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Sndl Inc. (SNDL)
:SNDL
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SNDL
(NASDAQ:SNDL)
68Neutral
SNDL (SNDL) vs. S&P 500 (SPY)
Market Cap
$400.90M
Dividend YieldN/A
Average Volume (3M)2.09M
Price to Earnings (P/E)―
Beta (1Y)1.07
Revenue Growth-2.41%
EPS Growth52.78%
CountryUS
Employees2,516
SectorTechnology
Sector Strength45
IndustryPharmaceuticals
Share Statistics
EPS (TTM)-0.31
Shares Outstanding265,500,000
10 Day Avg. Volume1,831,017
30 Day Avg. Volume2,088,176
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.63
Price to Cash Flow (P/CF)6.30
P/FCF Ratio6.30
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 Upside94.81% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
SNDL Business Overview & Revenue Model
Company DescriptionSundial Growers, Inc. produces, distributes, and sells cannabis. It intends to target the premium segment of the adult-use cannabis market. The company was founded by Stanley J. Swiatek and is headquartered in Calgary, Canada.
How the Company Makes MoneySNDL makes money through multiple revenue streams, primarily driven by its cannabis operations. The company generates income from the cultivation and sale of cannabis products, which are distributed through its retail network and wholesale channels. SNDL also capitalizes on its alcoholic beverage segment, producing and marketing a variety of brands to add to its revenue base. Furthermore, the company may engage in strategic partnerships and acquisitions to enhance its market presence and operational efficiencies, thus contributing to its overall earnings. SNDL's diverse portfolio and strategic market positioning help it capture a significant share of the consumer goods landscape.
SNDL Financial Statement Overview
Summary
SNDL shows strong revenue growth and improved cash flows, yet faces profitability challenges. The balance sheet is robust with low leverage, but achieving consistent profitability is essential.Income Statement
SNDL shows strong revenue growth with a substantial increase from $561 million in 2021 to $911 million TTM. However, the company continues to face profitability challenges with negative EBIT and net income margins. The gross profit margin has improved to 25.1% TTM, reflecting enhancements in operational efficiency. Despite these improvements, negative EBIT and EBITDA margins highlight ongoing operational losses.65
Positive
Balance Sheet
SNDL maintains a strong equity base with an equity ratio of 83.7% TTM, demonstrating financial stability. The debt-to-equity ratio is low at 0.13, indicating prudent leverage management. However, the company has not achieved positive return on equity due to persistent net losses, which is a key area for improvement.70
Positive
Cash Flow
The company has shown significant improvement in cash flow, turning positive with $34 million in free cash flow TTM compared to negative figures in prior periods. The operating cash flow to net income ratio is favorable, suggesting efficient cash utilization relative to net losses. Continued positive cash flow is crucial for sustaining operations and funding growth initiatives.75
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 911.22M | 909.01M | 712.20M | 56.13M | 60.92M | 75.86M | Gross Profit |
| 228.87M | 190.41M | 140.38M | -6.99M | -49.87M | 39.75M | EBIT |
| -112.66M | -162.82M | -61.27M | -132.13M | -185.40M | -59.59M | EBITDA |
| -51.34M | -99.15M | -306.83M | -127.41M | -180.69M | -155.14M | Net Income Common Stockholders |
| -110.44M | -172.66M | -372.43M | -230.18M | -255.93M | -271.63M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 14.12M | 201.64M | 311.76M | 649.03M | 60.38M | 45.34M | Total Assets |
| 110.20M | 1.47B | 1.56B | 1.42B | 294.87M | 510.04M | Total Debt |
| 80.25M | 167.03M | 169.83M | 33.47M | 1.44M | 194.86M | Net Debt |
| 66.13M | -28.01M | -109.75M | -524.78M | -58.94M | 149.53M | Total Liabilities |
