One-glance verdict
Overvalued
$8.49 our estimate vs market $22.60
Wall Street consensus: $25.57 (201.0% higher than our fair-value estimate)
166% above our estimate, beyond the bull case
Fundamentals snapshot
Schrödinger, Inc.
SDGR · NMS · Healthcare · Health Information Services
Current price
$22.60
52-week range
$10.95 - $33.78
Market cap
$1.69B
Balance sheet
Healthy
-157.90x Concerning
Net cash $305.74M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
1 Risk
2 rewards · 1 risks
- Reward Revenue grew 1.2% last year.
- Reward Free cash flow was positive in 2/10 years.
- Risk Return on equity was -16.2% last year — the company lost money on shareholders' equity.
What this company does
Schrödinger, Inc.
Schrödinger develops special computer software that helps scientists discover new medicines and materials by simulating how molecules behave. Their main income comes from selling this software to companies in the drug and materials industries, which is important because it shows how much demand there is for their innovative technology. They also work on their own drug projects, which could become a future source of income.
How the company got here
Schrödinger started in 1990, not as a drug maker, but as a company focused on using powerful computer simulations to help discover new molecules. Think of it like using advanced video game technology to design tiny building blocks for medicines and new materials. Over the years, they've refined their approach, building a sophisticated platform that many pharmaceutical and materials science companies now rely on. This evolution has positioned them as a key player in accelerating the early stages of scientific innovation.
What it actually does
Schrödinger provides a sophisticated software platform that uses physics-based simulations to help scientists design new molecules. This means they help researchers predict how different molecules will behave, speeding up the process of finding promising candidates for new drugs or advanced materials. Instead of physically mixing and testing thousands of compounds, scientists can use Schrödinger's tools to virtually screen and design molecules with desired properties, saving significant time and resources.
Software
This part of Schrödinger's business is all about selling access to their powerful simulation software. Companies in the life sciences (like drug developers) and materials science industries pay Schrödinger to use these tools. It's like a subscription service for cutting-edge scientific design software. This segment is a significant contributor to Schrödinger's overall revenue, providing the foundational income that supports their other ventures.
Drug Discovery
Beyond just providing software, Schrödinger also uses its own technology to discover new drugs. In this segment, they build their own pipeline of potential medicines, often working with partners like Novartis. They invest in developing these drug candidates through the early stages of research (preclinical) and even into human testing (clinical). This is a more speculative but potentially high-reward business line, where Schrödinger aims to bring its own discoveries all the way to market.
What management is betting on now
Schrödinger's leadership is focused on expanding the reach and capabilities of their core computational platform. They aim to make their software even more powerful and accessible to a wider range of scientific challenges. Simultaneously, they are actively pursuing their own drug discovery programs, leveraging their technology to create a portfolio of innovative medicines. The strategy involves both growing their software business and achieving success with their internal drug development projects, creating a dual engine for future growth.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-34.60M
FY2024 Q4
$-31.99M
FY2025 Q1
$143.47M
FY2025 Q2
$-52.51M
FY2025 Q3
$-62.36M
FY2025 Q4
$-16.13M
FY2026 Q1
$-17.34M
FY2026 Q2
$-34.43M
Revenue
$58.89M
Net income
$5.97M
Diluted EPS
0.08
Operating cash flow
$-34.07M
Free cash flow
$-34.43M
Fetching…
Sources
Revenue
$58.59M
Net income
$-60.03M
Diluted EPS
-0.81
Operating cash flow
$-14.83M
Free cash flow
$-17.34M
Fetching…
Sources
Revenue
$87.23M
Net income
$32.51M
Diluted EPS
0.45
Operating cash flow
$-16.09M
Free cash flow
$-16.13M
Fetching…
Sources
Revenue
$54.32M
Net income
$-32.80M
Diluted EPS
-0.45
Operating cash flow
$-61.87M
Free cash flow
$-62.36M
Fetching…
Sources
Revenue
$54.76M
Net income
$-43.17M
Diluted EPS
-0.59
Operating cash flow
$-52.20M
Free cash flow
$-52.51M
Fetching…
Sources
Revenue
$59.55M
Net income
$-59.81M
Diluted EPS
-0.82
Operating cash flow
$144.06M
Free cash flow
$143.47M
Fetching…
Sources
Revenue
$88.32M
Net income
$-40.22M
Diluted EPS
-0.55
Operating cash flow
$-31.11M
Free cash flow
$-31.99M
Fetching…
Sources
Revenue
$35.29M
Net income
$-38.14M
Diluted EPS
-0.52
Operating cash flow
$-33.26M
Free cash flow
$-34.60M
Fetching…
Sources
Is it cheap or expensive?
Fair value $8.49 vs current price $22.60
Wall Street consensus is the average analyst price target: $25.57 (201.0% higher than our fair-value estimate).
Our most-likely fair value is $8.49 a share — about 62.4% below today's price of $22.60, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $305.7M - more cash than debt. Interest coverage -157.9x.
Net debt
$-305.74M
Interest coverage
-157.90x
Schrödinger, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
SDGR
BASELINE
Schrödinger, Inc.
Total debt $108.00M Interest coverage -157.90x This is the baseline the peer rows are being compared against.
Total debt $66.64M Interest coverage -358.08x Neither company has much profit cushion over interest right now.
Total debt $301.94M Interest coverage 1.06x This peer still has a real interest-payment cushion, while SDGR does not.
Total debt $30.66M Interest coverage -11.20x Neither company has much profit cushion over interest right now.
Total debt $135.62M Interest coverage -50.24x Neither company has much profit cushion over interest right now.
What you should know
The case for and against SDGR
2 Rewards
1 Risk
Rewards
-
Revenue grew 1.2% last year.
-
Free cash flow was positive in 2/10 years.
Risks
-
Return on equity was -16.2% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
-16.74x
P/B
5.01x
P/S
6.53x
EV/EBITDA
-9.38x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
56.9%
Operating margin
-70.6%
Net margin
-21.0%
ROE
-16.2%
ROA
-14.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.33x
Current ratio
2.71x
Quick ratio
2.62x
Total debt
$108.00M
Total cash
$413.74M
Growth
How the business has been compounding
Revenue TTM
$259.04M
Revenue 5Y CAGR
16.7%
EPS TTM
-0.74
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-126.87M
Free CF TTM
$12.46M
FCF margin
4.8%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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