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1. Company Snapshot

1.a. Company Description

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.The company also produces and distributes inhalable products, such as flower, pre-rolls, and vapes.It offers its products under the Top Leaf, Sundial Cannabis, Palmetto, and Grasslands brands.


The company was formerly known as Sundial Growers Inc.and changed its name to SNDL Inc.in July 2022.


SNDL Inc.was incorporated in 2006 and is headquartered in Calgary, Canada.

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1.b. Last Insights on SNDL

Negative drivers behind SNDL Inc.'s recent stock performance include: * Weak investor sentiment in the cannabis sector, which has been a significant headwind for the company. * The recent acquisition of Indiva Limited's business and assets, while strategic, may have created integration challenges and distracted from core operations. * The company's high debt levels, which may limit its ability to invest in growth initiatives or return capital to shareholders. * The lack of a clear path to profitability, with SNDL's Q3 2024 earnings release showing a net loss of $0.04 per share. * The company's high operating expenses, which may be difficult to reduce in the near term. * The recent appointment of new executives, while positive for the company's long-term prospects, may also create uncertainty and disrupt the existing management team.

1.c. Company Highlights

2. SNDL's Q3 2025 Earnings: A Mixed Bag with Growth Potential

SNDL reported net revenue of $244 million for Q3 2025, a 3.1% increase compared to Q3 2024, with gross profit reaching $64.2 million, representing a 1.9% growth year-over-year. However, the company reported an operating loss of $11 million, largely due to noncash adjustments totaling $11.9 million. Adjusted operating income loss was $9.5 million, a 42.7% improvement compared to last year. The company's EPS came out at -$0.04, missing estimates of -$0.00036.

Publication Date: Nov -25

📋 Highlights

Segment Performance

The Liquor Retail segment delivered net revenue of $139.4 million, a 3.6% year-over-year decline, but achieved a gross margin of 26.3%, a new historic record. The Cannabis Retail segment reported outstanding results with net revenue of $85 million, a 4.8% year-over-year growth, driven by a 3.6% increase in same-store sales. The Cannabis Operations segment reported mixed results, with net revenue of $37.4 million, a 50% growth compared to the prior year, driven by edibles and international sales.

Growth Drivers and Outlook

Zach George highlighted the company's strategic priorities, including growth, profitability, and people, with accelerated organic capital investments in new store expansion. The company is seeing strong demand for its international sales, with increasing quarterly-over-quarter sales since the beginning of the year. As Alberto Paredero noted, "We're seeing strong demand and increasing quarterly-over-quarter sales since the beginning of the year. Our international partners are struggling with reliability of supply from other partners, and they're pleased with our performance, so we anticipate continued growth."

Valuation and Metrics

With a P/S Ratio of 0.68 and an EV/EBITDA of -16.74, the market seems to be pricing in significant challenges for the company. However, the Free Cash Flow Yield of 8.95% could be an attractive metric for income investors. The company's ROE and ROIC are both negative, indicating that the company is still struggling to generate returns on its investments. Analysts estimate next year's revenue growth at 3.1%, which may not be enough to drive significant stock price appreciation.

3. NewsRoom

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SNDL Announces Renewal of Share Repurchase Program

Nov -21

Source: globenewswire.com

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3 Of The Best Marijuana Stocks To Buy For Possible Gains In 2026

Nov -14

Source: marijuanastocks.com

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SNDL Drops On Q3 Results And Uncertainty Around Rescheduling

Nov -06

Source: seekingalpha.com

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SNDL Inc. (SNDL) Q3 2025 Earnings Call Transcript

Nov -04

Source: seekingalpha.com

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Top Cannabis Stocks To Follow Now – October 28th

Oct -30

Source: defenseworld.net

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SNDL to Announce Third Quarter 2025 Financial Results on November 4, 2025

Oct -15

Source: globenewswire.com

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Best Cannabis Stocks in Canada to Watch Now: Technical Signals and Market Outlook

Sep -18

Source: marijuanastocks.com

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3 Marijuana Stocks For Better Gains This Month

Sep -12

Source: marijuanastocks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.47%)

6. Segments

Liquor Retail

Expected Growth: 7%

SNDL Inc.'s 7% growth in Liquor Retail is driven by increasing demand for premium products, strategic store expansions, and effective pricing strategies. Additionally, the company's focus on customer experience, loyalty programs, and omnichannel presence contribute to its growth. Furthermore, SNDL's ability to navigate regulatory changes and capitalize on emerging trends, such as e-commerce and delivery services, also support its growth momentum.

Cannabis Retail

Expected Growth: 11%

SNDL Inc.'s 11% growth in Cannabis Retail is driven by increasing recreational legalization, rising consumer adoption, and strategic store expansions. Additionally, the company's focus on premium products, efficient operations, and loyalty programs contribute to its growth momentum.

Cannabis

Expected Growth: 10%

SNDL Inc.'s 10% growth in cannabis is driven by increasing recreational legalization, rising consumer demand, and strategic acquisitions. Additionally, the company's focus on low-cost production, efficient distribution, and diversified product offerings contribute to its growth momentum.

Corporate

Expected Growth: 8%

SNDL Inc.'s corporate segment growth is driven by increasing cannabis demand, strategic acquisitions, and expansion into new markets. The company's focus on vertical integration, cost savings, and operational efficiencies also contribute to its growth. Additionally, SNDL's strong brand portfolio and growing e-commerce presence further support its 8% growth rate.

7. Detailed Products

Cannabis Products

SNDL Inc. offers a wide range of cannabis products, including dried flowers, oils, and edibles, catering to recreational and medical consumers.

Cultivation Services

The company provides cultivation services, including seed-to-sale solutions, to licensed producers and retailers.

Retail Operations

SNDL Inc. operates a network of retail stores, offering a curated selection of cannabis products and accessories.

Extraction and Manufacturing

The company offers extraction and manufacturing services, producing high-quality cannabis oils and concentrates.

Logistics and Distribution

SNDL Inc. provides logistics and distribution services, ensuring efficient and secure transportation of cannabis products.

8. SNDL Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for SNDL Inc. is moderate due to the presence of alternative products and services in the cannabis industry.

Bargaining Power Of Customers

The bargaining power of customers for SNDL Inc. is low due to the company's strong brand recognition and limited switching costs.

Bargaining Power Of Suppliers

The bargaining power of suppliers for SNDL Inc. is moderate due to the presence of multiple suppliers in the cannabis industry.

Threat Of New Entrants

The threat of new entrants for SNDL Inc. is high due to the growing demand for cannabis products and the relatively low barriers to entry in the industry.

Intensity Of Rivalry

The intensity of rivalry for SNDL Inc. is high due to the presence of multiple competitors in the cannabis industry and the need to differentiate itself through product offerings and pricing strategies.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 12.11%
Debt Cost 4.35%
Equity Weight 87.89%
Equity Cost 20.26%
WACC 18.33%
Leverage 13.78%

11. Quality Control: SNDL Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.7$

Current Price

1.7$

Potential

-0.00%

Expected Cash-Flows