MeritValue

Schrodinger, Inc.

SDGRdata completeness 88%7 fiscal years on file

Data notes: no data for concept 'totalDebt'; no data for concept 'interestExpense'

The thesis, from the filings

Schrodinger, Inc. earns about -31% on invested capital, but has diluted owners by 4% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$137.9M1$181M2$216.7M3$207.5M3$255.9M3
Net income−$100.4M4−$149.2M5$40.7M6−$187.1M6−$103.3M6
Operating cash flow−$70.7M7−$119.7M8−$136.7M9−$157.4M9$13.9M9
Capital expenditure$7.17M10$8.01M11$13.4M12$7.31M12$1.44M12
Free cash flow (derived)−$77.8M7−$127.7M8−$150.1M9−$164.7M9$12.5M9
Total debt—————
Cash & equivalents$120.3M13$90.5M14$155.3M15$147.3M16$230.5M16
Diluted shares70.6M71.2M75.0M72.7M73.4M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$49.57
your share of equity
Profit it earned you last year
−$14.06
Free cash flow it threw off
$1.7
Debt you’d be carrying
—

10 shares is a claim on $49.57 of net worth that earned you −$14.06 and generated $1.7 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
-31% avg · 5y
FY21 -18%FY22 -33%FY23 10%FY24 -54%FY25 -61%

It earned an average -31% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+4% shares · 5y

Share count is up 4% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001490978-24-000018 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001490978-25-000014 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001490978-26-000010 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0001490978-24-000018 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001490978-25-000014 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001490978-26-000010 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001490978-24-000018 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001490978-25-000014 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001490978-26-000010 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001490978-24-000018 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-12-31 · accession 0001490978-25-000014 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-12-31 · accession 0001490978-26-000010 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-12-31 · accession 0001490978-23-000024 (CashAndCashEquivalentsAtCarryingValue)
  14. 10-K · period ending 2022-12-31 · accession 0001490978-24-000018 (CashAndCashEquivalentsAtCarryingValue)
  15. 10-K · period ending 2023-12-31 · accession 0001490978-25-000014 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2024-12-31 · accession 0001490978-26-000010 (CashAndCashEquivalentsAtCarryingValue)