SNDL Stock Overview
SNDL Inc. engages in the production, distribution, and sale of cannabis products in Canada.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$2.79|
|52 Week High||US$9.60|
|52 Week Low||US$2.12|
|1 Month Change||11.60%|
|3 Month Change||-17.19%|
|1 Year Change||-56.94%|
|3 Year Change||-93.86%|
|5 Year Change||n/a|
|Change since IPO||-96.71%|
Recent News & Updates
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.
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.
|SNDL||US Pharmaceuticals||US Market|
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.
|SNDL Average Weekly Movement||11.9%|
|Pharmaceuticals Industry Average Movement||11.3%|
|Market Average Movement||6.9%|
|10% most volatile stocks in US Market||15.6%|
|10% least volatile stocks in US Market||2.9%|
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
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
|SNDL fundamental statistics|
Is SNDL overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|SNDL income statement (TTM)|
|Cost of Revenue||CA$232.60m|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||-0.65|
|Net Profit Margin||-55.64%|
How did SNDL perform over the long term?See historical performance and comparison
Is SNDL undervalued compared to its fair value, analyst forecasts and its price relative to the market?
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
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.
|What is SNDL's n/a Ratio?|
Price to Sales Ratio vs Peers
How does SNDL's PS Ratio compare to its peers?
|SNDL PS Ratio vs Peers|
|Company||PS||Estimated Growth||Market Cap|
CARA Cara Therapeutics
AERI Aerie Pharmaceuticals
WVE Wave Life Sciences
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.
|Current PS Ratio||3.3x|
|Fair PS Ratio||5x|
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.
Discover undervalued companies
How is SNDL forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
Future Growth Score2/6
Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
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
Discover growth companies
How has SNDL performed over the past 5 years?
Past Performance Score0/6
Past Performance Score 0/6
Growing Profit Margin
Earnings vs Industry
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.
Discover strong past performing companies
How is SNDL's financial position?
Financial Health Score5/6
Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
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%.
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.
Discover healthy companies
What is SNDL current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Cash Flow Coverage
Dividend Yield vs Market
|SNDL Dividend Yield vs Market|
|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
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Zach George (44 yo)
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|
|Date||Total Comp.||Salary||Company Earnings|
|Jun 30 2022||n/a||n/a|
|Mar 31 2022||n/a||n/a|
|Dec 31 2021||CA$5m||CA$500k|
|Sep 30 2021||n/a||n/a|
|Jun 30 2021||n/a||n/a|
|Mar 31 2021||n/a||n/a|
|Dec 31 2020||CA$9m||CA$458k|
|Sep 30 2020||n/a||n/a|
|Jun 30 2020||n/a||n/a|
|Mar 31 2020||n/a||n/a|
|Dec 31 2019||CA$375k||CA$350k|
Compensation vs Market: Zach's total compensation ($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.
Experienced Management: SNDL's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.
Experienced Board: SNDL's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.
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
|28 Jun 22||SellUS$124,104||Donald Bobey||Individual||32,889.1||US$3.80|
|19 May 22||BuyUS$12,374||Gregory Turnbull||Individual||2,877||US$4.30|
|19 May 22||SellUS$20,500||Kristine Dow||Individual||5,000||US$4.10|
|30 Dec 21||SellUS$10,805||Kristine Dow||Individual||1,964.6||US$5.50|
|16 Nov 21||BuyUS$41,450||Growing Ideas Inc.||Company||5,000||US$8.29|
|Owner Type||Number of Shares||Ownership Percentage|
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 15.5%.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
SNDL Inc.'s employee growth, exchange listings and data sources
- 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
- SNDL Inc.
- 919–11 Avenue SW
- T2R 1P3
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|SNDL||NasdaqCM (Nasdaq Capital Market)||Yes||Common Shares||US||USD||Aug 2019|
|VY4||DB (Deutsche Boerse AG)||Yes||Common Shares||DE||EUR||Aug 2019|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/10/06 00:00|
|End of Day Share Price||2022/10/06 00:00|
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.