SNDL (SNDL) AI Stock Analysis

• Market Cap: $401.70M
• Dividend Yield: N/A
• Average Volume (3M): 1.73M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.58
• 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: 1,367,610
• 30 Day Avg. Volume: 1,731,469
• PEG Ratio: 0.17
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.74
• P/FCF Ratio: 15.49
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 0.18
• Enterprise Value/Gross Profit: 0.66
• Enterprise Value/Ebitda: -5.82
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.01
• Revenue Forecast (FY): $984.14M

• Rating: 49 Neutral
• Price Target: $1.50 ▼(-36.44% Downside)

The score is primarily weighed down by weak profitability despite strong revenue growth and only improving (not yet robust) cash generation. Technicals are bearish with the stock below major moving averages and negative MACD. The earnings call adds support via record free cash flow and a strong cash/no-debt position, but operating losses and segment headwinds keep the overall outlook cautious.

Positive Factors

Strong revenue growth

Sustained, large top-line expansion indicates the company is gaining market share and scaling its operations in cannabis. Durable revenue growth improves operating leverage potential, supports investment in distribution and retail expansion, and underpins long-term recovery of margins.

Very strong liquidity and no debt

A cash-rich, debt-free balance sheet provides structural flexibility to fund organic growth, M&A, and capex without refinancing risk. This resilience supports multi-quarter execution on retail expansion and cultivation investments despite cyclical cannabis demand.

Improving free cash flow generation

Consistent and improving free cash flow signals operational improvements and better working-capital management. Durable FCF reduces reliance on equity or debt raises, enables reinvestment into high-return initiatives, and supports shareholder returns over quarters.

Negative Factors

Ongoing profitability shortfall

Persistently negative net income and operating margins indicate structural cost or mix issues that could erode returns over time. Without sustained margin improvement, revenue growth alone may not translate into shareholder value or long-term ROE recovery.

Earnings volatility from noncash adjustments

Large, recurring noncash items (inventory write‑downs, share‑based compensation changes) create volatility in reported results and can mask underlying operating trends. This complicates performance assessment and may affect investor confidence and management incentive stability.

Underperformance in Liquor Retail segment

A declining complementary segment reduces diversification benefits and can drag consolidated revenue and margins. Structural weakness in Liquor Retail increases reliance on cannabis growth to drive consolidated profitability and raises execution risk for multi-channel strategies.

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 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 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

Strong top-line growth and improving cash flow are offset by ongoing profitability issues (negative margins/ROE). Balance sheet strength (low leverage) helps, but earnings quality remains a key constraint.

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: Negative
• Last Price: 2.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 2.36 is above the 20-day moving average (MA) of 1.60, above the 50-day MA of 1.71, and above the 200-day MA of 1.79, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 40.90 is Neutral, neither overbought nor oversold. The STOCH value of 30.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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%
FLGC	50 Neutral	$27.69M	-0.24	-37.38%	―	-22.60%	53.82%
SNDL	49 Neutral	$401.70M	―	-7.82%	―	1.76%	18.31%
YCBD	49 Neutral	$9.87M	-0.24	-44.42%	―	-1.50%	80.17%
TLRY	49 Neutral	$885.45M	-0.34	-83.42%	―	2.31%	-726.28%
ACB	46 Neutral	C$289.76M	-4.96	-10.76%	―	23.87%	-19.57%
IMCC	40 Underperform	$6.24M	-1.51	-93.87%	―	-0.74%	81.49%

SNDL Corporate Events

SNDL Closes First Phase of 1CM Retail Deal With Purchase of Five Cannabis Stores

On January 7, 2026, SNDL Inc. announced it had completed the acquisition of five cannabis retail stores in Alberta and Saskatchewan from 1CM Inc., marking the first closing under an amended and restated arrangement agreement signed on December 15, 2025. This transaction advances SNDL’s retail expansion strategy and reinforces its position as a leading Canadian cannabis and liquor retailer, with a second and final closing for an additional 27 Ontario cannabis stores expected in the first half of 2026 pending regulatory approvals, which could further strengthen its national footprint and competitive scale in the cannabis retail market.

The most recent analyst rating on (SNDL) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on SNDL stock, see the SNDL Stock Forecast page.

SNDL Inc. Amends Agreement to Acquire Cannabis Retail Stores

On December 15, 2025, SNDL Inc. and 1CM Inc. announced an amended and restated arrangement agreement for SNDL to acquire 32 cannabis retail stores in Ontario, Alberta, and Saskatchewan for $32.2 million. The transaction will occur in two stages due to provincial regulatory approvals, with the first closing expected in January 2026 for stores in Alberta and Saskatchewan, and the second closing for Ontario stores by May 31, 2026. This strategic acquisition aims to expand SNDL’s retail footprint and strengthen its market position in the Canadian cannabis industry, while 1CM plans to use the proceeds for transaction costs and working capital, with potential future returns to shareholders.

The most recent analyst rating on (SNDL) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on SNDL stock, see the SNDL Stock Forecast page.

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.

The most recent analyst rating on (SNDL) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on SNDL stock, see the SNDL Stock Forecast page.

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.

The most recent analyst rating on (SNDL) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on SNDL stock, see the SNDL Stock Forecast page.

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.

The most recent analyst rating on (SNDL) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on SNDL stock, see the SNDL Stock Forecast page.