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Sunopta (STKL)
NASDAQ:STKL
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SunOpta
(NASDAQ:STKL)
59Neutral
Positive Factors
Financial Confidence
The company has authorized a share repurchase program, highlighting confidence in its financial position.
Market Position
SunOpta continues to be a supplier of choice for the on-trend plant-based space, and this momentum is expected to continue into 2025, with revenue guidance calling for growth of 7-11%.
Volume Growth
SunOpta is experiencing double-digit volume growth, which indicates strong demand for its products.
Negative Factors
EBITDA Guidance
FY25 EBITDA guidance is viewed as lighter than expected and requires further exploration.
FY25 Guidance
Q4's modest upside to revenue & EBITDA was overshadowed by lighter gross margin, including growth investments & temporary supply chain dislocation, and lighter FY25 guidance for revenue and EBITDA.
Gross Margin
Gross margin of 10.3% was slightly below expectations due to additional depreciation from newly launched production assets, along with short-term investments aimed at enhancing long-term supply chain efficiency.
SunOpta (STKL) vs. S&P 500 (SPY)
Market Cap
$556.90M
Dividend YieldN/A
Average Volume (3M)1.01M
Price to Earnings (P/E)―
Beta (1Y)1.05
Revenue Growth2.44%
EPS Growth91.41%
CountryUS
Employees1,248
SectorConsumer Defensive
Sector Strength81
IndustryPackaged Foods
Share Statistics
EPS (TTM)0.04
Shares Outstanding117,242,320
10 Day Avg. Volume866,048
30 Day Avg. Volume1,013,417
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap2.37
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit13.72
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$9.75Price Target Upside60.36% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
SunOpta Business Overview & Revenue Model
Company DescriptionSunOpta Inc. (STKL) is a leading company in the health and wellness sector, focusing on the development, production, and distribution of plant-based and organic food products. The company operates primarily in two segments: Plant-Based Foods and Beverages, and Fruit-Based Foods and Beverages. Its core products include plant-based beverages, snacks, and frozen fruit, catering to a growing consumer demand for sustainable and healthy food options.
How the Company Makes MoneySunOpta makes money through the sale of its diverse range of plant-based and fruit-based food and beverage products. The company generates revenue by supplying both retail and foodservice markets, leveraging its extensive distribution network. Key revenue streams include private label products, co-manufacturing services, and branded product offerings. SunOpta also benefits from strategic partnerships with retailers and foodservice providers, which enhance its market reach and customer base. Additionally, the company's focus on innovation and sustainable practices helps attract a loyal customer following, contributing significantly to its earnings.
SunOpta Financial Statement Overview
Summary
SunOpta is showing signs of recovery with a 14.85% revenue growth and improved cash flow. However, profitability remains a challenge with negative net income and high leverage, as indicated by a debt-to-equity ratio of 1.06. The company is improving its operational efficiency, but financial risks due to high debt levels persist.Income Statement
SunOpta has shown a positive revenue growth of 14.85% from 2023 to 2024, indicating a strong recovery from previous declines. However, the company still faces profitability challenges, as reflected in its negative net income and net profit margin. The gross profit margin improved slightly to 13.31% in 2024, and EBIT margin increased to 2.15%, showing better operational efficiency.65
Positive
Balance Sheet
The company has a high debt-to-equity ratio of 1.06 in 2024, suggesting significant leverage which could pose financial risks. The equity ratio of 22.23% indicates a moderate level of equity relative to total assets. Return on equity remains negative due to negative net income, impacting overall financial health.50
Neutral
Cash Flow
SunOpta improved its free cash flow from negative in 2023 to positive in 2024, reflecting better cash management. Operating cash flow to net income ratio of -3.01 in 2024 shows reliance on non-operating factors to generate cash. While free cash flow to net income ratio is 1.17, signaling better cash availability against negative net income.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 723.73M | 630.30M | 934.66M | 812.62M | 789.21M | Gross Profit |
| 96.30M | 88.62M | 122.85M | 98.08M | 109.08M | EBIT |
| 15.59M | 8.27M | 1.13M | 2.37M | -12.72M | EBITDA |
| 53.71M | 38.22M | 41.31M | 36.08M | 11.16M | Net Income Common Stockholders |
| -17.39M | -175.02M | -9.52M | -4.14M | -47.30M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.55M | 306.00K | 679.00K | 227.00K | 251.00K | Total Assets |
| 668.53M | 669.42M | 855.85M | 755.12M | 585.62M | Total Debt |
| 381.57M | 379.14M | 399.12M | 275.83M | 107.06M | Net Debt |
| 380.02M | 378.83M | 398.44M | 275.61M | 106.80M | Total Liabilities |
| 519.93M | 493.89M | 508.58M | 421.99M | 252.69M | Stockholders Equity |
| 148.59M | 175.53M | 347.27M | 333.13M | 332.93M |
| Cash Flow | Free Cash Flow | |||
| 18.10M | -31.28M | -68.05M | -104.80M | 66.94M | Operating Cash Flow |
| 50.03M | 14.84M | 60.58M | -21.43M | 91.70M | Investing Cash Flow |
| -18.68M | 44.03M | -106.82M | -94.45M | 324.52M | Financing Cash Flow |
| -31.09M | -50.80M | 46.70M | 115.86M | -417.68M |
SunOpta Technical Analysis
Positive
6.08
Price Trends
4.83
Positive
6.14
Negative
6.31
Negative
Market Momentum
0.16
Negative
73.61
Negative
66.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STKL, the sentiment is Positive. The current price of 6.08 is above the 20-day moving average (MA) of 4.39, above the 50-day MA of 4.83, and below the 200-day MA of 6.31, indicating a neutral trend. The MACD of 0.16 indicates Negative momentum. The RSI at 73.61 is Negative, neither overbought nor oversold. The STOCH value of 66.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STKL.
