly negative at -76.22%, reflecting ongoing profitability challenges. The gross profit margin is relatively healthy at 58.48%, but the negative EBIT and EBITDA margins highlight operational inefficiencies.

Balance Sheet

The balance sheet presents a moderate financial position. The debt-to-equity ratio is manageable at 0.33, suggesting a reasonable level of leverage. However, the return on equity is negative at -45.70%, indicating that the company is not generating positive returns for shareholders. The equity ratio stands at 49.82%, showing a balanced capital structure.

Cash Flow

Cash flow analysis reveals some positive trends, with a free cash flow growth rate of 9.98% TTM. However, the operating cash flow to net income ratio is low at 0.18, indicating potential cash flow challenges. The free cash flow to net income ratio is relatively strong at 0.89, suggesting that the company is generating cash relative to its net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	237.92M	207.54M	216.67M	180.96M	137.93M	108.09M
Gross Profit	139.14M	132.08M	140.69M	101.02M	65.62M	63.47M
EBITDA	-176.47M	-209.30M	-171.90M	-142.47M	-108.60M	-57.26M
Net Income	-181.33M	-187.12M	40.72M	-149.19M	-101.22M	-26.64M
Balance Sheet
Total Assets	688.24M	823.23M	802.96M	688.59M	756.49M	746.26M
Cash, Cash Equivalents and Short-Term Investments	462.26M	352.12M	463.00M	451.09M	576.48M	642.69M
Total Debt	114.31M	117.83M	127.88M	116.49M	79.87M	11.76M
Total Liabilities	345.37M	401.78M	254.40M	240.68M	199.40M	122.24M
Stockholders Equity	342.87M	421.44M	548.56M	447.89M	557.07M	624.01M
Cash Flow
Free Cash Flow	24.37M	-164.68M	-150.14M	-127.70M	-77.84M	14.22M
Operating Cash Flow	27.50M	-157.37M	-136.73M	-119.68M	-70.67M	16.76M
Investing Cash Flow	89.21M	148.84M	193.03M	90.02M	-16.81M	-381.72M
Financing Cash Flow	2.94M	10.12M	9.05M	2.11M	7.95M	541.27M

Schrodinger Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 19.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 19.3 is above the 20-day moving average (MA) of 19.11, below the 50-day MA of 19.85, and below the 200-day MA of 21.69, indicating a neutral trend. The MACD of -0.14 indicates Negative momentum. The RSI at 49.51 is Neutral, neither overbought nor oversold. The STOCH value of 41.56 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	77 Outperform	$47.58B	59.55	12.20%	―	15.33%	30.51%
CERT	65 Neutral	$1.90B	238.87	0.75%	―	11.61%	―
SLP	63 Neutral	$299.69M	-4.74	-51.09%	0.40%	20.01%	-750.59%
DH	52 Neutral	$567.08M	-1.50	-74.11%	―	-5.24%	23.59%
SOPH	51 Neutral	$279.10M	-3.76	-95.70%	―	7.31%	-7.49%
SDGR	50 Neutral	$1.42B	―	-44.40%	―	18.59%	10.96%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

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.