Schrodinger (SDGR) AI Stock Analysis

• Market Cap: $1.58B
• Dividend Yield: N/A
• Average Volume (3M): 1.24M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.07
• Revenue Growth: 22.29%
• EPS Growth: -32.89%
• Country: US
• Employees: 891
• Sector: Healthcare
• Sector Strength: 41
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -0.82
• Shares Outstanding: 64,212,690
• 10 Day Avg. Volume: 1,152,913
• 30 Day Avg. Volume: 1,236,666
• PEG Ratio: 1.58
• Price to Book (P/B): 3.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.85
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $30.75
• Price Target Upside: 42.89% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 54 Neutral
• Price Target: $21.00 ▼(-2.42%Downside)

Schrödinger's overall stock score reflects a company with strong strategic growth prospects and promising partnerships, particularly in software and drug discovery. However, financial challenges such as consistent net losses and valuation concerns weigh heavily. Ongoing restructuring and corporate changes add an element of risk, but the positive earnings call sentiment and strategic progress provide a counterbalance.

Positive Factors

Financial Performance

Schrödinger's commercial quarter outperformed Street expectations on the topline, maintaining their 2025 guide despite macro uncertainty.

Market Positioning

Schrödinger remains a stock of choice in tech-enabled drug discovery, offering a durable growth story that outperforms in volatile market conditions.

Strategic Partnerships

Collaboration with Novartis resulted in meaningful cash inflows, enhancing Schrödinger's balance sheet with a significant cash reserve.

Negative Factors

Financial Challenges

The net loss reported was higher than analyst expectations, indicating financial challenges.

Investor Sentiment

Feedback from specialist/hedge fund investors has skewed negative, arguing a fact pattern that suggests internal pipeline trouble.

Operational Challenges

The unexpected timing of workforce reduction will prompt some volatility on investor nervousness on forward growth trajectory.

Schrodinger Business Overview & Revenue Model

Company Description

Schrödinger, Inc. is a leading provider of advanced molecular simulations and enterprise software solutions for the pharmaceutical, biotechnology, and materials science sectors. The company leverages its cutting-edge physics-based computational platform to accelerate drug discovery and materials design, offering a suite of software tools for molecular modeling, simulation, and data analysis. Schrödinger's core products include its flagship software platform for drug discovery and development, which is used by scientists and researchers worldwide to predict the properties and behavior of molecules with high accuracy.

How the Company Makes Money

Schrödinger generates revenue through multiple streams, primarily from software licensing, drug discovery collaborations, and materials science research partnerships. The company's software is licensed to pharmaceutical and biotechnology companies, academic institutions, and government laboratories, providing them with powerful tools for molecular modeling and simulations. Schrödinger also engages in strategic collaborations with pharmaceutical companies to co-develop novel therapeutics, sharing the potential commercial success of these projects. In addition, the company partners with materials science entities to apply its simulation technology to develop innovative materials, further diversifying its revenue streams. These collaborations often include milestone payments and royalties based on the success of the projects.

Schrodinger Financial Statement Overview

Summary

Schrodinger has shown revenue growth but faces significant challenges in profitability and cash flow generation. Increasing leverage and negative cash flows present potential risks to its financial stability.

Income Statement

Schrodinger's revenue has shown a positive trend with a consistent increase from 2019 to 2023. However, the company has faced continuous net losses, with significant negative EBIT and EBITDA margins, indicating challenges in achieving profitability. The gross profit margin improved slightly in recent years, but the negative net profit margin remains a concern for financial stability.

Balance Sheet

The balance sheet shows a relatively stable equity position, although the debt-to-equity ratio has increased over time, reflecting higher leverage. The company has maintained a positive equity ratio, indicating a moderate level of financial health. However, the increasing liabilities and decreasing equity could pose long-term risks if not managed effectively.

Cash Flow

Cash flow analysis reveals a concerning trend with consistently negative operating and free cash flows, indicating that the company struggles to generate cash from its core operations. The negative free cash flow to net income ratio further highlights this issue. Positive financing cash flows indicate reliance on external financing, which might not be sustainable long-term.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
207.54M	216.67M	180.96M	137.93M	108.09M
	Gross Profit
132.08M	140.69M	101.02M	65.62M	63.47M
	EBIT
-209.30M	-177.45M	-149.12M	-111.44M	-60.92M
	EBITDA
-209.30M	-171.90M	-142.47M	-108.60M	-57.26M
	Net Income Common Stockholders
-187.12M	40.72M	-149.19M	-101.22M	-26.64M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
352.12M	463.00M	451.09M	576.48M	642.69M
	Total Assets
823.23M	802.96M	688.59M	756.49M	746.26M
	Total Debt
117.83M	127.88M	116.49M	79.87M	11.76M
	Net Debt
-29.50M	-27.43M	26.02M	-40.40M	-190.53M
	Total Liabilities
401.78M	254.40M	240.68M	199.40M	122.24M
	Stockholders Equity
421.44M	548.56M	447.89M	557.07M	624.01M
Cash Flow		Free Cash Flow
-164.68M	-150.14M	-127.70M	-77.84M	14.22M
	Operating Cash Flow
-157.37M	-136.73M	-119.68M	-70.67M	16.76M
	Investing Cash Flow
148.84M	193.03M	90.02M	-16.81M	-381.72M
	Financing Cash Flow
10.12M	9.05M	2.11M	7.95M	541.27M

Schrodinger Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.52
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 Negative. The current price of 21.52 is below the 20-day moving average (MA) of 23.13, below the 50-day MA of 22.79, and above the 200-day MA of 21.20, indicating a neutral trend. The MACD of -0.67 indicates Positive momentum. The RSI at 39.51 is Neutral, neither overbought nor oversold. The STOCH value of 32.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SDGR.

Schrodinger Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VEEV	78 Outperform	$38.79B	54.16	14.07%	―	14.78%	39.33%
SLP	78 Outperform	$648.18M	90.20	3.96%	0.75%	21.49%	-31.23%
CERT	74 Outperform	$1.84B	―	-0.25%	―	9.37%	95.72%
SDGR	54 Neutral	$1.58B	―	-43.33%	―	22.29%	-32.89%
DH	54 Neutral	$479.99M	―	-86.36%	―	-3.04%	-152.59%
Sector *	53 Neutral	$5.18B	3.30	-45.04%	2.85%	16.82%	-0.65%
SOPH	51 Neutral	$193.81M	―	-60.75%	―	4.66%	11.33%

Schrodinger Corporate Events

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.