Taking everything into account, SNDL scores 4 out of 10 in our fundamental rating. SNDL was compared to 191 industry peers in the Pharmaceuticals industry. SNDL scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. SNDL is not valued too expensively and it also shows a decent growth rate.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year SNDL has reported negative net income.
In the past year SNDL had a positive cash flow from operations.
SNDL had negative earnings in each of the past 5 years.
SNDL had negative operating cash flow in 4 of the past 5 years.

1.2 Ratios

SNDL has a Return On Assets of -7.00%. This is in the better half of the industry: SNDL outperforms 70.16% of its industry peers.
SNDL has a better Return On Equity (-8.39%) than 75.39% of its industry peers.

		Industry Rank	Sector Rank
ROA	-7%
ROE	-8.39%
ROIC	N/A

ROA(3y)-13.41%

ROA(5y)-27.04%

ROE(3y)-16.09%

ROE(5y)-30.65%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

SNDL has a Gross Margin (27.03%) which is in line with its industry peers.
SNDL's Gross Margin has been stable in the last couple of years.
The Profit Margin and Operating Margin are not available for SNDL so they could not be analyzed.

		Industry Rank	Sector Rank
OM	N/A
PM (TTM)	N/A
GM	27.03%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y38.61%

GM growth 5Y-0.23%

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ROA

ROE

ROIC

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2. Health

2.1 Basic Checks

SNDL does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for SNDL remains at a similar level compared to 1 year ago.
SNDL has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SNDL has an improved debt to assets ratio.

2.2 Solvency

Based on the Altman-Z score of 1.20, we must say that SNDL is in the distress zone and has some risk of bankruptcy.
SNDL's Altman-Z score of 1.20 is in line compared to the rest of the industry. SNDL outperforms 52.36% of its industry peers.
The Debt to FCF ratio of SNDL is 2.69, which is a good value as it means it would take SNDL, 2.69 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SNDL (2.69) is better than 91.62% of its industry peers.
A Debt/Equity ratio of 0.11 indicates that SNDL is not too dependend on debt financing.
SNDL has a Debt to Equity ratio (0.11) which is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0.11
Debt/FCF	2.69
Altman-Z	1.2

ROIC/WACCN/A

WACC8.42%

2.3 Liquidity

A Current Ratio of 5.04 indicates that SNDL has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 5.04, SNDL is in the better half of the industry, outperforming 64.40% of the companies in the same industry.
A Quick Ratio of 3.54 indicates that SNDL has no problem at all paying its short term obligations.
The Quick ratio of SNDL (3.54) is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Current Ratio	5.04
Quick Ratio	3.54

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 16.68% over the past year.
The Revenue has been growing slightly by 4.43% in the past year.
Measured over the past years, SNDL shows a very strong growth in Revenue. The Revenue has been growing by 70.65% on average per year.

EPS 1Y (TTM)16.68%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%19.59%

Revenue 1Y (TTM)4.43%

Revenue growth 3Y154.1%

Revenue growth 5Y70.65%

Sales Q2Q%5.35%

3.2 Future

The Earnings Per Share is expected to grow by 42.75% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 3.56% on average over the next years.

EPS Next Y51.52%

EPS Next 2Y43.55%

EPS Next 3Y33.21%

EPS Next 5Y42.75%

Revenue Next Year4.28%

Revenue Next 2Y3.69%

Revenue Next 3Y3.05%

Revenue Next 5Y3.56%

3.3 Evolution

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

SNDL reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
A Price/Forward Earnings ratio of 220.76 indicates a quite expensive valuation of SNDL.
SNDL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SNDL is cheaper than 67.54% of the companies in the same industry.
SNDL's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.32.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	220.76

4.2 Price Multiples

87.43% of the companies in the same industry are more expensive than SNDL, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, SNDL is valued cheaply inside the industry as 91.10% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	10.07
EV/EBITDA	10.91

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SNDL does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as SNDL's earnings are expected to grow with 33.21% in the coming years.