SunOpta Risk Analysis
SunOpta disclosed 43 risk factors in its most recent earnings report. SunOpta 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
SunOpta Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $230.86M | 30.94 | 6.42% | ― | 2.00% | -37.09% | |
71 Outperform | $353.78M | 39.27 | 13.64% | ― | 16.67% | -20.96% | |
71 Outperform | $611.55M | 16.13 | 6.35% | ― | 4.01% | 22.46% | |
64 Neutral | $8.79B | 14.77 | 5.05% | 174.29% | 3.63% | 3.48% | |
59 Neutral | $556.90M | ― | -5.95% | ― | 2.44% | 91.41% | |
45 Neutral | $499.36M | ― | -32.48% | 17.00% | -7.06% | -83.82% | |
42 Neutral | $249.98M | ― | -31.95% | ― | -8.50% | -186.18% |
* Consumer Defensive Sector Average
Performance Comparison
STKL
SunOpta
6.08
0.21
3.58%
BGS
B&G Foods
4.47
-3.28
-42.32%
LWAY
Lifeway Foods
24.15
-2.62
-9.79%
NATR
Nature's Sunshine Products
13.80
-1.71
-11.03%
SENEA
Seneca Foods
88.50
28.94
48.59%
HAIN
Hain Celestial
1.58
-6.02
-79.21%
SunOpta Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 34.22%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call presents a positive outlook with revenue and EBITDA exceeding expectations due to strong category growth and operational improvements. However, there are concerns regarding gross margin pressures and challenges at the Midlothian facility, which could impact future performance. The company's proactive approach to mitigating these issues and strong financial metrics provide confidence in continued growth.Q1-2025 Updates
Positive Updates
Revenue Growth Exceeds Expectations
Q1 revenue increased by 9%, driven by 12% volume growth. Adjusted EBITDA of $22.4 million exceeded expectations, leading to an increase in the lower end of fiscal year 2025 guidance.
Strong Category and Customer Performance
All categories are growing, with plant-based beverages expected to grow high-single-digits and better-for-you fruit snacks and protein shakes exceeding 15% growth. Top five customers delivered year-over-year growth in Q1 2025.
Increased Production Capacity
The company's aseptic network increased Q1 volume production by over 6% from Q4 2024, and fruit snacks network produced 7% more units in Q1 2025 than in Q1 2024 with the same equipment.
Improved Financial Metrics
Debt decreased by $4 million to $261 million, with leverage reduced to 2.9 times. Cash generation was strong with $22 million of cash provided by operating activities.
Negative Updates
Gross Margin Decrease
Adjusted gross margin decreased by 170 basis points to 15.3%, due to investments in talent and infrastructure, inefficiencies at the Midlothian facility, and incremental depreciation.
Midlothian Facility Challenges
A more restrictive regulatory environment and subscale wastewater management system at the Midlothian facility is causing a bottleneck. This is expected to result in $500,000 per quarter in excess wastewater haul-off fees until mid-2026.
Company Guidance
During SunOpta's first quarter fiscal 2025 earnings conference call, the company provided several key metrics and guidance updates. Revenue for Q1 increased by 9%, driven by a 12% growth in volume, and adjusted EBITDA exceeded expectations at $22.4 million. The company raised the lower end of its fiscal year 2025 revenue guidance to a range of $788 million to $805 million, reflecting 9% to 11% growth, and adjusted EBITDA guidance to between $99 million and $103 million, representing a 12% to 16% increase. SunOpta also outlined its four-point plan aimed at improving gross margins, with targets of 18% to 19% for Q4 2025 and a full-year gross margin reaching 20% plus by 2027. The company expressed confidence in its long-term revenue growth target of approximately 10%, supported by a robust new business pipeline valued at nearly 25% of annual sales volume. Additionally, SunOpta announced a $25 million share repurchase program, underscoring its commitment to shareholder value creation while maintaining a focus on reducing leverage to 2.5 times by the end of 2025.SunOpta Corporate Events
Stock BuybackBusiness Operations and StrategyFinancial Disclosures
SunOpta Announces $25 Million Share Repurchase Program
Positive
May 7, 2025
On May 7, 2025, SunOpta announced a share repurchase program of up to $25 million, allowing flexibility in acquiring shares based on market conditions and financial priorities. The company reported a 9% increase in revenue to $202 million for the first quarter of 2025, driven by volume growth, and raised its 2025 outlook, highlighting strong cash flow and a focus on margin improvement and deleveraging.
Spark’s Take on STKL Stock
According to Spark, TipRanks’ AI Analyst, STKL is a Neutral.
SunOpta’s stock score of 58 reflects a company working towards recovery with strong revenue growth and improved cash flow, yet facing challenges with profitability and high leverage. Technical indicators suggest a bearish trend, while valuation metrics indicate unprofitability. The future outlook from the earnings call is positive, with growth plans in place, but operational issues and margin pressures remain concerns.
To see Spark’s full report on STKL stock, click here.
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.