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Sndl Inc. (SNDL)
:SNDL
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SNDL
(NASDAQ:SNDL)
52Neutral
SNDL (SNDL) vs. S&P 500 (SPY)
Market Cap
$339.64M
Dividend YieldN/A
Average Volume (3M)1.58M
Price to Earnings (P/E)―
Beta (1Y)0.79
Revenue Growth-3.02%
EPS Growth26.00%
CountryUS
Employees2,604
SectorTechnology
Sector Strength65
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.04
Shares Outstanding257,300,000
10 Day Avg. Volume1,882,693
30 Day Avg. Volume1,578,317
Financial Highlights & Ratios
PEG Ratio0.32
Price to Book (P/B)0.44
Price to Sales (P/S)0.00
P/FCF Ratio9.76
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$3.00Price Target Upside127.27% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
SNDL Business Overview & Revenue Model
Company DescriptionSNDL Inc. engages in the production, distribution, and sale of cannabis products in Canada. The company operates through Cannabis Operations and Retail Operations segments. It engages in the cultivation, distribution, and sale of cannabis for the adult-use markets; and private sale of recreational cannabis through corporate owned and franchised retail cannabis stores. The company also produces and distributes inhalable products, such as flower, pre-rolls, and vapes. It offers its products under the Top Leaf, Sundial Cannabis, Palmetto, and Grasslands brands. The company was formerly known as Sundial Growers Inc. and changed its name to SNDL Inc. in July 2022. SNDL Inc. was incorporated in 2006 and is headquartered in Calgary, Canada.
How the Company Makes MoneySNDL Inc. generates revenue through multiple streams within its diversified business model. In the cannabis sector, the company earns money from the cultivation and sale of cannabis products, including dried flower, pre-rolls, vapes, oils, and edibles, aimed at medical patients and adult recreational users. Their retail operations, which include ownership of dispensaries, contribute significantly to revenue by selling a variety of cannabis products. In the alcohol sector, SNDL's revenue is derived from its investments and partnerships with alcohol production and distribution companies, allowing it to capitalize on the growing demand for alcoholic beverages. The company's earnings are further supported by strategic partnerships and acquisitions that enhance its market presence and product offerings across its operational sectors.
SNDL Financial Statement Overview
Summary
SNDL's financial statements show modest revenue growth and improved cash flow metrics, but profitability remains a challenge with consistent negative net income. The balance sheet is strong with low leverage, providing financial stability.Income Statement
The income statement exhibits modest revenue growth of 0.78% TTM, but profitability remains a challenge with negative EBIT and net income. Gross profit margins are improving, reaching 26.58% TTM, which is a positive sign. However, the net profit margin remains negative at -11.53%, indicating ongoing profitability issues.45
Neutral
Balance Sheet
The balance sheet shows a strong equity base with an equity ratio of 83.87% TTM, indicating low leverage and financial stability. The debt-to-equity ratio is low at 0.13, suggesting manageable debt levels. However, the return on equity is negative, reflecting the company's ongoing profitability challenges.60
Neutral
Cash Flow
Cash flow analysis reveals positive free cash flow growth of 12.08% TTM, indicating improved cash generation. The operating cash flow to net income ratio is positive at -0.56, showing better cash flow management. However, the free cash flow to net income ratio is also negative, highlighting continued profitability issues.55
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 927.61M | 920.45M | 909.01M | 712.20M | 56.13M | 60.92M | Gross Profit |
| 246.57M | 240.33M | 190.41M | 140.38M | -6.99M | -49.87M | EBIT |
| -111.49M | -103.81M | -163.17M | -61.27M | -132.13M | -185.40M | EBITDA |
| -48.77M | -41.20M | -99.15M | -306.83M | -127.41M | -180.69M | Net Income Common Stockholders |
| -106.95M | -94.80M | -172.66M | -372.43M | -230.18M | -255.93M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 224.34M | 248.89M | 201.64M | 311.76M | 649.03M | 60.38M | Total Assets |
| 1.31B | 1.35B | 1.47B | 1.56B | 1.42B | 294.87M | Total Debt |
| 147.95M | 152.27M | 167.03M | 169.83M | 33.47M | 1.44M | Net Debt |
| -72.92M | -66.09M | -28.01M | -109.75M | -524.78M | -58.94M | Total Liabilities |
| 212.07M | 215.89M | 243.82M | 231.69M | 98.13M | 25.18M | Stockholders Equity |
| 1.10B | 1.13B | 1.21B | 1.31B | 1.33B | 265.24M |
| Cash Flow | Free Cash Flow | ||||
| 49.20M | 43.90M | -24.58M | -17.57M | -159.23M | -60.67M | Operating Cash Flow |
| 59.40M | 54.91M | -16.65M | -6.71M | -155.44M | -57.49M | Investing Cash Flow |
| 36.61M | 17.76M | -24.82M | -230.16M | -496.28M | -70.88M | Financing Cash Flow |
| -64.10M | -49.36M | -43.08M | -41.79M | 1.15B | 142.75M |
SNDL Technical Analysis
Negative
1.32
Price Trends
1.45
Negative
1.62
Negative
1.83
Negative
Market Momentum
-0.04
Positive
35.46
Neutral
5.39
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNDL, the sentiment is Negative. The current price of 1.32 is below the 20-day moving average (MA) of 1.39, below the 50-day MA of 1.45, and below the 200-day MA of 1.83, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 35.46 is Neutral, neither overbought nor oversold. The STOCH value of 5.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SNDL.
