Download PDF

1. Company Snapshot

1.a. Company Description

SunOpta 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.

Show Full description

1.b. Last Insights on STKL

SunOpta Inc.'s recent performance was hindered by a decline in its Q4 2024 earnings, with the company citing lower sales in its Plant-Based and Food Ingredients segments. The Plant-Based segment's revenue decreased by 10.5% year-over-year, primarily due to lower sales of plant-based beverages. Additionally, the company's Food Ingredients segment experienced a 5.1% decline in revenue, driven by decreased sales of specialty ingredients. Furthermore, SunOpta's gross margin contracted by 130 basis points, primarily due to higher raw material costs and lower sales volumes.

1.c. Company Highlights

2. SunOpta's Q3 FY2025 Earnings: Strong Volume Growth Amidst Operational Challenges

SunOpta reported a 17% increase in revenue to $205 million, driven by volume growth, while gross profit rose 11% to $25.5 million. However, gross margin decreased by 60 basis points to 12.4%. Adjusted EBITDA increased 13% to $23.6 million. The company's actual EPS came out at $0.05, beating estimates of $0.03. The revenue growth was a positive surprise, reflecting the pull-through from the pipeline, with a 12% growth in 2025 versus a prior 9% growth expectation.

Publication Date: Nov -25

📋 Highlights
  • Revenue & Adjusted EBITDA Growth:: Q3 revenue rose 17% to $205M; adjusted EBITDA increased 13% to $23.6M.
  • 2025 Outlook:: Revenue $812–816M; adjusted EBITDA $90–92M; $35M capacity expansion investment (10% network boost, 2026).
  • 2026 Revenue & EBITDA Projections:: $865–880M revenue (+6–8% YoY); $102–108M EBITDA (+12–19% YoY).
  • Margin Challenges & Resolutions:: Q4 2025 20% gross margin target, down from 12.4% in Q3; issues expected resolved by Q2 2026.
  • Long-Term Growth Initiatives:: New aseptic line (2027) and fruit snacks line (2028) to drive margin expansion; 2027 20% margin target.

Operational Challenges and Future Outlook

The company faced short-term challenges due to accelerated demand, including increased maintenance expenses, overtime costs, and temporary inefficiencies. Despite these challenges, SunOpta updated its 2025 outlook, expecting revenue of $812 million to $816 million and adjusted EBITDA of $90 million to $92 million. For 2026, the company expects revenue of $865 million to $880 million, representing growth of 6% to 8%, and adjusted EBITDA of $102 million to $108 million, representing growth of 12% to 19%. The company's guidance assumes capacity limitations until new equipment is installed.

Margin Expansion Initiatives

SunOpta is confident in its long-term growth trajectory and margin expansion initiatives. The company targets a 20% gross margin rate in 4Q '26 and has concrete plans to address current challenges, including equipment reliability and wastewater management at Midlothian. The new aseptic line at the Midlothian facility and the previously announced fruit snacks line in Omak, Washington, are expected to be key components in delivering growth in 2027 and 2028.

Valuation and Growth Prospects

With a P/S Ratio of 0.52 and an EV/EBITDA of 13.02, SunOpta's valuation appears reasonable considering its growth prospects. Analysts estimate next year's revenue growth at 7.4%. The company's ROIC of 14.35% indicates a strong return on invested capital. However, the Net Debt / EBITDA ratio of 6.56 suggests a relatively high debt burden. As CEO Brian Kocher summarized, the company is energized by its business fundamentals and confident in its plan to address margin issues, which is expected to lead to sustained success and a path to outperform revenue and profit targets in 2027 and beyond.

3. NewsRoom

Card image cap

SunOpta Inc. (STKL) Q3 2025 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

Card image cap

SunOpta (STKL) Beats Q3 Earnings and Revenue Estimates

Nov -06

Source: zacks.com

Card image cap

SunOpta Announces Third Quarter Fiscal 2025 Financial Results

Nov -05

Source: businesswire.com

Card image cap

SunOpta's Latest Results Show It's Still On Track

Oct -11

Source: seekingalpha.com

Card image cap

From Apps to Nutrition: Health & Fitness Stocks to Buy Now

Oct -03

Source: zacks.com

Card image cap

Wall Street Analysts Think SunOpta (STKL) Could Surge 57.73%: Read This Before Placing a Bet

Aug -28

Source: zacks.com

Card image cap

SunOpta: The Bullish Call Remains Appetizing

Aug -27

Source: seekingalpha.com

Card image cap

Despite Fast-paced Momentum, SunOpta (STKL) Is Still a Bargain Stock

Aug -19

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.34%)

6. Segments

Beverages and Broths

Expected Growth: 7%

SunOpta's 7% growth in Beverages and Broths is driven by increasing demand for healthy and organic beverages, expansion in e-commerce and retail channels, and strategic acquisitions. Additionally, growing consumer preference for plant-based and functional beverages, as well as rising demand for convenient and portable broth products, contribute to the segment's growth.

