SNDL (SNDL) AI Stock Analysis

• Market Cap: $635.78M
• Dividend Yield: N/A
• Average Volume (3M): 4.31M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.80
• Revenue Growth: 0.70%
• EPS Growth: 15.62%
• Country: US
• Employees: 2,604
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): <0.01
• Shares Outstanding: 257,400,000
• 10 Day Avg. Volume: 2,542,599
• 30 Day Avg. Volume: 4,313,592
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.41
• Enterprise Value/Revenue: 0.28
• Enterprise Value/Gross Profit: 1.06
• Enterprise Value/Ebitda: -5.36
• 1Y Price Target: $5.00
• Price Target Upside: 102.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: $2.00 ▼(-19.03% Downside)

SNDL's overall stock score is driven by strong earnings call results and bullish technical indicators. However, profitability challenges and valuation concerns weigh on the score. The company's strong balance sheet and growth in the cannabis segment are positive factors, but negative free cash flow and legal issues in the U.S. market present risks.

SNDL Business Overview & Revenue Model

Company Description

SNDL Inc. is a Canadian cannabis company that operates in the cultivation, production, and distribution of marijuana products. Founded in 2006 and headquartered in Alberta, SNDL focuses on providing high-quality cannabis products to both the recreational and medicinal markets. The company also engages in retail operations, with a network of cannabis dispensaries, and is involved in various sectors of the cannabis industry, including branded products and innovative cannabis solutions.

How the Company Makes Money

SNDL generates revenue primarily through the sale of cannabis products, which includes dried flower, oils, edibles, and other cannabis-derived goods. The company's revenue model is multifaceted, comprising direct sales from its retail stores and online platforms, wholesale distribution to other retailers, and partnerships with other cannabis brands for product development and co-branding initiatives. Additionally, SNDL has made strategic acquisitions and partnerships that enhance its market reach and product offerings, contributing to its overall earnings. The growth of the legal cannabis market in Canada and potential expansion into international markets also play a significant role in driving revenue for the company.

SNDL Financial Statement Overview

Summary

SNDL shows improving revenue and cash flow metrics but struggles with profitability. The balance sheet is strong with low leverage, providing financial stability. However, consistent negative net income affects overall performance and remains a key area for improvement.

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.

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.

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.

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
EBITDA	-48.77M	-41.20M	-99.15M	-306.83M	-127.41M	-180.69M
Net Income	-106.95M	-94.80M	-172.66M	-372.43M	-230.18M	-255.93M
Balance Sheet
Total Assets	1.31B	1.35B	1.47B	1.56B	1.42B	294.87M
Cash, Cash Equivalents and Short-Term Investments	224.34M	248.89M	201.64M	311.76M	649.03M	60.38M
Total Debt	147.95M	152.27M	167.03M	169.83M	33.47M	1.44M
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

• Technical Analysis Sentiment: Positive
• Last Price: 2.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNDL, the sentiment is Positive. The current price of 2.47 is below the 20-day moving average (MA) of 2.48, above the 50-day MA of 2.05, and above the 200-day MA of 1.67, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 59.10 is Neutral, neither overbought nor oversold. The STOCH value of 64.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SNDL.

SNDL Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SNDL	61 Neutral	$635.78M	―	-8.30%	―	0.70%	15.62%
COSM	53 Neutral	33.24M	-1.11	-65.96%	―	0.00%	0.00%
TLRY	50 Neutral	1.34B	-0.52	-198.52%	―	4.10%	-594.06%
FLGC	46 Neutral	19.39M	-0.97	-352.71%	―	-24.10%	38.17%
YCBD	39 Underperform	6.13M	-0.11	-188.45%	―	-7.80%	90.17%
IXHL	39 Underperform	49.66M	-0.42	0.00%	―	0.00%	0.00%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

SNDL Corporate Events

SNDL Announces Successful Outcomes of 2025 Annual Meeting

On July 31, 2025, SNDL Inc. announced the successful passage of resolutions at its Annual and Special Meeting of Shareholders. Shareholders approved the fixing of the number of directors at seven, elected a slate of directors, re-appointed CBIZ Inc. as auditors, and approved the company’s Stock Option Plan and Restricted and Performance Share Unit Plan. This meeting outcome reinforces SNDL’s governance structure and strategic plans, potentially strengthening its market position and stakeholder confidence.

SNDL Achieves Positive Operating Income in Q2 2025

SNDL Inc. reported its financial results for the second quarter of 2025, achieving positive operating income for the first time in its history. The company saw a 7.3% increase in net revenue, driven by significant growth in its cannabis business and a resilient liquor retail segment. Despite a negative cash flow, SNDL’s strategic initiatives, including acquiring cannabis retail stores and launching a loyalty program, position it for future growth. The company remains debt-free with substantial cash reserves, allowing it to pursue organic and inorganic growth opportunities. CEO Zach George emphasized the company’s commitment to sustainable, long-term value creation and its strategic advantage in the dynamic cannabis industry.

SNDL Inc. Reports Increased Revenue for Q2 2025

SNDL Inc. released its condensed consolidated interim financial statements for the three and six months ended June 30, 2025. The company reported a net revenue of CAD 244.8 million for the second quarter of 2025, an increase from CAD 228.1 million in the same period in 2024. The gross profit for the quarter was CAD 67.6 million, up from CAD 58.2 million in the previous year. Despite the increased revenue and gross profit, SNDL Inc. continues to face challenges, as indicated by a comprehensive loss for the period.