SNDL (SNDL) AI Stock Analysis

• Market Cap: $569.08M
• Dividend Yield: N/A
• Average Volume (3M): 2.68M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.57
• Revenue Growth: 1.76%
• EPS Growth: 18.31%
• Country: US
• Employees: 2,604
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.04
• Shares Outstanding: 257,500,000
• 10 Day Avg. Volume: 3,337,006
• 30 Day Avg. Volume: 2,676,018
• PEG Ratio: 0.16
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.74
• P/FCF Ratio: 15.49
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 0.26
• Enterprise Value/Gross Profit: 0.95
• Enterprise Value/Ebitda: -8.38
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -0.03
• Revenue Forecast (FY): $950.19M

• Rating: 48 Neutral
• Price Target: $2.00 ▼(-15.25% Downside)

SNDL's overall score reflects strong revenue growth and a stable balance sheet, but significant profitability challenges and mixed technical indicators weigh heavily. The earnings call provided some positive insights, but noncash adjustments and sector-specific headwinds remain concerns.

Positive Factors

Strong Cash Flow

Improved cash flow indicates enhanced operational efficiency and financial health, enabling strategic investments and growth initiatives.

Robust Balance Sheet

A strong balance sheet with ample cash reserves and no debt provides financial stability and flexibility for future expansion and acquisitions.

Market Expansion

Growth in international sales reflects successful market expansion efforts, potentially increasing revenue streams and market share.

Negative Factors

Profitability Challenges

Persistent operating losses highlight ongoing profitability challenges, which may hinder long-term financial performance and shareholder returns.

Inventory Adjustments

Inventory adjustments affecting margins suggest inefficiencies in inventory management, potentially impacting cost control and profitability.

Liquor Retail Revenue Decline

Declining revenue in the Liquor Retail segment indicates market challenges that could limit overall revenue growth and diversification efforts.

SNDL Business Overview & Revenue Model

Company Description

SNDL Inc. is a Canadian cannabis company that operates primarily in the cultivation, production, and distribution of cannabis and cannabis-related products. The company is engaged in the production of adult-use cannabis, offering a variety of products such as dried flower, pre-rolls, and cannabis oils. SNDL operates through retail and wholesale channels and is committed to providing high-quality cannabis products to consumers across Canada.

How the Company Makes Money

SNDL generates revenue primarily through the sale of cannabis products, including both wholesale to other retailers and direct-to-consumer sales through its own retail stores. The company benefits from a diversified portfolio of product offerings, which helps to appeal to a broad customer base. Additionally, SNDL has engaged in strategic partnerships and acquisitions to enhance its market presence and expand its product lines. The company also explores opportunities in ancillary services and products related to the cannabis industry, which can provide additional revenue streams.

SNDL Financial Statement Overview

Summary

SNDL shows strong revenue growth but struggles with profitability. The balance sheet is stable with low leverage, and cash flow is improving, though not yet robust enough to cover net losses.

Income Statement

SNDL's income statement shows a mixed performance. The company has achieved significant revenue growth of 77.6% in the TTM, indicating strong top-line expansion. However, profitability remains a challenge with negative net profit and EBIT margins, reflecting ongoing operational inefficiencies. The gross profit margin has improved slightly to 27.03%, but the negative EBITDA margin suggests that the company is still struggling to achieve operational profitability.

Balance Sheet

The balance sheet is relatively stable with a low debt-to-equity ratio of 0.14, indicating conservative leverage. However, the return on equity remains negative, highlighting profitability challenges. The equity ratio is strong, suggesting a solid capital structure, but the negative ROE indicates that the company is not generating sufficient returns for shareholders.

