Education
About Us
Working with TipRanks
Follow Us
Sndl Inc. (SNDL)
:SNDL
Top Page
SNDL
(NASDAQ:SNDL)
Rating:66Neutral
Price Target:
$2.00
▲(20.48% Upside)
SNDL (SNDL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$427.28M
Dividend YieldN/A
Average Volume (3M)2.57M
Price to Earnings (P/E)―
Beta (1Y)0.70
Revenue Growth0.70%
EPS Growth15.62%
CountryUS
Employees2,604
SectorConsumer Defensive
Sector Strength53
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)<0.01
Shares Outstanding257,400,000
10 Day Avg. Volume3,339,293
30 Day Avg. Volume2,573,570
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.61
Enterprise Value/Revenue0.28
Enterprise Value/Gross Profit1.06
Enterprise Value/Ebitda-5.36
Forecast
1Y Price Target
$2.00Price Target Upside20.48% Upside
Rating ConsensusHold
Number of Analyst Covering1
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 makes money through several key revenue streams. Primarily, the company generates revenue from the sale of its cannabis products across its retail network. This includes both direct sales to consumers through its branded retail stores and wholesale distribution to other retailers. Additionally, SNDL benefits from its cultivation operations, where it produces cannabis that is either sold as raw product or processed into various consumer goods. The company may also engage in partnerships or strategic acquisitions to enhance its market presence and expand its product offerings, contributing to its revenue growth.
SNDL Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: 15.28%|
Next Earnings Date:Nov 17, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements, including first-time positive operating income, strong growth in the cannabis segment, and successful international expansion. Despite these positive developments, challenges such as negative free cash flow and ongoing issues in the U.S. market were noted. Overall, the positive highlights outweigh the lowlights, indicating a strong quarter and a promising outlook.Q2-2025 Updates
Positive Updates
First-Time Positive Operating Income
SNDL reported positive operating income for the first time in its history, with adjusted operating income reaching $5.8 million, a 226% growth year-over-year.
Cannabis Business Outperformance
The cannabis segment expanded at nearly 3x the rate of the Canadian recreational market, contributing to an overall net revenue increase of 7.3% year-over-year.
Gross Margin Expansion
Gross profit increased by 16.2% year-over-year, with a 210 basis point improvement in gross margin, matching the record high margin of 27.6% from the previous quarter.
Strong Liquor Retail Performance
Liquor Retail segment returned to growth with a 1% year-over-year increase in net revenue, supported by a 7.2% growth in the Wine and Beyond banner.
Robust International Expansion
International sales, particularly in the U.K. and Europe, contributed significantly, with $3.8 million in export revenues for Q2.
Solid Financial Position
SNDL reported no debt and over $200 million in unrestricted cash, positioning the company for potential high-return growth opportunities.
Negative Updates
Negative Free Cash Flow
Free cash flow was negative $7.9 million in Q2, impacted by working capital investments and seasonal cash outflows.
Limited Progress in U.S. Market
Challenges in the U.S. market were highlighted, with ongoing legal and restructuring issues delaying full control and consolidation of U.S. assets.
