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SNDL
(NASDAQ:SNDL)
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Rating:54Neutral
Price Target:
$1.00
▼(-19.35% Downside)
Action:Reiterated
Date:07/29/26
The score is held back primarily by weak technicals (price below all major moving averages) and an uneven operating profile (revenue contraction and still-negative net margin despite improved EBITDA and positive cash flow). Offsetting factors include a relatively strong balance sheet/low leverage and a mixed-but-improving earnings-call outlook supported by liquidity, buybacks, and targeted profit initiatives, though near-term margin pressure remains a key risk.
Positive Factors
Balance Sheet Strength
Large unrestricted cash and zero debt provide durable financial flexibility: supports continued share repurchases, funds restructurings or opportunistic M&A, and cushions operational volatility. This conservatively leveraged position reduces refinancing risk and underpins multi-month strategic execution.
Negative Factors
Revenue Contraction
Sustained top‑line weakness across cannabis and liquor retail limits margin leverage and slows recovery of profitability. Continued revenue contraction forces reliance on cost cuts and one‑time gains to meet targets, making durable earnings improvements dependent on reversing demand trends or expanding new revenue sources.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Large unrestricted cash and zero debt provide durable financial flexibility: supports continued share repurchases, funds restructurings or opportunistic M&A, and cushions operational volatility. This conservatively leveraged position reduces refinancing risk and underpins multi-month strategic execution.
Read all positive factors
SNDL (SNDL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$312.86M
Dividend YieldN/A
Average Volume (3M)1.98M
Price to Earnings (P/E)―
Beta (1Y)0.59
Revenue Growth-0.88%
EPS Growth76.93%
CountryUS
Employees2,751
SectorConsumer Defensive
Sector Strength42
IndustryAgricultural Farm Products
Share Statistics
EPS (TTM)-0.10
Shares Outstanding248,300,000
10 Day Avg. Volume1,364,444
30 Day Avg. Volume1,981,758
Financial Highlights & Ratios
PEG Ratio0.45
Price to Book (P/B)0.53
Price to Sales (P/S)0.62
P/FCF Ratio10.12
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$3.50Price Target Upside182.26% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.02
Revenue Forecast (FY)$921.96M
SNDL Business Overview & Revenue Model
Company Description
SNDL Inc. is a Canadian firm engaged in the cultivation, distribution, and sale of cannabis products across the country. Its operations are organized into two distinct segments: Cannabis Operations and Retail Operations. Through its Cannabis Opera...
How the Company Makes Money
SNDL primarily makes money through (1) cannabis retail, (2) cannabis operations, and (3) alcohol retail. In cannabis retail, SNDL generates revenue from selling cannabis products and related accessories to consumers through its retail store networ...
SNDL Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Neutral
The quarter presented a mixed picture: operational performance was challenged with declines in revenue, gross profit and segment-level profitability (notably in cannabis operations and liquor retail), driven by market softness and production ramp inefficiencies (Jeeter). Offsetting these headwinds, SNDL entered transformational capital and strategic positions — strong liquidity (CAD 183.2M), zero debt, accelerated share repurchases (~7% reduction in shares outstanding), deployment of profit enhancement initiatives (>CAD 20M expected), modest improvement in free cash flow, and the completion of a major parallel restructuring milestone that opens access to a sizeable U.S. medical cannabis platform with material upside. Given substantial near-term operational challenges balanced against meaningful balance sheet strength and strategic optionality, the call’s tone is cautiously constructive but mixed.Positive Updates
Strong Balance Sheet and Liquidity
Unrestricted cash of CAD 183.2 million and no outstanding debt as of June 30, 2026, providing flexibility to pursue strategic investments, acquisitions, and return of capital.
Negative Updates
Revenue Decline
Consolidated net revenue declined 3.7% year-over-year to CAD 235.8 million (a CAD 9.0 million decrease), driven by market headwinds across both liquor and cannabis segments.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Balance Sheet and Liquidity
Unrestricted cash of CAD 183.2 million and no outstanding debt as of June 30, 2026, providing flexibility to pursue strategic investments, acquisitions, and return of capital.
