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SNDL

SNDL NasdaqCM:SNDL Stock Report

Last Price

US$2.79

Market Cap

US$664.0m

7D

26.8%

1Y

-56.9%

Updated

06 Oct, 2022

Data

Company Financials +
SNDL fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance0/6
Financial Health5/6
Dividends0/6

SNDL Stock Overview

SNDL Inc. engages in the production, distribution, and sale of cannabis products in Canada.

SNDL Competitors

Price History & Performance

Summary of all time highs, changes and price drops for SNDL
Historical stock prices
Current Share PriceUS$2.79
52 Week HighUS$9.60
52 Week LowUS$2.12
Beta3.96
1 Month Change11.60%
3 Month Change-17.19%
1 Year Change-56.94%
3 Year Change-93.86%
5 Year Changen/a
Change since IPO-96.71%

Recent News & Updates

Aug 05

SNDL Starting To Stand Out Among Canadian Cannabis Players

Acquisitions are going to produce big numbers for SNDL going forward. The company is now the largest distributor of cannabis and liquor in the Canadian market, with 354 retail outlets. Its solid balance sheet positions the company well for when economic conditions improve. Concerns over the recent reverse split are overblown - bag holders are the major complainers there. While there are a number of positive catalysts with SNDL, it should still be considered a speculative buy at this time. The numbers concerning SNDL Inc. (SNDL) are going to change drastically in the next earnings report (expected August 12 after the market close), based primarily upon acquisitions that haven't been fully accounted for because of the timing of the deals. So, in the upcoming earnings report, I expect the company will probably get a temporary boost in its share price as the numbers come out; whether or not it'll be able to find sustainable support will be determined by management commentary concerning the outlook for Alcanna and NOVC, especially. If guidance is positive, the company could enter into a long-term growth trajectory concerning its performance and share price. Investors should get a much clearer picture of SNDL after the next earnings report, which I think has a good chance of being at least moderately positive. Latest numbers The acquisitions by SNDL render 1Q numbers largely irrelevant in regard to revenue and earnings because the numbers have changed so much. For example, net revenue in the first quarter of 2022 came in at $17.6 million, with gross margin of $3.4 million. But when adding the revenue from the acquisition of Alcanna if it had occurred on January 1, 2022, the company would have generated revenue of about $164 million, with gross margin of $36 million. On the other hand, there are some important numbers to take into consideration in the first quarter, including the improvement in its net loss from $134 million in Q1 2021, to $38 million in Q1 2022. The bulk of that improvement came from "a noncash change in fair value of derivative warrant liabilities of $122 million." On the downside, investment revenue in the reporting period fell by $31 million. A key strength of SNDL is its balance sheet, which includes no debt and as of the end of March 31, 2022, had a little "over $1 billion of cash, marketable securities and long-term investments." This provides it with a solid cushion if an economic rebound takes longer than expected. Since SNDL has incorporated a strategy of growth through acquisitions, it's important for investors to take a close look at each unit after the upcoming earnings report release. I also believe the market may be not taking the liquor and cannabis retail outlets of SNDL into account when evaluating the company. Those are the things to look closely at in the months ahead. Reverse split concerns When searching around on social media for the purpose of finding out what the sentiment concerning the recent reverse split by SNDL in order to retain its listing on the Nasdaq, I found the sentiment was mostly negative, although the majority of that was obviously from those that bought at a high price and either lost a lot of money or remain bag holders. In other words, the negative commentary is skewed because it's largely based on negative investing experiences related to buying at high prices before they crashed. In reality, a reverse split is, for the most part, a neutral event. For example, in the case of HIVE Blockchain Technologies (HIVE) in the crypto space, it initiated a split in order to protect itself from being delisted, and yet the overall fundamentals of the company were solid. Its split was related to the drop in its share price in response to the falling Bitcoin (BTC-USD) price. The split wasn't related to problems in the company's operations, but problems outside of its control. In the case of SNDL, much has been made that it has the option of having even more splits. I think that's more of a positive than a negative in the current economic conditions the company is operating in. This allows it to protect its listing if the recession we're in ends up going deep and long. I don't see that happening at this time, but it covers the company's basis in case it does. I look at it as a wise decision, based upon the growth the company has entered into with its acquisitions. Again, the next earnings report will provide a clearer picture of what SNDL is at this time. The rapid changes it has engaged in make it impossible to know for now. Even though the company has underperformed for quite some time, this is no longer the same company. Conclusion The acquisition of Alcanna, in particular, has completely changed what SNDL is concerning revenue, earnings and gross margin, among other numbers. It's far larger than it was at the beginning of 2022, and now has a huge presence across Western Canada.

