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SNDL (SNDL)
NASDAQ:SNDL
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SNDL
(NASDAQ:SNDL)
59Neutral
SNDL (SNDL) vs. S&P 500 (SPY)
Market Cap
$349.93M
Dividend YieldN/A
Average Volume (3M)1.65M
Price to Earnings (P/E)―
Beta (1Y)0.78
Revenue Growth-2.89%
EPS Growth47.06%
CountryUS
Employees2,604
SectorTechnology
Sector Strength49
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.26
Shares Outstanding257,300,000
10 Day Avg. Volume1,538,607
30 Day Avg. Volume1,651,717
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.66
Price to Cash Flow (P/CF)6.60
P/FCF Ratio6.60
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 Upside120.59% 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 shows strong revenue growth and a solid balance sheet, but persistent profitability issues and historical cash flow challenges pose risks. Improvement in cash flow is noted, yet operational efficiency needs enhancement to sustain profit growth.Income Statement
SNDL shows a robust revenue growth trend, with a significant increase from 2020 to 2024. However, profitability remains a challenge as evidenced by negative EBIT and net income margins. The company's gross profit margin improved over the years, signaling better cost management. Overall, while revenue growth is promising, persistent losses dampen the income statement outlook.52
Neutral
Balance Sheet
The balance sheet is strong with a high equity ratio and low debt-to-equity ratio, indicating financial stability and low leverage. Stockholders' equity is consistently high relative to total assets, reflecting a solid capital structure. Despite a decrease in cash holdings, the company's debt levels remain manageable, suggesting a stable financial position.75
Positive
Cash Flow
SNDL's cash flow performance has improved, with a positive shift in free cash flow and operating cash flow in 2024 compared to previous years. The operating cash flow to net income ratio is positive, indicating effective cash generation relative to earnings. However, past negative free cash flow and large financing activities hint at underlying cash management challenges.66
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 920.45M | 909.01M | 712.20M | 56.13M | 60.92M | Gross Profit |
| 240.33M | 190.41M | 140.38M | -6.99M | -49.87M | EBIT |
| -103.81M | -163.17M | -61.27M | -132.13M | -185.40M | EBITDA |
| -41.20M | -99.15M | -306.83M | -127.41M | -180.69M | Net Income Common Stockholders |
| -94.80M | -172.66M | -372.43M | -230.18M | -255.93M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 248.89M | 201.64M | 311.76M | 649.03M | 60.38M | Total Assets |
| 1.35B | 1.47B | 1.56B | 1.42B | 294.87M | Total Debt |
| 152.27M | 167.03M | 169.83M | 33.47M | 1.44M | Net Debt |
| -66.09M | -28.01M | -109.75M | -524.78M | -58.94M | Total Liabilities |
| 215.89M | 243.82M | 231.69M | 98.13M | 25.18M | Stockholders Equity |
| 1.13B | 1.21B | 1.31B | 1.33B | 265.24M |
| Cash Flow | Free Cash Flow | |||
| 43.90M | -24.58M | -17.57M | -159.23M | -60.67M | Operating Cash Flow |
| 54.91M | -16.65M | -6.71M | -155.44M | -57.49M | Investing Cash Flow |
| 17.76M | -24.82M | -230.16M | -496.28M | -70.88M | Financing Cash Flow |
| -49.36M | -43.08M | -41.79M | 1.15B | 142.75M |
SNDL Technical Analysis
Negative
1.36
Price Trends
1.60
Negative
1.72
Negative
1.90
Negative
Market Momentum
-0.07
Positive
37.92
Neutral
53.95
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 1.36 is below the 20-day moving average (MA) of 1.46, below the 50-day MA of 1.60, and below the 200-day MA of 1.90, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 37.92 is Neutral, neither overbought nor oversold. The STOCH value of 53.95 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 (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
59 Neutral | $349.93M | ― | -8.00% | ― | -2.89% | 47.06% | |
57 Neutral | $19.95B | 9.66 | -12.09% | 2.76% | 5.40% | -24.89% | |
46 Neutral | $490.57M | ― | -31.06% | ― | 11.22% | -108.58% | |
45 Neutral | $1.37M | ― | -60.98% | ― | -18.02% | 78.28% | |
42 Neutral | $8.94M | ― | -291.50% | ― | -22.58% | 82.94% | |
36 Underperform | $8.51M | ― | -58.30% | ― | ― | ― | |
35 Underperform | $17.33M | ― | -240.02% | ― | ― | ― |
* Technology Sector Average
Performance Comparison
SNDL
SNDL
1.36
-0.56
-29.17%
YCBD
cbdMD
0.22
-0.73
-76.84%
TLRY
Tilray
0.49
-1.29
-72.47%
COSM
Cosmos Holdings
0.36
-0.29
-44.62%
FLGC
Flora Growth
0.46
-1.35
-74.59%
IXHL
Incannex Healthcare Limited Sponsored ADR
0.63
-2.02
-76.23%
SNDL Earnings Call Summary
Earnings Call Date: Mar 18, 2025 | % Change Since: -12.26% | Next Earnings Date: May 19, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant growth in the cannabis segment and achievements like positive free cash flow, record net revenue, and strategic acquisitions. However, challenges such as the negative fair value adjustment and liquor segment decline were noted. Overall, the positive aspects and growth initiatives outweighed the challenges.Highlights
Record Net Revenue and Growth
SNDL reported record full-year net revenue of $920 million, representing a 1.3% growth year-over-year, driven by a 10.6% growth in the cannabis business.
Positive Free Cash Flow
SNDL achieved positive free cash flow for the first time, reporting $8.9 million for the full year 2024, exceeding their guidance and marking a $70 million improvement compared to 2023.
Cannabis Segment Performance
The cannabis operations segment saw a significant transformation with net revenue growth rates of 42% in Q4 and 26% for the full year, reaching $109.5 million.
Strategic Acquisitions and Growth Initiatives
SNDL completed the acquisition of Indiva and announced the acquisition of the remaining minority equity interest in Nova, positioning SNDL as the largest manufacturer of infused edibles in Canada.
Strong Balance Sheet
SNDL ended the year with $218 million in unrestricted cash and zero outstanding debt, highlighting their financial stability.
Lowlights
Negative Fair Value Adjustment
A $65.7 million non-cash negative fair value adjustment to the Sunstream investment impacted the adjusted operating income for Q4 2024.
Liquor Segment Challenges
The liquor segment faced a 3.4% revenue decline in Q4 2024 compared to the previous year, attributed to continuous market headwinds.
Company Guidance
During the call, SNDL provided detailed guidance on their financial performance in the fourth quarter and full year of 2024. The company reported record net revenue of $257.7 million for Q4, marking a 3.7% increase year-over-year, driven largely by a 16.5% growth in their cannabis business, which included new contributions from the Indiva acquisition. The liquor segment faced a 3.4% decline in net revenue due to market headwinds, yet still achieved a gross margin improvement to 22% in Q4. Overall, SNDL achieved a record gross profit of $68.8 million, reflecting a 20% increase from the prior year and resulting in a gross margin of 26.7%, a 360 basis point improvement. Free cash flow was positive at $11.6 million for the quarter and $8.9 million for the full year, surpassing their guidance. The company ended the year with $218 million in unrestricted cash and zero debt. Looking ahead, SNDL aims to deliver $100 million in annualized free cash flow within the next three years, leveraging strategic investments and operational efficiencies to drive long-term growth and shareholder value.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.