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Sunopta (STKL)
NASDAQ:STKL
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SunOpta (STKL) AI Stock Analysis

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STKL

SunOpta

(NASDAQ:STKL)

Rating:60Neutral
Price Target:
$6.50
▼(-1.37% Downside)
SunOpta's strong earnings call performance and positive technical indicators are offset by financial challenges, including high leverage and negative profitability. The stock's valuation remains a concern due to a negative P/E ratio.
Positive Factors
Financial Guidance
SunOpta's raised guidance for 2025 suggests further upside potential, supporting the Outperform rating.
Volume Growth
SunOpta is experiencing double-digit volume growth, which indicates strong demand for its products.
Negative Factors
Challenging Macro Environment
STKL's growth trajectory remains on track despite the challenging macro backdrop.

SunOpta (STKL) vs. SPDR S&P 500 ETF (SPY)

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 foods and beverages, as well as fruit and vegetable products. The company sells its products to various customers, including grocery retailers, food service operators, and ingredient manufacturers. Key revenue sources include retail sales of branded and private label products, bulk sales to food manufacturers, and contract manufacturing services. Additionally, SunOpta benefits from strategic partnerships with other companies in the food industry, which enhance its distribution capabilities and market reach. The growing consumer trend towards plant-based diets and organic products further supports its revenue potential.

SunOpta Earnings Call Summary

Earnings Call Date:Aug 06, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
SunOpta's earnings call highlighted strong revenue growth driven by volume increases and successful category expansions, particularly in fruit snacks and broth. Despite challenges from tariff headwinds impacting margins, the company demonstrated resilience and maintained a positive outlook with plans for future growth and investments. Operational efficiency improvements and a strong pipeline support a favorable long-term trajectory.
Q2-2025 Updates
Positive Updates
Strong Revenue Growth
SunOpta delivered year-over-year revenue growth of 13% for Q2 2025, driven by a 14% increase in volume across the portfolio.
Adjusted EBITDA Increase
Adjusted EBITDA grew by 14% to $22.7 million compared to the prior year, despite $1.6 million of tariff headwinds.
Fruit Snacks Expansion
Achieved 20 consecutive quarters of double-digit growth in the better-for-you fruit snacks category, which now represents 20% of total revenue. Announced a new manufacturing line to increase output by 25%.
Broth and Club Channel Growth
Broth sales increased by over 25% across retail and club channels. The club channel business itself is thriving with a growth of over 25%.
Operational Efficiency and Margin Improvement
Gross margin increased by 230 basis points to 14.8%, and the company is on track for a 300 basis points expansion by Q4 compared to Q1.
Positive Long-Term Outlook
Revised revenue outlook for 2025 to $805 million - $815 million, with expected adjusted EBITDA growth of 12% to 16%.
Negative Updates
Tariff Headwinds
Incurred $1.6 million in tariff headwinds affecting gross profit. Ongoing tariff adjustments are expected to impact the cost of goods sold in the second half of the year.
Adjusted Gross Margin Decrease
Adjusted gross margin decreased by 80 basis points due to the timing lag on the pass-through of tariff costs and investments in labor and infrastructure.
Net Debt and Leverage
Net debt stood at $271 million with a net leverage ratio of 2.9x, although it remained flat from the first quarter.
Company Guidance
During SunOpta's Second Quarter Fiscal 2025 Earnings Conference Call, the company reported several key metrics indicating robust performance and growth. They achieved a year-over-year revenue growth of 13%, driven by a 14% increase in volume across their portfolio. Adjusted EBITDA also grew by 14%, despite experiencing a $1.6 million tariff headwind that impacted gross profit. The adjusted gross margin was recorded at 15.2%, including a 90 basis point impact from tariff pass-through pricing delays. SunOpta highlighted the sustained double-digit growth in their better-for-you fruit snacks category, marking the 20th consecutive quarter of such performance. The company also announced an investment in a new manufacturing line to increase fruit snack capacity by approximately 25%, reflecting strong demand. Looking ahead, they revised their revenue outlook for the year to between $805 million and $815 million, reflecting an 11% to 13% growth compared to 2024, while maintaining their adjusted EBITDA guidance at $99 million to $103 million. They also reported a net debt of $271 million with a net leverage ratio of 2.9x, and anticipated achieving a 2.5x leverage target by the end of 2025. SunOpta remains confident in their long-term growth strategy, aiming for an 8% to 10% annual revenue growth and a 16% to 18% return on invested capital by 2026.

