Sndl Inc. (SNDL)
NASDAQ:SNDL
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SNDL
(NASDAQ:SNDL)
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Rating:54Neutral
Price Target:
$1.50
▼(-36.44% Downside)
Action:Reiterated
Date:05/01/26
The score is driven primarily by a mixed fundamental profile: a comparatively conservative balance sheet and positive TTM cash generation offset by sharp TTM revenue contraction and ongoing net losses. Earnings-call outlook is cautiously supportive on cost/profit initiatives, but near-term execution risks (negative Q1 free cash flow, cannabis operations margin pressure) remain, while technicals show a weak downtrend and valuation support is limited due to negative earnings.
Positive Factors
Conservative balance sheet
Low leverage and a sizable equity base reduce refinancing and liquidity risk, giving SNDL structural financial flexibility. That balance-sheet cushion supports continued investments, acquisitions, and share repurchases while the company works to restore consistent profitability and absorb cyclical retail volatility.
Negative Factors
Steep TTM revenue contraction
A pronounced drop in revenue reduces operating leverage and scale, making margin recovery harder and increasing dependence on cost cuts and non-recurring actions. Restoring sustainable top-line growth is essential for durable profitability and to justify ongoing investments and buybacks without eroding the balance sheet.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Low leverage and a sizable equity base reduce refinancing and liquidity risk, giving SNDL structural financial flexibility. That balance-sheet cushion supports continued investments, acquisitions, and share repurchases while the company works to restore consistent profitability and absorb cyclical retail volatility.
Read all positive factors
SNDL (SNDL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$386.21M
Dividend YieldN/A
Average Volume (3M)2.58M
Price to Earnings (P/E)―
Beta (1Y)0.57
Revenue Growth1.57%
EPS Growth89.16%
CountryUS
Employees2,604
SectorConsumer Defensive
Sector Strength42
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.05
Shares Outstanding259,200,000
10 Day Avg. Volume1,641,177
30 Day Avg. Volume2,576,528
Financial Highlights & Ratios
PEG Ratio0.44
Price to Book (P/B)0.53
Price to Sales (P/S)0.62
P/FCF Ratio10.12
Enterprise Value/Market Cap1.20
Enterprise Value/Revenue0.50
Enterprise Value/Gross Profit1.82
Enterprise Value/Ebitda9.35
Forecast
1Y Price Target
$4.25Price Target Upside80.08% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.06
Revenue Forecast (FY)$971.30M
SNDL Business Overview & Revenue Model
Company Description
SNDL 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 ...
How the Company Makes Money
SNDL generates revenue primarily through (1) cannabis retail sales via company-owned cannabis stores, where it earns money on the margin between the wholesale cost of cannabis products and the retail prices paid by consumers; (2) cannabis operatio...
SNDL Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 07, 2026
Earnings Call Sentiment Neutral
The call mixed clear operational and market challenges—most notably declines in net revenue (-4.4% YoY), a sharp drop in cannabis operations revenue (-14%) and compressed margins—with several credible strategic responses: an exclusive Jeter brand deal, retail margin improvements, a profit enhancement program expected to yield >$20M in incremental operating income, active share repurchases and constructive U.S. regulatory developments. Near-term cash flow and inventory/working-capital issues are material, but management has delineated remediation actions and efficiency levers that could materially improve results later in the year.Positive Updates
Jeter launch and exclusive U.S. brand partnership
Exclusive contract for production and commercialization of Jeter assumed in April; production and inventory build began in March with initial shipments to provincial boards. Creates an end-to-end cross-border branded platform with potential to drive long-term growth.
Negative Updates
Overall revenue and gross profit decline
Net revenue was $196.0 million, down 4.4% year-over-year. Gross profit was $53.0 million, down $3.8 million (-6.8% YoY). Consolidated gross margin compressed by ~70 basis points.
Read all updates
Q1-2026 Updates
Positive
Negative
Jeter launch and exclusive U.S. brand partnership
Exclusive contract for production and commercialization of Jeter assumed in April; production and inventory build began in March with initial shipments to provincial boards. Creates an end-to-end cross-border branded platform with potential to drive long-term growth.