Read all positive updates
Company Guidance
SNDL guided that it expects to generate positive free cash flow for the full year (Q2 free cash flow was negative $6.7M, an improvement of $1.2M year‑over‑year and pre‑cash flow improved 15.2% y/y from negative $7.9M to negative $6.7M), and reiterated that profit‑enhancement initiatives are expected to drive more than $20M of incremental operating income, mostly over the remainder of the year; management also said the parallel restructuring should close in the coming months (subject to legal, regulatory, accounting and NASDAQ approvals), delivering a near‑term annualized revenue run‑rate of roughly $150M and the potential to exceed CAD 1 billion in annual revenue longer term, while noting some near‑term cost headwinds from the Jeeter production ramp (which drove ~80–90% of the cannabis operations gross‑margin shortfall) may persist; liquidity and capital‑return levers remain strong with $183.2M of unrestricted cash, no outstanding debt as of June 30, 2026, a cannabis‑related investment carrying value of $415.2M, and continued share repurchases (11.7M shares repurchased in Q2 for $23.3M; >29M shares repurchased since Q4‑2024, ~7% reduction in shares outstanding).SNDL Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
70
Positive
Cash Flow
64
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 928.39M | 946.40M | 920.45M | 909.01M | 712.20M | 56.13M |
| Gross Profit | 243.57M | 258.65M | 240.33M | 190.41M | 140.38M | -9.00M |
| EBITDA | 37.40M | 48.02M | -41.20M | -99.15M | -326.55M | -223.76M |
| Net Income | -21.68M | -15.77M | -94.80M | -172.66M | -335.11M | -226.98M |
Balance Sheet | ||||||
| Total Assets | 1.28B | 1.34B | 1.35B | 1.47B | 1.56B | 1.43B |
| Cash, Cash Equivalents and Short-Term Investments | 186.57M | 273.17M | 248.89M | 201.64M | 311.76M | 649.03M |
| Total Debt | 166.38M | 170.10M | 152.27M | 167.03M | 169.83M | 33.47M |
| Total Liabilities | 220.24M | 234.96M | 215.89M | 243.82M | 231.69M | 98.13M |
| Stockholders Equity | 1.06B | 1.10B | 1.13B | 1.21B | 1.31B | 1.33B |
Cash Flow | ||||||
| Free Cash Flow | 50.61M | 58.11M | 43.90M | -24.58M | -17.57M | -159.23M |
| Operating Cash Flow | 64.18M | 70.92M | 54.91M | -16.65M | -6.71M | -155.44M |
| Investing Cash Flow | -4.26M | 17.45M | 17.76M | -24.82M | -230.16M | -496.28M |
| Financing Cash Flow | -72.79M | -54.49M | -49.36M | -43.08M | -41.79M | 1.15B |
SNDL Technical Analysis
Negative
1.24
Price Trends
1.33
Negative
1.38
Negative
1.53
Negative
Market Momentum
-0.02
Negative
47.21
Neutral
70.00
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 1.24 is below the 20-day moving average (MA) of 1.25, below the 50-day MA of 1.33, and below the 200-day MA of 1.53, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 47.21 is Neutral, neither overbought nor oversold. The STOCH value of 70.00 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
54 Neutral | $312.86M | -18.32 | -1.99% | ― | -0.88% | 76.93% | |
49 Neutral | C$343.12M | -2.73 | -21.00% | ― | -18.93% | -472.15% | |
46 Neutral | $637.43M | -3.52 | -7.95% | ― | 11.46% | 95.35% | |
45 Neutral | $6.28M | -1.84 | -33.59% | ― | 2.00% | 94.31% | |
41 Neutral | $1.17M | -1,062.50 | -3.03% | ― | -6.14% | -24.22% |
* Consumer Defensive Sector Average
SNDL
SNDL
1.25
-0.86
-40.76%
TSE:ACB
Aurora Cannabis
5.27
-2.16
-29.07%
YCBD
cbdMD
0.57
-0.29
-33.53%
TLRY
Tilray
4.70
-7.10
-60.17%
IMCC
IM Cannabis Corp
0.13
-2.53
-95.11%
SNDL Corporate Events
SNDL Posts Q2 Loss but Boosts Buybacks and Advances Parallel Restructuring
Jul 28, 2026
SNDL reported second-quarter 2026 results on July 28, 2026, showing net revenue of C$235.8 million, down 3.7% year over year, and gross profit of C$56.3 million, a 16.6% decline amid market headwinds in both liquor and cannabis. The company posted...
SNDL Files July Form 6-K With Q2 2026 Interim Financials
Jul 28, 2026
SNDL Inc. has filed its Form 6-K for July 2026, incorporating its latest interim financial disclosures into existing U.S. registration statements used for equity-based compensation plans. The filing, signed on July 27, 2026 by Chief Financial Offi...
SNDL Completes Parallel Asset Deal, Advances U.S. Medical Cannabis Strategy
Jul 27, 2026
On July 27, 2026, SNDL announced it has completed the acquisition of certain assets of Surterra Holdings Inc. and affiliates, collectively known as Parallel, a U.S. vertically integrated cannabis operator in Florida, Texas and Massachusetts. The d...
SNDL Drops Ontario Store Acquisition, Shifts Capital to Share Buybacks
May 28, 2026
On May 27, 2026, SNDL Inc. reported that its planned acquisition of 27 Ontario cannabis retail stores from 1CM Inc., operating under the Cost Cannabis and T Cannabis banners, is not expected to proceed. The company cited a prolonged provincial reg...
SNDL Posts Softer Q1 2026 Sales but Leans on Strong Cash Position and Cannabis Strategy
Apr 29, 2026
SNDL Inc. reported first-quarter 2026 results on April 29, 2026, posting net revenue of $195.9 million, down 4.4% year over year, and gross profit of $52.8 million as cannabis and liquor markets softened. Despite a $9.1 million operating loss, the...
SNDL Posts Q1 2026 Loss as Revenue Slips but Balance Sheet Remains Strong
Apr 29, 2026
SNDL Inc. filed a Form 6-K on April 28, 2026, reporting unaudited condensed consolidated interim financial statements for the quarter ended March 31, 2026, along with management’s discussion and analysis and Canadian CEO and CFO interim fili...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.