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SchrodingerSDGR +8.56%73 5-Year RORE % is -6.16 as of Jun. 2026. GuruFocus rates SDGR with a GF Score™ of 73/100 and a GF Value™ of $25.98 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 503 Healthcare Providers & Services companies, Schrodinger ranks worse than 58.45% on this metric.
Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Schrodinger's 5-Year RORE % for the quarter that ended in Jun. 2026 was -6.16%.
The industry rank for Schrodinger's 5-Year RORE % or its related term are showing as below:
SDGR's 5-Year RORE % is ranked worse than 58.45% of 503
companies
in the Healthcare Providers & Services industry
Industry Median: 2.32
vs SDGR: -6.16
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 5-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Schrodinger 5-Year RORE % Related Terms
Schrodinger 5-Year RORE % Historical Data
* Premium members only.
The historical data trend for Schrodinger's 5-Year RORE % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
SDGR vs CERT, OMDA, GDRX: 5-Year RORE % Comparison
For the Health Information Services subindustry, Schrodinger's 5-Year RORE %, along with its competitors' market caps and 5-Year RORE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Schrodinger 5-Year RORE % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Schrodinger's 5-Year RORE % distribution charts can be found below:
* The bar in red indicates where Schrodinger's 5-Year RORE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of 5-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Jun. 2026 and 5-year before.
Schrodinger (SDGR) has a 5-Year RORE % of -6.16 as of Jun. 2026. 5-Year RORE % shows how much a company earns by reinvesting its retained earnings in 5-year. View historical data on Schrodinger and its competitors. According to the industry distribution chart, Schrodinger ranks #294 out of 503 companies in the Healthcare Providers & Services industry, placing it in the top 58.4%.
Is Schrodinger's 5-Year RORE % too high?
Schrodinger's current 5-Year RORE % is -6.16. Based on the distribution chart, Schrodinger ranks #294 out of 503 companies in the Healthcare Providers & Services industry, which is below the industry midpoint. Overall, Schrodinger has a GF Score™ of 73/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Schrodinger's 5-Year RORE % compare to CERT and OMDA?
According to the Healthcare Providers & Services industry distribution chart, Schrodinger ranks #294 out of 503 companies for 5-Year RORE %. This places Schrodinger in the lower half of its industry. The industry median 5-Year RORE % is 2.32. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year RORE % for a Healthcare Providers & Services company?
The median 5-Year RORE % among Healthcare Providers & Services companies is 2.32, based on 503 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year RORE % mean?
A high 5-Year RORE % can signal that a stock is expensive relative to its fundamentals. 5-Year RORE % shows how much a company earns by reinvesting its retained earnings in 5-year. View historical data on Schrodinger and its competitors. For the Healthcare Providers & Services industry, the median 5-Year RORE % is 2.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Schrodinger's current 5-Year RORE % is -6.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Schrodinger stock overvalued right now?
Based on GuruFocus' analysis, Schrodinger (SDGR) is currently considered Possible Value Trap. The stock's GF Value™ is $25.98, compared to a current price of $17.82 — trading 31.4% below its estimated fair value. The current 5-Year RORE % is -6.16. Schrodinger's overall GF Score™ is 73/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year RORE % calculated?
5-Year RORE % is calculated from a company's financial statements. For Schrodinger (SDGR), the current 5-Year RORE % is -6.16 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Schrodinger (SDGR) Overvalued in 2026?
Based on GuruFocus' analysis, Schrodinger stock appears to be undervalued.
The current stock price of $17.82 is trading 31.4% below its estimated GF Value™ of $25.98.
GuruFocus considers Schrodinger to be Possible Value Trap.
Key valuation signals for SDGR:
5-Year RORE %: -6.16
GF Value™: $25.98 vs. price of $17.82 (31.4% below fair value)
No single metric tells the full story. See the SDGR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Schrodinger Inc is a healthcare-based software company. It offers software solutions designed to support and accelerate the discovery, design, and optimization of molecules. The company operates in two reportable segments: Software and Drug Discovery. The software segment is focused on selling software to transform drug discovery across the life sciences industry, as well as to customers in materials science industries. The drug discovery segment is focused on generating revenue from a diverse portfolio of preclinical and clinical programs, internally and through collaborations, that have various stages of discovery and development. The majority of the company's revenue is derived from the Software segment. Geographically, it derives the maximum revenue from the United States.
73GF Score
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