Jul 20

Sundial Growers whipsaws ahead of shareholder meeting on reverse stock split

The shares of Canadian cannabis producer Sundial Growers (NASDAQ:SNDL) were volatile on Wednesday ahead of an investor meeting the company has convened to seek shareholder approval for several proposals, including a reverse stock split. Early this month, Calgary-based Licensed Producer announced its upcoming meeting of shareholders, scheduled for Thursday at 3 p.m. EDT. In addition to a proposal seeking endorsement for several director nominees, the company intends to seek shareholder approval for a reverse stock split based on a consolidation ratio of 10:1 - 25:1. Noting its noncompliance with Nasdaq's $1 minimum bid price requirements, Sundial (SNDL) said that the share consolidation will enable it to avoid a potential delisting that would hurt trading liquidity and access to capital. Listen: Alan Sumler, a University of Colorado lecturer, talks to Seeking Alpha detailing why he remains bullish on the prospects of the cannabis industry.

Shareholder Returns

SNDLUS PharmaceuticalsUS Market
7D26.8%-0.2%3.3%
1Y-56.9%3.6%-20.4%

Return vs Industry: SNDL underperformed the US Pharmaceuticals industry which returned 6.2% over the past year.

Return vs Market: SNDL underperformed the US Market which returned -18.8% over the past year.

Price Volatility

Is SNDL's price volatile compared to industry and market?
SNDL volatility
SNDL Average Weekly Movement11.9%
Pharmaceuticals Industry Average Movement11.3%
Market Average Movement6.9%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.9%

Stable Share Price: SNDL is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: SNDL's weekly volatility (12%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

FoundedEmployeesCEOWebsite
2006580Zach Georgehttps://www.sndlgroup.com

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.

SNDL Fundamentals Summary

How do SNDL's earnings and revenue compare to its market cap?
SNDL fundamental statistics
Market CapUS$664.00m
Earnings (TTM)-US$112.87m
Revenue (TTM)US$202.86m

3.3x

P/S Ratio

-5.9x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SNDL income statement (TTM)
RevenueCA$278.38m
Cost of RevenueCA$232.60m
Gross ProfitCA$45.78m
Other ExpensesCA$200.67m
Earnings-CA$154.88m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.65
Gross Margin16.45%
Net Profit Margin-55.64%
Debt/Equity Ratio0%

How did SNDL perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is SNDL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SNDL?

Other financial metrics that can be useful for relative valuation.

SNDL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3x
Enterprise Value/EBITDA-17x
PEG Ration/a

Price to Sales Ratio vs Peers

How does SNDL's PS Ratio compare to its peers?

SNDL PS Ratio vs Peers
The above table shows the PS ratio for SNDL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average6.5x
CARA Cara Therapeutics
10.6x36.5%US$520.6m
AERI Aerie Pharmaceuticals
3.6x19.5%US$748.8m
EOLS Evolus
3.8x23.3%US$502.0m
WVE Wave Life Sciences
8.1x69.9%US$324.7m
SNDL SNDL
3.3x21.5%US$664.0m

Price-To-Sales vs Peers: SNDL is good value based on its Price-To-Sales Ratio (3.3x) compared to the peer average (6.5x).


Price to Earnings Ratio vs Industry

How does SNDL's PE Ratio compare vs other companies in the US Pharmaceuticals Industry?

Price-To-Sales vs Industry: SNDL is expensive based on its Price-To-Sales Ratio (3.3x) compared to the US Pharmaceuticals industry average (3x)


Price to Sales Ratio vs Fair Ratio

What is SNDL's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SNDL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio3.3x
Fair PS Ratio5x

Price-To-Sales vs Fair Ratio: SNDL is good value based on its Price-To-Sales Ratio (3.3x) compared to the estimated Fair Price-To-Sales Ratio (5x).


Share Price vs Fair Value

What is the Fair Price of SNDL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SNDL ($2.79) is trading above our estimate of fair value ($2.59)

Significantly Below Fair Value: SNDL is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is SNDL forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


34.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SNDL is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: SNDL is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: SNDL is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: SNDL's revenue (21.5% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: SNDL's revenue (21.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SNDL's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has SNDL performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-28.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SNDL is currently unprofitable.

Growing Profit Margin: SNDL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SNDL is unprofitable, and losses have increased over the past 5 years at a rate of 28.1% per year.

Accelerating Growth: Unable to compare SNDL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SNDL is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (5%).


Return on Equity

High ROE: SNDL has a negative Return on Equity (-9.89%), as it is currently unprofitable.


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Financial Health

How is SNDL's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: SNDL's short term assets (CA$600.5M) exceed its short term liabilities (CA$66.5M).

Long Term Liabilities: SNDL's short term assets (CA$600.5M) exceed its long term liabilities (CA$242.4M).


Debt to Equity History and Analysis

Debt Level: SNDL is debt free.

Reducing Debt: SNDL has no debt compared to 5 years ago when its debt to equity ratio was 19.2%.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: SNDL has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if SNDL has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


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Dividend

What is SNDL current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

SNDL Dividend Yield vs Market
How does SNDL dividend yield compare to the market?
SegmentDividend Yield
Company (SNDL)n/a
Market Bottom 25% (US)1.6%
Market Top 25% (US)4.6%
Industry Average (Pharmaceuticals)2.6%
Analyst forecast in 3 Years (SNDL)n/a

Notable Dividend: Unable to evaluate SNDL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SNDL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SNDL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SNDL's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as SNDL has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average management tenure


CEO

Zach George (44 yo)

2.92yrs

Tenure

CA$5,369,889

Compensation

Mr. Zachary Ryan George, B.A, J.D., also known as Zach, is a Co-Founder, Managing Member, Partner and Portfolio Manager at FrontFour Capital Group LLC since 2006. He serves as Chairman at Nova Cannabis Inc...