SunOpta Financial Statement Overview

Summary
SunOpta shows signs of operational improvement with revenue growth and better margins, but profitability challenges persist with a negative net profit margin and high leverage.
Income Statement
55
Neutral
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
60
Neutral
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
62
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue763.00M723.73M630.30M934.66M812.62M789.21M
Gross Profit99.70M96.30M88.62M122.85M98.08M109.08M
EBITDA61.36M53.71M38.22M41.31M36.08M11.16M
Net Income-5.97M-17.39M-175.02M-9.52M-4.14M-47.30M
Balance Sheet
Total Assets704.94M668.53M669.42M855.85M755.12M585.62M
Cash, Cash Equivalents and Short-Term Investments2.16M1.55M306.00K679.00K227.00K251.00K
Total Debt404.76M392.68M379.14M399.12M275.83M107.06M
Total Liabilities529.90M504.88M493.89M508.58M421.99M252.69M
Stockholders Equity175.04M148.59M175.53M347.27M333.13M332.93M
Cash Flow
Free Cash Flow42.68M18.10M-31.28M-68.05M-104.80M66.94M
Operating Cash Flow72.54M50.03M14.84M60.58M-21.43M91.70M
Investing Cash Flow-26.21M-18.68M44.03M-106.82M-94.45M324.52M
Financing Cash Flow-48.07M-31.09M-50.80M46.70M115.86M-417.68M

SunOpta Technical Analysis

Technical Analysis Sentiment
Positive
Last Price6.59
Price Trends
50DMA
6.19
Positive
100DMA
5.80
Positive
200DMA
6.28
Positive
Market Momentum
MACD
0.08
Negative
RSI
60.79
Neutral
STOCH
72.40
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 6.59 is above the 20-day moving average (MA) of 6.29, above the 50-day MA of 6.19, and above the 200-day MA of 6.28, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 60.79 is Neutral, neither overbought nor oversold. The STOCH value of 72.40 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$302.27M22.989.15%4.33%-6.33%
77
Outperform
$473.85M45.0314.46%9.19%-23.91%
72
Outperform
$766.29M17.877.04%7.30%-13.73%
63
Neutral
$20.52B14.80-2.68%3.09%1.95%-4.76%
60
Neutral
$778.85M-1.34%10.90%96.02%
51
Neutral
$373.62M-35.36%16.27%-6.91%-83.51%
46
Neutral
$164.26M-31.83%-8.50%-186.18%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
STKL
SunOpta
6.59
-0.12
-1.79%
BGS
B&G Foods
4.67
-2.94
-38.63%
LWAY
Lifeway Foods
31.12
9.32
42.75%
NATR
Nature's Sunshine Products
17.14
4.05
30.94%
SENEA
Seneca Foods
111.40
51.34
85.48%
HAIN
Hain Celestial
1.82
-6.51
-78.15%

SunOpta Corporate Events

Executive/Board ChangesShareholder Meetings
SunOpta Holds Annual Shareholders Meeting, Key Decisions Made
Neutral
May 27, 2025

On May 22, 2025, SunOpta Inc. held its Annual and Special Meeting of Shareholders where key decisions were made, including the election of eight directors and the appointment of Ernst & Young LLP as the independent auditor for the upcoming year. Additionally, shareholders approved an amendment to the employee stock purchase plan, eliminating its termination date, and reconfirmed the company’s shareholder rights plan, reflecting continued support for the company’s strategic direction.

The most recent analyst rating on (STKL) stock is a Buy with a $10.00 price target. To see the full list of analyst forecasts on SunOpta stock, see the STKL Stock Forecast page.

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.Date of analysis: Sep 04, 2025