| 118.11M | 243.82M | 231.69M | 98.13M | 25.18M | 288.84M | Stockholders Equity |
| -7.91M | 1.21B | 1.31B | 1.33B | 265.24M | 216.48M |
| Cash Flow | Free Cash Flow | ||||
| 34.30M | -24.58M | -17.57M | -159.23M | -60.67M | -250.87M | Operating Cash Flow |
| 44.25M | -16.65M | -6.71M | -155.44M | -57.49M | -112.74M | Investing Cash Flow |
| 55.08M | -24.82M | -230.16M | -496.28M | -70.88M | -213.14M | Financing Cash Flow |
| -38.33M | -43.08M | -41.79M | 1.15B | 142.75M | 358.27M |
SNDL Technical Analysis
Negative
1.54
Price Trends
1.75
Negative
1.86
Negative
1.96
Negative
Market Momentum
-0.07
Positive
35.86
Neutral
21.28
Neutral
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 1.54 is below the 20-day moving average (MA) of 1.66, below the 50-day MA of 1.75, and below the 200-day MA of 1.96, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 35.86 is Neutral, neither overbought nor oversold. The STOCH value of 21.28 is Neutral, 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 (58)
Financial Indicators
Performance Comparison
SNDL
SNDL
1.54
0.23
17.56%
CGC
Canopy Growth
1.05
-1.72
-62.09%
OGI
OrganiGram Holdings
1.02
-0.84
-45.16%
ACB
Aurora Cannabis
4.40
1.51
52.25%
CRON
Cronos Group
1.89
-0.09
-4.55%
TLRY
Tilray
0.64
-0.96
-60.00%
SNDL Earnings Call Summary
Earnings Call Date: Nov 5, 2024 | % Change Since: -28.70% | Next Earnings Date: Mar 18, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with significant achievements in gross margin and free cash flow, alongside strategic acquisitions positioning the company for future growth. However, challenges such as declines in the Liquor segment and negative adjusted operating income tempered the otherwise positive results.Highlights
Record-Breaking Gross Margin
Achieved an all-time high gross margin of 26.6% in Q3 2024, propelled by margin expansion in Liquor retail and significant improvements in Cannabis operations.
Positive Free Cash Flow
Reported a positive free cash flow of $9.2 million for Q3 2024, marking an upward trend compared to previous quarters.
Strong Cannabis Segment Growth
Cannabis segment posted an 8% growth in net revenue, contributing to a $14 million improvement in gross profit.
Strategic Acquisitions
Closed the acquisition of Indiva, emerging as a leader in the Canadian infused edibles category, and privatized Nova to benefit fully from retail segment growth.
Liquidity and Debt Management
Increased cash balances from $183 million to $263 million with no outstanding debt and an active share repurchase program.
Lowlights
Liquor Segment Revenue Decline
Liquor retail segment experienced a 4.8% decline in net revenue compared to the prior year, reflecting market softness across North America.
Negative Adjusted Operating Income
Adjusted operating income was negative $16.6 million, a slight decrease compared to the prior year, influenced by unfavorable fair value adjustments.
Free Cash Flow Lower Year-over-Year
Despite being positive, free cash flow in Q3 2024 was lower than the same period in the previous year due to different phasing of inventory buildup.
Company Guidance
In the third quarter of 2024, SNDL reported robust financial performance, achieving a record gross margin of 26.6% and positive free cash flow of $9.2 million. Cannabis segments led with an 8% revenue growth, while Liquor retail faced a marginal revenue decline but improved its operating income by 42.5% year-over-year. The company increased its cash balances to $263 million, maintaining zero outstanding debt. Strategic initiatives included a $20 million annualized savings restructuring program and acquisitions of Indiva and Nova, enhancing SNDL's position in the Canadian infused edibles market. Despite a negative adjusted operating income of $16.6 million, primarily due to a $13.4 million fair value adjustment, the company demonstrated improved profitability and is on track to achieve positive free cash flow for the calendar year.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.