CEO Compensation Analysis

Zach George's Compensation vs SNDL Earnings
How has Zach George's remuneration changed compared to SNDL's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

-CA$155m

Mar 31 2022n/an/a

-CA$134m

Dec 31 2021CA$5mCA$500k

-CA$230m

Sep 30 2021n/an/a

-CA$239m

Jun 30 2021n/an/a

-CA$322m

Mar 31 2021n/an/a

-CA$296m

Dec 31 2020CA$9mCA$458k

-CA$200m

Sep 30 2020n/an/a

-CA$170m

Jun 30 2020n/an/a

-CA$184m

Mar 31 2020n/an/a

-CA$164m

Dec 31 2019CA$375kCA$350k

-CA$143m

Compensation vs Market: Zach's total compensation ($USD3.91M) is about average for companies of similar size in the US market ($USD3.98M).

Compensation vs Earnings: Zach's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: SNDL's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: SNDL's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

NasdaqCM:SNDL Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
28 Jun 22SellUS$124,104Donald BobeyIndividual32,889.1US$3.80
19 May 22BuyUS$12,374Gregory TurnbullIndividual2,877US$4.30
19 May 22SellUS$20,500Kristine DowIndividual5,000US$4.10
30 Dec 21SellUS$10,805Kristine DowIndividual1,964.6US$5.50
16 Nov 21BuyUS$41,450Growing Ideas Inc.Company5,000US$8.29

Ownership Breakdown

What is the ownership structure of SNDL?
Owner TypeNumber of SharesOwnership Percentage
Public Companies16,0000.007%
Private Companies458,4620.2%
Individual Insiders501,6940.2%
Institutions18,512,3387.8%
General Public218,504,62591.8%

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 15.5%.


Top Shareholders

Top 25 shareholders own 7.87% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
5.08%
ETF Managers Group LLC
12,093,891CA$33.7m91.52%0.73%
0.67%
Susquehanna International Group, LLP, Asset Management Arm
1,589,420CA$4.4m13.4%0.01%
0.49%
Mirae Asset Global Investments Co., Ltd
1,155,091CA$3.2m-50.91%no data
0.2%
Morgan Stanley, Investment Banking and Brokerage Investments
473,612CA$1.3m92.91%no data
0.19%
Ace Liquor Corporation
453,462CA$1.3m0%no data
0.19%
Dimensional Fund Advisors LP
444,684CA$1.2m8700.4%no data
0.12%
State Street Global Advisors, Inc.
295,561CA$824.6k26.44%no data
0.12%
Jane Street Group, LLC, Asset Management Arm
283,091CA$789.8k825.16%no data
0.11%
D. E. Shaw & Co., L.P.
255,178CA$711.9k-92.45%no data
0.089%
GMT Capital Corp.
211,090CA$588.9k0%0.02%
0.076%
Zachary George
181,814CA$507.3k0%no data
0.07%
Group One Trading LP, Asset Management Arm
166,885CA$465.6k-6.28%0.01%
0.057%
Virtu Financial LLC, Asset Management Arm
135,707CA$378.6k35.13%0.03%
0.054%
David Gordey
128,815CA$359.4k0%no data
0.052%
The Caprock Group, LLC
124,000CA$346.0k0%0.03%
0.047%
Cambria Investment Management, L.P.
111,606CA$311.4k0%0.02%
0.042%
Purpose Investments Inc.
100,000CA$279.0k0%0.02%
0.041%
Millennium Management LLC
98,571CA$275.0k3346.54%no data
0.031%
Spartan Fund Management Inc.
74,782CA$208.6k0%0.03%
0.027%
Vontobel Asset Management, Inc.
64,861CA$181.0k8.06%no data
0.026%
Citadel Advisors LLC
61,855CA$172.6k0%no data
0.026%
Two Sigma Securities, LLC, Asset Management Arm
61,401CA$171.3k774.16%0.03%
0.025%
Susquehanna Advisors Group, Inc.
59,018CA$164.7k0%0.01%
0.021%
Invesco Capital Management LLC
50,118CA$139.8k24.17%no data
0.019%
Squarepoint OPS LLC
46,368CA$129.4k-27.31%no data

Company Information

SNDL Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: SNDL Inc.
  • Ticker: SNDL
  • Exchange: NasdaqCM
  • Founded: 2006
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Implied Market Cap: US$664.001m
  • Shares outstanding: 237.99m
  • Website: https://www.sndlgroup.com

Number of Employees


Location

  • SNDL Inc.
  • 919–11 Avenue SW
  • #300
  • Calgary
  • Alberta
  • T2R 1P3
  • Canada


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SNDLNasdaqCM (Nasdaq Capital Market)YesCommon SharesUSUSDAug 2019
VY4DB (Deutsche Boerse AG)YesCommon SharesDEEURAug 2019

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/06 00:00
End of Day Share Price2022/10/06 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.