Cash Flow

Cash flow analysis shows improvement with a positive free cash flow growth rate of 15.78% in the TTM. The operating cash flow to net income ratio is 0.81, indicating decent cash generation relative to net income. However, the free cash flow to net income ratio of 0.83 suggests that while cash flow is improving, it is not yet robust enough to fully cover net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.39B	920.45M	909.01M	712.20M	56.13M	60.92M
Gross Profit	642.79M	240.33M	190.41M	140.38M	-9.00M	-49.87M
EBITDA	-73.24M	-41.20M	-99.15M	-326.55M	-223.76M	-185.54M
Net Income	-211.20M	-94.80M	-172.66M	-335.11M	-226.98M	-233.25M
Balance Sheet
Total Assets	1.32B	1.35B	1.47B	1.56B	1.43B	294.87M
Cash, Cash Equivalents and Short-Term Investments	241.31M	248.89M	201.64M	311.76M	649.03M	60.38M
Total Debt	155.13M	152.27M	167.03M	169.83M	33.47M	1.44M
Total Liabilities	218.77M	215.89M	243.82M	231.69M	98.13M	25.18M
Stockholders Equity	1.10B	1.13B	1.21B	1.31B	1.33B	271.68M
Cash Flow
Free Cash Flow	168.19M	43.90M	-24.58M	-17.57M	-159.23M	-60.67M
Operating Cash Flow	202.85M	54.91M	-16.65M	-6.71M	-155.44M	-57.49M
Investing Cash Flow	-29.30M	17.76M	-24.82M	-230.16M	-496.28M	-70.88M
Financing Cash Flow	-153.63M	-49.36M	-43.08M	-41.79M	1.15B	142.75M

SNDL Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 2.36 is above the 20-day moving average (MA) of 1.73, above the 50-day MA of 2.02, and above the 200-day MA of 1.76, indicating a bullish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 69.82 is Neutral, neither overbought nor oversold. The STOCH value of 74.26 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
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
ACB	49 Neutral	C$421.88M	-7.23	-10.76%	―	23.87%	-19.57%
SNDL	48 Neutral	$569.08M	-8.78	-7.82%	―	1.76%	18.31%
TLRY	47 Neutral	$1.41B	-0.54	-85.59%	―	2.31%	-726.28%
FLGC	46 Neutral	$7.27M	-0.30	-37.38%	―	-22.60%	53.82%
IMCC	45 Neutral	$9.86M	-2.39	-93.87%	―	-0.74%	81.49%
YCBD	40 Underperform	$10.70M	-0.19	-33.13%	―	-7.80%	90.17%

SNDL Corporate Events

SNDL Inc. Renews Share Repurchase Program

On November 21, 2025, SNDL Inc. announced the renewal of its share repurchase program, approved by the Canadian Securities Exchange. The program allows the company to repurchase up to C$100 million of its outstanding common shares, representing 10% of its public float, from November 21, 2025, to November 20, 2026. This initiative is aimed at returning value to shareholders and will be executed at prevailing market prices, with the flexibility of various purchasing methods. The previous program, which ended on November 20, 2025, saw the repurchase of over 9 million shares, indicating a continued commitment to shareholder value.

SNDL Reports Strong Q3 2025 Results with Record Free Cash Flow

On November 4, 2025, SNDL Inc. reported its financial and operational results for the third quarter of 2025, highlighting a net revenue of $244.2 million, a 3.1% increase from the previous year, driven by a 13.5% growth in its cannabis business. Despite an operating loss of $11.1 million due to non-cash adjustments, the company achieved a record free cash flow of $16.7 million, reflecting strong operational improvements and strategic investments. SNDL’s robust financial position, with no debt and significant cash reserves, enables it to pursue high-return opportunities, including the acquisition of cannabis retail stores and expansion of its cultivation facilities, positioning the company for long-term success in the evolving cannabis market.

SNDL Inc. Reports Q3 2025 Financial Results

SNDL Inc. has released its financial statements for the three and nine months ended September 30, 2025. The report highlights a net revenue of $244.2 million for the third quarter, showing an increase from the previous year. Despite this, the company reported a net loss, reflecting ongoing challenges in managing costs and investments. The financial results underscore SNDL’s efforts to stabilize its financial position, with a focus on improving gross profit margins and reducing liabilities. The company’s financial performance is crucial for stakeholders as it navigates the competitive landscape and seeks to enhance shareholder value.

SNDL Inc. Appoints New Auditor Following Marcum’s Resignation

On October 16, 2025, SNDL Inc. was informed by Marcum LLP of its resignation as the company’s auditor following the acquisition of Marcum’s attestation business by CBIZ CPAs P.C. The board of directors and audit committee of SNDL approved the appointment of CBIZ as the new independent registered public accounting firm effective October 17, 2025, until the next annual general meeting.