SNDL Risk Analysis
SNDL disclosed 78 risk factors in its most recent earnings report. SNDL reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SNDL Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $11.39B | 10.50 | -6.42% | 2.97% | 7.77% | -11.17% | |
52 Neutral | $339.64M | ― | -9.20% | ― | -3.02% | 26.00% | |
44 Neutral | $431.73M | ― | -31.06% | ― | 11.22% | -108.58% | |
43 Neutral | $16.93M | ― | -291.50% | ― | -22.58% | 82.94% | |
39 Underperform | $3.13M | ― | -240.02% | ― | ― | ― | |
39 Underperform | $11.72M | ― | -58.30% | ― | ― | ― | |
28 Underperform | $743.71K | ― | -60.98% | ― | -18.02% | 78.28% |
* Technology Sector Average
Performance Comparison
SNDL
SNDL
1.32
-1.08
-45.00%
YCBD
cbdMD
0.95
-4.53
-82.66%
TLRY
Tilray
0.46
-1.53
-76.88%
COSM
Cosmos Holdings
0.43
-0.27
-38.57%
FLGC
Flora Growth
0.75
-0.60
-44.44%
IXHL
Incannex Healthcare Limited Sponsored ADR
0.08
-2.54
-96.95%
SNDL Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: -11.41%|
Next Earnings Date:Aug 13, 2025
Earnings Call Sentiment Positive
The earnings call highlighted several positive developments, including record gross margins, significant growth in the cannabis segment, and improved free cash flow. However, concerns such as the SunStream portfolio loss, liquor retail revenue decline, and challenges in adjusted operating income were also noted. The positive elements, particularly in cannabis growth and strategic acquisitions, appear to outweigh the negatives.Q1-2025 Updates
Positive Updates
Record Gross Margin
Achieved a new all-time high gross margin record of 27.6%, despite lower revenue seasonality leverage.
Cannabis Segment Growth
Cannabis business showed a 16.8% growth, marking 13 consecutive quarters of year-on-year revenue gains.
Free Cash Flow Improvement
Free cash flow improved by $5.3 million year-over-year, showing marginally negative at minus $1.1 million despite seasonality.
Cannabis Operations Revenue Surge
The Cannabis Operations segment posted a 53% revenue growth driven by the acquisition of Indiva and productivity improvements.
Strategic Investments and Acquisitions
Acquired a minority stake in High Tide and announced the acquisition of 32 cannabis retail doors from 1CM.
Operational and Efficiency Improvements
Productivity initiatives and efficiency improvements were executed well across all business areas.
Negative Updates
SunStream Portfolio Loss
Reported a $4.5 million loss from the SunStream portfolio due to negative valuation adjustments.
Liquor Retail Revenue Decline
Liquor Retail recorded a net revenue decline of 5.7% due to one less day in February and the shift in Easter store timing.
Adjusted Operating Income Challenge
Adjusted operating income was negative $9 million, impacted by SunStream portfolio adjustments and a swing of $13.6 million year-over-year.
Cannabis Retail Gross Margin Decline
Cannabis Retail gross margin declined by 40 basis points compared to the same period last year.
Company Guidance
During SNDL's First Quarter 2025 Financial Results Conference Call, the company reported several key metrics indicating strong performance and strategic direction. The cannabis segment achieved a 16.8% revenue growth, contributing to a total net revenue of $205 million, up 3.6% year-over-year. SNDL also attained a record-high gross margin of 27.6% despite seasonal revenue dips, driven by improved operational efficiencies and synergies from the Indiva acquisition. However, free cash flow was slightly negative at minus $1.1 million. The company's Liquor Retail segment experienced a 5.7% revenue decline, while Cannabis Retail posted an 8.7% increase. The Board is evaluating SNDL's exposure to US cannabis enterprises and exchange listing status, potentially enabling broader North American operations. Overall, the company remains focused on growth, profitability, and enhancing its workforce, supported by strategic acquisitions and loyalty programs.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.