Fruit Snacks

Expected Growth: 9%

SunOpta's Fruit Snacks segment growth is driven by increasing consumer demand for healthy and convenient snacks, rising popularity of organic and non-GMO products, and expanding distribution channels in the natural food and e-commerce markets. Additionally, the company's strategic investments in product innovation and manufacturing capacity have enabled it to capitalize on the growing trend towards better-for-you snacks.

Ingredients

Expected Growth: 6%

SunOpta Inc.'s 6% growth is driven by increasing demand for organic and non-GMO ingredients, expansion in the plant-based food market, and rising consumer preference for healthy and sustainable products. Additionally, strategic acquisitions and investments in manufacturing capabilities have enhanced operational efficiency and capacity, supporting revenue growth.

Smoothie Bowls

Expected Growth: 10%

SunOpta Inc.'s Smoothie Bowls growth is driven by increasing demand for healthy, convenient, and Instagrammable food options. Rising popularity of plant-based diets, growing awareness of gut health, and expanding distribution channels contribute to the 10% growth. Additionally, the company's focus on organic and non-GMO ingredients resonates with the health-conscious consumer, further fueling growth.

7. Detailed Products

Grain and Seed

SunOpta Inc. offers a wide range of grains and seeds, including organic and non-organic options, sourced from top suppliers around the world.

Fruit and Vegetable Based Ingredients

SunOpta provides a variety of fruit and vegetable-based ingredients, including frozen fruits, purees, and concentrates, for use in food and beverage products.

Nut Butters and Seeds

SunOpta offers a range of nut butters, including peanut butter, almond butter, and cashew butter, as well as seeds such as chia, flax, and hemp.

Cocoa and Chocolate

SunOpta provides high-quality cocoa and chocolate products, including cocoa powder, cocoa butter, and chocolate chips.

Roasted Snacks

SunOpta offers a range of roasted snacks, including nuts, seeds, and legumes, roasted to perfection for a healthy and tasty snack.

Specialty Oils

SunOpta provides a variety of specialty oils, including coconut oil, avocado oil, and grapeseed oil, for use in food manufacturing and cooking.

Organic and Non-GMO Ingredients

SunOpta offers a range of organic and non-GMO ingredients, including grains, seeds, and sweeteners, for use in food manufacturing and production.

8. SunOpta Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

SunOpta Inc. faces moderate threat from substitutes due to the availability of alternative products in the market.

Bargaining Power Of Customers

SunOpta Inc. has a large customer base, but the bargaining power of customers is high due to the availability of alternative products and services.

Bargaining Power Of Suppliers

SunOpta Inc. has a diversified supplier base, which reduces the bargaining power of suppliers.

Threat Of New Entrants

The threat of new entrants in the industry is moderate due to the presence of barriers to entry, such as high capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry in the industry is high due to the presence of several established players and the need to maintain market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 62.82%
Debt Cost 10.77%
Equity Weight 37.18%
Equity Cost 12.54%
WACC 11.43%
Leverage 168.99%

11. Quality Control: SunOpta Inc. passed 0 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

Stock-Card
Farmer Bros

A-Score: 3.3/10

Value: 7.8

Growth: 4.1

Quality: 2.2

Yield: 0.0

Momentum: 4.0

Volatility: 1.7

1-Year Total Return ->

View Full Report
Stock-Card
BRC

A-Score: 3.2/10

Value: 7.0

Growth: 6.4

Quality: 3.8

Yield: 0.0

Momentum: 0.0

Volatility: 2.0

1-Year Total Return ->

View Full Report
Stock-Card
SunOpta

A-Score: 3.0/10

Value: 5.1

Growth: 3.1

Quality: 2.4

Yield: 0.0

Momentum: 4.0

Volatility: 3.3

1-Year Total Return ->

View Full Report
Stock-Card
TreeHouse Foods

A-Score: 3.0/10

Value: 6.6

Growth: 4.2

Quality: 2.6

Yield: 0.0

Momentum: 0.0

Volatility: 4.3

1-Year Total Return ->

View Full Report
Stock-Card
Beyond Meat

A-Score: 3.0/10

Value: 9.0

Growth: 3.0

Quality: 5.2

Yield: 0.0

Momentum: 0.5

Volatility: 0.0

1-Year Total Return ->

View Full Report
Stock-Card
Hain Celestial

A-Score: 2.5/10

Value: 9.8

Growth: 0.8

Quality: 2.8

Yield: 0.0

Momentum: 0.0

Volatility: 1.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

3.61$

Current Price

3.61$

Potential

-0.00%

Expected Cash-Flows