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Sunopta (STKL)
NASDAQ:STKL
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SunOpta
(NASDAQ:STKL)
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Rating:51Neutral
Price Target:
$3.50
▼(-17.06% Downside)
SunOpta's overall stock score is driven by strong revenue growth and strategic positioning for future expansion. However, significant financial and operational challenges, including high leverage and bearish technical indicators, weigh heavily on the score.
Positive Factors
Revenue Growth
Consistent revenue growth driven by strong customer demand indicates robust market positioning and potential for sustained expansion.
Product Category Expansion
Growth in plant-based beverages highlights SunOpta's successful product diversification and alignment with consumer health trends.
Cash Flow Improvement
Improved cash flow reflects strong operational performance, enhancing financial flexibility and supporting future investments.
Negative Factors
High Leverage
High leverage can constrain financial flexibility, posing risks to long-term stability and limiting growth opportunities.
Operational Inefficiencies
Operational inefficiencies can erode margins and hinder profitability, impacting the company's ability to scale effectively.
Gross Margin Decline
Declining gross margins suggest cost pressures and operational challenges, potentially affecting long-term profitability.
SunOpta (STKL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$449.21M
Dividend YieldN/A
Average Volume (3M)766.16K
Price to Earnings (P/E)―
Beta (1Y)1.45
Revenue Growth11.31%
EPS Growth99.83%
CountryUS
Employees1,248
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)0.05
Shares Outstanding120,755,140
10 Day Avg. Volume716,995
30 Day Avg. Volume766,162
Financial Highlights & Ratios
PEG Ratio0.57
Price to Book (P/B)6.04
Price to Sales (P/S)1.24
P/FCF Ratio49.61
Enterprise Value/Market Cap2.56
Enterprise Value/Revenue1.45
Enterprise Value/Gross Profit10.87
Enterprise Value/Ebitda16.71
Forecast
1Y Price Target
$8.00Price Target Upside89.57% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
SunOpta Business Overview & Revenue Model
Company DescriptionSunOpta Inc. manufactures and sells plant-based and fruit-based food and beverage products to retail customers, foodservice distributors, branded food companies, and food manufacturers worldwide. The company operates through two segments, Plant-Based Foods and Beverages, and Fruit-Based Foods and Beverages. The Plant-Based Foods and Beverages segment provides plant-based beverages, and liquid and dry ingredients that utilizes almond, soy, coconut, oat, hemp, and other bases, as well as broths, teas, and nutritional beverages. This segment also packages dry- and oil-roasted in-shell sunflower and sunflower kernels; and processes and sells raw sunflower inshell and kernel for food and feed applications. The Fruit-Based Foods and Beverages segment offers individually quick frozen (IQF) fruits, such as strawberries, blueberries, mangos, pineapples, blends, and other berries for retail; and IQF and bulk frozen fruits, including purées, toppings, and smoothies for foodservice, and custom fruit preparations for industrial use. This segment also provides fruit snacks comprising bars, twists, ropes, and bite-sized products. The company was formerly known as Stake Technology Ltd. and changed its name to SunOpta Inc. in October 2003. SunOpta Inc. was founded in 1973 and is headquartered in Eden Prairie, Minnesota.
How the Company Makes MoneySunOpta generates revenue through multiple streams, primarily from the sale of its plant-based and fruit-based products. The company earns money by selling its branded products as well as private-label offerings to grocery chains and foodservice operators. Additionally, SunOpta's revenue model includes contracts with major retailers and distributors, allowing for consistent supply and demand. The company also benefits from strategic partnerships and collaborations with other food and beverage brands, which can enhance product offerings and expand market reach. Factors contributing to its earnings include the growing demand for plant-based and organic products, increasing consumer awareness of health and wellness, and the company's focus on innovation and quality in its product lines.
SunOpta Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 04, 2026
Earnings Call Sentiment Neutral
SunOpta demonstrated strong revenue growth and customer demand across key product categories, despite facing significant operational challenges and cost pressures. The company made strategic decisions to prioritize long-term value, which resulted in short-term inefficiencies and delayed margin improvements.Q3-2025 Updates
Positive Updates
Exceptional Revenue Growth
Revenue increased 17% year-over-year, driven entirely by customer demand, marking 9 successive quarters of average 15% volume growth.
Strong Performance in Plant-Based Beverages
Plant-based milk volumes increased at a high teens rate in Q3. The plant-based beverage category grew 9% in foodservice.
Broth and Tea Growth
Broth volumes increased high single digits, and tea was the fastest-growing product category in both retail and foodservice during the quarter.
Better-For-You Fruit Snacks Success
Achieved 21st consecutive quarter of double-digit revenue growth in better-for-you fruit snacks.
Increased Operating Income
Operating income rose $6.1 million to $6.9 million, driven by lower employee variable compensation costs and lower professional fees.
Negative Updates
Operational Challenges and Inefficiencies
The rapid volume growth led to inefficiencies, increased maintenance costs, overtime expenses, and higher waste, particularly exacerbated by wastewater limitations at the Midlothian facility.
Gross Margin Decline
Gross margin decreased by 60 basis points to 12.4%, and adjusted gross margin fell to 13.6% from 16.6% due to increased costs and operational pressures.
Delayed Margin Expansion Initiatives
Focus on servicing accelerated demand led to delays in planned margin expansion activities.