Company Guidance
During SNDL's Second Quarter 2025 Financial Results Conference Call, the company provided guidance highlighting significant financial and operational achievements. SNDL reported positive operating income and net earnings for the first time, with net revenue reaching $245 million, a 7.3% increase year-over-year. The cannabis segment outperformed the market with 43% revenue growth, while the Liquor Retail segment returned to growth, with net revenue at $141.9 million, a 1% increase. Gross profit rose by 16.2% to $67.6 million, with a gross margin improvement of 210 basis points, matching the record margin of 27.6% from Q1 2025. SNDL also noted a $10.4 million year-over-year increase in adjusted operating income, reaching $5.8 million, despite negative free cash flow of $7.9 million due to international growth investments. The company emphasized its strong balance sheet with over $200 million in unrestricted cash and no debt, allowing it to pursue high-return growth opportunities.SNDL Financial Statement Overview
Summary
SNDL shows improving revenue and cash flow metrics but struggles with profitability. The balance sheet is strong with low leverage, providing financial stability. However, consistent negative net income affects overall performance and remains a key area for improvement.Income Statement
The income statement exhibits modest revenue growth of 0.78% TTM, but profitability remains a challenge with negative EBIT and net income. Gross profit margins are improving, reaching 26.58% TTM, which is a positive sign. However, the net profit margin remains negative at -11.53%, indicating ongoing profitability issues.45
Neutral
Balance Sheet
The balance sheet shows a strong equity base with an equity ratio of 83.87% TTM, indicating low leverage and financial stability. The debt-to-equity ratio is low at 0.13, suggesting manageable debt levels. However, the return on equity is negative, reflecting the company's ongoing profitability challenges.60
Neutral
Cash Flow
Cash flow analysis reveals positive free cash flow growth of 12.08% TTM, indicating improved cash generation. The operating cash flow to net income ratio is positive at -0.56, showing better cash flow management. However, the free cash flow to net income ratio is also negative, highlighting continued profitability issues.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 927.61M | 920.45M | 909.01M | 712.20M | 56.13M | 60.92M |
| Gross Profit | 246.57M | 240.33M | 190.41M | 140.38M | -6.99M | -49.87M |
| EBITDA | -48.77M | -41.20M | -99.15M | -306.83M | -127.41M | -180.69M |
| Net Income | -106.95M | -94.80M | -172.66M | -372.43M | -230.18M | -255.93M |
Balance Sheet | ||||||
| Total Assets | 1.31B | 1.35B | 1.47B | 1.56B | 1.42B | 294.87M |
| Cash, Cash Equivalents and Short-Term Investments | 224.34M | 248.89M | 201.64M | 311.76M | 649.03M | 60.38M |
| Total Debt | 147.95M | 152.27M | 167.03M | 169.83M | 33.47M | 1.44M |
| Total Liabilities | 212.07M | 215.89M | 243.82M | 231.69M | 98.13M | 25.18M |
| Stockholders Equity | 1.10B | 1.13B | 1.21B | 1.31B | 1.33B | 265.24M |
Cash Flow | ||||||
| Free Cash Flow | 49.20M | 43.90M | -24.58M | -17.57M | -159.23M | -60.67M |
| Operating Cash Flow | 59.40M | 54.91M | -16.65M | -6.71M | -155.44M | -57.49M |
| Investing Cash Flow | 36.61M | 17.76M | -24.82M | -230.16M | -496.28M | -70.88M |
| Financing Cash Flow | -64.10M | -49.36M | -43.08M | -41.79M | 1.15B | 142.75M |
SNDL Technical Analysis
Positive
1.66
Price Trends
1.39
Positive
1.40
Positive
1.63
Positive
Market Momentum
0.07
Negative
61.98
Neutral
54.32
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 1.66 is above the 20-day moving average (MA) of 1.54, above the 50-day MA of 1.39, and above the 200-day MA of 1.63, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 61.98 is Neutral, neither overbought nor oversold. The STOCH value of 54.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | ¥216.30B | 20.87 | 8.19% | 2.25% | 4.81% | 0.40% | |
66 Neutral | $427.28M | ― | -8.30% | ― | 0.70% | 15.62% | |
50 Neutral | $625.87M | ― | -88.27% | ― | 4.10% | -594.06% | |
49 Neutral | $25.67M | ― | -58.30% | ― | ― | ― | |
41 Neutral | $7.66M | ― | -8.46% | ― | -9.22% | 89.90% | |
41 Neutral | $11.51M | ― | -230.73% | ― | -24.10% | 38.17% | |
39 Underperform | $36.12M | ― | -201.88% | ― | ― | ― |
* Consumer Defensive Sector Average
Performance Comparison
SNDL
SNDL
1.66
-0.36
-17.82%
YCBD
cbdMD
0.88
-3.32
-79.05%
TLRY
Tilray
0.64
-1.11
-63.43%
COSM
Cosmos Holdings
0.88
-0.20
-18.52%
FLGC
Flora Growth
19.65
-15.38
-43.91%
IXHL
Incannex Healthcare Limited Sponsored ADR
0.44
-1.58
-78.22%
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.