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SNDL (SNDL)
NASDAQ:SNDL
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SNDL
(NASDAQ:SNDL)
Rating:61Neutral
Price Target:
$2.00
▼(-20.95% Downside)
SNDL (SNDL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$635.78M
Dividend YieldN/A
Average Volume (3M)3.93M
Price to Earnings (P/E)―
Beta (1Y)0.80
Revenue Growth0.70%
EPS Growth15.62%
CountryUS
Employees2,604
SectorConsumer Defensive
Sector Strength46
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)<0.01
Shares Outstanding257,400,000
10 Day Avg. Volume4,758,847
30 Day Avg. Volume3,930,839
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 Cap0.41
Enterprise Value/Revenue0.28
Enterprise Value/Gross Profit1.06
Enterprise Value/Ebitda-5.36
Forecast
1Y Price Target
$2.00Price Target Upside-20.95% Downside
Rating ConsensusHold
Number of Analyst Covering1
SNDL Business Overview & Revenue Model
Company DescriptionSNDL Inc. is a Canadian cannabis company that operates in the cultivation, production, and distribution of marijuana products. Founded in 2006 and headquartered in Alberta, SNDL focuses on providing high-quality cannabis products to both the recreational and medicinal markets. The company also engages in retail operations, with a network of cannabis dispensaries, and is involved in various sectors of the cannabis industry, including branded products and innovative cannabis solutions.
How the Company Makes MoneySNDL generates revenue primarily through the sale of cannabis products, which includes dried flower, oils, edibles, and other cannabis-derived goods. The company's revenue model is multifaceted, comprising direct sales from its retail stores and online platforms, wholesale distribution to other retailers, and partnerships with other cannabis brands for product development and co-branding initiatives. Additionally, SNDL has made strategic acquisitions and partnerships that enhance its market reach and product offerings, contributing to its overall earnings. The growth of the legal cannabis market in Canada and potential expansion into international markets also play a significant role in driving revenue for the company.
SNDL Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 17, 2025
Earnings Call Sentiment Positive
SNDL's earnings call presented a positive outlook with significant achievements such as the first-ever positive operating income, strong growth in the cannabis segment, and expansion in international markets. However, challenges remain, notably with negative free cash flow and legal issues in the U.S. market.Q2-2025 Updates
Positive Updates
First-Ever Positive Operating Income
SNDL achieved positive operating income for the first time in its history, with a $5.8 million adjusted operating income, representing a $10.4 million year-over-year increase and a 226% growth.
Cannabis Business Growth
The cannabis segment expanded nearly 3x the rate of the Canadian recreational market, contributing significantly to the company's revenue growth.
International Expansion
SNDL expanded its international footprint, serving patients in the U.K. and Continental Europe, with $3.8 million in export revenues for Q2 and expectations for substantial growth in Q3.
Strong Balance Sheet
SNDL reported having no debt and over $200 million in unrestricted cash, positioning them to pursue high-return growth opportunities.
Gross Margin Expansion
The company matched its record gross margin of 27.6% reported in the previous quarter, with a 210 basis point improvement year-over-year.
Liquor Retail Growth
The Liquor Retail segment posted a revenue increase of 1% year-over-year, with same-store sales growth of 2.7% and a 7.2% increase in the Wine and Beyond banner.
Negative Updates
Negative Free Cash Flow
Free cash flow was negative by $7.9 million in the second quarter, affected by working capital investments, capital expenditures, and seasonal cash outflows.
Challenges in U.S. Market
SNDL faced ongoing legal and operational challenges in the U.S. market, particularly with its assets managed through SunStream, which are subject to restructuring and legal delays.
Company Guidance
In the second quarter of 2025, SNDL achieved several significant milestones, including reporting positive operating income and net earnings for the first time in its history, driven by a strategic improvement agenda and growth across all operating segments. The company's cannabis business notably grew at nearly three times the rate of the Canadian recreational market. SNDL also posted a 7.3% increase in net revenue, reaching $245 million, with gross profit up by 16.2% to $67.6 million, reflecting a 210 basis point improvement in gross margin. Liquor Retail saw a 1% revenue growth, with Wine and Beyond showing a 7.2% increase. The Cannabis Operations segment experienced a 43% revenue growth, partly due to the Indiva acquisition. Despite a negative free cash flow of $7.9 million, attributed to working capital investments and seasonal factors, SNDL maintained a strong balance sheet with over $200 million in unrestricted cash and no debt, positioning itself for high-return growth opportunities. The company is also expanding its international footprint, with $3.8 million in export revenues for Q2 and continued focus on the U.K. and Continental Europe markets.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
2.53
Price Trends
1.64
Positive
1.49
Positive
1.63
Positive
Market Momentum
0.23
Negative
80.30
Negative
95.32
Negative
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 2.53 is above the 20-day moving average (MA) of 2.02, above the 50-day MA of 1.64, and above the 200-day MA of 1.63, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 80.30 is Negative, neither overbought nor oversold. The STOCH value of 95.32 is Negative, 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $20.46B | 14.47 | -3.60% | 3.13% | 2.63% | -6.18% | |
61 Neutral | $635.78M | ― | -8.30% | ― | 0.70% | 15.62% | |
52 Neutral | $24.98M | ― | -52.69% | ― | ― | ― | |
50 Neutral | $1.60B | ― | -88.27% | ― | 4.10% | -594.06% | |
44 Neutral | $6.33M | ― | -33.13% | ― | -7.80% | 90.17% | |
41 Neutral | $12.86M | ― | -230.73% | ― | -24.10% | 38.17% | |
39 Underperform | $69.38M | ― | -201.88% | ― | ― | ― |
* Consumer Defensive Sector Average
Performance Comparison
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2.53
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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.