Increased Debt and Leverage
Debt was $266 million, and net leverage was 2.8x, maintaining the leverage ratio higher than the previously expected 2.5x.
Short-Term Cost Increases
The company faced $10 million of unexpected costs impacting the fourth quarter.
Company Guidance
During SunOpta's Third Quarter Fiscal 2025 Earnings Conference Call, the company reported a 17% revenue increase, surpassing their expectations and demonstrating robust growth trends. This surge was entirely driven by a 17% volume growth across their top six customers, marking nine consecutive quarters averaging 15% volume growth. Significant growth was observed in plant-based milk, broth, and tea categories. The company is addressing short-term operational challenges, including inefficiencies in their production schedule, equipment maintenance, and increased short-term costs, but remains confident in achieving long-term margin expansion by mid-2026. SunOpta plans to invest in an additional line of aseptic processing capacity at their Midlothian facility, anticipating completion by late 2026, to meet the accelerating demand. The company updated its full-year revenue outlook to $812-$816 million and expects adjusted EBITDA of $90-$92 million, with a leverage ratio target of 2.8x by year-end. Despite short-term challenges, SunOpta is optimistic about its strategic position and long-term growth trajectory.SunOpta Financial Statement Overview
Summary
SunOpta shows signs of operational improvement with revenue growth and better margins. However, ongoing net losses and high leverage pose significant risks to financial flexibility.Income Statement
SunOpta's income statement shows a modest revenue growth of 2.60% in the TTM, with improving EBIT and EBITDA margins of 3.23% and 8.15% respectively. However, the company is still operating at a net loss with a negative net profit margin of -2.02%, indicating ongoing challenges in achieving profitability.Balance Sheet
The balance sheet reflects a high debt-to-equity ratio of 2.42, suggesting significant leverage which could pose risks. The return on equity is negative due to net losses, but the company maintains an equity ratio of 22.42%, indicating a stable asset base.Cash Flow
SunOpta's cash flow statement highlights a positive free cash flow growth of 52.07% in the TTM, with strong operating cash flow to net income ratio of -4.46, suggesting solid operational performance despite net losses. However, free cash flow to net income is negative, reflecting challenges in turning profits into free cash.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 792.20M | 723.73M | 626.73M | 591.39M | 496.45M | 789.21M |
| Gross Profit | 105.83M | 96.30M | 86.00M | 98.14M | 81.14M | 109.08M |
| EBITDA | 68.85M | 52.80M | 33.55M | 38.12M | 25.78M | 7.08M |
| Net Income | 341.00K | -17.39M | -178.79M | -6.43M | -1.17M | 82.43M |
Balance Sheet | ||||||
| Total Assets | 694.10M | 668.53M | 667.15M | 855.85M | 755.12M | 585.62M |
| Cash, Cash Equivalents and Short-Term Investments | 2.23M | 1.55M | 306.00K | 679.00K | 227.00K | 251.00K |
| Total Debt | 391.24M | 392.68M | 378.03M | 395.31M | 275.83M | 107.06M |
| Total Liabilities | 516.07M | 504.88M | 510.83M | 536.64M | 450.13M | 252.69M |
| Stockholders Equity | 178.03M | 148.59M | 156.32M | 319.21M | 304.98M | 332.93M |
Cash Flow | ||||||
| Free Cash Flow | 21.53M | 18.10M | -31.28M | -64.56M | -101.12M | 66.94M |
| Operating Cash Flow | 50.30M | 50.03M | 14.84M | 60.58M | -21.43M | 91.70M |
| Investing Cash Flow | -27.10M | -18.68M | 44.03M | -106.82M | -94.45M | 324.52M |
| Financing Cash Flow | -23.65M | -31.09M | -50.80M | 46.70M | 115.86M | -417.68M |
SunOpta Technical Analysis
Positive
4.22
Price Trends
3.92
Positive
4.98
Negative
5.27
Negative
Market Momentum
-0.03
Negative
65.10
Neutral
48.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STKL, the sentiment is Positive. The current price of 4.22 is above the 20-day moving average (MA) of 3.78, above the 50-day MA of 3.92, and below the 200-day MA of 5.27, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 65.10 is Neutral, neither overbought nor oversold. The STOCH value of 48.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STKL.
SunOpta Risk Analysis
SunOpta disclosed 36 risk factors in its most recent earnings report. SunOpta 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
SunOpta Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $380.18M | 27.50 | 9.52% | ― | 6.62% | -7.85% | |
70 Outperform | $766.82M | 13.06 | 9.41% | ― | 8.33% | 47.71% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
56 Neutral | $362.88M | 23.14 | 3.20% | ― | 5.88% | -68.62% | |
54 Neutral | $1.21B | -5.00 | -17.18% | ― | -0.69% | -910.85% | |
51 Neutral | $449.21M | -827.45 | 2.23% | ― | 11.31% | 99.83% | |
42 Neutral | $106.87M | -0.20 | -75.51% | ― | -10.13% | -532.32% |
* Consumer Defensive Sector Average
STKL
SunOpta
4.22
-3.12
-42.51%
NATR
Nature's Sunshine Products
22.32
8.32
59.39%
SENEA
Seneca Foods
112.57
39.71
54.50%
HAIN
Hain Celestial
1.19
-3.62
-75.26%
THS
TreeHouse Foods
24.02
-9.83
-29.04%
USNA
USANA Health
20.60
-12.95
-38.60%
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.