Read all positive updates
Company Guidance
Management guided that they expect revenue growth to improve year‑over‑year through 2026 (as they lap softer comps in H2) and that profit‑enhancement actions—pricing, mix and efficiency initiatives—should generate more than $20 million of incremental operating income over the remainder of the year, noting upstream cannabis working‑capital issues were remedied after quarter end. In Q1 they reported net revenue of $196.0 million (‑4.4% y/y), gross profit of $53.0 million (‑$3.8M, ‑6.8% y/y) and a consolidated gross‑margin decline of 70 bps; cash of $213.4 million at March 31, 2026 (vs $252.2M at Dec. 31, 2025 that included $12.1M cash in transit); free cash flow of negative $7.6 million (down $6.5M y/y); 2026 share repurchases of 4.5 million shares; $2 million of G&A savings in the quarter; $4.2 million of data‑related revenue; and $3.6 million higher CapEx/lease payments. Segment detail: liquor same‑store sales ‑6.1% and revenue ‑4.9% with a +20‑bp margin improvement; cannabis retail same‑store sales ‑2.5%, gross profit $20.4M (+3.7% y/y) and +100‑bp margin (operating income $1.1M); cannabis operations revenue $29.4M (‑14% y/y), international sales $3.5M (up 94%), contract sales down to $4.5M from $9M, gross margin down ~7 percentage points to 19.7% (from 26.8%) and an operating loss of about $6.9M.SNDL Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
71
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 937.39M | 946.40M | 920.45M | 909.01M | 712.20M | 56.13M |
| Gross Profit | 254.82M | 258.65M | 240.33M | 190.41M | 140.38M | -9.00M |
| EBITDA | 49.63M | 48.02M | -41.20M | -99.15M | -326.55M | -223.76M |
| Net Income | -10.98M | -15.77M | -94.80M | -172.66M | -335.11M | -226.98M |
Balance Sheet | ||||||
| Total Assets | 1.31B | 1.34B | 1.35B | 1.47B | 1.56B | 1.43B |
| Cash, Cash Equivalents and Short-Term Investments | 233.86M | 273.17M | 248.89M | 201.64M | 311.76M | 649.03M |
| Total Debt | 168.25M | 170.10M | 152.27M | 167.03M | 169.83M | 33.47M |
| Total Liabilities | 226.94M | 234.96M | 215.89M | 243.82M | 231.69M | 98.13M |
| Stockholders Equity | 1.09B | 1.10B | 1.13B | 1.21B | 1.31B | 1.33B |
Cash Flow | ||||||
| Free Cash Flow | 52.75M | 58.11M | 43.90M | -24.58M | -17.57M | -159.23M |
| Operating Cash Flow | 66.61M | 70.92M | 54.91M | -16.65M | -6.71M | -155.44M |
| Investing Cash Flow | -11.08M | 17.45M | 17.76M | -24.82M | -230.16M | -496.28M |
| Financing Cash Flow | -50.85M | -54.49M | -49.36M | -43.08M | -41.79M | 1.15B |
SNDL Technical Analysis
Neutral
2.36
Price Trends
1.42
Positive
1.49
Negative
1.81
Negative
Market Momentum
<0.01
Negative
54.86
Neutral
81.75
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNDL, the sentiment is Neutral. The current price of 2.36 is above the 20-day moving average (MA) of 1.44, above the 50-day MA of 1.42, and above the 200-day MA of 1.81, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 54.86 is Neutral, neither overbought nor oversold. The STOCH value of 81.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | $386.21M | ― | -1.00% | ― | 1.57% | 89.16% | |
52 Neutral | C$281.28M | -6.62 | -7.78% | ― | 16.54% | -777.29% | |
49 Neutral | $659.02M | ― | -92.82% | ― | 3.82% | -29.80% | |
47 Neutral | $8.31M | -3.11 | -40.66% | ― | 2.00% | 94.31% | |
42 Neutral | $1.79M | -14.53 | -93.87% | ― | -6.14% | -24.22% |
* Consumer Defensive Sector Average
SNDL
SNDL
1.48
0.21
16.54%
TSE:ACB
Aurora Cannabis
4.96
-2.18
-30.53%
YCBD
cbdMD
0.79
-0.10
-11.01%
TLRY
Tilray
5.51
1.44
35.35%
IMCC
IM Cannabis Corp
0.29
-3.19
-91.72%
SNDL Corporate Events
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...
SNDL Sets April 29 Date to Report First-Quarter 2026 Results
Apr 15, 2026
On April 15, 2026, SNDL Inc. announced it will report its financial results for the first quarter ended March 31, 2026, before markets open on April 29, 2026. Following the release, the company will host a conference call and live webcast at 10:00...
SNDL Sets March 12 Release Date for Q4 and Full-Year 2025 Results
Feb 19, 2026
On February 19, 2026, SNDL Inc. said it will publish its fourth quarter and full-year 2025 financial results, covering the period ended December 31, 2025, before markets open on March 12, 2026. The company will follow the release with a conference...
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.